New traffic Laws Allow UAE Residents to Own 2 Cars and Register 3 more For a Charge
According to the new federal traffic law, starting January 1, 2027, UAE residents registering or renewing more than two vehicles will have to pay an additional price for each vehicle beyond two. No more than five licensed vehicles per resident.
The need is provided for under Article 89 of Cabinet Decision No. 174 of 2026 containing the executive regulation of Federal Decree-Law No. 14 of 2024 on traffic regulation.
The measure would allow individuals to possess up to two vehicles before the additional-fee requirement kicks in. It will apply to the registration or renewal of a third, fourth or fifth car. Payment of it does not entitle a resident to more than a five-vehicle allowance. The same item states that license applications should be submitted by vehicle owners or their approved representatives through the channels or applications announced by the relevant licensing body. Applicants must comply with the authority’s processes and directions.
Right hand drive cars are not licensable under the clause and are permitted for display purposes only. Vehicles that do not meet the traffic safety regulations also cannot be registeredEarlier this year, a session of the Federal National Council reviewed the circumstances of vehicle ownership as part of a debate on traffic safety and congestion. The council proposed controlling ownership conditions, such as determining the lifespan of a car, to help deal with the increasing journeys in peak hours.
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