Do you think a car wash business is profitable in Dubai? The answer is yes. The car washing business can be profitable in just 1-2 years. The Emirati population has a luxurious car owned by them. In the coming year, it is expected that the vehicle growth per 1000 UAE people is expected to be around 8.19% by 2028, as per the reports.
Starting a car wash business in the UAE is a profitable market expanding yearly. Before starting a car wash business in the UAE, you must note many things. The car wash business in Dubai requires proper planning, research, preparation and documentation.
Proper market research is necessary to find the perfect location for your business, get the necessary permits, buy the right equipment, and more. Shuraa can you help with this process.
Our experts at Shuraa Business Setup are well-trained experts who will help you start a car wash business in Dubai. We can help you to get the required Car Wash Business license in Dubai.
Key Points of Car Wash Service Demand in the UAE
The demand for car wash services in the UAE is increasing due to several factors:
Status and Presentation
Having a neat and clean car helps you to maintain your image. Imagine you going on a meeting or a date. Somewhere the people around you will surely notice your dirty vehicle.
Imagine what impact it will create. So, car owners focus on regular, high-quality cleaning and detailed servicing of their cars.
Climate of UAE
The hot temperature of UAE can ruin the paint of your cars. To maintain the car’s appearance, you must clean the vehicle. Cleaning your car is important as it changes the whole appearance of your vehicle.
UAE is a desert area, and the car wash helps to remove the sand and debris from your car. It also keeps your vehicle in good condition and lasts longer.
Tourism Boom
The UAE is a place for the Tourism industry. Approximately 12 million people come to the UAE to travel and explore. Many tourists demand that they rent a car to explore areas in the UAE, and renting a car is easy in Dubai.
Rental companies need car wash services to keep their cars clean and presentable for customers.
Busy Lifestyles
Businessmen and other wealthy people don’t have time to clean their cars daily. A car cleaning business can help you clean your vehicle. During these times, there has been a higher demand for convenience and time-saving professional car wash services.
Services are important for your cars to work for a longer period. It doesn’t just help your car look good but also increases the car’s life.
Types of Car Wash Business Models in the UAE
There are two types of car wash business models in the UAE
- Manual Car Wash
- Automatic Car Wash
Manual Car Wash
Many customers in the UAE prefer manual car washing. As manual car washes are popular with their skilled attendants, the services are provided manually for the cars. The equipment used in manual car washing are high-pressure water jets, specialised brushes, and cleaning agents. They even offer additional car services such as interior cleaning, vacuuming, and detailing the car’s cleanliness.
Automatic Car Wash
Nowadays, automatic car washing is becoming popular as it saves time and the work is done efficiently. In automatic car washing, the vehicles are cleaned with equipment like conveyor belts and robotic arms. The automatic car wash is Available in various formats like
On the other hand, automatic car wash facilities are gaining momentum due to their efficiency and speed. These facilities clean vehicles quickly and use state-of-the-art equipment, such as tunnel washes and self-serve stations. This mode of car washing helps you save time, and it’s easy peasy, too.
How to Start a Car Wash Business in Dubai?
The steps below will smooth out the process if you plan to start a car wash business in Dubai.
1. Select Your Business Activities
The first step is to select your business activities for starting a car wash business in Dubai. You need to contact the Department of Economics Development (DED). DED will help you access the approved business activities.
If you need more clarification about your business activity and need help, you can contact us at Shuraa Business Setup for help with the necessary approvals. If any desired activities need to be listed, we will help you select your business activity.
2. Choose a Business Structure
Once you have selected your business activity, the next step is to choose a business structure. You can choose a sole proprietorship to operate as a single business owner, limited liability company, or LLC with multiple partners.
Each business structure has different implications for ownership and liabilities. Mostly, the entrepreneurs in UAE chose LLC as their business structure.
3. Choose a Business Name
The third step in starting a car wash business in Dubai is choosing a business name. Make a list of names that suit your business and submit them for further approval. The name should not reference God’s name or divine attributes in Arabic or English, such as Al Qader, Al Aleem, Al Razzaq, etc.
