Table of Contents
Frequently Asked Questions
How large is the UAE aerospace parts market?
The UAE aerospace parts market is valued at approximately USD 25 billion, per Ken Research, driven by fleet modernisation, MRO demand and USD 1.5 billion in government aerospace infrastructure investment across Abu Dhabi Airport expansion and Dubai's Aviation City.
How fast is UAE aftermarket parts growing?
The UAE Aircraft Aftermarket Parts Market is projected to grow at 3.7 percent CAGR from 2025 to 2031, per 6Wresearch, driven by timely maintenance requirements, aviation fleet expansion and established MRO facility presence across the emirates.
Who buys UAE aircraft used parts?
Buyers include Emirates Engineering, Etihad Engineering, AMMROC, Strata Manufacturing, regional MRO facilities, airline operators, engine leasing firms, brokers and downstream secondary supply chains serving global fleet operators, per Ken Research industry data.
Do I need DCAA approval to open an aircraft parts trading firm?
Yes. Approval from the Dubai Civil Aviation Authority (DCAA) is required before your trade license is issued, alongside GCAA certification, OEM traceability standards and airworthiness compliance requirements applicable to used and scrap aircraft parts trading.
What does activity 4669.77 cover?
Activity 4669.77 covers wholesale trading of aircraft scrap and used aircraft spare parts including dismantled parts, used engine cores, rotable components, avionics modules, cabin interior parts, life-limited parts and certified aerospace scrap materials.
How to start an Aircraft Scrap and Used Spare Parts Trading in Dubai
Dubai sits at the centre of a regional auto parts market worth billions. High vehicle density, an active re-export trade, and steady demand from workshops across the Gulf all feed it. This guide covers what the used spare parts trading license covers, who your buyers are, how to choose the right setup, and the exact steps to get trading through Meydan Free Zone.
What This License Covers
The used spare parts trading license lets you buy, sell, and re-export second-hand auto components. It covers a wide range of parts. You are not limited to one vehicle type or one market.
Parts typically covered under this activity include:
- Engines and engine components
- Gearboxes and transmission parts
- Body panels and exterior trim
- Electrical units and control modules
- Suspension, braking, and steering parts
The license does not cover new parts. It also does not cover vehicle assembly or repair services. If you want to run a workshop alongside your trading activity, that needs a separate license.
| Activity code | Used Spare Parts Trading |
|---|---|
| Foreign ownership | 100% – Invest in Dubai |
| Visa eligibility | Yes, based on workspace package |
| Setup cost range | From AED 12,500 |
| Setup location | Meydan Free Zone, Dubai |
Who Buys Used Spare Parts in Dubai
The buyer base is broad. That is one of the reasons this trade works well from Dubai. You can serve local customers and international ones from the same base.
Your main buyers will come from 4 groups:
- Local garages and independent workshops looking for cost-effective stock
- Re-exporters shipping parts to Africa, South Asia, and the wider Gulf
- Fleet operators managing large vehicle pools on tight budgets
- Online traders sourcing parts for cross-border e-commerce
The re-export opportunity is significant. Dubai's port and logistics setup makes it simple to move parts onward to markets where demand is high and local supply is thin. Many traders in this space do most of their volume outside the UAE.
Fleet operators are also a reliable segment. Large fleets need a steady supply of parts at predictable prices. A used parts supplier who can offer consistent quality and fast delivery earns repeat business quickly.
Online demand is growing too. Cross-border auto parts e-commerce is active across the region. Traders who combine a Dubai license with a good online presence can reach buyers they would never meet in person. You can explore ecommerce seller account setup options to support this channel from day one.
Free Zone vs Mainland: Which Fits You
This is the biggest choice you will make when setting up. Let your target clients decide it, not the price.
| Factor | Mainland (DET) | Free Zone (Meydan Free Zone) |
|---|---|---|
| Client access | Open UAE market, including retail and government | Mainly international and re-export clients |
| Foreign ownership | 100% in most activities | 100% |
| Office need | Physical office required | Flexi-desk options available |
| Customs duty | Standard UAE import duties apply | Duty-free within free zone |
| Setup speed | Longer approval process | Fast, often within days |
| Cost | Higher overall cost | Trade License from AED 12,500 |
A mainland license from DET lets you work directly with UAE retail customers and government fleet buyers. That matters if your model depends on local walk-in trade or public sector contracts.
A free zone license suits traders focused on re-export and international supply. You get 100% ownership, lower setup costs, and faster approval. Work without the right license and you risk fines, cancelled contracts, and damage to your name.
