UAE vehicle limit: Residents can own two cars, register three more for a fee

The new UAE vehicle limit allows individual residents to hold no more than five licensed vehicles, Khaleej Times reported. From January 1, 2027, residents who register or renew more than two vehicles will pay an additional fee for each extra one.

What is the UAE vehicle limit for residents?

Each individual resident can license a maximum of five vehicles. The first two carry no extra fee. A third, fourth or fifth vehicle can be registered or renewed, but each will attract an added charge from January 1, 2027.

The rule is in Article 89 of Cabinet Decision No. 174 of 2026. The decision contains the executive regulation of Federal Decree-Law No. 14 of 2024 on traffic regulation.

Paying the fee does not let a resident exceed the five-vehicle limit. The limit applies to each individual resident, not each household. The wording covers vehicles, not just passenger cars.

The clause sets no equivalent numerical cap for companies.

What does the UAE vehicle limit not explain?

The regulation does not give the amount of the additional fee. It does not explain how residents who already hold more than five licensed vehicles will be affected.

It also gives no transitional arrangements. It sets no deadline for those residents to sell or transfer vehicles.

What other vehicle licensing rules apply?

The same article requires vehicle owners or their legally authorized representatives to apply for licensing through the channels or apps announced by the licensing authority. Applicants must follow the authority’s procedures and instructions.

Right-hand-drive vehicles cannot be licensed under the provision. They are allowed for display purposes only. Vehicles that do not meet traffic-safety requirements also cannot be licensed.

Why is the UAE introducing a vehicle ownership limit?

The Federal National Council discussed vehicle-ownership conditions earlier this year. The debate was part of a session on traffic safety and congestion.

The council recommended regulating ownership conditions, including setting a vehicle’s service life. The aim was to help address increased journeys during peak hours.

At the time, the Minister of Energy and Infrastructure said legislation being prepared for the Cabinet included limits on how many vehicles a person could own.

What rules does the new regulation replace?

The new regulation replaces the UAE’s earlier traffic regulations issued under Ministerial Resolution No. 130 of 1997. Under the earlier licensing provision, owners or their representatives had to apply to the licensing authority and pay the prescribed fees.