What to do before 1 January 2027
There is nothing to file today, but residents with three or more vehicles should prepare:
- 1
Step 1: Count the vehicles registered in your name
Check your traffic file on the MOI UAE app, the RTA app in Dubai or the TAMM platform in Abu Dhabi. Include vehicles you no longer drive but never de-registered.
- 2
Step 2: De-register or transfer cars you no longer use
Sell, export or scrap vehicles that are standing idle, and complete the ownership transfer or cancellation so they stop counting against your allowance.
- 3
Step 3: Note your renewal dates
The additional fee is linked to registration and renewal. A third car renewed after 1 January 2027 is the first point at which the extra charge is likely to appear.
- 4
Step 4: Watch for the fee announcement
The extra fee amount and transition rules for owners above five vehicles are expected in implementing announcements. Check the official traffic authority before buying another car in late 2026.
What the new rule says
The UAE Cabinet approved a new Executive Regulation of Federal Decree-Law No. 14 of 2024 on the Regulation of Traffic through Cabinet Decision No. 174 of 2026, reported as issued on 6 October 2026. It replaces the 1997 executive regulation and takes effect on 1 January 2027.
Article 89 of the regulation covers vehicle licensing. Under it, an individual resident may own up to two vehicles under the standard provision. Registering or renewing any vehicle beyond the first two attracts an additional per-vehicle fee, and an individual resident may not hold more than five licensed vehicles in total.
The limit is written for individuals. Reports of the regulation do not set an equivalent numerical cap for company-owned fleets, so business vehicles registered to a trade licence are treated separately.
Who is affected
Most expatriate households are not affected: a family running one or two cars stays within the standard allowance. The rule mainly matters for residents who keep a third car for a driver or family member, collectors and enthusiasts, and people who register vehicles in their own name for a side business.
Because the cap counts vehicles licensed to one person, moving a car into a spouse’s or adult child’s name is a legitimate way to spread ownership, provided that person genuinely owns, insures and is responsible for the vehicle. Do not register a car in someone else’s name only to avoid the fee; the registered owner carries the legal liability for fines, accidents and insurance.
Other licensing rules in the same regulation
The same package tightens several licensing basics. Applications are made through the electronic channels or apps announced by the licensing authority. Right-hand-drive vehicles cannot be licensed for road use and may only be used for display. Vehicles that do not meet road-safety requirements cannot be licensed.
Reports also say some new light vehicles can receive a two-year registration instead of the usual one year. Confirm the period that applies to your vehicle at the time of registration rather than assuming it.
What is still unknown
As of 3 November 2026, the regulation as reported does not state the amount of the additional fee, whether the fee is the same in every emirate, or how residents who already hold more than five vehicles will be treated when the rule starts. We will update this guide when the licensing authorities publish those details.