UAE Cabinet sets vehicle ownership limits and new licensing rules

The UAE Cabinet has issued Resolution No. 174 of 2026, approving the executive regulations for Federal Decree-Law No. 14 of 2024 regarding traffic and road regulations. The framework takes effect across the country on January 1.

Under Article 89 of the executive regulations, individual residents are restricted to owning a maximum of five licensed vehicles. Licensing more than two cars will require payment of additional fees. The regulations also introduce a ban on licensing right-hand drive cars and prohibit the registration of any vehicle failing to satisfy traffic safety criteria.

Vehicle licences will maintain a standard validity period of one year under the new framework. However, an option is introduced to extend registration validity to two years for light vehicles and certain new vehicles.