UAE Two-Year Car Registration 2027: Who Qualifies & Key Rules

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Nupur Jain
Senior Content Writer (Expertise - Motor Insurance)
Nupur Jain is a Senior Writer at Policybazaar.ae with 4+ years of experience in the insurance industry. She specialises in car insurance and has built strong expertise in the UAE auto insurance industry by closely covering policy features, coverage options, premiums, renewals, claims, insurer offerings and vehicle ownership-related matters. Over the years, she has created 2000+ high-impact articles and covered 1000+ motor insurance topics, helping readers understand complex insurance jargons in a simpler and more practical way. Her work is focused on helping people compare options wisely, understand what truly matters in a policy and make more confident car insurance decisions based on their needs, budget and lifestyle in the UAE.


Toshita Chauhan Balochi
Chief Business Officer – General Insurance @ Policybazaar.ae
Toshita Chauhan Balochi has strong experience in the insurance and digital business space. At Policybazaar.ae, she works on making general insurance easier and more customer-friendly for people in the UAE. Her focus is on building simple, useful and transparent insurance journeys across motor, health and travel insurance products. She brings a clear business vision, strong industry understanding and a customer-first approach to the brand.
For vehicle owners in the UAE, registration has always been a once-a-year task. But from 2027, the registration rules are changing for some vehicle owners. Under the new federal traffic regulations, which take effect on 1 January 2027, licensing authorities can approve a two year registration for eligible light vehicles.
The option is published in Article 98 of Cabinet Decision No. 174 of 2026, which approves the Executive Regulation of Federal Decree-Law No. 14 of 2024 on the Regulation of Traffic.
There is a catch, though. Not every vehicle qualifies. Moreover, the longer validity of two years is not an automatic process. With that clear, here is everything you need to know about the new rule, who can benefit from it, and what it could mean for your car insurance.
Who Qualifies for Two-Year Car Registration in the UAE?
The new two-year car registration rule applies to light vehicles only. Heavy vehicles, buses, and other categories are not considered under this provision. Also, there are three conditions listed in Article 98 that you need to fulfil for the two-year registration process:
- Brand New Car at First Registration: The vehicle should be newly manufactured when it was registered for the first time. If you are buying a pre-owned car and want this option later, check how the car was first registered.
- Six Years Old or Newer: The car cannot be more than six years old. Age is counted from the date of manufacture, not from the date you bought it.
- Registered in an Individual’s Name: The vehicle must belong to an individual. Cars owned by a company or any other legal entity are not eligible.
Does Every Eligible Car Get Two-Year Registration Automatically?
No. Even if your car fulfills all three criteria, the two-year registration period is granted at the owner’s request and is subject to the licensing authority’s approval. You will need to apply for it, and the authority has the final say.
Other New UAE Traffic Rules Coming Into Effect in 2027
The two-year registration option is just one part of a much bigger update. The new executive regulation brings several other changes that every vehicle owner in the UAE should be aware of:
Five-Vehicle Limit for Individual Residents
An individual resident can register a maximum of five vehicles. The first two come under the standard provision, while an additional fee applies to registering or renewing the third, fourth, and fifth vehicle.
No Registration for Right-Hand-Drive Vehicles
Right-hand-drive vehicles cannot be registered for road use in the UAE. They may only be allowed for display purposes. Vehicles that do not meet the road safety requirements will not be registered either.
Long-Expired Registrations Can Be Removed
Under Article 117, if a vehicle’s registration has expired for more than five years, the licensing authority can remove it from the traffic records. This is not automatic and depends on the authority’s own procedures.
Suspension, Cancellation and Refusal of Registration
Registration may be suspended if you change the car’s body, color, or engine without prior approval, or if a court orders it. It can also be cancelled if the chassis or body is damaged beyond repair, or if an accident makes the car unfit for use. Authorities can also refuse renewal if the car fails the technical inspection or does not meet the basic safety requirements.
Registration Fee Exemption for Individuals with Disability
Article 104 exempts one vehicle owned by a person with a disability from the registration fees.
Updated Driving License Rules
The minimum age for a light vehicle license is 18. Licenses issued to drivers below 21 are temporary and usually valid for one year. Drivers aged 21 and above get a two-year license for the first time. On later renewals, UAE and GCC nationals get a 10-year license, while expats get a five-year license.
Nine-Hour Daily Driving Limit
No motorist will be allowed to drive for more than nine hours within a 24-hour period. This applies to all drivers, not just heavy vehicle operators.
Mandatory E-Scooter Permits
E-scooter permits will be required across the country, with the minimum age for driving set at 15. These scooters must also have working front, rear, and brake lights, along with an audible warning device.
Stricter Overtaking Rules
Drivers must overtake only from the left lane and move back to the right lane once the manoeuvre is complete. The regulation also lists six locations and conditions where overtaking is not allowed.
Wrapping Up
The two-year registration option is good news for individual owners of newer cars. After all, it could mean one less trip to the testing centre or one less renewal to remember. However, it’s not automatic and is valid only for light vehicles that meet all three conditions. Moreover, the fees and process are still to be confirmed. Until then, keep your registration and car insurance up to date, and watch for announcements from your emirate’s licensing authority.
Related Pages -
| Car Registration in Dubai (2026) - New & Used Cars, RTA Fees |
| Car Registration in Abu Dhabi (2026) - Steps, Fees, & Documents |
FAQs
When does the two-year car registration rule come into effect in the UAE?
The rule takes effect on 1 January 2027, along with the rest of the new executive regulation of the UAE traffic law.
Which cars qualify for two-year registration?
Light vehicles that were new at first registration and are not more than six years old from the date of manufacture qualify for the two-year registration rule. Also, the vehicle should be owned by an individual.
Can a company-owned car get two-year registration?
No. The option is only available for vehicles owned by individuals, not companies or other legal entities.
Will my car be registered for two years automatically?
No, your vehicle will not be registered automatically. You have to submit a request for the same to the licensing authority, which decides on the approval.
How much does two-year car registration cost?
The regulation does not mention the fees yet. Keep an eye on updates from the licensing authority in your emirate.
Do I still need car insurance every year if my registration is for two years?
You must have valid car insurance at all times while driving in the UAE. Most policies run for 12 months, so you will need to renew your insurance on time even if your registration is valid for longer.
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