UAE to charge extra fee from 2027 on 3rd, 4th and 5th vehicles
UAE residents will be able to keep 2 vehicles without an extra charge, but a 3rd, 4th or 5th will cost more to register or renew from 1 January 2027.
By Vadim Kouznetsov, published
UAE residents with more than 2 vehicles will face an extra fee from 1 January 2027 under a new federal traffic rule, according to Khaleej Times. The same rule caps licensed vehicles at 5 per resident, which could raise motoring costs for workers and families where one person holds several vehicle registrations.
What the new UAE vehicle fee rule says
The requirement appears in Article 89 of Cabinet Decision No. 174 of 2026, the executive regulation of Federal Decree-Law No. 14 of 2024 on traffic regulation.
Here is the key part for residents:
| Vehicles in 1 resident's name | What the rule says |
|---|---|
| 1 or 2 | No additional-fee requirement applies under this clause |
| 3, 4 or 5 | An extra fee applies on registration or renewal |
| More than 5 | Not allowed, and paying the extra fee does not remove the cap |
Khaleej Times said the limit applies to each individual resident, not to the whole household. That matters if several cars are registered under 1 family member's name.
The wording also refers to vehicles, not only passenger cars. The same clause does not set out an equivalent numerical cap for companies.
Just as important, the regulation does not state the amount of the extra fee. It also does not explain what happens to residents who already have more than 5 licensed vehicles, or whether there will be any transition period or deadline to sell or transfer them.
What the UAE vehicle fee means for residents and workers
If you have 1 or 2 licensed vehicles in your own name, this article does not add an extra-fee requirement for you. If you have 3, 4 or 5, you should expect an added cost when you register or renew those extra vehicles from 1 January 2027.
For many residents, this is really a cost-of-living story. A second or third car can make commuting easier, especially where work, school and home are far apart, but the new rule means multi-car ownership under 1 person's name will become more expensive.
It also means households may need to check whose name each vehicle is under. Because the cap is per resident rather than per household, the registration details now matter as much as the number of cars parked outside.
If long commutes are already pushing up your monthly costs, our guide on Why UAE Residents Are Buying and Renting Homes Closer to Their Workplaces may help you think through the wider picture.
Other UAE vehicle licensing rules in the same article
Article 89 also sets out a few other points residents should know.
Vehicle owners, or their legally authorised representatives, must submit licensing applications through the channels or applications announced by the relevant licensing authority. Applicants must also follow that authority's procedures and instructions.
The same provision says right-hand-drive vehicles cannot be licensed and are allowed only for display purposes. Vehicles that do not meet traffic-safety requirements also cannot be licensed.
So while the headline change is the extra fee after 2 vehicles, the article also reinforces that licensing must follow official digital channels and safety rules.
What residents should do before 1 January 2027
If this rule affects you, a simple check now could save stress later:
- Count how many licensed vehicles are in your own name, not just in your household.
- If you have 3, 4 or 5, plan for an extra charge on registration or renewal from 1 January 2027.
- If you already have more than 5 licensed vehicles, watch for official guidance because the regulation does not yet explain transitional arrangements.
- Use only the channels or applications announced by the relevant licensing authority.
- If you are reviewing transport costs more broadly, our explainer on Dubai E-Scooter Rules: What Riders Must Know as Other Cities Ban Them may be useful for short trips.
And if this change is part of a bigger plan to cut commute time by changing jobs, you can also browse the latest UAE jobs.
Key takeaway
From 1 January 2027, UAE residents can have 2 vehicles without an extra fee, but a 3rd, 4th or 5th will cost more to register or renew. The rule is per resident, not per household, and the regulation still leaves open questions on the fee amount and what happens to people who already have more than 5 vehicles.
FAQ
When does the UAE extra fee for additional vehicles start?
The new requirement starts on 1 January 2027, according to Khaleej Times. It applies when an individual resident registers or renews more than 2 vehicles.
How many vehicles can 1 resident have under the new UAE rule?
The total number of licensed vehicles must not exceed 5 per resident. Paying the extra fee for a 3rd, 4th or 5th vehicle does not allow someone to go above that cap.
Is the vehicle limit per person or per household?
It is per individual resident, not per household. So the rule looks at how many vehicles are licensed under each person's name.
How much is the extra fee for a 3rd vehicle in the UAE?
The regulation cited in the report does not specify the amount of the additional fee. That means residents still need to wait for the exact charge to be announced.
What if I already have more than 5 licensed vehicles?
The report says the regulation does not explain how existing cases will be handled. It also does not set out any transition period or deadline for residents to sell or transfer vehicles.
Can right-hand-drive vehicles be licensed under this rule?
No. The same article says right-hand-drive vehicles cannot be licensed and are permitted for display purposes only.
Further reading
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