A huge percentage of the world's population has a dream of visiting the United States. The perception is that the USA is the land of opportunities, and everything that is produced or exported from the USA is of a superior quality. This obviously applies to cars. But, the question that arises, is the perception enough to justify the exponential increase in cars being exported to Dubai (small Middle Eastern sheikhdom), or is there supporting factors.
In a questionnaire collected from Dubai citizens studying at US based universities, the initial conclusion is that overall mechanical labor significantly costs less in Dubai when compared the US. This ultimately results in less cost to fixing mechanical problems. This confuses the puzzle, but with more in-depth interviews, the regular mechanic shops that charge the average labor rate lake quality. On the contradictory, the quality of dealership mechanical works matches its apposing at the US, however those dealership charges up to two times more of it's apposing at the US. Therefore, cars are more often maintained, and repaired at low quality shops; this strengthens the perception that two cars with identical miles, one driven on American roads, and other driven on Dubai Roads, the one driven in America would be of a much better quality.
However, this was not enough to convene me, and I researched for more justifications for the exponential increase. The research lead to that Dubai is one of the fastest-growing, flashiest and most multi-ethnic cities in the world. It is a city that welcomes anyone whose intention is to make money. Dubai Statistics Department announced that 2006 witnessed a sharp increase in the population, and an energetic development in every sector. About 292,000 become Dubai residents in 2006, increasing the population by 21 percent.
Furthermore, the department also revealed that about 212 thousands vehicles were registered for the first time in the same year. The department considered this an alarming number, which may result in a shift from the equilibrium in the car market. This is where deliberately and in deliberately, US based car dealers got on track to shipping cars towards Dubai. The shipments were generated by requests from Dubai local dealers. Of course, the fact that our dollar is weaker than the Euro, played to our advantage, allowing for cars that are shipped from the US to be more worth less in local Dubai currency.
To conclude, the economic boom that was initiated in 2000, in 2005 started to spread the boom to other parts of the Middle East. Currently it is noticed that Doha and Abu Dhabi are the cities benefiting from the wave of investment and development. It is important for US car dealers to capture on this growth supported by the world's globalization, and the efficiency of supply chain management, as the economic boom will at least last until the end of the current presidency period. The US economic policy will not change much until the next President has been elected to the White House. It is likely that we are witnessing a generational change in global wealth pattern, and that could provide evidence extremely durable for the Arabian gulf countries of the Middle East.
