Starting January 1, 2027, UAE residents will face new federal traffic regulations regarding how many vehicles they can register. According to the recently issued Cabinet Decision No. 174 of 2026, individuals can register up to two vehicles without any penalty. However, those wishing to register or renew a third, fourth, or fifth vehicle will be required to pay an additional fee for each. It is important to note that the total limit for any single resident is capped at five vehicles, and paying the extra fee does not grant permission to exceed this maximum threshold.

This policy applies specifically to individual residents rather than entire households, and it encompasses all types of vehicles rather than just passenger cars. While the regulation sets clear boundaries on private ownership, it currently lacks specific details regarding the exact cost of these additional fees or how the law will affect residents who already own more than five vehicles before the deadline. Furthermore, the new rules reinforce that right-hand-drive vehicles remain restricted to display purposes only, and all licensed vehicles must meet strict safety standards to remain on the road.