The motorcycle dealership and repair market in the UAE is rapidly transforming into a lucrative frontier for entrepreneurs and investors alike. As more individuals seek efficient and cost-effective transportation solutions in a landscape dominated by urban congestion, motorcycles are stepping into the spotlight, offering a blend of practicality and excitement. With an impressive forecast of 2.5 million registered motorcycles in the GCC by 2025, the UAE stands at the forefront of this burgeoning market, inviting both local enthusiasts and international tourists to explore its vibrant roads on two wheels.
The demand for motorcycles is being driven by several compelling factors. The UAE’s thriving tourism sector plays a pivotal role, as visitors flock to experience the thrill of riding through iconic destinations, while rising fuel costs encourage residents to consider two-wheelers as a viable alternative for daily commutes. The earning potential in this industry is significant; established dealerships can generate annual revenues ranging from AED 2 million to AED 10 million, and repair shops can charge AED 1,500 upwards for services. With the market poised for expansion, particularly with the rise of electric motorcycles and an increasing emphasis on sustainability, now is the ideal time for ambitious entrepreneurs to enter this dynamic sector and capitalise on the evolving landscape of motorcycle culture in the UAE.
if you aspire to set up a motorcycle dealership and repair shop in the UAE, here are the various business activities you can choose under your license:
4540.00 – Sale, Maintenance and Repair of Motorcycles and Related Parts and Accessories
This business activity encompasses the retail distribution, servicing, and repair of motorcycles, including both new and used models. It involves a range of operations, including the sale of motorcycles and the provision of maintenance services, such as routine inspections, oil changes, and brake adjustments, to ensure optimal performance and safety. Additionally, it includes the repair of malfunctioning components and systems, as well as the sale of related parts and accessories, such as tires, helmets, and protective gear.
4540.01 – Wholesale And Retail Sale of Motorcycles, Including Mopeds
This business activity encompasses the bulk purchasing (wholesale) and direct selling (retail) of motorcycles and mopeds, which are defined as two-wheeled motor vehicles. It involves sourcing these vehicles from manufacturers or distributors, managing inventory, and ensuring compliance with regulatory standards concerning safety and emissions. Retail operations may take place through physical dealerships or online platforms, offering various models and additional services, such as financing and warranties.
4540.02 – Wholesale and Retail Sale of Parts and Accessories for Motorcycles (Including by Commission Agents and Mail Order Houses)
Wholesale and retail sale of parts and accessories for motorcycles refers to the activity of distributing and selling motorcycle components, including parts, accessories, and related products, through both wholesale and retail channels. This encompasses transactions conducted by businesses that sell these items in bulk to other retailers (wholesale) as well as direct sales to consumers (retail). Additionally, this activity includes sales facilitated by commission agents, who act as intermediaries to promote and sell products on behalf of manufacturers or distributors, and mail order houses, which utilise catalogue or online platforms to sell products directly to consumers, often delivering them through postal services.
4540.03 – Maintenance and Repair of Motorcycles
This business activity is dedicated to the upkeep, servicing, and restoration of motorcycles to ensure optimal performance, safety, and longevity. This includes a range of services such as routine maintenance, which encompasses oil changes, tire rotations, and brake inspections, as well as more complex repairs like engine overhauls, transmission repairs, and electrical system diagnostics. Technicians in this sector utilise specialised tools and equipment to perform diagnostics and repairs, adhering to manufacturer specifications and industry standards. Additionally, businesses engaged in this activity may offer aftermarket modifications, customizations, and parts replacement, enhancing both the aesthetic and functional aspects of motorcycles.
4540.04 – Trikke Scooters Trading
Trikke Scooters Trading refers to the activity involved in the wholesale and retail distribution of Trikke scooters, which are three-wheeled, non-motorized personal transport devices designed for various users, including children and adults. This activity encompasses the procurement of Trikke scooters from manufacturers or suppliers, as well as the marketing, sales, and distribution processes involved in delivering these products to consumers or retailers. The trading process may include inventory management, pricing strategies, promotional activities, and after-sales support services. Additionally, it may involve establishing relationships with local retailers or online platforms to optimise market reach and facilitate the effective sale of Trikke scooters, ensuring compliance with relevant regulations and safety standards governing personal mobility devices.
4540.95 – Permanent Industrial Exhibition
This business activity involves the continuous showcasing and promotion of industrial products, technologies, and services in a fixed location, typically through permanent exhibition spaces or venues. It is characterised by the establishment of exhibitions that operate year-round, providing manufacturers and service providers with a platform to display their offerings to potential clients, stakeholders, and the general public. Permanent industrial exhibitions serve various sectors, including manufacturing, construction, and technology, and may encompass features such as interactive displays, product demonstrations, and informational seminars.
4540.96 – Commercial Brokers
Commercial brokers refer to entities or individuals engaged in the business of facilitating transactions between buyers and sellers of motorcycles and related parts and accessories. This activity encompasses a range of functions, including market analysis, product sourcing, negotiation of terms, and the finalisation of sales contracts. Commercial brokers typically do not take ownership of the motorcycles or parts they broker; instead, they earn commissions or fees for their services. They play a crucial role in bridging the gap between manufacturers, wholesalers, and retailers, ensuring the efficient flow of goods in the market. This includes the promotion of various brands, conducting market research to identify demand trends, and providing clients with strategic insights to enhance sales performance.
4540.99 – Scooters Trading
This business activity, specifically, focuses on the wholesale and retail distribution of scooters, including electric scooters, mopeds, and other lightweight two-wheeled vehicles. It encompasses various operational facets, such as the procurement, inventory management, and sales processes associated with these vehicles. In addition to direct sales, this activity often includes ancillary services like the maintenance and repair of scooters, as well as the provision of related parts and accessories, ensuring a comprehensive service offering to customers. Companies engaged in this activity typically utilise technical knowledge of scooter specifications and performance, enabling them to cater to consumer needs effectively while adhering to regulatory standards related to vehicle safety and emissions.
Exclusions directly tied to these business activities include:
- Wholesale of bicycles and related parts and accessories
- Retail sale of bicycles and related parts and accessories
- Renting of motorcycles
- Repair and maintenance of bicycles
Third-party Approval: No third-party approvals are required for these business activities.
Filing of Economic Substance Return: The above-mentioned business activities are exempt from this requirement.
Anti-Money Laundering Compliance: The above-mentioned business activities are exempt from this requirement.
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