Can Car Makers Hope for Business as Usual in the UAE?

The world is in a flux at the moment, what with the recession having a worldwide impact on jobs, living and almost everything else. The world auto industry has been similarly affected, with the big four Detroit firms receiving a bailout boost from the US Government. This was desperately needed to keep them afloat. However, it appears that with the reduced spending by the public in the aftermath of the recession, sales are not picking up and the retail and commercial sectors of America’s economy are still in a slump. The unemployment level has reached a constant 10 percent, with no light at the end of the tunnel. It is hoped that by giving a tax holiday to small and medium businesses this year, employment would be stimulated.
Now that business in their home bases is stagnant, car manufacturers and sellers in the USA, Japan and Europe are looking to boost their sales and profits in foreign lands. China and India are two of the world’s fastest growing economies at present, and efforts are targeted towards these areas. But when it comes to comfort and luxury cars, the UAE is one of the auto manufacturers’ favorite markets. Arabs are impressed by extravagance, speed and finesse and money is no object if you can satisfy their cravings. Although Dubai has been humbled by the bad press it received over the mishandling of the property bust and Dubai World debt repayment fiasco, it has survived these crises although it is still in an economic limbo. The Government will have to revise policies and intervene to stimulate the markets. Meanwhile, the Dubai Auto Show scheduled for 17 December 2009 was one of the region’s most awaited events. Brisk business and order placements took place. Wealthy Arab families have a lot of money and would love to own the latest that technology can offer. A lot of hype had been created, however presentations remained important. Everybody it seems had their own opinion about what is the best, with some degree of brand loyalty already in the minds of the buyers. Still there remained hopes of some new conversions.
On the other hand, the car dumps of Dubai and Abu Dhabi are a testament to its opulence. Secondly, some of the cars owned by expatriates who left Dubai when the property bubble burst can still be seen in Government auctions if the car has been repossessed. It has become a favorite haunt for car dealers. The auto market in Dubai looks alive and well, with a number of UAE autos websites in vogue. As indicated, the market for used cars in both Dubai and Abu Dhabi is quite active. The latter market is also frequented by car dealers Dubai and in fact anyone who wants to buy cars online Dubai. All this makes it very easy to buy a car Dubai or Abu Dhabi these days. The outlook is positive, with sales expected to increase rather than decline.