5-Car Cap Introduced for Resident Vehicle Registration Starting 2027
Individual residents in the UAE will face a cap of five licensed vehicles each under federal traffic regulations taking effect on January 1, 2027.
The limit is established under Cabinet Decision No. 174 of 2026, which approves the Executive Regulation of Federal Decree-Law No. 14 of 2024 on the Regulation of Traffic. Issued on October 6, 2026, the regulation replaces the previous framework under Ministerial Decision No. 130 of 1997.
Ownership Caps and Fee Tiers
The updated framework changes how personal vehicle licensing works across the country by establishing strict tiers for individual owners:
- First and second vehicles: Allowed under standard registration provisions.
- Third, fourth, and fifth vehicles: Permitted, but subject to an additional registration or renewal fee per vehicle.
- Sixth vehicle and beyond: Exceeds the individual cap of five licensed vehicles per resident.
Compliance and Insurance Rules
Valid motor insurance remains mandatory for every vehicle on the road. Under the incoming rules, a vehicle cannot be registered or renewed without active insurance coverage. Motorists managing multiple vehicles will need to track individual policy expiration dates to prevent registration lapses when renewals fall due.
