Dubai looking to increase it re-exports spare parts business.As per rough estimates,Dubai currently re-exports Dh300 to Dh 400 worth of spare parts annually.

According to senior sources, The total investment in the new 'Dubai Auto Parts City Free Zone"in Al Aweer is around DH 1 Billion. Already Dh 400million invest behind the first phase alone on which work would be start in six months.

The Dubai Governments allots 12 million square feet of land for the Dubai auto parts city free zone. For the first 15 years for tenants it will charge 0.40 fils a square foot as rent.

To expand business fast banks, clearing and forwarding agencies and transport companies will have bases at the facility apart from auto traders and Dubai Customs.

Dubai Annual automotive parts trade is around DH3.5-5 billion conservatively valued.Around 50-60 percents ends up as re-exports.

Dubai Ports and Customs already examined the project after auto parts merchants have approached them back in 2002,said by the senior sources, After the meeting between Ports and Customs officials suggested that the merchants form an association and Auto Merchants Group was forms.

The Dubai authorities have allotted a large plot of land for the Dubai Auto parts City Free Zone project near Dubai international city. But some thing went wrong due to that allotted land occupied by "china town"-The recently opened Dragon Mart

Because of companies established in the free zones (in a country) the facility of seaport and airport will be very nearer to the companies and of free tax, trade free and allow 100% foreign ownership for their investments. Free Zones in UAE operate as a central business hub for corporations to do business all over the world. Since a huge part of new overseas investment in the UAE takes place in the free zones. One more benefit to being in a UAE free zones is that the UAE currency, the dirham, is not subject to replace control policy. Companies have the liberty to transfer earnings out of the country without currency limitations. LLC company formation in Dubai.