How to buy a car in the UAE as a foreigner?

Personal vehicles are an important part of life in the United Arab Emirates, so if you are planning to relocate, it is crucial to understand the ins and outs of buying and maintaining a car in Dubai. Can a non-resident buy a car in the UAE? How can you import a car with a foreign plate? What are the expenses and the procedure for registering a car? Let’s go through these questions step by step.

Content:

• Can a non-resident buy a car in the UAE?
• Importing your car to Dubai
• Buying a new car in Dubai
• Expenses when purchasing a car in Dubai
• Document preparation for buying a car in Dubai
• Buying a used car in Dubai
• Toll roads, petrol prices, and car repairs in the Emirates
• Conclusions

Can a non-resident buy a car in the UAE?

Can a foreigner buy a car in Dubai? Yes, an overseas national can purchase a car in the United Arab Emirates even without being a resident. However, to use the bought car in the country, a residence visa and Emirates ID are required. Without these documents, you cannot obtain a driving licence and register the vehicle in your name. The easiest way to obtain a 2-year visa is by buying a house or apartment in Dubai worth at least AED 750,000 ($204,000).

The Road and Transport Authority (RTA) website contains a list of countries whose driving licences can be converted to local ones. The list includes the US, the UK, Canada, Australia, and a number of European countries. According to the driving rules in Dubai, citizens of countries not mentioned in this list must undergo an eye test and training at a driving school to obtain a licence.

Importing your car to Dubai

The conditions for importing cars with foreign plates into Dubai are regulated quite strictly. Firstly, to import a car into the UAE, you must be a resident of the country and obtain a local driving licence. There are also several restrictions for the vehicle itself:

1. Only left-hand drive cars are allowed for import.
2. The car must not be older than 10 years. To import an older vehicle, an application to the RTA for the registration of a so-called classic car is required.
3. It is prohibited to import damaged cars and vehicles with non-original spare parts.
4. Cars with tinted windows are not allowed to be imported. A fine will be imposed on the vehicle, and all windows will need to be replaced.

For a foreigner to import a car, the following documents are required:

• No Objection Certificate (NOC) from the RTA;
• Original and copies of the passport, visa, and driving licence;
• Original documents proving ownership of the vehicle;
• Export certificate;
• Vehicle passport;
• Bill of lading or airway bill.

When the car arrives in the UAE, you need to pay a customs duty of 5% of the commercial value of the car, plus fees for document processing. Then, the car undergoes customs inspection, and the owner receives a temporary import permit valid for up to six months. After that, it is necessary to register the car with the RTA and obtain insurance. Once these steps are completed, you will receive the vehicle registration card and a UAE licence plate.

Buying a new car in Dubai

Having a car in the emirate is essential, whether you have purchased a villa in Dubai in a gated community or are renting a studio in a remote area. Many foreigners opt to buy a new car in the UAE for several reasons:

• Cars assembled in the UAE have excellent air filters, crucial for the constant presence of sand in the air.
• High-quality radiators are installed due to the high temperatures on the Arabian Peninsula.
• The car coatings have a high degree of protection to combat the constant corrosion caused by sand and heat.

Where and how to buy a car in Dubai as a foreigner? There are numerous car dealerships operating in the emirate, with a significant portion of them located along Sheikh Zayed Road. Additionally, the UAE features an extensive market for used cars, often in excellent condition.

Expenses when purchasing a car in Dubai

Unquestionably, the most substantial expense will be the cost of the car itself. It is worth noting that car prices in Dubai are lower than in most countries worldwide. For instance, you can buy a new mid-range car for around AED 80,000–100,000 ($22,000–$27,000), whereas it might cost approximately AED 300,000 ($81,500) in Singapore.

When registering the purchase of a car in Dubai, the vehicle must be registered with the RTA. If you are buying a new car, the dealer will take care of the registration process for you. However, you can handle the initial registration yourself. The cost of this registration in 2022 is AED 420 ($115). Creating an account in the RTA system (Traffic File) will incur an additional fee of AED 220 ($60).

Document preparation for buying a car in Dubai

To register a new car in the UAE, you will need to provide the following documents:

• UAE residence visa;
• Emirates ID;
• Passport copy;
• Car insurance contract;
• Purchase agreement with the car dealership;
• Driving licence valid in the emirate.

Registration needs to be renewed every 12 months.

When arranging insurance or a car loan, the requirements for the car owner and their documents may vary. Typically, to obtain a car loan, you will need:

• Passport and Emirates ID;
• Bank statements for the last 3–6 months;
• Vehicle valuation certificate;
• Car registration documents.

Most banks are willing to cover up to 80% of the car’s cost, with fixed interest rates ranging from 2% to 4.75% per annum.

Buying a used car in Dubai

Traditionally, the cost of used cars in the emirate is 20–30% lower than that of new ones, decreasing by an additional 15% each year. However, current market conditions must be considered. For instance, in 2022, used car prices in the UAE increased by 20% due to a shortage of new cars, population growth, and increased demand for personal mobility post-pandemic.

Buying a used car from a certified seller has several advantages, including warranties, maintenance contracts, and technical support.

Toll roads, petrol prices, and car repairs in the Emirates

Drivers in Dubai need to connect to the Salik system for access to toll roads, calculating and deducting toll fees remotely and autonomously. To do this, you will need to buy a Salik sticker tag preloaded with AED 50, 100, or 200 ($13, $27, or $55). It must be affixed to the car’s windshield. Each passage through a toll booth costs AED 4 ($1.1).

The cost of fuel in the UAE is among the lowest globally: the price of 1 litre of petrol is only AED 3 ($0.8). Car washes range from AED 40 to 120 ($11 to $32). The average cost of car maintenance starts from AED 500 ($135). A vehicle inspection in Dubai costs approximately AED 350 ($95). The cost of an oil change depends on the car’s make: for a mid-range car, it is AED 100–150 ($27–$41), for premium-class cars, it is AED 800 ($220) and more.

Conclusions

The process of buying and registering a car in the Arab Emirates is relatively straightforward. Firstly, obtain a local driving licence or convert a foreign one, and all roads will be open for you. However, it is crucial to ensure full compliance of your documents with the country’s legislation. Therefore, do not underestimate the assistance of trusted experts. This applies to both buying a car or property in Dubai and obtaining a residence visa. Consult with our company’s specialists; they will answer any question you might have.