Follow the name guidelines, as many names are prohibited in the UAE. If you want to keep your name as your business name, you must use your full name.
Note: If you need clarification about your business’s name and are trying to decide what to keep, you can consult our experts at Shuraa.
4. Select Mainland or Free Zone Setup
You can choose between a Mainland and a Free Zone setup based on ownership control, operational flexibility, taxation, and setup costs.
The mainland provides local market access, while Free Zones offer 100% foreign ownership, tax incentives, and simplified procedures. However, free zones limit activities to those within or outside the UAE.
5. Choose a Location
The other important step is to find a food location to start a Car Wash Business in Dubai. According to Dubai laws, the car wash centres should be near gas/oil stations or industrial areas operating on the mainland.
Examine both business zones’ pros and cons and decide your business location. Shuraa experts can help you to choose the ideal location for your business.
6. Get the Required Approvals and Licenses for your business
Get your Car Wash Business license in Dubai from the DED for Mainland or from the relevant Free Zone Authority.
Note: Your business will need water usage, waste disposal, and additional permits from the relevant authority.
7. Visas and Staffing
Once you get the required permits and license. Then the next step is to hire good employees for your business. If you are hiring, you must sponsor their work visas if necessary.
The staff should provide training in the car washing field and how to deal with customers. They should also follow proper safety procedures while working.
Documents Required to Set Up a Car Wash Business in the UAE
To open a car wash business in Dubai, you’ll need the following documents:
- NOC from your local service agent
- Passport copy of the applicant(s)
- Valid tenancy contract
- Payment receipt for trademark registration
- Get the required approvals from the Chamber of Commerce and Dubai Municipality
- Detailed business plan document
- Copy of your visit visa, tourist visa, residence visa, or investor visa
Cost of getting a Car Wash License in Dubai
Getting a Car Wash License in Dubai starts from AED 10,500* to AED 14,000* (2,858 USD to 7,623* USD). Additionally, to keep your license valid, you need to renew it annually. The total cost of a var wash license includes various expenses incurred throughout the process, such as trade name reservations, external approvals, and Ejari (tenancy contract) fees.
Other expenses, like where you set up your business, what you offer to the customers, getting employee visas, and service fees, also affect the total cost. So, it’s smart to plan on spending at least AED 18,500* to start your car wash business in Dubai. Talk to business consultants such as Shuraa for cost estimates that fit your business plan.
Unique Kinds of Car Washing in UAE
There are two unique types of cars washing in the UAE
1. Mobile car wash
The first kind of car wash in UAE is Mobile car wash. In this, the services are provided at the customer’s chosen location. All the required tools are gathered and sent with a service provider to the customer’s preferred location. It saves time and eliminates the need to visit a physical car wash.
2. Waterless car wash
This kind of car washing helps to save water. They use a special cleaning agent to clean the vehicles. It uses more chemicals, and they don’t use water to clean the cars.
Legal Requirements for Mobile Car Wash Businesses in Dubai
Starting a car wash business in Dubai requires specific regulations for easy, smooth, safe, and responsible operations.
- Dubai has stringent water conservation rules. To recycle and reuse water efficiently, water treatment systems should be installed in car washes.
- The Department of Economic Development issues a trade license for a car wash business in UAE.
- Car washing activities are generally restricted to specific zones. There will be strict penalties if you wash your vehicles outside your zones.
- To increase customer convenience and accessibility, make sure your car wash has clear signage and is highly visible from the road.
Wrapping up with Shuraa
Car Wash Businesses in Dubai are booming in the industry nowadays. It’s a good business to choose and earn profits from in the UAE. This guide mentions all the documents and required steps. We have made the steps easy for you to start a Car Wash Business in the UAE.
Shuraa Business Setup will help you with every step, from choosing the right business activity and structure to choosing a business name. We will also help you get the required Car Wash Business license in Dubai. What are you waiting for? Contact our experts, and we will be happy to help.