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The updated regulation detailed in Article 89 of Cabinet Decision No. 174 of 2026 allows individual residents to register up to two vehicles under standard conditions before an additional fee applies. Those seeking to license a third, fourth or fifth vehicle will face an extra charge for each one although the cabinet decision does not specify the fee amount. Khaleej Times reported that payment of the fee does not permit any resident to exceed the overall ceiling of five licensed vehicles. The cap is applied on a per-individual basis rather than per household and extends to all vehicle types rather than solely passenger cars.
Gulf News noted that the cabinet decision was issued on October 6, 2026, to implement the broader Federal Decree-Law No. 14 of 2024 on traffic regulation which replaced legislation dating to 1995. The official UAE government portal states that the 2024 law aims to keep pace with global developments by supporting self-driving vehicles, electric cars and smart technologies. It sets conditions for driver licensing including a minimum age of 17 years and requires that only licensed instructors provide training while updating rules on road use and enforcement.
The vehicle limit leaves unaddressed how authorities will treat residents who already hold more than five licensed vehicles in their names. Licensing authorities have instructed applicants to follow all procedures and instructions issued by the competent bodies. Right-hand-drive vehicles cannot be licensed under the rules and are restricted to display purposes only while any vehicle failing traffic-safety requirements is also barred from registration.
The Roads and Transport Authority recorded more than 196,000 first-time vehicle registrations in Dubai alone during the first half of 2026 averaging over 1,000 per day. Gulf News reported that this surge reflects the emirate’s rapid population and economic growth driving demand for transport services. The authority plans to expand the number of vehicle testing centres from 30 to 35 by 2030 to handle the increased volume while incorporating updated standards for electric vehicles.
Statista projections indicate the number of cars in operation per 1,000 people in the UAE will continue rising in coming years. International compilations had earlier placed the country at 376 road motor vehicles per 1,000 inhabitants. Such trends have accompanied federal moves to update traffic rules and manage urban congestion across the emirates.
Khaleej Times has outlined related changes taking effect in 2027 such as mandatory permits for e-scooters with a minimum user age of 15 and a smart monitoring system for delivery bikes in Dubai. The federal traffic framework includes provisions on vehicle inspection, registration and penalties that apply across all emirates. A separate Gulf News report indicated the executive regulation repeals prior ministerial decisions tied to the older 1997 framework.
