Germany and UAE trade relations are going finer and tuner day by day. Since the business of oil industry in Middle Eastern Countries especially Saudi Arabia have come to be glad about making the most of the “Made in Germany” label on their hardware products, Germans have realized that industry for new cars for export in Dubai and other parts of UAE has the great potential. According to the manager of Exhibition of Dubai Automobiles Michael Dehn, for new cars in Dubai, Germany is interested to offer in sourcing components.
The UAE has been identified as a possible spot for manufacturing cars and in Dubai automobiles industry may flourish in this regard further. UAE may be the next big potential location as identified by the Germans for the manufacturing of automotive components just because of its lower cost. The UAE offers comparatively favorable and supportive energy prices for the businesses who are dealing in cars for exports in Dubai and other companies who are willing to show their interests in moving their business of manufacturing new cars in Dubai and other regions of UAE. Michael also added that it is also a cheaper supplier of raw materials used in manufacturing of new cars in Dubai such as aluminum.
Another favorable and considerable point is the development zones in this region. The UAE consists of seven Emirates including Abu Dhabi, Sharjah, Fujeirah, Ras Al Khaimah, Ajman, Um Al Quwain and Dubai and for Automobiles many of these zones have facilitated free trade zones where big companies can have their own space and they can operate their businesses without any kind of taxation or local involvement at all.
Links with main automobile markets and logistics systems are already in place. Particularly Dubai Automobiles market is well located with one of world’s largest container ports with name Jebel Ali. Jebel Ali is the port in Dubai that offers all forms of logistics support. According to Dehn, most if not all multi-national automobile companies utilize Jebel Ali Port as a regional distribution center for the Middle East, Africa, and South West region of Asia. The Jebel Ali port in Dubai has been in operation since 25 years and has continuous expansion ever since to a point where it handles over five million TEUs in a year. So with Jebel Ali Port, Dubai plays the role for automobiles market and new cars for export in Dubai is focus of many car manufactures. From Chrysler to Toyota, many other Automobiles manufacturers are involved in the supply of new cars components to multiple Dubai industries.
Dubai is gaining a great popularity for its labor capacity and wealth growth. According to 2004 International Monetary Fund report, with 62.6 % Labor Force Participation, Dubai Automobiles market have the largest labor base among all seven Emirates of UAE. Along with this Dubai has the lowest unemployment rate and in the population of 4.5 million people the 20% is the local, while the major portion of labor participation is comprised of expatriates.