Residents in the UAE who keep more than a couple of cars are about to hit a ceiling. Under federal traffic rules taking effect on January 1, 2027, each individual can hold no more than five licensed vehicles, and extra fees will apply beyond the first two. The new UAE vehicle registration limit comes from 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 rules were reported by Gulf News on November 1.
How the cap works
Article 89 builds the system in two tiers. Individuals can register two vehicles under the standard provision. Anyone who wants to register or renew a third, fourth or fifth vehicle must pay an additional fee for each one. Once a resident reaches five, the UAE vehicle registration limit rules out any further licences.
What the rules don’t say
The decision leaves some practical questions open. It doesn’t state how much the extra fee will be, and it doesn’t say whether the amount will be the same across the country. It is also silent on how the cap will apply to residents who already have more than five vehicles registered in their names. People in that position will want guidance from the licensing authorities before the rules begin.
Does it apply to companies?
Not in the same way, at least on the published text. The five-vehicle provision refers to individual residents, and Article 89 sets no equivalent number for companies. For now, the UAE vehicle registration limit reads as a personal cap rather than a business one.
Who is likely to feel it
Most residents with one or two cars won’t notice any change, since the first two registrations fall under the standard provision. The impact lands on households with several drivers, people who keep extra vehicles for weekends or work, and owners with larger collections. For them, the UAE vehicle registration limit adds both a hard stop at five and a cost for every car after the second.
Other licensing requirements in Article 89
The article covers more than vehicle counts. Owners, or their legally authorised representatives, must submit licensing applications through the electronic channels or apps that the relevant licensing authority announces, and follow the prescribed procedures. Right-hand-drive vehicles can’t be licensed, although they may be used for display purposes. Vehicles that fail to meet the prescribed road safety requirements are not eligible for licensing either.
When it takes effect
The Executive Regulation was issued on October 6, 2026 and comes into force on January 1, 2027. It replaces the earlier executive regulation issued under Ministerial Decision No. 130 of 1997, along with the implementing decisions covered by its repeal provisions. From that date, the UAE vehicle registration limit applies to registrations and renewals.
What residents should keep in mind
With roughly two months to go, households that own several cars have time to review what is registered in their names. Anyone planning to add another vehicle should factor in the UAE vehicle registration limit and the extra fees that come after the second car. Since the amounts haven’t been announced, it is worth watching for further details from the authorities. Until then, the safest reading is a firm ceiling of five per individual, with fees starting at the third.
