Have you seen the news that UAE residents can now register only five cars? It is true, but there is more to it. From 1 January 2027, the third car in your name will already cost you extra.
This comes from the UAE’s new traffic regulations (Cabinet Decision No. 174 of 2026, Article 89). Here is what the 5-car rule really says, in simple words.
UAE 5-Car Limit at a Glance
| Starts | 1 January 2027 |
| Cars 1 and 2 | Registered and renewed in the normal way |
| Cars 3, 4 and 5 | An extra fee for each car, at registration and at renewal |
| Maximum | 5 licensed vehicles per individual resident |
| Extra fee amount | Not announced yet |
What the New Rule Says
- Two vehicles in the normal way. An individual resident can own and register up to two vehicles under the standard rule.
- More cars cost more. You can register or renew more vehicles, but you pay an additional fee for each one.
- Five is the ceiling. The total number of licensed vehicles must not go above five per resident.
Who Does This Affect?
Most workers in the UAE own one car, or none, so nothing changes for them. The rule matters for:
- Families who keep three or more cars under one person’s name
- People who run small side businesses, such as rentals or deliveries, on personal cars
- Car lovers and collectors with many vehicles
The rule is written for individual residents. Company fleets are not given the same number limit in this article.
What We Still Don’t Know
- The fee amount. The decision does not give a figure. Do not trust WhatsApp messages quoting a fee until the authorities publish one.
- Whether the fee is the same in every emirate.
- What happens to people who already have more than five cars. This has not been explained yet.
What Should You Do Now?
- Count the vehicles registered in your name (check your Mulkiya cards or your emirate’s traffic app).
- If you have three or more, plan which car stays in your name before your next renewal after 1 January 2027.
- If a family member also has a licence, think about registering a car in their name instead.
- Wait for the official fee list before selling or transferring anything.
Other New UAE Traffic Rules From 2027
The same decision brings a 9-hour daily driving limit, new rules for delivery riders, a 40 km/h limit on residential roads and e-scooter permits from age 15. Read the full guide: UAE New Traffic Rules 2027 explained.
Looking for work in the UAE? See the latest driver jobs in Dubai and all jobs in Dubai today.
Frequently Asked Questions
How many cars can one person register in the UAE from 2027?
Up to five licensed vehicles per individual resident. The first two are registered in the normal way; each extra one carries an additional fee.
How much is the fee for a third car in the UAE?
The amount has not been announced yet.
When does the UAE 5-car limit start?
On 1 January 2027, under Cabinet Decision No. 174 of 2026.
Source: Cabinet Decision No. 174 of 2026 (Executive Regulation of the traffic law, Article 89), as reported by Gulf News and The National on 3–4 November 2026. This is a news explainer, not legal advice. Always follow official updates from the UAE Ministry of Interior and your local traffic authority.