UAE residents can own 2 vehicles, register 3 more for extra fee under new traffic rules

Residents across the UAE who register or renew more than two vehicles will have to pay an additional fee for each extra vehicle starting January 1, 2027, under a new federal traffic regulation.

The regulation also sets a maximum limit of five licensed vehicles per individual resident. This means residents can register or renew two vehicles without the additional charge, while the third, fourth and fifth vehicles will attract extra fees.

The new requirement is outlined in Article 89 of Cabinet Decision No. 174 of 2026, which contains the executive regulation of Federal Decree-Law No. 14 of 2024 on traffic regulation.

UAE Vehicle Ownership Limit: Maximum Five Vehicles per Resident

Under the new regulation, individual residents can own up to five licensed vehicles. However, an additional fee will apply when registering or renewing more than two vehicles.

The rules can be summarised as follows:

First and second vehicles: No additional fee under this provision.
Third vehicle: Additional fee applies.
Fourth vehicle: Additional fee applies.
Fifth vehicle: Additional fee applies.
More than five vehicles: Not permitted under the individual ownership limit.

The regulation applies to each individual resident rather than an entire household. It also refers to vehicles in general, not just passenger cars.

The same provision does not establish an equivalent numerical ownership limit for companies.

Additional Vehicle Registration Fee: What Residents Should Know

Although the regulation confirms that additional charges will apply, it does not specify the exact fee for registering or renewing vehicles beyond the first two.

It also does not clarify how residents who already have more than five licensed vehicles will be affected when the new rules come into effect.

Details about transitional arrangements, vehicle transfers and deadlines for existing owners have not been provided in the provision.

Residents with multiple registered vehicles may therefore need to follow further announcements from the relevant authorities before January 2027.

Other Vehicle Licensing Requirements Under the New UAE Rules

Article 89 also outlines other conditions related to vehicle registration and licensing across the UAE.

According to the regulation, vehicle owners or their legally authorised representatives must submit licensing applications through the official channels or applications announced by the relevant licensing authority.

Applicants must follow the procedures and instructions established by the authority.

The regulation also includes restrictions on certain types of vehicles.

Right-Hand-Drive Vehicles Cannot Be Licensed

Right-hand-drive vehicles cannot be registered or licensed under the new provision. They are permitted for display purposes only.

Additionally, vehicles that fail to meet the required traffic safety standards will not qualify for licensing.

These requirements aim to ensure that vehicles operating on UAE roads meet the necessary safety and regulatory conditions.

Earlier Federal National Council Discussions on Vehicle Ownership

Vehicle ownership restrictions were previously discussed during a Federal National Council (FNC) session earlier this year.

The discussion formed part of a broader debate about road safety, traffic congestion and the increasing number of journeys during peak hours.

The council recommended regulating vehicle ownership conditions, including considering limits on a vehicle's service life, to help address growing traffic pressure.

The Minister of Energy and Infrastructure also stated that legislation being prepared for submission to the Cabinet included provisions to limit the number of vehicles an individual could own.

New UAE Traffic Regulation Replaces 1997 Rules

The latest regulation replaces the UAE's previous traffic regulations introduced under Ministerial Resolution No. 130 of 1997.

Under the earlier vehicle-licensing provisions, owners or their authorised representatives had to apply to the relevant licensing authority and pay the prescribed fees.

The updated framework introduces additional conditions for individual vehicle ownership, alongside revised licensing and safety requirements.

With the new rules scheduled to take effect on January 1, 2027, residents who own or plan to register multiple vehicles should stay informed about further announcements regarding additional fees and implementation procedures.