The Dubai Cars and Automotive Zone (DCAZ) is a designated Freezone specialized business hub tailored for the automotive industry, offering a range of benefits and services to companies in various sectors such as vehicle trading, leasing, maintenance, and manufacturing. Located within Dubai's strategic economic zones, DCAZ is designed to support businesses involved in automotive retail, car rentals, auto parts trading, workshops, and more.
Dubai's automotive sector is rapidly growing, with increasing demand for both new and pre-owned vehicles, automotive services, and innovative technologies. The Dubai Cars and Automotive Zone provides the ideal environment for businesses looking to capitalize on these opportunities, offering a robust infrastructure, streamlined regulations, and tax incentives
Industry Focus
- Automotive Industry: Dubai Cars and Automotive Zone (DCAZ) supports businesses in various automotive sectors, including:
- Car Dealerships
- Vehicle Leasing & Rental
- Auto Repair & Maintenance
- Auto Parts Trading
- Vehicle Manufacturing
- Customs and Logistics
Ownership
- 100% Foreign Ownership: Investors can establish businesses in Dubai Cars and Automotive Zone with 100% foreign ownership, without requiring a local sponsor or partner.
Business Licenses
- License Types: Automotive businesses can apply for licenses based on their activities, including:
- Commercial License: For trading vehicles, parts, and accessories
- Service License: For automotive repair, maintenance, and professional services
- Rental License: For car leasing and rental businesses
Taxation
- Corporate Tax: 9% corporate tax exemption may apply as per Federal Tax Authority (FTA) criteria
- No personal income tax on individuals or shareholders
Office Space Solutions
- Flexible Office Options: Depending on the business type, you can choose from:
- Showrooms for car dealerships
- Service Workshops for repair and maintenance businesses
- Private Offices for larger automotive companies
Import/Export Capabilities
- Import/Export Facilities: Dubai Cars and Automotive Zone offers easy access to global markets for automotive parts, vehicles, and accessories, with no import/export duties within the zone.
Visa & Immigration
- Investor and Employee Visas: Eligible for residence visas based on the number of employees and office space. Businesses can also sponsor family members under certain conditions.
Vehicle Registration
- Vehicle Registration: Businesses engaged in vehicle trading, leasing, and maintenance can facilitate vehicle registration through authorized Dubai agencies and the RTA (Roads and Transport Authority).
Compliance & Regulations
- Regulatory Compliance: Businesses must comply with UAE federal laws and specific regulations related to automotive safety standards, environmental guidelines, and industry practices.
Support Services
- Business Support: DCAZ provides various business support services, including:
- Logistics & Customs Assistance
- Regulatory Compliance Support
- Marketing and Promotion Services
- Vehicle Licensing & Registration Support
Setup Costs
- Cost of Formation: Costs for setting up a business in Dubai Cars and Automotive Zone depend on:
- Type of business activity.
- Office space size.
- Number of required visas.
- Costs typically start from AED 45,000, depending on specific business needs.
Advantages
- 100% Foreign Ownership: Full control over the business without the need for a local partner.
- Strategic Location: Dubai’s access to key markets in Asia, Europe, and Africa.
- Tax Benefits: 9% tax can be exempted as per the FTA criteria
- World-Class Infrastructure: Access to advanced logistics, vehicle registration, and maintenance facilities.
Licensing Authority
- Dubai Economic Department (DED): Responsible for the issuance of business licenses.
- Dubai Customs: Ensures smooth import/export operations.
- RTA (Roads and Transport Authority): Governs vehicle registration and compliance.
Market Opportunities
- High Demand for Luxury & Used Cars: Dubai’s luxury and second-hand car markets are continually growing.
- Expansion of Electric Vehicles (EVs): Growing market for EVs and hybrid vehicles.
- Car Rental & Leasing Services: Increasing demand for rentals, especially for tourists and expatriates.