Car trading business in the UAE

A car trading license allows you to legally buy and sell vehicles in the UAE—both new and used, including passenger and commercial cars. There are several business models you can follow:

1. Domestic car trading

  • Selling new vehicles purchased from official dealers or manufacturers.
  • Buying used cars from UAE or GCC residents and reselling them within the country.

2. Import and re-sale in the UAE

  • Importing new or used vehicles from abroad for local sale.
  • An import code is required.
  • Only left-hand drive vehicles are permitted.
  • Used cars must be less than 10 years old from the date of manufacture.
  • Vehicles older than 10 years require RTA approval, unless classified as classic (30+ years).
  • Certification by ESMA and customs clearance are mandatory.

3. Re-export of vehicles

  • Purchasing vehicles abroad to sell to other countries.
  • Best set up in a free zone (e.g., RAKEZ, JAFZA, SAIF).
  • Local sales within the UAE are not allowed.

Key requirements for a car trading license

To run this type of business, a commercial license with the relevant activity must be obtained.

  • A physical office is mandatory for mainland registration.
  • For a showroom, the minimum required size is 5,000 sq. ft.
  • If your business involves import, export, or re-export, you must:

You can expand your business with:

  • Auto repair services (requires a separate license for vehicle maintenance)
  • Automotive consulting (requires a consulting license)

Timeframe and сosts

  • License issuance: 2 to 4 weeks, depending on the jurisdiction and documentation.
  • Estimated costs:
    • From 15,000 AED in the mainland (excluding showroom rental and special approvals)
    • From 10,000 AED in free zones (for re-export operations)
    • Customs registration and import code: approx. 5,000 AED

DAZ - Dubai Auto Zone

  • Company setup from

    14,020 AED

Registration in 5 weeks
Offices, warehouses, land plots

This free zone serves as a marketplace and accommodates the needs of all the parties of the car import/export business, from car…

KIZAD — Khalifa Free Zone Abu Dhabi

  • Company setup from

    9,450 AED

Registration in 2 weeks
Offices, warehouses, plots of land

KIZAD is a low-cost business setup solution in Abu Dhabi, ideal for industries, trade, or logistics businesses. It is the most…

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