Topic Summary
1. What the License Covers
It covers structural components, avionics, engines and engine parts, cabin fittings, hydraulic components and aircraft maintenance consumables.
2. GCAA Compliance Requirements
Depending on the product classification, you may need UAE General Civil Aviation Authority documentation and country-of-origin export certification from the relevant airworthiness authority.
3. License Cost and Codes
The fee includes company registration, a flexi-desk and five codes such as 4659.03 and 4773.74, with each additional code beyond five priced at AED 2,000.
4. Warehousing Cost Driver
Aviation parts need appropriate storage, in some cases temperature or humidity-controlled, which sits outside the standard flexi-desk arrangement and should be budgeted separately.
5. Why Choose Dubai South
No other UAE free zone offers this proximity to airline maintenance teams, MRO facilities and cargo handlers, and registration is fully digital and often issued within one business day.
Dubai handled over 105 million passengers in 2024, making it one of the five busiest aviation hubs on earth (Dubai Airports, 2025). The UAE aviation sector supports hundreds of aircraft across Emirates, flydubai, Air Arabia, and Etihad. Every one of those aircraft needs certified parts. The license cost for an aircraft spare parts trading business in Dubai starts from AED 12,000 per year in a free zone. A mainland license from Dubai DET runs from AED 15,000 upward. First-year totals, once you add visas and workspace, typically land between AED 18,000 and AED 70,000 depending on your setup. This guide covers what the license is, what it costs, which path suits your business, and how to get one through Dubai South Business Hub Free Zone.
What Is an Aircraft Spare Parts Trading License in Dubai
An aircraft spare parts trading license lets a company buy and sell certified aviation components, tools, and equipment in Dubai. It covers items such as engines, landing gear, avionics, and cabin parts. The license is issued by either Dubai DET for mainland firms or a free zone authority such as Dubai South Business Hub (DSBH). It does not cover manufacturing or maintenance work. Those activities need separate approvals from the relevant authority.
What This License Lets You Trade
The trading license covers a wide range of certified aviation components. Under ISIC code 4659, which covers wholesale of other machinery and equipment, aviation parts sit within the general trading framework used across UAE free zones and the mainland.
Parts you can trade include:
New, used, and overhauled aircraft components
Engines and engine sub-assemblies
Landing gear and hydraulic parts
Avionics, cockpit instruments, and navigation systems
Cabin fittings, seats, and interior panels
Ground support tools and equipment
The license does not cover aircraft manufacturing or MRO (maintenance, repair, and overhaul) work. Those need separate approvals from the General Civil Aviation Authority (GCAA) or the relevant body. Parts must also meet airworthiness standards set by the GCAA for any components used on UAE-registered aircraft.
Why Dubai Is the Right Base
Dubai's geography makes it a natural centre for aviation parts trade. It sits at the crossroads of air routes between Europe, Asia, and Africa. That means short transit times and strong re-export demand from carriers across three continents.
Al Maktoum International Airport sits on the same site as Dubai South Free Zone
Re-export rules let you move parts to over 180 countries with few restrictions
100% foreign ownership is allowed in the free zone, no local partner needed
Dubai Customs processes cargo through both Al Maktoum and Jebel Ali Port
A parts dealer based at Dubai South can receive a shipment from the US, clear it through Dubai Customs, and ship it onward to an airline in Nairobi within 48 hours. That speed is hard to match from any other base in the region.
How Much Does the License Cost for an Aircraft Spare Parts Trading Business in Dubai
A free zone aircraft spare parts trading license at Dubai South typically costs between AED 12,000 and AED 20,000 per year, depending on the package and office type. A mainland license from DET runs from AED 15,000 to AED 30,000 or more. Government fees, name registration, and visa costs are added on top. Use the DSBH cost calculator to get a figure for your specific setup.
Free Zone License Fees at Dubai South
DSBH bundles the license and workspace into one annual fee. That makes year-one budgeting straightforward. Here is what each cost item looks like:
Base license fee: from AED 12,000 per year
Flexi-desk (shared workspace): included in most starter packages
Trade name registration: AED 620 to AED 2,000 depending on name and language
Each residence visa: AED 3,500 to AED 5,000 in government fees
Medical test and Emirates ID per person: AED 700 to AED 1,200
A founder setting up an aircraft parts import firm with 2 visas and a flexi-desk at DSBH would budget around AED 25,000 to AED 32,000 for year one. A solo founder with 1 visa runs closer to AED 18,000 to AED 25,000.
