The UAE has set a new UAE vehicle ownership limit for people living in the country: an individual resident will be able to keep a maximum of five vehicles licensed in their own name, and will pay an extra fee for every car beyond the first two. The rule sits inside the new executive regulation of the federal traffic law and starts on 1 January 2027, so there is time to plan before it applies.
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What the new rule says
The regulation was issued as Cabinet Decision No. 174 of 2026, the executive regulation of Federal Decree-Law No. 14 of 2024 on the regulation of traffic. It was issued on 6 October 2026, comes into force on 1 January 2027, and replaces the executive regulation that had been in place since 1997.
The UAE vehicle ownership limit is set out in Article 89, which lets an individual resident register two vehicles under the standard provision. Anyone who wants to register or renew a third, fourth or fifth car pays an additional fee for each of those vehicles, and the total number licensed to one resident cannot go above five.
- One or two vehicles: normal registration and renewal.
- Three to five vehicles: allowed, but an extra fee applies per vehicle, at registration and at renewal.
- Six or more: not available to an individual resident.
Two points are still open: the amount of the additional fee has not been published, and the text does not say how residents who already hold more than five registrations will be handled. Each emirate’s licensing authority is expected to publish the detail closer to January.
Two-year registration for some new cars
The same regulation keeps one year as the standard licence period, renewable as usual. It also adds an option to register a light vehicle for two years instead of one. According to Emarat Al Youm, which reviewed the regulation, three conditions must all be met: the car must be brand new when it is first licensed, it must not be more than six years old from its manufacturing date, and it must be owned by a natural person rather than a company.
| Item | From 1 January 2027 |
|---|---|
| Vehicles per resident, standard | 2 |
| Maximum licensed per resident | 5 |
| Extra fee | Per vehicle above two, amount not yet published |
| Standard licence validity | 1 year, renewable |
| Optional validity, light vehicles | 2 years, if all three conditions are met |
| Age cap for the 2-year option | 6 years from manufacture |
Other changes worth knowing
Beyond the UAE vehicle ownership limit, licensing right-hand-drive vehicles is now prohibited except for display purposes, and vehicles that fail the prescribed road safety requirements cannot be licensed at all. Applications must go through the channels or apps announced by the licensing authority.
Ignoring a manufacturer recall also carries a new consequence. Article 122 requires licensing authorities to make sure owners respond to recalls, and the measures available include blocking transactions tied to the vehicle identification number of an affected car. Agents must repair announced defects free of charge.
What to do before January
Count how many cars are licensed in your own name now, and decide which ones you want to keep registered personally. If you are buying a new light vehicle next year, ask the registration centre about the two-year option. Our guide to vehicle registration renewal in Abu Dhabi covers the paperwork, and the recent Dubai speed limit changes are a reminder that road rules are moving quickly this year.
The federal text sits on the UAE Legislation platform, and services are listed on the UAE government portal. Nothing applies before 1 January 2027, so your current registration stays valid.
