Reasons Why Dubai is Seeing an Increase in Imported Cars from the US
A large percentage of the world’s population dreams of visiting the United States. There exists a general perception that everything produced in the USA is of high quality, including cars. In recent years there has been an exponential increase in cars being exported to Dubai (small Middle Eastern sheikdom), but this increase may not be solely due to the quality of the car being produced.
An important factor to consider when trying to understand this exponential increase is that mechanical labor costs significantly less in Dubai when compared to labor costs in the USA. This means that it also costs less to fix mechanical problems. If we look at the issue more in-depth, mechanic shops charging an average labor rate lack quality. The overall quality of mechanical work matches the quality in the US, but costs double in Dubai. Cars in Dubai are usually maintained by low-quality shops. This means that a car in America is of much higher quality compared with a car of the same mileage in Dubai.
Other factors can also contribute to this sudden increase in cars being exported to Dubai from the US. Dubai is one of the fastest growing multi-ethnic cities in the world. It welcomes anyone whose intention is to move there in order to make money. The Dubai Statistics Department announced that in 2006, there was a sharp increase in the city’s population, including an energetic development in every sector. More than 290,000 people became residents of Dubai in 2006, increasing the population by 21%. This increase in population naturally brought in an increase in vehicles. In 2006, about 210,000 vehicles were registered in Dubai. It’s during this movement that US based car dealers jumped on the bandwagon of shipping cars to Dubai, after requests by local dealers in Dubai.
In conclusion, the current economic growth in Dubai was initiated in the year 2000, spreading to other areas of the Middle East in 2005. Doha and Abu Dhabi are the most recent cities benefitting from this wave of economic investment and development. It’s predicted that the economic growth will last at least until the end of the current US president’s term. The United States economic policy will not see drastic changes until the next US president is elected to the White House. This is why it’s important for United States car dealers to make the most of this period supported by the globalized market and efficient supply chain management.
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We may be witnessing a generational change in the global wealth pattern, which could be very beneficial for the Arabian gulf countries of the Middle East.
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