They look like factory halogen headlights.
My first thoughts are that your LCM (light control module) has been changed, and that's why you only have the one dial (which should be for interior illumination brightness), and whoever changed it put in a xenon unit instead. You don't have headlight washers on your bumper, so I assume that the car never came with xenons, but you can confirm that here: https://www.mdecoder.com/
Do you have a 'tamper dot' on your dashboard, by the milage? (this is from an e46, but the z4 will be the same in the LCD section):
If you do, then this is good, as it suggests that someone has changed the LCM, and just not coded it to the car correctly. If that is the case, you can either:
- replace with another LCM for halogens (with the two scroll wheels - one for headlight aim, one for illumination)
- replace the halogens with xenons and code the LCM to correct your VIN/milage (both stored in the light control module, as well as the instrument cluster) - this might be an issue come MOT time without the headlight levelling xenons need)
- keep the halogens, code the LCM to your VIN/milage (and forgo the headlight adjustment, which also might be an issue come MOT time!)
If it is a swapped LCM, I'd go for option 1 for MOT compliance, and ease, as all options would need coding at this point.