UAE Residents Limited to Registering Five Vehicles from 2027
Under new UAE traffic regulations taking effect on January 1, 2027, residents will be allowed to register no more than five vehicles in their name. Registering or renewing the licences of a third, fourth or fifth vehicle will also incur an additional fee for each vehicle.
The provisions are set out in UAE Cabinet Resolution No. 174 of 2026, which approved the executive regulations for Federal Decree-Law No. 14 of 2024 concerning the regulation of traffic and road affairs.
Under Article 89 of the regulations, UAE residents may register up to two vehicles in their name under the standard fee structure. Those wishing to register or renew the licences of additional vehicles must pay a separate fee for each one, provided that the total number of licensed vehicles registered in their name does not exceed five.
This means residents may register or renew the licences of a third, fourth and fifth vehicle by paying an additional fee, but the maximum remains five vehicles per resident.
However, the new resolution does not specify the amount of the additional fee. It also remains unclear how the limit will apply to people who registered more than five vehicles in their name before the regulations take effect.
New vehicle registration and licensing requirements in the UAE
The vehicle limit forms part of a broader set of new regulations governing vehicle registration, licensing and safety requirements across the UAE.
Under Article 89, vehicle owners or their legal representatives must submit licensing applications through the electronic systems or applications designated by the relevant authorities and comply with the prescribed procedures and instructions.
The article also prohibits the licensing of right-hand-drive vehicles, meaning vehicles with the steering wheel on the right. However, such vehicles may be used solely for display purposes.
Vehicles that fail to meet the prescribed road safety requirements and standards will also be ineligible for licensing.
Does the five-vehicle limit also apply to companies?
The five-vehicle registration limit set out in Article 89 specifically applies to individual UAE residents.
The article does not impose a similar numerical limit on companies. However, this does not mean that company-owned vehicles are exempt from other registration rules.
The new regulations also do not state whether the additional fees for registering or renewing the licences of third, fourth and fifth vehicles will be uniform across all emirates or whether different amounts may be charged.
It also remains unclear how vehicles registered before the new regulations take effect will be handled, particularly those belonging to people who currently own more than five vehicles.
How the new rules differ from current vehicle registration requirements in Dubai
According to information published on the official website of Dubai’s Roads and Transport Authority (RTA), current vehicle registration rules allow residents to register no more than three vehicles, while no numerical limit applies to UAE citizens.
However, the new federal regulations will take effect on January 1, 2027, and set a five-vehicle registration limit for residents, with an additional fee applying to the registration or licence renewal of any vehicle beyond the first two.
Details of how existing rules issued by local authorities will be aligned with the new federal regulations have yet to be fully clarified.
When will the new regulations take effect?
The new executive regulations were issued on October 6, 2026, and will take effect on January 1, 2027.
They will replace the previous executive regulations approved under Ministerial Decision No. 130 of 1997. Related implementing decisions identified for repeal under the new regulations will also cease to have effect.
Accordingly, from the beginning of 2027, UAE residents will be required to pay an additional fee to register or renew the licences of third, fourth and fifth vehicles, while the total number of licensed vehicles registered in any resident’s name must not exceed five.
However, the amount of the additional fees and how the limit will be enforced for people who already own more than five vehicles are among the issues that still require further clarification from the relevant authorities.