UAE Residents Limited to Five Licensed Vehicles with New Ownership Fees
From 2027, UAE residents can own up to two vehicles without extra fees; registering more incurs charges, with a maximum of five vehicles allowed.
Starting January 1, 2027, individual residents in the United Arab Emirates will face new restrictions on vehicle ownership under updated federal traffic regulations. Each resident may own up to two vehicles without additional fees, but registering or renewing licenses for a third to fifth vehicle will require payment of an extra charge. The total number of licensed vehicles per resident cannot exceed five.
This policy is outlined in Article 89 of Cabinet Decision No. 174 of 2026, which enforces Federal Decree-Law No. 14 of 2024 concerning traffic regulation. The regulation applies to individual residents rather than households and includes all types of vehicles, not only passenger cars. However, the regulation does not impose a similar limit on companies.
The specific amount of the additional fee has not been disclosed, nor does the regulation clarify how residents who currently hold licenses for more than five vehicles will be affected. There is also no information about transitional arrangements or deadlines for reducing vehicle numbers to comply with the new limit.
Licensing Application Procedures and Vehicle Restrictions
The same article mandates that vehicle owners or their authorized representatives must submit licensing applications through official channels designated by the relevant licensing authorities. Applicants are required to adhere to the procedures and instructions set by these authorities.
Licensing will not be granted for right-hand-drive vehicles, which are only allowed for display purposes. Additionally, vehicles that fail to meet traffic safety standards are ineligible for licensing under the new rules.
Background and Legislative Context
The Federal National Council discussed vehicle ownership conditions earlier this year amid concerns about traffic safety and congestion. The council suggested regulating ownership limits and vehicle service life to mitigate peak-hour travel increases.
At that time, the Minister of Energy and Infrastructure indicated that forthcoming legislation would include restrictions on the number of vehicles an individual could own.
The new regulations supersede previous traffic rules established under Ministerial Resolution No. 130 of 1997. Previously, vehicle owners or their representatives were required to apply to licensing authorities and pay prescribed fees to register their vehicles.