Asan Tata— November 3, 2026From 1 January 2027, an individual resident in the UAE will be allowed to hold a maximum of five licensed vehicles. The first two vehicles fall under the standard rule. Each additional vehicle, up to the fifth, will attract an extra fee at registration or renewal. This is the rule set out in Article 89 of Cabinet Decision No. 174 of 2026, the executive regulation of Federal Decree-Law No. 14 of 2024 on traffic regulation.
The change matters most to residents who own several cars, such as families with a car per driver, collectors, and people who keep a spare vehicle. For most residents, who own one or two cars, nothing changes. But anyone with three or more vehicles should understand the new cap now, because the regulation takes effect at the start of 2027 and the extra fee will apply at the next registration or renewal after that date.
Quick Answer
From 1 January 2027, an individual resident in the UAE may hold no more than five licensed vehicles. The first two vehicles are covered by the standard provision. Registering or renewing a third, fourth, or fifth vehicle will require an additional fee for each extra vehicle. Paying that fee does not allow a resident to go above five vehicles. The amount of the extra fee has not yet been published, and the regulation does not explain how residents who already hold more than five vehicles will be treated. The cap applies per individual resident, not per household, and the same article sets no equivalent cap for companies.
What the New Rule Says
Cabinet Decision No. 174 of 2026 approves the executive regulation of Federal Decree-Law No. 14 of 2024 on the Regulation of Traffic. The decision was issued on 6 October 2026 and comes into force on 1 January 2027. It replaces the earlier traffic regulations issued under Ministerial Resolution No. 130 of 1997.
Article 89 of the new regulation deals with vehicle licensing. It states that an individual resident may own up to two vehicles under the standard provision. A resident who wants to register or renew additional vehicles must pay an extra fee for each one, provided the total does not exceed five licensed vehicles per resident.
Two points in the article are worth noting. First, the limit is written per individual resident. It is not a household limit, so two residents living at the same address each have their own allowance. Second, the article does not set an equivalent numerical cap for companies in the same clause. A business fleet is therefore not covered by this particular five-vehicle figure.
The Five-Vehicle Cap Explained
The rule works as a simple ladder. The first two vehicles sit within the standard provision. The third, fourth, and fifth vehicles each attract an additional fee. A sixth vehicle cannot be licensed in the name of the same individual resident, even if the owner is willing to pay.
| Vehicle number | What applies |
|---|---|
| First vehicle | Standard provision, no extra fee under Article 89 |
| Second vehicle | Standard provision, no extra fee under Article 89 |
| Third vehicle | Additional fee applies at registration or renewal |
| Fourth vehicle | Additional fee applies at registration or renewal |
| Fifth vehicle | Additional fee applies at registration or renewal |
| Sixth vehicle and above | Cannot be licensed in the same individual resident’s name |
The wording of the article refers to vehicles, not only passenger cars. Readers should therefore not assume the cap covers cars alone. The reports on the regulation do not break the cap down by vehicle type, so anyone holding motorcycles or other licensed vehicles in their name should check how their own registrations are counted.
The extra fee applies both when a vehicle is first registered and when an existing registration is renewed. In practice, this means the fee question will come up at each renewal cycle for the third, fourth, and fifth vehicles, not only at the time of purchase.
What the Extra Fee Will Cost
The honest answer is that the amount has not been published yet. Both Khaleej Times and Gulf News report that Cabinet Decision No. 174 of 2026 does not specify the amount of the additional fee. It also does not say whether the fee will be the same across all emirates or set separately by each licensing authority.
Until the fee is announced, no article can give a reliable figure, and readers should treat any number circulating online with caution. The sensible step is to watch for an announcement from the relevant licensing authority in your emirate, such as the Roads and Transport Authority in Dubai or the police traffic departments elsewhere, before your next renewal date.
What is clear is the structure: the fee is charged per extra vehicle, not as a single flat charge for owning several vehicles. A resident with four vehicles would therefore face the extra fee twice, once for the third vehicle and once for the fourth, while a resident with five vehicles would face it three times.
Who the Cap Applies To
The cap applies to individual residents. That wording covers UAE residents who hold vehicles in their own personal names. It does not apply as a household total, so a family with several licensed drivers can hold more vehicles across the family than any one member could alone, as long as each vehicle is registered in the name of a different individual resident.
Companies are treated differently in the same article. Article 89 sets no equivalent numerical cap for companies, so a business that operates a fleet is not limited to five vehicles by this provision. Fleet owners should still check the wider regulation, because other articles of the same decision may set separate conditions for commercial vehicles.
