UAE caps individual residents at five licensed vehicles from 1 January 2027

Each individual resident in the UAE will be able to hold no more than five licensed vehicles under federal traffic rules that take effect on 1 January 2027. Extra fees will apply when registering or renewing any vehicle beyond the first two, Gulf News reported on 1 November 2026.

The cap comes from Cabinet Decision No. 174 of 2026. That decision approves the executive regulation for Federal Decree-Law No. 14 of 2024, the country's traffic law. The regulation was issued on 6 October 2026. It replaces the 1997 regulation issued under Ministerial Decision No. 130, and also the decisions that implemented it and are cancelled by the new text.

Article 89 sets the standard allowance for an individual resident at two vehicles. A resident who wants to register or renew more pays an additional fee for each extra vehicle, provided the total does not pass five.

The five-vehicle limit refers to individual residents. The article sets no matching numerical limit for companies.

Article 89 also sets other licensing requirements:

• Owners or their legally authorised representatives must file licensing applications through the electronic channels or apps named by the licensing authority.
• Right-hand-drive vehicles cannot be licensed, although they can be shown for display.
• Vehicles that fall short of the prescribed road safety requirements cannot be licensed.

The decision does not state the amount of the additional fee. It also does not say if the fee will be the same in every emirate, or how the cap will treat residents who currently have more than five vehicles in their name.

For residents who own or plan to own several cars, the extra fee will apply from the third vehicle at registration or renewal once the rules are in force. Those who prefer not to register additional vehicles can consider car rental in Dubai instead.