Dubai Auto Parts City (DAPC), aiming to boost the re-exports of auto parts from Dubai . Apart from spare parts, businesses with interests in tyres, auto batteries, and accessories are also eligible to take part.

As per rough estimates, Dubai currently re-exports Dh300 to Dh400 worth of spare parts annually.

Overall investments in the new ' Dubai Auto Parts City ' in Al Aweer could total Dh1 billion, according to senior sources. The first phase alone, work on which would start in six months, would entail investment of around Dh400 million.

The Dubai Government has provided 12 million square feet of land. It will charge 0.40 fils a square foot as rent from the tenants for the first 15 years.

Apart from auto traders and Dubai Customs, banks, clearing and forwarding agencies, and transport companies will have bases at the facility.

Dubai 's trade in automotive parts is conservatively valued at Dh3.5-5 billion annually. Around 50-60 per cent ends up as re-exports.

The sources said that the project has been already examined by Dubai Ports and Customs after auto parts merchants have approached them back in 2002. It was suggested that the merchants form an association and Auto Parts Merchants Group (APMG) was formed after the meeting with Ports and Customs officials.

The authorities have allocated a large plot of land for the project near Dubai International City , but apparently something went wrong within the association, sources said, adding that the allotted area is now occupied by " Chinatown " - the recently opened Dragon Mart.