How to Get a New & Used Car Sales Trading License in Dubai
Topic Summary
Understand What the License Actually Covers
The New and Used Car Sales Trading License (activity code 4510.01) covers wholesale and retail sale of both new and pre-owned passenger vehicles. It also includes trade-in operations, vehicle inspection and valuation, and sales finance facilitation with banks.
Know Which Activities Need a Separate License
Off-road vehicle sales, commission-based agency sales, and electric-only car trading each fall under different sub-codes and require their own licenses. If your business focuses solely on any of these categories, you must apply under the relevant sub-code rather than 4510.01.
Meet ESMA and Consumer Protection Compliance Requirements
All imported vehicles must meet ESMA certification and GSO compliance standards before they can be sold. Used car dealers are also required to follow UAE consumer protection regulations and provide accurate vehicle history disclosures to buyers.
Budget Realistically for Setup and Inventory Costs
License and office packages at Dubai South Business Hub start from approximately AED 15,000 to AED 30,000 per year. Vehicle inventory and showroom space represent significant additional investments beyond the base licensing fee.
Follow a Clear Five-Step Licensing Process
The setup process runs from company name verification and activity selection through to document submission, license issuance in 5 to 15 working days, and staff visa processing. Having passport copies, a Memorandum of Association, and a signed lease ready will speed up the application.
Tap Into Dubai's Booming Automotive Market
UAE passenger car sales hit a record 268,000 units in 2024, and the used car market is projected to nearly double to USD 39.58 billion by 2031. Dubai's new 22-million-square-foot Dubai Auto Market complex further cements the city as the region's primary vehicle trading hub.
Leverage Free Zone Benefits for Maximum Profitability
Setting up in a Dubai free zone gives car traders 100% foreign ownership and full tax efficiency. Zero customs duty on re-exports to GCC and African markets makes Dubai an especially competitive base for regional vehicle distribution.
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, 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.
SUVs hold the largest UAE used car market share at 37.78% in 2025, 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, 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.
What Does the New & Used Car Sales License 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 license and office package. Vehicle inventory and showroom are significant additional investments. Use the cost calculator for tailored pricing.
Setup Steps
Verify name with company name check.
Select Wholesale & Retail Sale of Unused and Used Vehicles (4510.01) from the business activities directory.
Choose office and showroom package.
Submit passport copies, MOA, and lease.
Receive license within 5 to 15 working days.
Process visas for sales staff.
Why Dubai for New & Used Car Sales?
Dubai's used car market growth at 11.52% CAGR, central role in regional vehicle trading, and the new Dubai Auto Market complex 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.
Related Activities
Motor Vehicles Trading Trading License
Frequently Asked Questions
