Dubai’s position as a major exporter and re-exporter of vehicles, one that allows manufacturers from Asia, Europe and North Africa to deal with the Middle East, Africa, India and South-East Asia, has generated global interest.
Automotive players want to start a foothold in the emirate, with many being drawn by the ease of business, infrastructure, and freely available industrial space.
Meanwhile, the Middle East and Africa’s vehicle service market has seen a stable growth in recent years as international automotive companies set up shop in the region to hit into demand from cash-rich consumers for high-end cars.
The number of vehicles in the Middle East is now predicted to reach 27,000,000 by 2023, including 18 million cars and 9m commercial vehicles, according to a global research company Aranca.
Multimillion-dollar infrastructure improvements completed last year have increased the district, providing heavy-tow trucks with direct access to major causeways linking the UAE with Oman and Saudi Arabia. Dubai has connected one of the world’s largest markets that is the automotive sector.
Dubai Industrial City has become a favourable centre for the automotive sector due to its 4.3m square feet of vehicle storage yards, ample supply of spare parts and access to both an airport and popular port.
“Dubai’s beneficial geographic position concerning the east and the west provides abundant benefits to automotive companies exporting cars around the world,” said Saud Abu Al-Shawareb, Managing Director of Dubai Industrial City.
“With a flow in international shipping costs, businesses need to find the most direct and cost-competitive route to key markets. This is why Dubai has become a spirited link in the global trade network and a doorway to the region. The capability to reach two-thirds of the world in just 8 hours is a compelling reason why the emirate has become an engine of growth in the auto market,” he stated.
The after-sales services market is also expected to witness a steady rise, reaching about $18bn by 2023, compared to $15bn in 2018.
The automotive industry is one of the 6 verticals that Dubai Industrial City’s master plan is built around. Many vehicle companies are already based in Dubai or are discovering the possibility of establishing a local presence to meet the needs of their customers.