How to Open an Auto Repair Business in Dubai

How to Open an Auto Repair Business in Dubai

Dubai is one of the most bustling cities globally because it is one of the most popular tourist destinations on earth. Each day, there are thousands of cars on the road, and there will always be a high demand for auto repairs. People need trusted garages for car repairs, services & oil changes, battery changes, tire changes, and all other repair jobs. It means if you open an auto repair business in Dubai, then you can make it into a profitable business venture. 

This business is easy to start if you have the right guidance. With the help of the right experts, and if you follow the correct steps. If you meet the legal requirements and start your garage smoothly. In this blog, we will explain how to open an auto repair business in Dubai. 

Guide With Steps to Open an Auto Repair Business in Dubai 

Step 1: Decide the Type of Auto Repair Business 

The first step is to decide what type of auto repair services you want to give to your customers. Some of the garages only focus on general car services, and some are focused on specialties in body repairs, electrical repairs, and tire services. 

Step 2: Choose The Right Business Location 

The location for a business matters a lot, and it is important for the auto repair business in Dubai. You need a place that is easy for the customers to reach. Moreover, you must take into consideration space for the vehicles and equipment involved. Many garages are in industrial districts, are located near major roads, and/or are located next to residential areas. Additionally, before you lease or buy your location, you will need to investigate the permissible land use as defined by your municipality. 

Step 3: Get A Right Trade License 

You cannot start your business without a license. You need a proper license from the Department of Economic Development (DED) to start an auto repair business in Mainland Dubai. To start a business in a Free Zone, approval from the Free Zone authorities is important. Additionally, the requirement of the license depends on the services you offer. 

Step 4: Meet All Legal and Technical Requirements 

There are some overarching restrictions depending on the business setup. The Government of Dubai has some specifications depending on the type of auto repair shop. Authorities are obliged to follow rules established by the Dubai Municipality that are designed to consider health and safety and waste disposal in particular. Your workshop must have state-of-the-art equipment, trained personnel, and health & safety equipment, including items such as fire extinguishers and ventilation! 

Step 5: Arrange Proper Tools, Equipment, and Staff 

When your license is approved, you have to purchase the equipment, tools, and machines that are important in the process of auto repair. The things include lifts, tire changers, air compressors, diagnostic tools, and repair kits. 

Additionally, you also need a skilled mechanic, electrician, and helpers who can understand the latest technology of your cars. Some of the customers in Dubai also own luxury or high-end cars. So, the trainer you are hiring should have proper experience with the technical part of the cars. 

Step 6: Set Your Price and Services 

To attract customers, you have to set a fair and competitive price for your customers. You have to check the price and services of the other garages in your area. This is how you can create your different packages, such as basic services, full services, and special services for auto repair. 

Step 7: Marketing and Promotional Activities

Even if you have a workshop packed with tools and other equipment, consider that history will not recognize your great job unless you engage in some promotional marketing. To market your new garage business, use online marketing techniques and paper flyers. 

Use business cards, magnets, and/or signboards to publicize your startup. You can even attract first-time customers by offering them a discount to create some goodwill for your business in the marketplace. For example, you could incorporate loyalty marketing for your regular customers.

Step 8: Providing Excellent Service

Most people in Dubai will place value on quality and speedy service. If you provide respectable advice, a level of customer service, quick repairs, and reasonable rates, they'll be back to visit your garage. The more people that return, the easier it is to develop volume and grow an outstanding reputation.

Benefits of Opening an Auto Repair Business in Dubai 

1. High Demand: The roads of Dubai are always busy. This creates the demand for car repairs, services, and maintenance. 
2. Opportunity to Work with Various Vehicles: Dubai is home to all kinds of vehicles. You can see mall economy cars to high-end sports cars on the road. This allows you to target different groups of customers. 
3. Strong Earning Potential: Providing services to the luxury brands can bring high profits. Additionally, the regular maintenance of the packages you are offering can provide an even income flow. 
4. Room for Business Expansion: Once your first workshop is running successfully, you can open more branches for mobile repair services. 
5. Supportive Market Environment: Dubai has friendly regulations, modern infrastructure, and strong purchasing power. It makes it easy for the auto repair business to grow. 

Documents Required for Auto Repair Workshop Setup in Dubai

When you apply to get an Auto Repair Workshop license in Dubai, you have to apply through the Department of Economic Development (DED). You have to provide various forms/documentation. The following will typically be required:

• Trade Name Reservation Certificate from DED (Department of Economic Development), Relevant Free Zone Authority.
• Initial Approval from DED for your trade name and activity (e.g. auto mechanical repair, auto body repair, etc.).
• Copy of the passport of the owner and all partners.
• Copy of the visa of the owner and partners (if applicable).
• Copy of the Emirates ID (for UAE residents).
• If the business is a partnership, a Memorandum of Association (MOA) to show all partners.
• Ejari, the tenancy contract of the workshop location.
• A layout plan of the workshop indicating areas of work, customer reception, storage, and safety equipment—approved by Dubai Municipality.
• Approval from Dubai Municipality stating that the workshop is safe for the environment.
• No Objection Certificate (NOC) from the landlord (if applicable).

How Can Flyingcolour Business Setup Support You?

An auto repair business in Dubai involves many steps (e.g., choosing the right license, location, and legal requirements). These steps are mandatory to follow to operate smoothly in Dubai. Flyingcolour Business Setup has 20+ years of experience in the business setup in Dubai. 

You will be relieved of all of the work associated with starting your business, and you can focus on operating your workshop while Flyingcolour® does everything related to your auto repair business establishment.  We have been helping aspiring entrepreneurs for years with opening businesses in Dubai, and we can:

• Propose the most appropriate license for your business
• Help you with all the documentation and approvals
• Explain anything related to possible locations
• Clarify legal requirements and customer safety
• Provide support for everything involved in your business setup

Frequently Asked Questions (FAQs) About How to Open an Auto Repair Business in Dubai

Q1: What is a license required to start an auto repair business in Dubai?

Yes, you need a trade license from the Department of Economic Development (DED) for the old Dubai. The Free Zone Authority license depends on the area you choose to set up your business.

Q2: How much space will I need for a car repair shop?

The space for your workshop depends on the cars you want to service at a time. You should have a sufficient space for vehicles, equipment, and customer parking.

Q3: Can I open an auto repair shop in a free zone?

Yes, some free zones in Dubai allow you to provide auto repair services, but you should confirm with the Free Zone Authority or Flyingcolour Business Setup.

Q4: How much is the investment to open an auto repair business?

The amount of investment will depend on the location, size of the workshop, equipment, and salaries for staff. It can vary from a small workshop to a large facility with advanced equipment.

Therefore, to learn more about how to open an auto repair business, Book a free consultation with one of the Flyingcolour Business Setup team advisors.

The article was published on 04/09/2025. It is important to note that the federal policies and updates mentioned may have changed since then. For the most current information, please contact our consultant!