United Arab Emirates: a cap on vehicles per resident in 2027

The implementing regulation of the federal traffic law, approved by Cabinet Decision No. 174 of 2026, enters into force on 1 January 2027. Article 89 limits each individual resident to 5 registered vehicles. The basic regime allows 2 vehicles: to register or renew more, the owner will have to pay additional fees for each vehicle, up to a limit of 5.

The text was issued on 6 October 2026. It replaces the previous implementing regulation, adopted by Ministerial Decision No. 130 of 1997, as well as the implementing decisions covered by its repeal provisions. It applies Federal Decree-Law No. 14 of 2024 on traffic regulation.

The provision targets residents as individuals. For a person living in the Emirates, the cost of registration or renewal will therefore increase from the third vehicle, and a sixth vehicle can no longer be registered in their name. For companies, the article does not provide for an equivalent numerical limit.

The same Article 89 requires registration applications to be submitted through the electronic channels or applications designated by the competent authority. It also prohibits the registration of right-hand-drive vehicles, which may only be used for display purposes, and excludes vehicles that do not meet road safety requirements.

The decision does not state the amount of the additional fees, nor whether they will be identical across the whole country. Nor does it say how the limit will apply to residents who already have more than 5 vehicles registered in their name.

The fate of existing registrations when the regulation enters into force is not detailed. The residents concerned will have to wait for clarification from the registration authorities before planning a renewal or a purchase.