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DUBAI

2019

MOBILITYGUIDE Redefining

Urban Mobility

22Report dated December 2018

WHYDUBAI?

TRADE EVENTS

OVERVIEW FUTURE GROWTH

GOVERNMENT SUPPORT

03 06

08 12

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CONTENTS

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Dubai is the Middle East’s and Africa’s most es-tablished import and re-export hub for the glob-al automotive industry and an emerging hotbed for the development and application of innova-tive mobility solutions aspiring to transform the way people and goods are transported in the fu-ture. From Ferrari to Toyota, to Tesla, and from flying taxi inventors to Hyperloop innovators, the world’s mobility industry leaders headquar-tered in Dubai never stand still in a progressive and future-focused marketplace.

1OVERVIEW

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The UAE is the sixth largest destination for US exports of new passenger cars with a market of US$1.4 billion, while Chinese vehicle sales in the country are expected to rise by 100 per cent annually to capture a double-digit market share by 2020.

4.5%Projected annual

growth rate

267,000sales by 2020

100%Rise in Chinese vehicle sales by

2020

$18.8Bin 2018

NEW CAR SALES IN THE UAE PROJECTED TO GROW

THE UAE

UAE HALAL FOOD INDUSTRY WORTH

OVERVIEWM

OB

ILIT

Y

As new car sales in the UAE are projected to grow at an annual rate of 4.5 per cent to over 267,000 in 2020, the number of passenger cars in the GCC is expected to grow at a five per cent compound annual growth rate (CAGR) to 13.2 million by the same year.

$1.4B Market

6thLargest destination for US

passenger car exports

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OVERVIEW

While Dubai is in the midst of its own revving auto industry, it also plays a critical role at the crossroads of ex-ports. The UAE is a re-export hub for other Middle Eastern countries as well as Africa, a continent with 34 mil-lion cars and where demand for spare parts is expected to grow by 9 per cent annually to 2022.

With the average age of UAE vehicles less than eight years, far below the global average of 12 years, Dubai is well positioned to capitalise from a Sub-Saharan African market where cars more than 16 years old account for 54 per cent of all vehicles. The val-ue of African spare parts demand – excluding tires, batteries and lubri-cants – will reach US$15.3bn by 2020, up from an estimated US$10.7bn in 2016. Currently, the UAE re-exports between 60 per cent and 70 per cent of all imported auto parts to other destinations

REGIONAL CROSSROADS OF EXPORTS

Dubai is a criticalRE-EXPORT

HUB for MENA

$15.3BAfrica’s spare

parts valueby 2020

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FUTURE GROWTH

Growth in Dubai’s automotive sector is driv-en by a range of technological innovations designed to curb CO2 emissions, reduce cost of mobility, road traffic and accidents. As part of its overall 2030 mobility strategy, Du-bai is introducing a raft of new-age, artificial intelligence-driven transport solutions bent on reshaping the future of transportation for both people and cargo, fueling further growth prospects for the sector.

The UAE saw 4% year-on-year growth in vehicles sales in 2018, while the size of the country’s automotive market is set to increase by 35% between 2017 and 2021, according to estimates from Dubai Chamber based on BMI Research data.

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35%estimated automotive market increase be-tween 2017 and 2021

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FUTURE GROWTH

And as the Middle East’s first-ever World Expo will demand significantly ramped-up logistics and construction capability in Dubai, the US$9bn event’s trickle effect will be felt in other vertical sectors within the UAE’s aftercare industry. The market will benefit as the larger volume of com-mercial and heavy-duty vehicles needed to trans-port this infrastructure, along with the sheer vol-ume of people that will be travelling to the site, will see a positive correlation in demand for spare parts and accessories, tyres and batteries, as well as a host of maintenance and upkeep-related in-frastructure and services.

Growth in hybrid and electric vehicles is also expected to be strong as Dubai is targeting 42,000 electric cars on its roads by 2030. The city is also investing millions to introduce four incentives to help increase the number of plug-in cars, from free public parking and charging to toll-fee exemption and discounts on the plug-in car’s registration.

42,000electric cars on the road

by 2030

1,000 Eco-Friendly Nissan vehicles will power Expo 2020 Dubai

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Dubai’s Roads and Transport Authority (RTA) has announced a five-year strategy for the develop-ment of autonomous transport technology. This includes more than 30 individual projects and in-itiatives largely aimed at turning the emirate into a global leader in the development and implemen-tation of autonomous transport technology. Addi-tionally, a key objective of the plan is the conver-sion of 25% of Dubai’s road traffic into autonomous traffic by 2030.

