Managers in the automobile trade and supply sector reported that the project to develop and establish the “Dubai Auto Market” achieves great economic benefits, the most prominent of which are concentrated in 11 benefits, the most prominent of which is increasing the areas of manufacturing and assembling cars and spare parts in Dubai, and reducing the cost of supply chains and shipping periods by establishing complexes and warehouses, and supporting the position of Dubai is a global center for innovation in automotive technologies, electric and sustainable vehicles, attracting new investments in the sector and supporting sustainable development goals.
They pointed out to Emirates Today that the new project is a pioneering strategic step in Dubai’s journey towards achieving its future vision of being one of the three best economic cities by 2033, and strengthening its position among the most developed cities in the automobile trade sector. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, may God protect him, directed the establishment of the Dubai Auto Market, to be the largest and best market of its kind in the world.
A partnership agreement was signed between Dubai Municipality and DP World to establish and develop the Dubai Auto Market to be the largest and best market in the world on an area of 20 million square feet, and to outsource the construction and management of the new market to DP World based on its great logistical experience and ability to reach and connect. All over the world through its network, which includes more than 430 business units in 86 countries.
In detail, Jack Brent, Managing Director of Al-Futtaim Toyota and Al-Futtaim Lexus in the Emirates, said, “The announcement of the development of the Dubai Auto Market, which is the largest and most modern car market in the world, will contribute to raising Dubai’s position as a prominent destination in the global auto trade sector.” ».
He added, “The new project includes many economic benefits, most notably enhancing Dubai’s global trade connectivity, as the Dubai Auto Market will be connected to 77 ports around the world, managed by DP World, which will enhance its capacity and double its current sales amounting to 6.8 billion dirhams. The project will also enhance areas of integration.” Between the automotive sector in Dubai, commercial and logistical services, and financing solutions that are considered vital to the business environment in the emirate,” he pointed out, “This strategic initiative will generally contribute to supporting the investment environment.” “Dynamism in Dubai adds momentum to its sustainable economic growth, in accordance with the Dubai Economic Agenda (D33), which aims to double the size of the emirate’s economy and make it one of the three largest economic cities in the world by 2033.”
For his part, President of Hyundai and Genesis Emirates, Sulaiman Al-Zaben, said, “The Dubai Auto Market development project will have many economic returns that will accrue to the automotive sector in the country and the region,” explaining that “among the most prominent economic benefits that result from the new project are Increasing opportunities and stimulating the process of assembling and manufacturing cars and spare parts of various types in Dubai, strengthening Dubai’s position as a center for auto spare parts supply chains, and reducing the cost and timing of supplying auto spare parts by creating complexes to store them in Dubai.”
Al-Zaben stated, “The Dubai Auto Market development project is a pioneering strategic step in Dubai’s journey towards achieving its future vision of being one of the three best economic cities by 2033, and strengthening its position among the most developed cities in the automobile trade sector, as it can be considered doubling the size of the market from 2.8 One million square feet to 20 million square feet as a turning point that will move the market to a new level of excellence.”
He added, “For example, the huge market space will provide a wide range of exhibitions and services that meet the needs of various customers, including areas designated for each brand or category of cars, as well as centers for innovative government and banking services, and spaces designated for innovation and technology.”
He pointed out, “One of the important points that will benefit everyone is the process of connecting to global markets, through the DP World network, which will allow us to reach new markets and expand the scope of our work. There is no doubt that this trend will support the automotive sector, which is considered one of the The most important sectors that support the country’s economy, as its size is estimated at approximately 80 billion dirhams in terms of sales and after-sales service, as the UAE is one of the fastest markets in sales growth in the region.”
Al-Zaben said, “The development plan for the market would make it a vital environment for the sector, and attractive to a variety of stakeholders, including car manufacturers, dealers, service providers, and car enthusiasts. This is one of the factors in enhancing the competitiveness of the automotive sector in Dubai, and the UAE in general, as it will encourage… Increasing the space and diversity of offers and agencies will help improve the quality of services and provide attractive offers, and at the company’s business level, this will give us an opportunity to expand our customer base and increase sales.”
Al-Zaben explained, “Based on the merits of the project, its comprehensive plan, and the advantages it will provide, it is expected that the market will witness a tangible growth in sales, after the opening of the new market, with an expected increase ranging between 20% and 30%. This is due to the expansion in providing a variety of options for cars and a range of cars.” Integrated services will contribute to accelerating purchasing processes. Moreover, entering new sectors such as spare parts and accessories trading would open new horizons for growth, and ultimately lead to enhancing revenues and achieving Long-term business sustainability.
He stated that “(the company) is planning to build dedicated showrooms within the new market, and they will be designed with modern technologies and interactive environments, to provide the opportunity for customers to experience cars directly. We will also work to provide service spaces, including maintenance workshops, inspection services, and the sale of spare parts, to facilitate obtaining.” All customer needs in one place.
In turn, Yasser Shabsough, Vice President of Commercial Operations at Kia Middle East and Africa, said, “The initiative launched by Dubai during the recent period, which aims to develop the (car market), which extends over an area exceeding 20 million square feet, will make it the largest, most developed and advanced.” In the world,” he pointed out, “There is no doubt that this initiative will enhance the automotive sector scene in the emirate and enrich its diversity.”
He explained, “By providing a range of facilities from used and new car dealerships to showrooms, service centers, auction halls and others, the project is likely to become a major location for major events in the automotive sector, attracting a diverse group of stakeholders.”
