Dubai is regarded as an important automotive centre for exports and re-exports of automobiles in the surrounding area, owing to its strategic position and future-ready infrastructure.
Dubai has been praised for its deliberate efforts to assist its people attain happiness and a feeling of well-being, while also caring for and safeguarding the environment for a brighter future. These objectives are the motivating factor behind the activities and strategies being implemented in the city. In doing so, Dubai has established itself as a role model for other cities and nations, as well as a standard for other countries to follow.
Among its many booming businesses and sectors, the car industry is prospering and a significant pivot for future growth, since Dubai is home to global mobility leaders and a leading centre for automotive vehicle export and re-export to the Middle East and North Africa (MENA) region. This is due to a variety of factors. The strategic location and proximity to neighbouring countries—from the Middle East and Africa to South East Asia and India—come first, followed by its advanced infrastructure, ease of doing business, conducive policies, available industrial space, and the existing local demand for luxury vehicles, which is only growing.
Many automotive behemoths have either established or are in the process of establishing a presence in order to meet the expanding (local and neighbouring) demand for top-of-the-line autos. W Motors, for example, with its headquarters in Dubai, is the Middle East's first maker of high-performance luxury vehicles. Jannarelly Automotive is another prominent vehicle manufacturer situated in Dubai. Jebel Ali Free Zone (JAFZA), a supplier of sustainable industrial and logistics infrastructure solutions, has also provided automotive logistical solutions to global automobile manufacturers.
According to projections, the Middle East will have roughly 27,000,000 vehicles by 2023, including 18 million automobiles and 9 million commercial vehicles. The need for automotive accessories, spare parts, and services is likely to develop in lockstep, making Dubai a critical connection for automakers looking to expand into these neighbouring areas.
The proximity of Dubai Industrial City to Jebel Ali Port and Al Maktoum Airport allows it to serve as a cost-effective gateway to two-thirds of the world's population in just eight hours, which has helped position the city as a vital link for many automotive companies exporting cars to nearby regions. It also has plenty of room for car storage and a regular supply of replacement parts.
The UAE's cheap import and fuel prices, favourable tax regime, and high discretionary incomes have also contributed to the country's vehicle sector's growth and encouraged worldwide conglomerates to set up business and produce in the country. The government has also encouraged research and development in the areas of autonomous or driverless automobiles, smart and environmentally friendly alternatives such as hydrogen, natural gas, and hybrid vehicles.
Sustainable business practises and alternatives are the way of the future, and when it comes to the automotive sector, the UAE is already ahead of the game with its exploration of EV and driverless cars, among other alternatives. In keeping with its aim of reducing carbon emissions, the UAE has heavily promoted electric vehicles in the nation by lowering their pricing and other fees.
The country is thought to have the most EV charging facilities in the world. These initiatives are consistent with the UAE's Net Zero 2050 initiative, which seeks to make the UAE the first in the region to achieve zero-emission status by 2050. Around 300 green EV charging stations have been installed in Dubai as part of the Dubai Electricity and Water Authority's EV Green Charger programme, to expedite and encourage the transition to these cars.
By 2030, the city expects electric or hybrid automobiles to account for around 10% of the entire car population. To do this, the city has extensively invested in infrastructure and is giving discounts, exemptions, and free parking to encourage the use of electric vehicles. In addition, the government has been researching hydrogen and semi-autonomous self-driving vehicles. The Dubai Autonomous Transportation Strategy also intends to make 25% of Dubai's transportation autonomous by 2030. This will minimise transportation and environmental expenses while improving savings and productivity.