UAE to introduce extra fees for residents registering more than two vehicles from 2027

From January 1, 2027, UAE residents will pay additional fees when registering or renewing more than two vehicles, with a maximum limit of five vehicles per resident. The rule is outlined in Article 89 of Cabinet Decision No. 174 of 2026 under the federal traffic regulation.

Residents can register or renew up to two vehicles without extra charges. Additional fees apply to the third, fourth and fifth vehicles, with a strict five-vehicle limit per person. The cap applies to individuals, not households, and no equivalent company limit is specified.

The regulation does not clarify the extra fee amount or how existing owners with more than five vehicles will be affected. It also provides no details on transition arrangements or deadlines for selling or transferring excess vehicles.

Other Vehicle-Licensing Rules

Vehicle owners or their authorised representatives must apply for licences through the official channels or apps specified by the relevant authority and comply with its procedures.

The rules also prohibit licensing right-hand-drive vehicles, allowing them only for display purposes. Vehicles that fail to meet traffic-safety standards are also ineligible for registration.

The new regulation replaces the 1997 traffic rules, under which vehicle owners or their representatives had to apply to the licensing authority and pay the required fees.