This goal will be met largely through a focus on converting the emirate’s taxi and bus fleets to self-driving vehicles.

3GOVERNMENT SUPPORT

In line with the goal of making 25% of road traffic autonomous by

2030, driverless shuttles began trial runs in Dubai’s

Sustainable City in September 2018.

RTA’s Five-year strategy

30 Individual projects

25% of Dubai road traffic to be

autonomous by 2030

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Dubai has already taken a noteworthy step towards its goal of becoming one of the first cities to significantly adopt driverless ve-hicle technology when it ran its first trial run of the Autonomous Air Taxi. The RTA, in a partnership with the German helicopter firm Volocopter, flew the crewless vehicle 200m high during the initial experiment. When op-erational, the taxis will be able to seat one to two people and fly for a maximum of 30 min-utes with a top speed of 100 km per hour. It is estimated that the technology will reduce costs by 44%, saving US$5.9 billion, increase productivity by 13% and reduce road acci-dents by 12%.

GOVERNMENT SUPPORT

RTA’s autonomous air taxi

experiment

Autonomous vehicle technology

30 minutes flight time

44% reduced costs

$5.9B saving

13% reduction in road

accidents

100km top speed

2 passengers

$1.32

per passenger mile to operate

Moreover, the RTA has partnered with US technology and car transport firm Uber to develop flying cars by 2020. Jeff Holden, Uber’s chief product officer, announced that according to the company’s estimates a fly-ing car could cost around US$1.32 per pas-senger mile to operate, which is equal to Uber’s discount UberX service.

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Another major project currently under way is the de-velopment of the world’s first functional hyperloop network. DP World, Dubai’s government-controlled global ports operator, recently invested US$50m in Virgin Hyperloop One, a US-based firm developing technology to send passenger and cargo pods down low-pressure tubes at high speeds. Though the pro-ject is still in the initial stages, a hyperloop line con-necting Dubai and Abu Dhabi could theoretically reduce the travel time between the two cities from the current one hour by car to about 12 minutes. Vir-gin Hyperloop One is working with the authority and other government entities to explore how the net-work might function in the emirate, particularly in relation to existing transport networks.

The five-year plan also involves build-ing up Dubai’s legislative environment regarding drone usage, an objective that is widely considered to be as cen-tral to the widespread use of drones as competition over big-ticket deals.

GOVERNMENT SUPPORT

$50M investment in

Hyperloop by DP World

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GOVERNMENT SUPPORT

BLOCKCHAIN DRIVES DUBAI 10X INITIATIVE

Dubai has also launched an initiative designed to make the city the world’s first to introduce a Block-chain-based vehicle lifecycle management system can provide a genuine record of a vehicle’s history.

The initiative will become effective in 2020 and falls under the Dubai 10x that aims to embrace disruptive innovation as a funda-mental mantra of the government’s opera-tions and to seek ways to incorporate its methodologies in all aspects of their work.

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LOCATION & CONNECTIVITY• Dubai is a key connecting hub between the markets

of the East and West Ideally located to bridge the cru-cial time zone gap between the markets of the East and West to enable 24/7 services and connectivity.

• Easily accessible through two international airports – Dubai International (DXB) and Dubai World Central (DWC) – within a 4 hour flight of one-third of the world’s population, and within 8 hours of two-thirds.

•90 airlines operate 6,500 flights a week from DXB, to 240 destinations.

•15 passenger carriers operate an average of 153 flights weekly to more than 30 international destina-tions across 10 countries from DWC.

•DXB passenger numbers are projected to reach 103.5 million by 2020 while passenger traffic across Du-bai’s two primary airports is forecasted to rise to 200 million by 2030.

• Home to the world largest manmade port – Jebel Ali – a premier gateway for over 90 weekly services connecting more than 140 ports worldwide. Expan-sions currently underway at the Port will bring total handling capacity to 22.1 million TEU by 2018.

• With its diverse and mature consumer base, Dubai has a proven track record of being the launch-pad to test and expand operations across the wider Middle East, Africa and South Asia.

• Non-oil trade between Dubai and Africa is valued at US$34billion having amounted to US$192 billion over the 2012-2017 period.

