Cost to Open an Auto Repair Shop in Dubai (2025 Guide)

You're thinking about opening your own garage in Dubai? You’re in the right place.

Dubai is one of the most active car markets in the region, with millions of vehicles on the road every day and a constant need for honest, skilled, and efficient workshops.

This guide will break down everything you need to know from licensing to setup costs to running your operations with a Garage CRM that keeps things under control from day one.

Why Start a Garage Business in Dubai

There are around 3.5 million vehicles on Dubai’s roads during the day. Across the UAE, over 4.56 million vehicles are registered, an increase of nearly 390,000 in just a year. That’s your potential customer base.

Add to that:

• 541 cars for every 1,000 people, higher than London and New York.
• Around 23 new garages open every year in Dubai alone.
• 92% of garages are single-owner workshops — meaning it’s mostly independents, not big franchises.
• Only 34% of garages have a website or digital system.
• The UAE’s automotive aftermarket is worth 7.3 billion USD (that's around 27 billion AED) and growing fast.

There’s space for new garages that want to do things properly; clean, transparent, and digital. And Dubai communities are always growing so there's always a place that's underserved.

Here are the steps you need to take.

Step 1: Choose Your Garage Type and Services

Before getting your license, decide what kind of garage you want to run.

Tip: EV and hybrid work is still an open lane, fewer competitors and way higher margins.

💡 How autoGMS helps: Tag and categorise every job type from day one so whether it’s oil change or ECU tuning, you’ll know exactly where your time and revenue are going.

Step 2: Get Your Garage License in Dubai

You’ll need an Automobile Repairing License from the Department of Economy and Tourism (DED) or one of Dubai’s Free Zone Authorities.

Mainland License (DED)

• Operate anywhere in Dubai
• Requires a trade name and activity approval
• Best for garages serving retail customers

Free Zone License

• 100% foreign ownership
• Easier banking and tax benefits
• Great for fleet or B2B services

You’ll also need:

• Ejari tenancy contract
• Fire and Safety certificate
• Dubai Municipality layout and waste approval
• RTA clearance (if you plan mobile or modification services)

💡 How autoGMS helps: Once your license is sorted, we’ll help you organise your operations and documentation digitally — no more lost papers or random Excel sheets.

Step 3: Estimate Your Setup Cost

Typical startup cost: 236,000 – 437,000 AED (excluding land).

While areas like Al Quoz and Ras Al Khor used to be the go-to for workshops, many new garages are now setting up in Dubai Investment Park (DIP), Jebel Ali Industrial, and Warsan.

These zones offer larger spaces, easier access for delivery vehicles, and lower rent compared to the older, busier districts therefore making them ideal for garages that want to scale efficiently.

💡 How autoGMS helps: Once you’re operational, you can track all your startup spending inside autoGMS, from tools to rent, so you know exactly when you hit break-even.

Once you have your budget figured out, your next step is getting the licence and business structure ready. You can follow our step-by-step How to Start an Auto Repair Shop in Dubai (2025 Guide) to complete this process smoothly.

Step 4: Build a Small but Capable Team

Start lean. Hire skilled people, not a crowd.

• One senior mechanic
• One electrician
• Two helpers

Keep clear job cards, offer written warranties, and always document your work. Transparency builds loyalty and in Dubai, that spreads fast.

💡 How autoGMS helps: Create digital job cards for every technician. You’ll know who’s doing what, how long it takes, and where the bottlenecks are — all in one dashboard.

Step 5: Go Digital from Day One

A 2025 Dubai case study showed that a garage that switched from manual tracking to digital software saw:

• 40% higher revenue
• 70% fewer customer complaints
• 50% faster service times

The truth is, running a garage on paper and WhatsApp only works for a few months. After that, things fall through the cracks missed follow-ups, lost invoices, unhappy customers.

That’s why we built autoGMS, a Garage CRM and management system made right here in Dubai.

💡 How autoGMS helps: We replace the chaos of paper and WhatsApp with one clean system where your whole team works in sync — even if they’re not tech-savvy.

autoGMS: Your Partner for a Smart Launch

autoGMS isn’t just another app. It’s built for people like you; mechanics, entrepreneurs, and new garage owners who want to start strong.

We help you manage everything from day one:

• Invoices and payments that meet UAE VAT rules
• Customer CRM to track jobs, bookings, and history
• Technician and bay management so no job gets lost
• WhatsApp and SMS updates (even email) for customers
• Inventory tracking and expenses
• Instant dashboards showing how your garage is doing

Think of us as your co-pilot; not a vendor, but a fellow garage operator who’s figured out the hard parts for you.

🎁 Launch Offer: Invite us to your grand opening and enjoy your first month of autoGMS free.

AutoGMS vs Odoo vs Zoho: Best UAE Garage Software 2025

Tired of wasting time and money on custom Odoo or Zoho setups? Discover why a dedicated garage management system is better for your UAE workshop. Go live in 5 mins.

Learn more

Step 6: Market Your Garage

Once your license and setup are done, start building visibility.

1. List your business on Google Maps.
2. Post your before-and-after photos on Instagram and TikTok.
3. Run small local ads for “car repair near me Dubai.”
4. Offer launch discounts and free inspections.
5. Partner with fleet companies, rental firms, and insurers.

With autoGMS, you can schedule reminders, manage repeat customers, and track loyalty — all inside your Garage CRM.

💡 How autoGMS helps: Send your first marketing messages directly from the platform through SMS, WhatsApp, or email. All synced to your customers’ profiles automatically.

Dubai Garage Market Snapshot (2025)

The market is small but powerful. Most garages still operate manually, which gives new garages using autoGMS a serious head start.

Final Thoughts

Opening a garage in Dubai isn’t just about tools and licenses. It’s about setting up systems that keep you in control.

Start your operations on the right foot with autoGMS, the Garage CRM built in Dubai for Dubai garages. We’ll help you save time, stay organised, and focus on what really matters: fixing cars and growing your business.

Invite us to your grand opening and enjoy your first month of autoGMS free. Let’s build your garage together the smart, digital way.