UAE residents can own up to 5 vehicles from January 2027 under new traffic rules

Cabinet Decision No. 174 of 2026 sets a five-vehicle ceiling per resident, with extra fees applying beyond the first two

Staff Writer
Dubai, UAE, cars
Image: Dubai Media Office

Article summary

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UAE residents will be capped at five registered vehicles each under new federal traffic rules taking effect January 1, 2027. Cabinet Decision No. 174 of 2026 allows two vehicles under standard provisions, with additional fees applying beyond that limit.

Key points

  • UAE residents limited to five registered vehicles each from January 2027
  • Extra fees apply for any registration beyond the first two vehicles
  • The cap applies to individuals only; companies face no equivalent numerical limit

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UAE residents will be limited to five registered vehicles each under new federal traffic regulations taking effect on January 1, 2027, with additional fees applied to any registration or renewal beyond the first two.

The rule is set out in Cabinet Decision No. 174 of 2026, which approves the Executive Regulation of Federal Decree-Law No. 14 of 2024 on the Regulation of Traffic. The Executive Regulation was issued on October 6, 2026, and replaces the previous framework established under Ministerial Decision No. 130 of 1997.

Under Article 89, residents may own up to two vehicles under the standard provision. Those wishing to register additional vehicles must pay an extra fee for each one, with the total capped at five per individual.

The regulation does not specify the amount of the additional fee, nor does it clarify how the limit will apply to residents who currently have more than five vehicles in their name.

The five-vehicle restriction applies to individual residents only. The regulation does not set an equivalent numerical ceiling for companies, and it does not detail whether the additional fees will be applied uniformly across the UAE.

Article 89 also requires vehicle owners, or their legally authorised representatives, to submit licensing applications through official electronic channels and comply with prescribed procedures.

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Right-hand-drive vehicles may not be licensed under the regulation, though they may be used for display purposes. Vehicles that do not meet road safety requirements are also ineligible for licensing.

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