Meydan Free Zone offers fast setup, flexi-desk options, and competitive license fees. If most of your buyers are outside the UAE, it is the more workable choice.
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The process is straightforward. Most applicants complete it within a few days. Here is what to do:
- Step 1, book your trade name: Use the Meydan Free Zone portal to check your company name availability and reserve it.
- Step 2, pick your activity code: Confirm the used spare parts trading code is on your application before you go further.
- Step 3, choose a workspace: Pick a flexi-desk for admin and trading, or a warehouse unit if you hold physical stock on-site.
- Step 4, submit your documents: You will need a passport copy, a completed application form, and a business plan if requested.
- Step 5, pay the license fee: Your license is issued once payment clears. Review the Business Activities List to confirm your code is included.
- Step 6, open a corporate bank account: Get business banking support to open your account quickly.
- Step 7, apply for visas: Your visa allocation depends on your workspace package. Factor this in early.
You can also complete much of this process without being in the UAE. Meydan Free Zone supports remote business setup for founders based outside the country.
What You Must Have in Place
Getting your license is step one. Running a compliant used parts business needs a few more things in place before you start trading.
Storage
Parts must be held in an approved facility. A flexi-desk alone is not enough for physical stock. If you plan to hold inventory in Dubai, you need a warehouse unit or an approved third-party storage site.
Customs registration
You need customs registration to import and re-export through Dubai ports. The Ports, Customs and Free Zone Corporation oversees this. Get it done before your first shipment moves.
Supplier records
Keep clear records of where your parts come from. Customs and quality checks can ask for sourcing paperwork. Good records protect you and speed up clearance.
VAT registration
You must register for VAT once your turnover crosses AED 375,000. The Federal Tax Authority (FTA) handles this. Register on time. Late registration carries penalties. You can get VAT registration support through Meydan Free Zone.
Staff and visa planning
Your visa allocation is tied to your workspace package. Plan your headcount before you choose a package. Adding visas later is possible but costs more.
The Market Opportunity
Dubai has one of the highest vehicle-per-capita rates in the world. That creates constant demand for parts, especially in a market where many vehicle owners prefer to repair rather than replace.
The re-export angle makes this trade especially attractive. Parts sourced in Dubai move quickly to markets across Africa, South Asia, and the Gulf. Many of those markets have limited local supply and high demand for reliable second-hand components.
According to Statista, the used auto parts market globally continues to grow as consumers manage costs and supply chain pressures push buyers toward alternatives to new parts. Dubai's position as a logistics hub makes it one of the best places in the world to run this trade.
The barriers to entry are real but manageable. You need the right license, proper storage, and clean sourcing records. Once those are in place, you are operating in a market with strong, consistent demand and a wide buyer base.
Conclusion
Used spare parts trading in Dubai is a real, workable business. Regional demand is strong. The licensing path through Meydan Free Zone is clear and fast. Whether you are focused on local workshops or international re-export, the setup works.
Get your activity code right, sort your storage and customs registration, and keep clean sourcing records. Those 3 things separate traders who scale from those who stall.
Ready to Launch Your Business in Dubai?
Let's ConnectReferences
- Invest in Dubai
- Ports, Customs and Free Zone Corporation (PCFC)
- Federal Tax Authority (FTA)
- Statista
Can I trade used spare parts from a free zone in Dubai?
Yes. A Meydan Free Zone license covers buying, selling, and re-exporting used auto parts. It suits traders focused on international and re-export markets. If you want to sell directly to UAE retail customers, a mainland license from DET is the better fit.
What parts can I trade under this license?
The license covers used engines, gearboxes, body panels, electrical units, and other second-hand auto components. It does not cover new parts, vehicle assembly, or repair services. Those activities need separate licenses.
Do I need a warehouse to get this license?
You do not need a warehouse to get the license. But if you plan to hold physical stock in Dubai, you need an approved storage facility. A flexi-desk alone is not enough for inventory. Meydan Free Zone offers warehouse units alongside flexi-desk options.
How long does setup take?
Most applicants get their license within a few days of submitting documents and paying the fee. The process can be done remotely if you are outside the UAE. Bank account opening takes longer and depends on the bank you choose.
When do I need to register for VAT?
You must register for VAT once your annual turnover crosses AED 375,000. The Federal Tax Authority (FTA) handles registration. Register on time to avoid penalties. Meydan Free Zone offers VAT registration support if you need help with the process.
Can I re-export parts to other countries from Dubai?
Yes. Re-export is one of the main uses of this license. Dubai's port and logistics setup makes it easy to move parts to Africa, South Asia, and the Gulf. You need customs registration with the PCFC before your first shipment moves.