• Non-oil trade between Dubai and India reached US$27 billion in 2017, representing 7.6 per cent of Dubai’s total non-oil foreign trade for the same year, and is projected to increase by 5% to US$30 billion by 2020.

4WHYDUBAI?

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6,500 flights a week

DUBAI A KEY HUB

$34B non-oil trade value

with Africa

240 destinations

World largest man-

made port connecting

140 worldwide

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WHY DUBAI?

TALENT POOL

•Dubai is an incubator for exceptional home-grown talent and a magnet for the world’s most ambitious, sophis-ticated and forward-thinking scien-tists, engineers, technologists and innovators who yearn for a rewarding, career-enhancing ecosystem to thrive, prosper and change the world.

•Dubai ranks 6th globally in a list with the most attractive cities for a global workforce according to Boston Con-sulting Group.

•The Dubai government is implement-ing talent attraction strategies de-signed to increase its intake of knowl-edge workers by 40% by 2021.

•Dubai is home to over 200 nationali-ties, bringing together one of the world’s richest and most diverse pool of languages and skills to suit any business.

•The UAE ranks 4th globally in availa-bility of skills and competencies in the talent pool and 5th worldwide in the Appeal index, which measures the extent to which a country taps into the overseas talent pool, according to the IMD World Talent Ranking.

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WHY DUBAI?

FOREIGN DIRECT INVESTMENT

• Dubai ranks among the top 10 international cities in attracting foreign investment esti-mated at US$7.4 billion in 2017, an increase of 7.1 per cent compared to 2016.

• Liberal and pro-investment policy decisions had gone a long way in setting Dubai on a path towards achieving comprehensive and sustainable development based on innova-tion and high productivity.

• Foreign direct investment has played an in-strumental role in realising these achieve-ments through its contribution to job crea-tion and technology diffusion.

• Dubai is ranked #1 in the world in terms of FDI technology transfer and #3 as loca-tion for AI & Robotics.

Top 10 international

cities

Foreigninvestment

$7.4Bin 2017

Increase7.1%

DUBAI

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5TRADE EVENTS

“Over 800 solid leads were

collected during the event, so it’s fair to say that

we view our participation as

a success.”

The Dubai International Motor Show is a showcase for global automotive brands and the trusted voice for a passionate audience of serious buyers. With a successful run of more than 26 years, the show con-sistently delivers new business opportunities. The biennial event attracts over 100,000 visitors from 77 countries who are looking for exclusive motoring deals and all the latest information on upcoming launches in the automotive world.

The event is held biennially at the Dubai World Trade Centre

DUBAI INTERNATIONAL MOTOR SHOW 2019

100,000 visitors

77 countries

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TRADE EVENTS

GULF TRAFFIC AND TRANSPOTECH

Gulf Traffic and TranspoTech is the largest traffic and transport exhibition in the Middle East. It’s an oppor-tunity to meet suppliers and brands, and discover what’s driving the region’s transport and mobility sector. Visitors can learn about the latest solutions and advancements in the traffic and transport in-dustries, as well as meet new contacts, such as trad-ers, manufacturers, key decision makers, and gov-ernment officials. The 2018 edition saw more than 2,600 participants and over 130 exhibitors from 50 countries.

The event is held annually at the Dubai World Trade Centre

130 exhibitors

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This was our first exhibition in the UAE and we

are thrilled to get such positive response for our

offerings at Gulf Traffic. The exhibition also gave us the

opportunity to get in contact with the relevant decision

makers to help us expand our markets further.”

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TRADE EVENTS

The trade fair is the ideal platform to find out more about new products, find new suppliers, connect with new distributors &

wholesalers and compare product

alternatives.

31,971 visitors

1,801 exhibitors

146 countries

AUTOMECHANIKA DUBAI

Automechanika Dubai is a major regional trade event specializing in the following automotive sec-tors; Parts & Components, Electronics & Systems, Repair & Maintenance, Tyres & Batteries, Service Station & Car Wash and Accessories & Tuning. Au-tomechanika Dubai 2018 featured 1,801 exhibitors from 61 countries and welcomed more than 31,971 trade visitors from across 146 countries. The num-ber of official country pavilions taking part this year is 23, which includes the world’s largest German Pavilion for the automotive aftermarket industry.

The event is held annually at the Dubai World Trade Centre

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594, Dubai, UAE

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