New and used car sales is the largest motor vehicle trading segment in the UAE. UAE passenger car sales reached an all-time high of 268,000 units in 2024,¹ while the used car market was valued at USD 20.55 billion in 2025 with projections reaching USD 39.58 billion by 2031 at 11.52% CAGR.²

SUVs hold the largest UAE used car market share at 37.78% in 2025,² supported by family lifestyles and off-road leisure preferences. Dubai is creating the Dubai Auto Market, a 22-million-square-foot complex designed to accommodate more than 800,000 vehicles annually,³ positioning Dubai as the region’s central automotive trading hub.

This sub-activity covers the combined wholesale and retail sale of both new and used vehicles, suiting dealerships and traders that handle both categories.

4510.01 - Wholesale And Retail Sale Of Unused And Used Vehicles

Under this activity, you are in the business of operating a licensed new and used car sales business, handling the wholesale and retail sale of unused and used motor vehicles for the UAE and regional markets.

Services are delivered under the relevant regulatory oversight with appropriate facilities, systems, and qualified personnel.¹

What Does the New & Used Car Sales Licence Cover?

• New vehicle retail: wholesale and retail sale of new passenger cars and SUVs.

• Used vehicle retail: sale of pre-owned vehicles including certified pre-owned programs.

• Vehicle inspection and valuation: in-house vehicle inspection and valuation services as part of the sales process.

• Trade-in operations: accepting customer trade-ins as part of new vehicle sales.

• Sales finance facilitation: coordination with banks and finance houses for customer vehicle financing.

Who Is This For?

• Multi-brand car dealerships serving the UAE retail market.

• Used car specialists targeting Dubai’s growing pre-owned market.

• Certified pre-owned programs offering organised retail of used vehicles.

• Trade-in focused dealers combining new and used vehicle sales.

Activity Scope

This sub-activity covers new and used vehicle retail and wholesale. It does not cover off-road vehicles (4510.02), commission agency (4510.03), or electric cars (4510.9), each with separate sub-codes.

In short: if you sell new and used cars, you are in. For off-road vehicles, commission-based sales, or electric-only trading, use the relevant sub-code.

Licensing & Compliance

Standard free zone licensing applies. Imported vehicles must meet ESMA certification and GSO compliance. Used car sales should comply with UAE consumer protection regulations and provide accurate vehicle history disclosures.

Cost & Investment

Setup costs at Dubai South Business Hub start from approximately AED 15,000 to AED 30,000 per year for licence and office package. Vehicle inventory and showroom are significant additional investments. Use the cost calculator for tailored pricing.

Setup Steps

1. Verify name with company name check.

2. Select Wholesale & Retail Sale of Unused and Used Vehicles (4510.01) from the business activities directory.

3. Choose office and showroom package.

4. Submit passport copies, MOA, and lease.

5. Receive licence within 5 to 15 working days.

6. Process visas for sales staff.

Why Dubai for New & Used Car Sales?

Dubai’s used car market growth at 11.52% CAGR,² central role in regional vehicle trading, and the new Dubai Auto Market complex³ create exceptional conditions for car sales businesses. Free zones offer 100% foreign ownership, tax efficiency, and zero customs duty on re-exports to GCC and African markets.

References

1. Focus2move, Emirates Automotive Market 2025: focus2move.com/emirates-automotive-market

2. Mordor Intelligence, UAE Used Car Market: mordorintelligence.com/uae-used-car-market

3. MarknTel Advisors, UAE Used Cars Market: marknteladvisors.com/used-cars-market-uae

Frequently Asked Questions

What does this licence cover?

Wholesale and retail sale of new and used motor vehicles, including certified pre-owned programs and trade-in operations.

How is this different from the parent code 4510?

The parent 4510 covers all motor vehicle trading. 4510.01 specifically covers wholesale and retail of new and used cars, suiting dealerships focused on this segment.

Can I sell off-road vehicles too?

Off-road vehicles have a separate sub-code (4510.02). For combined new, used, and off-road sales, consider the parent code 4510.

How much does setup cost?

From AED 15,000 to AED 30,000 annually for licence and office package.

Do I need third-party approval?

Standard free zone approval is typically sufficient. Vehicles need ESMA and GSO compliance for UAE sale.

How long does setup take?

5 to 15 working days for licence issuance.

Can I export to GCC and Africa?

Yes, free zone status supports zero customs duty re-exports.

Can I include vehicle financing services?

Coordination with banks for customer financing is within scope. Direct lending requires separate financial services licensing.

What facility space do I need?

Office plus showroom or warehouse space sized to inventory volume.

Can I sponsor sales staff visas?

Yes, visa quotas scale with facility package.

Is the licence renewable annually?

Yes, annual renewal is standard.

Can I add vehicle parts trading later?

Yes, compatible additional activities can be added at renewal.

Can a sole owner hold this licence?

Yes, 100% foreign ownership is permitted.

Can I serve corporate fleet clients?

Yes, fleet vehicle sales to corporates and ride-hailing companies are within scope.