Opportunities in Dubai in the Automobile Sector

The vibrant automobile sector of Dubai is all set to witness a paradigm shift in the coming years. Starting with 2018, this multi-cultural hub has begun the year on an optimistic note and introduced many smart solutions in the automobile sector. The main focus of Dubai has not only been to climb the charts of a highly-advanced nation but also balance its economy with initiatives like green and a cleaner environment. The automobile industry in Dubai is also preparing for the grand event to be held in 2020 – the Expo 2020.

Given this backdrop, let us look at what kind of opportunities await the investors looking for business setup in Dubai free zone and mainland city.

• Car Rental Company: Starting your own car rental company is a great business prospect in Dubai. This is because the normal fare for travelling by cabs or taxis far exceeds the cost of just renting a car for the day. Dubai has other modes of transportation too, like the bus and the metros. But they don’t necessarily cover all the routes. So you stand to benefit a lot if you are the owner of a car rental company as there would always be foreign nationals, expats, businessmen, and other people looking to book your services.

• Parts and Accessories: In 2017, Dubai accessories and auto parts trade had hit DH 40 billion. For the previous year, it was 38.7 billion, resulting in a 3% hike. This goes on to show that the need for parts and accessories is ever increasing including for the purposes of exports and re-exports. Dealing in parts and accessories would be one of the most profitable ventures to carry out in Dubai.

• Truck Rental: Another great option to consider is getting a food truck license in Dubai. The street food culture of the USA and Europe is slowly making its way in Dubai too as the government of UAE started issuing licenses for food truck business. With the right business plan and all the necessary documentation and permits, this could turn out to be a great opportunity to invest in.

• Automobile Service: The Middle East is known for having the highest per capita spending on luxury vehicles worldwide. In the UAE alone, one in six cars sold is from a premium brand the likes of which include a BMW, Audi, Mercedes, etc. Additionally, the desert safaris serve as a bonus to add more demand for automobiles and SUVs. Needless to say, servicing for such high-end cars would always be a necessity.

• Automobile Insurance: All car owners are legally required to take out insurance of their cars if they are to stay in Dubai. So as long as there are people buying cars, there will always be insurance policies to be purchased for it. So you can study and compare the car insurance market in Dubai and consider becoming an insurance provider.

• Automobile Finance: Car financing is quite prevalent in the UAE. Almost 60 to 70 percent of the car buyers depends on a car loan to book their vehicle. Also, the interest rates are relatively low at 2 to 4 percent as compared to the outside markets where the interest rates are 5 percent. This makes automobile financing a lucrative business opportunity.

• Driving School: Driving in Dubai is more of a necessity than a choice or a luxury.If you have a driving license from any of the approved countries you can also convert your license to a UAE driver’s license without undergoing a road test. For other countries, you need to acquire your license after following the due process and clearing the tests.