Mainland License Fees via DET
Dubai DET issues mainland trading licenses for aviation parts under commercial activity codes. The cost structure is different from a free zone because rent and license are billed separately.
Base license fee: from AED 15,000 per year, rising with the number of activities listed
Physical office: required by DET, adds AED 20,000 or more per year in most Dubai areas
100% foreign ownership is now allowed for most trading activities following the 2021 Companies Law reforms
Total first-year cost on mainland: often AED 40,000 to AED 70,000 when you add rent and setup fees
A trading firm needing direct access to UAE airlines and government buyers may choose mainland. But the higher cost of a physical office makes a free zone more attractive for early-stage operators. See the comparison below for a side-by-side view.
Aircraft Spare Parts Trading License: Free Zone vs Mainland Cost Comparison
Feature | Free Zone (DSBH) | Mainland (DET) |
|---|---|---|
Base license fee per year | AED 12,000 to AED 20,000 | From AED 15,000, rising with activity count |
Physical office required | No, flexi-desk option available | Yes, adds AED 20,000+ per year |
Foreign ownership | 100%, no local partner needed | 100% allowed for most trading activities post-2021 reforms |
Sell directly to UAE buyers | Via local distributor or applicable duties | Yes, open UAE market access |
Visa cost per person (government fees) | AED 3,500 to AED 5,000 | AED 3,500 to AED 5,000 (similar rates) |
Typical year-one total cost | AED 18,000 to AED 35,000 | AED 40,000 to AED 70,000 |
Hidden Costs to Plan For
The base license quote is not the full picture. Several smaller costs add up fast, and founders often miss them when budgeting.
Medical test and Emirates ID per visa holder: AED 700 to AED 1,200
Company stamp: AED 100 to AED 300
Bank account opening: no bank fee, but many UAE banks require a minimum deposit of AED 10,000 to AED 50,000
GCAA product approvals or part documentation: fees vary by part type and supplier
Annual audit (if required by the free zone): from AED 3,000 per year
Two visas, two medical tests, and two Emirates IDs add around AED 3,000 to AED 4,000 that does not appear in the base license quote. The bank deposit requirement catches many founders off guard too. Check what your chosen bank asks for before you open an account.
Free Zone vs Mainland: Which Setup Suits Your Aircraft Parts Business
A free zone license suits aircraft parts traders who sell mainly to international buyers or other businesses outside the UAE. A mainland license suits firms selling directly to UAE-based airlines, airports, or government bodies. Most early-stage importers and re-exporters choose a free zone for the lower cost and simpler setup.
When a Free Zone License Makes More Sense
A free zone is the right call for most aircraft spare parts trading businesses starting out. Here is when it fits best:
You import parts and re-export to airlines or buyers outside the UAE
You want 100% foreign ownership with no local partner
You want to keep first-year costs low, no mandatory physical office
Your stock sits near the airport and you need fast customs clearance
Dubai South Free Zone sits next to Al Maktoum International Airport, ideal for aviation cargo
An importer buying parts from the US and selling to carriers in East Africa and South Asia will clear and re-export from Dubai South without touching the UAE mainland market. Free zone companies can still sell to UAE mainland buyers, but they do so via a local distributor or by paying applicable duties.
When a Mainland License Makes More Sense
Some aircraft spare parts businesses genuinely need mainland access. Here is when that applies:
You sell directly to UAE government entities or defence buyers, many require a mainland-registered supplier
You tender for UAE airline contracts that specify a mainland company
You want to open a trade counter accessible to walk-in buyers
You plan to hire a large local team under full MOHRE oversight from day one
A firm bidding on a supply contract with a UAE national airline may need a mainland license to meet procurement rules that exclude free zone entities. Mainland costs more, but it opens direct access to the UAE market without a distributor. Dubai DET issues commercial trading licenses for aviation parts under the relevant activity codes (Dubai DET, 2026).
5 Steps to Get Your Aircraft Spare Parts Trading License in Dubai
Getting an aircraft spare parts trading license in Dubai takes 5 main steps: choose your setup type, reserve a trade name, submit your application and documents, pay your fees, and collect your license. The full process takes 5 to 10 working days for a free zone license at Dubai South.
Step-by-Step: Free Zone Setup at DSBH
A solo founder applying for a free zone establishment (FZE) at DSBH can complete steps 1 to 4 online and receive a digital license copy before setting foot in Dubai. Here is how the process works:
Step 1, choose your setup type: Decide between an FZE (solo founder) or an FZC (2 or more shareholders). Both give you 100% foreign ownership.
