Car trading license in the UAE

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:
  • Register with the Federal Customs Authority (FCA)
  • Obtain an import/export code
  • Comply with ESMA technical regulations

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