Dubai Auto Zone (DAZ)
Automotive businesses, including vehicle traders, parts suppliers, and service companies, seeking a specialized ecosystem.
Businesses outside the automotive sector or those requiring diverse industry networking and a larger initial team.
01Capability profile
02Where Dubai Auto Zone sits
Dubai Auto Zone: 34th percentile (AED 15,545) · Licence + registration, AED.
Dubai Auto Zone: 65th percentile (7 days) · Total estimated days from application to operational.
Dubai Auto Zone: 62th percentile (100 visas) · Absolute maximum visa allocation. Values above 500 clipped to the right edge so the bulk of the distribution stays readable.
Dubai Auto Zone: Moderate · Corporate bank account opening difficulty. Each cell is one zone.
03Costs
- Base licence
- AED 15,000
- Registration
- AED 545
- Renewal (year 2+)
- AED 15,000
- 3-year total
- AED 45,545
- 2-year visa cost
- AED 3,200
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04Visas & workspace
- Maximum visas
- 100
- Flexi-desk cap
- 1
- Office cap
- 6
- Family sponsorship
- Available
- Freelancer permit
- Not available
- Virtual office
- No
- Flexi-desk
- No
- Dedicated office
- No
- Warehouse
- Yes
- Industrial unit
- Yes
05Banking & setup
- Difficulty
- Moderate
- Time to account
- ~7 days
- Minimum deposit
- AED 15,000
- Documents & applicationPassport, visa, business plan — ~3–5 days
- Licence issued~3 business days after submission
- Bank account activeAdditional ~7 days · Moderate banking
- OperationalTypically ~7 days
06Package pricing
All figures in AED, from official fee schedules. Visa and health-insurance costs are additional.
| Package | Visas | Year 1 | Renewal |
|---|---|---|---|
| Showroom / Trading Unit – 1 VisaBest value | 1 | AED 20,000 | AED 16,000 |
| Workshop / Service Unit – 3 Visas | 3 | AED 35,000 | AED 28,000 |
| Warehouse – Auto Parts – 5 Visas | 5 | AED 50,000 | AED 40,000 |
07Permitted activities
08Jurisdiction & ecosystem
This zone offers physical-office options sufficient for a standard QFZP substance posture, though the bar still applies at the entity level (CTGFZP1).
Focus: automotive, auto parts, vehicle services
QFZP, audit, mainland-permit and substance values are sourced where the zone authority or FTA publishes them, and inferred from published zone characteristics otherwise. How we determine these values.
09Strengths & limitations
- Dedicated ecosystem for automotive businesses, including trading, parts, and services.
- Straightforward banking with recommended local and international banks.
- Competitive base license cost for a specialized free zone.
- Zero corporate tax and no minimum capital requirement.
- Online registration streamlines the setup process.
- Limited to automotive and related industries, restricting diversification.
- Not a VAT Designated Zone, impacting certain trade flows.
- Flexi-desk option offers only one visa, limiting initial team size.
Not ideal for: Businesses outside the automotive sector or those requiring diverse industry networking and a larger initial team.
10Recent developments
- 2025-Q1Dubai Auto Zone introduced a dedicated Electric Vehicle (EV) cluster with adapted workshop infrastructure for EV servicing and charging equipment installation, positioning DAZ as the UAE's first automotive free zone with an EV-specific facilities zone.
- 2024-Q3Dubai Auto Zone expanded its vehicle storage capacity by adding 150,000 sq ft of open-air vehicle marshalling area, accommodating the growing volume of GCC-bound vehicle re-export trade.
11Tax considerations
Does your planned revenue qualify under the QFZP qualifying-income rules?
QFZP 0% only applies to qualifying income. Mainland trading or revenue from non-free-zone clients is generally non-qualifying and taxed at 9%.
Will you need audited accounts even if this zone doesn't require them?
FTA corporate-tax filing typically expects audited accounts for revenue above AED 50M, and banks often request them at much lower thresholds.
How much of your revenue will come from mainland UAE customers, and how does that affect QFZP and 5% VAT obligations?
Mainland revenue beyond ad-hoc levels can disqualify QFZP and triggers full 9% corporate tax plus standard VAT on supplies.
Do any of your customers, suppliers, or shareholders meet the FTA's related-party definition?
Related-party transactions need transfer-pricing documentation and may push otherwise-qualifying income into the 9% bracket.
These prompts are due-diligence questions, not tax advice. Confirm every answer with a UAE-licensed tax advisor before incorporating.
12Frequently asked
13Similar zones in Dubai
14About this data
Dubai Auto Zone data is sourced from official zone authority publications, government fee schedules, and where available, verified against direct communications with the zone. All figures in AED.
- Last verified
- 2026-06-27
- Confidence
- high
- Methodology
- How we score →
- QFZP eligibility (0% corporate tax)Secondary · 2026-06-27Primary source ↗
- Audit requirementSecondary · 2026-06-27Primary source ↗
- Economic substanceSecondary · 2026-06-27Primary source ↗
- Mainland trading permitSecondary · 2026-06-27Primary source ↗
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