From 1 January 2027, an individual UAE resident may have no more than five licensed vehicles registered in their name. The first two may be registered without the additional fee created by the new rule, while a further vehicle is subject to an additional fee for each vehicle up to the five-vehicle ceiling.
The official Emirates News Agency summary identifies Article 89 of Cabinet Decision No. 174 of 2026. It does not publish the amount of the additional fee in that announcement, so motorists should not rely on an unofficial figure or assume the ordinary registration and inspection charges disappear.
The new resident limit at a glance
| Situation | Confirmed rule | Action |
|---|---|---|
| Effective date | 1 January 2027 | Review vehicles before the next transaction |
| First two vehicles | No additional fee under this specific rule | Normal licensing costs may still apply |
| Third to fifth vehicles | Additional fee per vehicle | Check the licensing authority’s current fee |
| Maximum | Five licensed vehicles per resident | Do not assume a sixth can be registered |
| Right-hand drive | Road licensing prohibited; exhibition use only | Confirm eligibility before importing |
Count records, not only cars in the driveway
A resident should review the vehicles legally registered in their name, including one used by a family member, a vehicle awaiting sale or transfer and a vehicle not currently driven. Physical possession and registration ownership are different. Retrieve the current traffic file and compare chassis, plate and registration details before applying for another vehicle.
Our Dubai vehicle registration renewal guide explains the normal renewal evidence. Owners preparing for the separate two-year option can read the UAE two-year registration guide.
- List every active vehicle registered in the resident’s name.
- Check whether a sold or scrapped vehicle was formally transferred or cancelled.
- Match the traffic file, chassis number, plate and insurance record.
- Ask the licensing authority for the current additional fee.
- Do not pay a seller before confirming registration eligibility.
- Keep transfer, cancellation and payment receipts.
- Recheck the rule before a transaction after 1 January 2027.
What the fee wording does and does not mean
The announcement says residents may register up to two vehicles without additional fees and that further vehicles incur an additional fee. This refers to the new additional charge, not a promise of cost-free registration. Insurance, inspection, testing, knowledge or innovation fees and other applicable charges may remain.
Before paying, request an itemised official amount. Use the evidence practices in our UAE receipt and card-charge guide. A message from a dealer or social account is not a substitute for the licensing authority’s current schedule.
Transfers, disposal and inactive vehicles
If a vehicle has been sold, confirm that ownership transfer is complete; handing over keys is not enough. If it is scrapped or exported, follow the formal cancellation route and keep proof. An unresolved record can cause insurance, fine or licensing problems even when the car is no longer with the registered owner.
Check outstanding matters using our Dubai traffic-fine review guide. For a planned purchase, the UAE road-trip checklist helps organise vehicle-readiness questions.
Right-hand-drive vehicles
The same official summary says right-hand-drive vehicles may not be licensed for road use and are permitted only for exhibition purposes. A vehicle’s availability for import, collection or display does not prove it can be road-registered. Obtain written confirmation before purchase or shipping.
Long-distance owners should also remember that registration status is only one safety layer. Review tyres, lights and emergency equipment with our Dubai car-safety checklist.
Questions people often ask
When does the five-vehicle limit begin?
The announced effective date is 1 January 2027.
How many vehicles may an individual resident register?
The announced maximum is five licensed vehicles in one resident’s name.
Are the first two vehicle registrations completely free?
No. The announcement removes the new additional fee for the first two; ordinary licensing, insurance and other applicable costs may remain.
What is the extra fee for a third vehicle?
The cited announcement does not state the amount. Check the relevant licensing authority’s current fee schedule.
Can a right-hand-drive vehicle be registered for road use?
The new summary says it cannot be licensed for road use and may be permitted only for exhibition purposes.
