Dubai is located in the central part of the Arabian Peninsula and is the center of the Gulf region. It has a unique geographical location. As the financial and economic center of the Middle East, Dubai is an important hub for international trade, with a population of over 1.5 billion. Its superior geographical location enables the Dubai auto parts market to attract exhibitors and buyers from the Middle East, Africa, Asia and even the world. The per capita car ownership rate in the Middle East is high, and automobiles and accessories are highly dependent on imports. Dubai's annual auto parts consumption market is as high as 12 billion US dollars, and the re-export volume is growing at a rate of 20% per year. The UAE is one of the richest countries in the world. Although luxury cars are everywhere, ordinary vehicles are the main choice, especially SUVs and off-road vehicles.

Table of Contents

Basic Information Product Demand‌ Importing country Market competition and marketing strategy Infrastructure and Logistics‌ Main Business Company Registration Process

Basic Information

•Geographic location: Located in the Ras Al Hol area of ​​Dubai.

•Founding background: It was established by the joint efforts of the Auto Parts Dealers Group, Dubai Ports, Customs and the government, aiming to promote the re-export business of Dubai cars and various auto parts.

Advantages

•Industrial cluster effect: It brings together a large number of companies engaged in the production, engineering, processing and sales of auto parts, as well as related professional service companies, forming a complete industrial chain. Enterprises can share resources, technology and market channels to reduce costs and improve efficiency.

•Convenient transportation: Located in the transportation hub of Dubai, close to major highways, ports and airports, it is convenient for the transportation and import and export of goods, and can quickly deliver products to customers around the world.

•Policy benefits: As one of Dubai's free zones, enterprises in the zone can usually enjoy preferential policies such as exemption from tariffs and corporate income tax, which reduces the operating costs of enterprises and improves their competitiveness.

•Strong market demand: The number of cars in the Middle East is high, and the demand for auto parts continues to grow. Dubai Auto Parts City relies on the huge auto market in the local and surrounding areas to provide enterprises with broad sales space and business opportunities.

Product Demand‌

Due to the hot climate in Dubai, there is a huge demand for auto parts such as tires, batteries, coolants, brake pads, air conditioners, gears, etc. Consumers have high requirements for the appearance and quality of auto parts, and high-end parts are popular here.

Importing country

Dubai's major importers of auto parts include Japan, the United States, China and the European Union. It is also an important auto parts export center in the Middle East.

Market competition and marketing strategy

The auto parts market in Dubai is highly competitive, with a large number of imported and locally produced parts on the market. Marketing strategies include offering wholesale discounts, supporting export processes, providing packaging, customs clearance and transportation services, etc. 3. The parts on the market are mainly Japanese and Korean, especially aftermarket parts from China.

Infrastructure and Logistics‌

Dubai has been investing heavily in infrastructure construction, including roads, bridges, logistics centers, etc. These construction projects have not only increased the demand for commercial vehicles, but also driven the development of the auto parts market. Dubai has a complete logistics system, and some European and Asian countries also import auto parts products from Dubai.

Main Business

•Auto Parts Trade: Dealing in various types of auto parts, including engine parts, chassis parts, body parts, electrical systems, tires, wheels, etc., covering all kinds of parts from traditional fuel vehicles to new energy vehicles. The products come from a wide range of sources, including original parts from internationally renowned brands and cost-effective aftermarket parts.

•Auto Parts Production and Processing: Some companies set up production and processing bases in the district, taking advantage of local resources and policy advantages to produce, assemble, modify and customize auto parts. The products they produce not only meet local market demand, but are also exported to other parts of the world.

•After-sales Service and Repair: Providing professional after-sales service and repair and maintenance services to auto users, including fault diagnosis, repair, maintenance, parts replacement, etc. Some companies also provide personalized services such as car beauty and modification.

Company Registration Process

1. Determine the company name: You need to provide at least 3 unique company names, which cannot be the same as the registered company names and must not contain any content that violates the Dubai naming rules. You can search through the database of the Dubai Commercial Registration Department.

2. Choose the company type: You can choose a free zone enterprise (FZE), a free zone limited liability company (FZ LLC), etc. Different types of companies differ in terms of shareholder structure, liability and operating methods.

3. Prepare registration materials: Usually include personal documents such as passport copies, contact information, bank credit certificates, address certificates, etc. of shareholders and directors, as well as company documents such as articles of association and shareholder resolutions. All non-Arabic documents must be translated into Arabic and notarized.

4. Submit application: Submit the prepared registration materials to the Dubai Auto Parts City Authority or the relevant free zone management agency for review.

5. Review and approval: The authority will review the application materials, including the company name, business scope, shareholder and director qualifications, etc. After the review is passed, the company will obtain preliminary approval.

6. Signing legal documents and leases: After obtaining preliminary approval, the company needs to sign legal documents such as shareholder agreement and articles of association, and sign a lease contract for office space or warehouse.

7. Pay registration fees: Depending on the type of company and the place of registration, you need to pay the corresponding registration fee, license fee, lease fee and other fees.

8. Obtaining a business license: After completing all the above steps and paying the fees, the company can obtain a business license from Dubai Auto Parts City and officially establish the company.