How to Choose the Best Free Zone for Your Car Dealership in Dubai

01 Jul 2024 Helpful Tips

free zone car dealership

If you want to start a car dealership in Dubai, the first thing that you need to decide is if you are going to trade in a free zone or if you are going to trade on the mainland. Trading in a free zone has many advantages and is much easier to setup and establish compared to on the mainland.

EasyCars has put together a guide which will help you understand how to choose the best free zone for your car dealership or car showroom in Dubai.

Let’s get into it!

Understanding Free Zones in Dubai

Dubai has several free zones, each free zone in Dubai caters to different industries. A free zone in Dubai is a designated area where businesses including car showrooms can operate under specific regulations.

A free zone in Dubai is designed to attract foreign investment and promote economic growth. Some of the most popular free zones in Dubai for automotive businesses include Jebel Ali Free Zone (JAFZA), Dubai Airport Free Zone (DAFZA), Dubai Silicon Oasis (DSO), and Dubai Multi Commodities Centre (DMCC).

Key Factors to Consider When Choosing a Free Zone for your Car Dealership in Dubai.

1. Location and Accessibility

The location of your car dealership in Dubai will determine if you're successful or not. It is so important that you pick a location that is easily accessible to your target customers. Some good free zone business locations in Dubai for car showrooms can include, JAFZA as it is located near Jebel Ali Port, making it ideal for businesses that rely on sea freight. DAFZA, is another commonly used free zone for car dealers in Dubai as it is located near Dubai International Airport, which could position you to high numbers of car buyers and tourists.

2. Infrastructure and Facilities

Another important factor to consider when choosing a free zone in Dubai is infrastructure. Look for free zones in the UAE that offer space that cater for a car dealership. JAFZ is a common dealership free zone in Dubai as it has a range of warehouse and land that caters for car dealerships.

3. Cost of Setup and Operations

The cost of setting up and running a car dealership in Dubai and in a free zone can vary greatly. Before you consider choosing a free zone location for your dealership you need to know and understand the initial setup costs like annual license fees, visa fees, and other operational expenses. Some free zones may offer different rates and packages. Make sure to compare these costs across different free zones to find the most competitive option.

4. Business Activities and Licenses

All free zones in Dubai have very specific regulations on the types of business activities that are allowed. Before you start a car showroom in Dubai, be sure to obtain all the required permits and licenses needed to trade a car showroom in the selected free zone.

Top Free Zones for Car Dealerships in Dubai

1. Jebel Ali Free Zone (JAFZA)

JAFZA is one of the most popular free zones in Dubai for car dealerships as it offers one of the best strategic positioning and facilities needed.



  • JAFZA does have a higher initial setup costs compared to some other free zones in the UAE
  • Strict regulations and compliance requirements

2. Dubai Airport Free Zone (DAFZA)

DAFZA is the second most popular free zone in Dubai for Car Dealerships. The benefit of the DAFZA free zone is it is located near the Dubai Internation Airport giving you good visibility to mass customers.


  • Close to Dubai International Airport
  • Easy Access for Vehicle Delivery
  • Competitive free zone licensing and operational costs


  • Competitive and low vacancy
  • Caters for many industries not just car showrooms in Dubai

3. Dubai Silicon Oasis (DSO)

The third most popular free zone in the UAE is Dubai Silicon Oasis DSO. The DSO is home to many industry leading businesses in different sectors ranging from technology to automotive dealerships in Dubai.


  • Modern facilities
  • Competitive free zone setup costs


  • Location is more business orientated and differs compared to DAFZA and JAFZA
  • Industry focus on technology may not align with all dealership needs

4. Dubai Multi Commodities Centre (DMCC)

Another great free zone for businesses in the UAE that many dealerships take advantage of is Dubai Multi Commodities Centre DMCC.


  • Central location
  • Offers different business licenses in the UAE
  • Strong focus on trading and logistics


  • Higher setup and operational costs compared to some other free zones
  • Limited availability of large industrial spaces

Final Word,

Location will make or break your dealership. If you are planning on starting a dealership in a free zone in the UAE it is important that you research, prepare, plan and consult with all relevant parties to make the best location decision. The locations presented in this piece are found to be some top choices for car dealership locations in Dubai.

We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.

DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature. Please consult with all relevant parties prior to making any decision.

About EasyCars,

EasyCars by Jeal is a UAE Motor Industry Specific, Dealer Management Software that automates the daily tasks of running a motor dealership. Using the latest technologies, EasyCars removes frustrations experienced at the dealership - opening the doors to future growth.

EasyCars features include Simple Stock Management, Automated Advertising, Automatic VAT Calculations, Xero Accounting Integration, Facebook Automotive Inventory Ads, Dealer Websites and Business Reporting in the one central management software.

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