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…
How to trade used cars in the UAE
You can trade used cars in the UAE in several ways:
- Import and sell within the UAE
- Import and re-export to other countries
- Sell partly in the UAE and partly for re-export
All of these require a commercial license. However, the permitted activities and requirements differ depending on whether you’re trading locally or internationally.
General requirements for trading used cars in the UAE
To import a used car into the UAE, it must:
- Be left-hand drive
- Be in good technical condition, with no damage
- Be no older than 10 years (older vehicles require special approval, such as from the RTA, or must be considered classic — over 30 years old)
Requirements for importing and selling used cars in the UAE
- Business activity — Used Automobile Trading
- Issued in free zones (e.g. Dubai Auto Zone, Sharjah Auto Park) or mainland (via DED or relevant emirate departments)
- Import code required
- Customs registration required
- Vehicle certification (e.g. GCC compliance certificate)
- If you operate a showroom or car lot, the space must be at least 5,000 sq ft
Requirements for import and re-export of used cars
- Commercial license with import/export activity
- Best suited for free zones near ports (e.g. JAFZA, Ajman Free Zone)
- Import/export code and customs registration required
- Vehicles are not cleared through customs but stored in bonded warehouses
Where to get the license
You can obtain the license in the mainland via the Department of Economic Development (DED), or in specific free zones that allow local trading under an agreement with DED. Top zones for used car businesses include:
- Dubai Auto Zone (DAZ) — a hub for auto dealers
- Jebel Ali Free Zone (JAFZA) — local market access via agency agreement
- Sharjah Auto Park — popular for car trading in the northern emirates
Free zones also offer cost savings, such as flexi-desk options instead of full office rental. Additionally, if 95% of your income comes from business with other free zone companies, you may qualify for 0% corporate tax as a Qualifying Free Zone Person.
Required permits
- All vehicles for sale must meet ESMA technical and environmental standards
- Documentation is required for vehicle origin and condition
- Used car imports must be approved by the UAE Ministry of Economy
What counts as a “used car”
A used car is any vehicle that has previously been owned. Imports of cars up to 10 years old are allowed without special permits. Older vehicles require separate certification unless they qualify as classic cars (typically over 30 years old), in which case RTA certification is mandatory in Dubai.
How to get the license
- Choose a jurisdiction — mainland or free zone
- Select your business activity — Used Car Trading
- Prepare documents — passport, address proof, lease agreement
- Apply for the license — through DED or a free zone with local trading approval
- Obtain initial approval
- Lease a showroom or lot (optional) — must be approved by the municipality and at least 5,000 sq ft
- Get all required permits and import code (if needed)
- Pay fees and receive your license
- Open a corporate bank account and apply for visas (if needed)
Timeline and cost of a used car trading license in the UAE
- Timeline — 3 to 5 weeks including municipal approvals and certification
- License cost — from 17,000 AED in the mainland, including municipal fees
- Additional costs — for showroom rent, certifications, and customs registration if required
Aidina K.
Want to start trading used cars in the UAE? Contact our expert for a detailed consultation!
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