Dubai Forms New Automotive Group to Boost Economy

by Zaara 20, Feb 2020

Dubai, one of the most prominent cities in the UAE which has been one of the most desired destination for the investors to trade their money in its varied business network is about to see a boost in its economy in the form a group which is being set up to provide assistance to the booming auto sector in Dubai.

How the automotive sector is crucial for Dubai’s economy

The UAE has an ever-growing business sector in terms of numerous fields like healthcare, education, IT, automobile, and many more, which together contributes to the economy of the UAE in specific ways. Dubai act as the center of attraction for almost all businesses in the UAE region and hence all the companies tend to operate from Dubai or at least have a branch in Dubai. The rapid increase in the interest of investors that Dubai has seen has led to the city contributing to the country’s economy at quite a notable level. Dubai has several business opportunities that have seen many organizations shifting their business plans to Dubai, which eventually has led to the country’s economic growth.

Dubai Chamber of Commerce and Industry, which is a Dubai based non-profit organization has decided to form a Car Dealers Business Group, which is supposed to serve various matters that impact the auto sector in Dubai. These will include uniting the voices of member companies, serving common interests, and monitoring the public-private sector dialogues on various stages. The foremost aim of the Dubai Chamber of Commerce and Industry is to help and support the upcoming and existing diverse business community in Dubai, thus promoting Dubai as an international business hub. The current automotive industry already contributes about AED60 billion(~$16 billion) to the total economy of the UAE, and this group is expected to help the economy of the UAE grow even further thus expanding its business network and attracting more people to invest its region.

The automobile sector already has a compelling impact on the country’s economy, contributing nearly $16 billion to it. This new venture in the auto sector of the country will directly help the economy grow even faster as it will help the businesses grow and nurture in a more arranged form. Also, it will help the companies which are operating in a particular space to raise concerns about any issues and share their feedback on the regulation impacting industry. The Car Dealers Business Group is the 31st business venture that has been launched by the Dubai Chamber of Commerce and Industry.

The chairman of the Dubai Chamber of Commerce and Industry Shri Majid Saif Al Ghurair described this project as an essential approach to align efforts of crucial investors and also that it will help the industry become more competitive for businesses to come, this gives us an estimate of the upcoming blooming automobile business in Dubai. Michel Ayat has been appointed as the chairman of the Car Dealers Business Group and has described this venture as a step to identify critical challenges that car dealers are facing in Dubai, and they will work to develop and create innovative solutions to address such issues and then share policy recommendations with the Dubai Chamber and concerned government entities.

Is it Worth Investing in Dubai’s Automobile Sector?

Since Dubai is snowballing as the preferred location for many business investors, some people might think that how impactful will this sector be in terms of long-term investments as well as short-term investments, when Michel Ayat was addressing the media about his vision just after being appointed as the chairman of the group. He added, “This is a significant step toward enhancing the overall competitiveness of the UAE automotive industry as it embraces the spirit of a public-private partnership to support the authorities with global best practices that will raise the standards of the automotive industry and ensure right regulations for the future.”,. These words show how several new firms are approaching the UAE market and seeing it as a very fruitful opportunity to invest their money which eventually will lead them to make their mark in the evergrowing Dubai’s business sector.

He further added, “The automotive industry of the UAE is witnessing new challenges that will be solved through joint efforts by highlighting the common interests of dealers, consumers, and the government. We look forward to building a sustainable future for the industry”. This statement suggests how new groups are keen to help all those businesses which aspire to set up their offices in Dubai and trade their money in the country. This intent leads to the fact that there is no shortage of business opportunities in the region and also there are many bodies that are desperate to help out such organizations who tend to make their mark in the business sector.

Conclusion

The above discussion brings us to the conclusion that if any individual or organization is aspiring to set up a new business or is thinking to invest their money in the UAE market and hoping for impactful results, there is no shortage of opportunities in the context of structure details, financial details and many more terminologies that one needs to know to have a go in the UAE market. Feel free to contact us for any business-related query in the UAE region. We love to help!