Step 2, book your trade name: Check company name availability on the DSBH portal. Names must not conflict with existing registrations or include restricted words.
Step 3, pick your activity code: Confirm the aircraft spare parts trading activity code is approved for your chosen package before you go further. Ask DSBH if you are unsure.
Step 4, send your papers: Submit your passport copy, a recent photo, a business plan summary, and the signed application form. No notarisation is needed for most free zone applications.
Step 5, pay and collect: Pay the license fee and any visa fees. Your license is issued within 5 to 10 working days. Visa stamping takes a further 5 to 7 days.
Documents You Need to Apply
The document list for a DSBH free zone application is short. Most founders send everything by email and receive a license offer within a week without travelling to Dubai first.
Passport copy, valid for at least 6 months
Recent passport photo on a white background
Completed and signed application form from DSBH
Business plan summary (1 to 2 pages), DSBH may ask for this for aviation-related activities
No UAE residence visa needed to apply, you can apply from abroad
How long does the process take?
A free zone license at DSBH is typically issued within 5 to 10 working days from the date your documents are accepted and fees are paid. Visa stamping takes a further 5 to 7 working days. The full process from first inquiry to having a license in hand usually runs 2 to 3 weeks.
What Approvals and Rules Apply to Aircraft Spare Parts Traders
Aircraft spare parts traders in Dubai must comply with GCAA airworthiness rules for any parts used on UAE-registered aircraft. Traders also need to follow UAE customs rules, VAT rules from the Federal Tax Authority (FTA), and any import controls on restricted aviation components. The trading license alone does not certify parts as airworthy.
GCAA Rules for Parts Traders
The GCAA is the UAE civil aviation authority. It sets airworthiness standards for all parts fitted to UAE-registered aircraft. Worth flagging: the GCAA does not license parts dealers directly. The trading license comes from DET or the free zone authority. But the GCAA's rules still shape how you operate.
Traders selling to UAE operators must supply valid airworthiness approval documents with each part
The two most widely accepted documents in the region are the EASA Form 1 and the FAA 8130-3
Airlines and MRO firms check part approval before fitting, but traders who supply uncertified parts face liability
Overhauled or repaired parts need a release document from an approved maintenance organisation
A trader selling an overhauled engine component to a UAE airline must supply the EASA Form 1 or an equivalent airworthiness release document with the part. Missing that document can stop a sale and damage your reputation with buyers fast.
VAT and Customs for Aviation Parts
UAE VAT applies to most goods at 5%, including aircraft parts. But re-exporters get a clear benefit: parts exported outside the UAE are zero-rated. That matters a lot if most of your sales go to carriers outside the UAE.
Standard UAE VAT rate: 5%, applied to most goods including aircraft parts
Parts exported outside the UAE: 0% VAT, a key benefit for re-exporters
Dubai Customs clears all goods through Al Maktoum International Airport and Jebel Ali Port
Some parts are subject to import controls, check with Dubai Customs before ordering restricted items
Register for VAT with the Federal Tax Authority once your taxable turnover passes AED 375,000 per year
VAT scenario | Rate | What you must do |
|---|---|---|
Parts sold to a UAE airline | 5% | Charge VAT and file returns with the FTA |
Parts exported outside the UAE | 0% | Keep export proof, customs documents and shipping records |
Parts sold to a UAE free zone company | 0% (if designated zone rules apply) | Confirm buyer's zone status before invoicing |
VAT registration threshold | N/A | Register once taxable turnover passes AED 375,000 per year |
What to Look for in a License Package for Aircraft Parts Trading
Choose a license package that includes your trading activity code, enough visa allocations for your team, and a workspace option that fits your operation. For aircraft parts, check whether the free zone allows warehouse space or bonded storage. Always confirm the activity code covers aviation components before you pay.
Visa Quotas and Office Types
DSBH packages are modular. You pick a visa count and a workspace type, and the annual fee reflects both. Getting this right at the start saves money at renewal.
Standard visa quota: 2 to 6 per license package
Flexi-desk: lowest cost, shared space, suits remote or small teams
Serviced office: private space, higher cost, suits teams that meet clients on site
Warehouse or storage unit: needed if you hold physical inventory, confirm availability at DSBH for aviation parts
More visas cost more: plan your headcount for year one before picking a package
A 2-person trading team buying parts from Asia and selling to Gulf carriers can run lean on a flexi-desk with a 2-visa package in year one, then scale up. If you
Frequently Asked Questions
