The UAE’s automotive, spare parts, and aftermarket industry has been witnessing an increasingly steady growth for the past few decades. Thanks to its reasonable fuel costs, tariffs, and tax rates, the UAE has succeeded in building a resilient and efficient infrastructure for the automotive, spare parts and aftermarket industry.
As of 2019, around one billion motor vehicles have been sold worldwide, over 70% of which were generated by passenger cars, while an increase of over 17.6% in the UAE’s automotive sales has been witnessed in March 2021. At the same time, the global automotive production is projected to grow from 100 million units in 2025 to 117 million units by 2030.
The absence of unnecessary regulatory restrictions and limitations on vehicles facilitates the purchase process on the corporate and individual levels. It has similarly allowed the country to expand more on innovation and development, such as being the first country in the MENA region to open a hydrogen-fueling station in alignment with its environmental plans. Other automotive-related plans of the UAE include a 25% transition plan to autonomous vehicles in Dubai by 2030, which the city is now implementing through its self-parking cars.