Residents who already hold more than five vehicles are in an unclear position. The regulation, as reported, does not explain how existing registrations above the cap will be treated, and it does not set a deadline for affected owners to sell or transfer vehicles. No transitional arrangement has been published so far. Owners in this situation should seek guidance from their licensing authority before 1 January 2027 rather than assuming their current registrations will simply carry over.
Other Licensing Requirements in Article 89
Article 89 also sets out how licensing applications must be made. Vehicle owners, or their legally authorised representatives, must submit applications through the channels or applications announced by the relevant licensing authority, and must follow that authority’s procedures and instructions.
The article also confirms two exclusions. Right-hand-drive vehicles cannot be licensed under the provision, although they may be kept for display purposes only. Vehicles that do not meet the prescribed traffic-safety requirements also cannot be licensed.
For most owners, the practical effect is small: apply through the official channel, keep the vehicle roadworthy, and make sure the paperwork matches the authority’s instructions. The new element is the cap itself, plus the extra fee for vehicles beyond the first two.
Why the Rule Was Introduced
Vehicle ownership conditions were discussed at a Federal National Council session earlier in 2026, 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 the growth in 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. Article 89 is that limit, now written into the executive regulation. The stated background is therefore traffic management: fewer vehicles per person is intended to ease pressure on busy roads at peak times.
The same regulation contains other 2027 changes that drivers should know about. It introduces new driving test rules, including a 75 per cent minimum score, and new overtaking rules.
What to Do Before 1 January 2027
If you own one or two vehicles, no action is needed. The standard provision covers both, and the cap does not affect you. If you own three or more vehicles, the following steps will help you prepare.
First, list every vehicle licensed in your name and confirm the count. Include any vehicle you may have forgotten, such as a motorcycle or a car registered for a family member in your name. Second, check the renewal dates for the third, fourth, and fifth vehicles, since the extra fee will apply at registration or renewal from 2027. Third, if you hold more than five vehicles, contact your licensing authority early to ask how existing registrations above the cap will be handled, because the regulation as reported does not answer that question.
Fourth, if a vehicle in your name is actually used by another resident family member, consider whether a transfer to that person’s name is appropriate. Any transfer must follow the authority’s own process, and both parties should confirm the change is recorded correctly. Finally, keep an eye out for the announcement of the extra fee amount, so the cost at your next renewal does not come as a surprise.
When you renew, the usual requirements still apply. Make sure traffic fines linked to the vehicle are settled, the vehicle passes any required inspection, and valid insurance is in place, as licensing authorities check these items as part of the renewal process.
What Is Still Unclear
Several questions remain unanswered in the published reports, and readers should not rely on guesses for any of them. The amount of the additional fee is not specified. Whether the fee will be uniform across the UAE is not specified. How residents who already hold more than five vehicles will be treated is not explained. No transitional arrangement or deadline for selling or transferring excess vehicles has been published. The regulation also does not break down, in the reports available, how different vehicle types are counted toward the five.
These gaps are normal for a regulation that has been issued but has not yet come into force. The licensing authorities have until 1 January 2027 to publish the fee schedule and any transitional rules. This article will be updated when those details are announced.
Frequently Asked Questions
How many vehicles can one resident own in the UAE from 2027?
From 1 January 2027, an individual resident may hold a maximum of five licensed vehicles. The first two fall under the standard provision, and the third, fourth, and fifth each attract an additional fee.
Does the five-vehicle cap apply per household or per person?
It applies per individual resident, not per household. Each resident has a separate allowance of up to five vehicles in their own name.
How much is the extra fee for a third, fourth, or fifth vehicle?
The amount has not been published yet. Cabinet Decision No. 174 of 2026 does not specify the fee, and it is not yet clear whether it will be uniform across the emirates.
Does the cap apply to companies with vehicle fleets?
No equivalent numerical cap for companies is set out in Article 89. The five-vehicle figure applies to individual residents only.
I already own more than five vehicles. What happens to them?
The regulation as reported does not explain this. No transitional arrangement or deadline has been published. Contact your licensing authority before 1 January 2027 for guidance on your own registrations.
Can a right-hand-drive vehicle be licensed under the new rules?
No. Right-hand-drive vehicles cannot be licensed under Article 89, although they may be kept for display purposes only. Vehicles that fail traffic-safety requirements also cannot be licensed.
Disclaimer: This article is general information based on published reports of Cabinet Decision No. 174 of 2026. The additional fee amount and any transitional arrangements had not been published at the time of writing. Always confirm the current rules and fees with your emirate’s licensing authority before registering, renewing, or transferring a vehicle.
Last Updated: 3 November 2026
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