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 came to be glad about making the all the “Manufactured in Germany” label on the hardware products, Germans have seen that industry for new cars for export in Dubai and the rest of UAE has the fantastic potential. Based on the manager of Exhibition of Dubai Automobiles Michael Dehn, for new cars in Dubai, Germany is interested to provide 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 will be the next big potential location as identified by the Germans for the manufacturing of automotive components just due to the 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 individuals who are willing to exhibit their interests in moving their business of manufacturing new cars in Dubai and other regions of UAE. Michael also added it is also a cheaper supplier of raw materials utilized in manufacturing of new cars in Dubai such as for instance aluminum.
Another favorable and considerable point could be the development zones in this region. The UAE contains seven Emirates including Abu Dhabi, Sharjah, Fujeirah, Ras Al Khaimah, Ajman, Um Al Quwain and Dubai and for Automobiles a number of these zones have facilitated free trade zones where big companies can have their own space and they could operate their businesses without any type 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 certainly one of world’s largest container ports with name Jebel Ali. Jebel Ali could be the port in Dubai that provides all forms of logistics support including stay in any hotels. Based on 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 doing operation since 25 years and has continuous expansion since to a spot 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, a great many other Automobiles manufacturers are involved in the method of getting new cars components to multiple Dubai industries.
Dubai is gaining a great popularity because of its labor capacity and wealth growth. Based on 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 particular Dubai has the cheapest unemployment rate and in the populace of 4.5 million people the 20% is the neighborhood, whilst the major percentage of labor participation is comprised of expatriates.