All employees of Abu Dhabi Government departments and agencies are being told they must live in the emirate.
The decision by the Secretariat General of the Executive Council grants all employees living outside the emirate a one year grace period in which to move.
Wam, the state news agency, said the move showed the keenness of the Government to ensure the safety of its employees and "achieve social stability for them and their families".
The Government also hopes workers will be less tired from long commutes and that roads will be less congested.
According to official figures released by the Department of Transport in Abu Dhabi, almost 11,000 vehicles enter the capital between 6am and 7am on a working day, carrying between 16,000 and 20,000 people.
• For the daily commute between Abu Dhabi and Dubai in pictures visit our photography blog.