Shabsough added, “One of the biggest economic benefits that will accrue to Dubai from developing the project, which will bring together under its umbrella all the options available in the sector, from low-cost cars to luxury SUVs powered by sustainable energy, is that it will emerge as a strong investment ground that meets the needs of consumers, investors, and merchants.” “This supports sustainable economic growth within the sector.”
He pointed out that “the new project that will be implemented will attract foreign investment flows, which will strengthen Dubai’s position as a global center for innovation and trade in the automotive sector and confirm its position as a major center for car enthusiasts and brands.”
In the same context, Michel Ayat, CEO of Abdul Wahed Al Rostamani Automotive Group and Chairman of the Board of Directors of Zeker BAP, said: “With Dubai recently launching a project to develop the largest area for trading and supplying cars and spare parts, there are many benefits that will be reflected positively.” On the automotive sector in the Emirates, thanks to this ambitious project, the first of which is its strategic connection to global trade routes and 77 sea ports, thanks to the important role played by DP World, and this connection will provide improved and diverse trade opportunities for many. One of the international brands operating in the sector.
He added, “On the other hand, it is expected that expanding the market area to cover about 20 million square feet will double the space available to influential companies in this field, which will provide a large platform for leading brands to display and market their vehicles effectively, and thus enhance the size of the market in general.”
Ayat considered that “the new market’s focus on innovation and advanced automotive services creates a favorable environment for showcasing its advanced electric vehicle technology and meeting the needs of customers looking for innovative solutions, in addition to improving the infrastructure and integration of services in the project is an important factor in enhancing Dubai’s competitiveness.” On the economic level, its attractiveness is a global investment destination in the automobile trade sector.”
For his part, General Manager of Al Habtoor Motors, Karim Adnan Maqsoud, said: “The project to develop the Dubai Automotive Market, which is the largest in the world, will have many economic benefits, whether in the automotive sector or that will be reflected in Dubai’s economy in general.”
He explained, “One of the most prominent expected benefits of the project is increasing opportunities for assembling and manufacturing cars and spare parts in Dubai, near the new project that will allow connectivity with many international ports. In addition, the project will enhance Dubai as a major global destination for launching new models and innovations in the automotive sector and establishing… Specialized events, which support the transfer of various new industry experiences to Dubai markets.”
Car sales
The “focus2move” platform, which specializes in global automobile markets, showed that the UAE achieved the highest growth rate in new vehicle sales among the Gulf countries during the first nine months of 2024.
According to recent market figures announced through the platform, sales of new vehicles in the country, during the first nine months, amounted to more than 193,698 vehicles, with a growth rate of 20.2%, compared to the same period last year.
Dubai Auto Market encourages companies to implement new investment expansions
Car trade specialists in the Al Awir and Ras Al Khor areas in Dubai reported that the project to develop and establish the “Dubai Auto Market” will contribute to motivating traders to implement new investment expansions, through the new market, which is intended to be the largest and best of its kind in the world.
The CEO of New Auto for Car Trading, Bilal Nasr, explained that “the Dubai Auto Market project will represent a qualitative shift not only in the country’s markets but also at the regional and global levels,” pointing out that “the market will be the largest of its kind and the most comprehensive in the world.” The automotive sector will be a new destination for investors and dealers interested in the automotive sector at the international level.”
He explained, “There are many investors who have been waiting on waiting lists for a while to open their headquarters in the Ras Al Khor and Al Awir areas in Dubai, and with the trend towards developing the new market, there will be more opportunities for these investors from all over the world.”
For his part, Director of Wholesale Operations at Legend Motors, Sami Al-Kiswani, said, “The new market will support Dubai’s position as a global center not only in the trade of new cars, but also in the used car sector, while attracting more dealers from all over the world.” The world, in addition to attracting huge investments in the automobile trade and supply sector, which will support record highs in the re-export of various types of cars through Dubai.”
In turn, the head of the “Star Collection” car trading company, Raed Mohammed, considered that “the new project for the car market in Dubai came to support a new and additional distinction for Dubai in the car trade sector through its implementation of the new market, which will become the largest and most important region in the car sector in its various categories.”
He added, “The project will support new investment expansions, whether for companies already existing in the local market or by attracting new investments from various countries of the world.”
The director of the “Al Ketbi” car trade showroom, Wissam Qabalan, pointed out that “the (Dubai Auto Market) project will have many economic benefits in the various sectors related to car trade and supply, the most prominent of which is that it will open new areas for companies working in the field to expand their investments, in addition to… It will attract new categories of dealers interested in the automotive sector from various countries of the world to search for the best cars with competitive prices through Dubai markets.”
He explained that “the market will also provide room for expansion in the supply of sustainable cars, which are finding a new field for them with the growth in demand for them in the local and regional markets.”
Economic benefits of the project
1- Increasing opportunities for assembling and manufacturing cars in Dubai.
2- Reducing the cost and periods of supplying spare parts.
3- Strengthening Dubai’s position as a global destination for automobile trade.
4- Enhancing Dubai’s commercial connectivity by linking the market with international ports.
5- It makes Dubai a global center for innovation in the automotive sector.
6- Increases opportunities to attract new investments in the sector.
7- It supports the goals of sustainable economic development through the project’s tributaries.
8- Strengthening Dubai’s position as a center for electric and sustainable cars.
9- Attracting international automobile companies to establish regional headquarters and warehouses.
10- It supports Dubai’s position as a major destination for international events in the automotive sector.
11- Attracting new categories of customers from different countries of the world.