New Automotive Hub to Open in Dubai by 2026
Dubai is set to enhance its automotive landscape with a new facility that promises to be one of the largest automotive refurbishment centers in the region. A partnership between DP World and Cars24 has led to the development of a state-of-the-art center at the National Industries Park, backed by an investment of AED 55 million (approximately $15 million).
Facility Overview
The new center will cover 220,000 square feet and is designed to process over 100,000 vehicles annually. Construction is scheduled to begin in November 2025, with operations expected to commence by August 2026. This solar-powered facility aims to create more than 200 jobs and will be strategically linked to DP World’s extensive global ports and logistics networks.
Services Offered
The automotive hub will cater to the increasing demand from electric vehicle manufacturers and Chinese original equipment manufacturers (OEMs). Services will include multi-brand refurbishment, pre-delivery inspections, after-sales support, and preparation for export. Each vehicle will undergo a rigorous inspection process, featuring over 140 checkpoints, Dubai RTA certification, and the Ministry of Industry and Advanced Technology’s (MoIAT) 5-Star quality rating to ensure compliance with safety and performance standards.
Environmental Impact
By extending the lifespan of vehicles, particularly electric ones, the new hub aims to contribute to reducing emissions associated with new car production. This aligns with global sustainability goals and positions Dubai as a leader in environmentally responsible automotive practices.
Market Insights
Abdulla Al Hashmi, Chief Operating Officer of Parks & Zones at DP World GCC, emphasized the project’s significance in reinforcing Dubai’s status as a regional automotive hub. The used car market in the Middle East and Africa surpassed $100 billion in 2024, with projections indicating a 4.9% annual growth rate through 2030. Al Hashmi noted that the facility will enhance supply chains and create new opportunities for the automotive industry by connecting global manufacturers with regional distributors.
Cars24, established in 2015 and valued at over $3 billion, operates one of the largest online platforms for buying and selling used cars. Abhinav Gupta, CEO of Cars24 Arabia, stated that the new center will set a benchmark for speed, reliability, and sustainability, providing the company with a strategic base for accessing GCC and international markets.
Broader Implications
This development is part of DP World’s ongoing expansion of its automotive cluster within the National Industries Park and Jebel Ali Free Zone, which already hosts numerous global manufacturers and electric vehicle innovators. It also supports Dubai’s broader strategy to establish itself as a premier automotive hub, including plans for the world’s largest car market announced in 2024.
FAQs
What is the purpose of the new automotive hub in Dubai?
The hub will serve as a major refurbishment center for vehicles, focusing on electric and used cars, and aims to enhance the region’s automotive supply chain.
When will construction of the facility begin?
Construction is set to start in November 2025, with operations expected to begin by August 2026.
How will this hub impact the environment?
By extending the lifespan of vehicles, especially electric ones, the hub aims to reduce emissions linked to new car production, contributing to sustainability efforts.
Conclusion
The upcoming automotive hub in Dubai represents a significant investment in the region’s automotive industry, promising job creation and enhanced services for vehicle refurbishment. As construction begins in late 2025, this facility is poised to strengthen Dubai’s position as a key player in the automotive market, fostering growth and sustainability in the sector.
The establishment of this automotive hub is expected to attract further investment in the region, as it provides a centralized location for automotive services that can streamline operations for manufacturers and distributors alike. The strategic location within the National Industries Park allows for easy access to transportation networks, facilitating the movement of vehicles and parts across the region and beyond.
Moreover, the hub’s focus on electric vehicles aligns with global trends towards sustainability and the increasing consumer preference for greener transportation options. As governments worldwide implement stricter emissions regulations, facilities like this one will play a crucial role in supporting the transition to electric mobility, ensuring that the automotive sector adapts to changing market demands and environmental standards.
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