Individual residents in the UAE who register or renew more than two vehicles will have to pay an additional fee for each extra vehicle from January 1, 2027, under a new federal traffic regulation. The total number of licensed vehicles must not exceed five per resident.
The requirement is set out 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.
Under the provision, individual residents are permitted to own up to two vehicles before the additional-fee requirement applies. Registering or renewing a third, fourth or fifth vehicle will attract the extra charge. Paying it does not allow a resident to exceed the five-vehicle ceiling.
Stay up to date with the latest news. Follow KT on WhatsApp channels.
The limit applies per individual resident, rather than per household. The wording refers to vehicles, not just passenger cars, and does not set out an equivalent numerical cap for companies in the same clause.
It does not specify the amount of the additional fee or explain how residents who already have more than five licensed vehicles will be affected. It also does not detail transitional arrangements or set a deadline for such residents to sell or transfer vehicles.
Other vehicle-licensing requirements
The same article requires vehicle owners, or their legally authorised representatives, to submit licensing applications through the channels or applications announced by the relevant licensing authority. Applicants must follow the authority’s procedures and instructions.
Right-hand-drive vehicles cannot be licensed under the provision and are permitted for display purposes only. Vehicles that do not meet traffic-safety requirements also cannot be licensed.
Earlier FNC discussion
Vehicle-ownership conditions were discussed at a Federal National Council session earlier this year, as part of a debate on traffic safety and congestion. The council recommended regulating ownership conditions, including setting a vehicle’s service life, to help address increased journeys during peak hours.
Khaleej Times reported at the time that the Minister of Energy and Infrastructure said legislation being prepared for submission to the Cabinet included limits on how many vehicles a person could own.
The new regulation replaces the UAE’s earlier traffic regulations issued under Ministerial Resolution No. 130 of 1997.
Under the previous vehicle-licensing application provision, owners or their representatives were required to apply to the licensing authority and pay the prescribed fees.
Source: Khaleej Times