Dubai’s Airport Free Zone (DAFZ) has become an ideal location to sell luxury cars. Seven international automobile manufacturers have recently established bases here: Ferrari Middle East and Africa, Maserati Middle East, Porsche Middle East FZE, Spyker Automobielen, Audi Volkswagen Middle East FZE, Isuzu Motors Limited and MAN Middle East FZCO. The strong regional demand for cars is projected to surpass 23.2 million units by 2010.
“Since its inception more than a decade ago, [DAFZ] planned to focus on attracting major industries and potential investors who bring about added-value to the overall objectives of the Free Zone,” said Salah El-Tayeb, DAFZ’s media and communications senior officer. “The cars are 100% tax free and there is the option to repatriate capital.”
Edwin Fenech, General Manager of Ferrari Middle East and North Africa, aware of the region’s small but financially mighty population, stated that, “this market generates demand for the most luxurious cars.”
El-Tayeb explained that the strategic location of the DAFZ has attracted automobile producers and consumers and brought them together in an optimal business environment, saying “The Dubai Airport Free Zone is located in the northern part of the airport near Terminal 2 so it is easier to reach.” In a city where traffic is notoriously bad, the DAFZ is a quick drive from the city center.
The DAFZ is currently able to provide affordable, top-notch amenities to its clients, but as more companies enter the sought-after Middle East market, luxury car makers will be increasingly challenged to set up a first rate base at a reasonable cost.
