Arabian Automobiles' Hussam Baghdadi on driving customer-centric innovation
Hussam Baghdadi, senior director at Arabian Automobiles Company (
Gulf Business
about how the company is navigating a competitive UAE automotive market. From digital-first buying journeys and flexible ownership models to data-driven insights and emerging mobility trends, Baghdadi shares how Arabian Automobiles is redefining customer experience and staying ahead of evolving consumer expectations.
Here are excerpts from the conversation.
How is AAC adapting to shifting consumer expectations in the UAE, especially with the rise of digital-first car buying journeys and demand for greater transparency in the purchase process?
Customer-centricity remains a core pillar of our strategy. Rather than responding to changes, we aim to anticipate and shape them, especially as the UAE consumer becomes increasingly digital-first.
This approach has driven a comprehensive transformation across our retail and service ecosystem.
We've focused heavily on e-commerce enablement and digital campaign integration, ensuring customers can engage, explore, and act seamlessly across digital platforms.
Our AWR Connect app allows customers to manage their entire ownership experience, from booking services and tracking delivery to accessing aftersales support, all via a single interface.
Our Customer Experience Division has undergone a full digital transformation to enhance operational efficiency, reduce wait times, and increase service productivity.
Looking ahead, advanced technologies such as AI-powered concierge services and dynamic inventory systems, driven by predictive analytics, are helping us personalise the customer journey, optimise stock allocation, and provide seamless online-to-offline experiences.
Our goal is clear: a frictionless, transparent, and connected experience that consistently exceeds expectations.
With Dubai investing heavily in transforming its automotive ecosystem, how is the company aligning its strategies to stay ahead in areas like aftersales innovation, mobility services, and customer experience?
Dubai's vision for a future-ready automotive ecosystem is one we actively support. We focus on placing the customer at the heart of every decision and delivering value throughout the ownership journey.
Our aftersales initiatives include real-time service booking, seasonal maintenance programmes, proactive service alerts, and pick-up and drop-off services during peak periods.
State-of-the-art facilities are continuously upgraded with interactive screens and advanced systems, creating faster and more intuitive service experiences.
We are also expanding our parts business digitally and developing a new platform to enhance speed, transparency, and flexibility.
Our mobility services are evolving with flexible lease offerings, bundled packages, and digital tools to empower customers.
By connecting sales, aftersales, and mobility services, we aim to deliver a seamless and future-forward experience reflecting Dubai's momentum as a hub for smart, sustainable mobility.
Given the ongoing recovery from global supply chain disruptions, how is AAC managing inventory planning, vehicle availability, and delivery timelines?
The UAE benefits from world-class infrastructure and advanced customs systems, keeping supply chains efficient.
Our proactive planning and forecasting, developed with global OEM partners, help manage inventory effectively and maintain availability across our network.
Early container bookings, diversified shipping routes, and strong supplier relationships allow us to respond to global challenges with minimal disruption.
The upcoming Parts Distribution Center (PDC) will further streamline planning, optimse inventory, and maximise order fulfillment, reinforcing the high standards of service Arabian Automobiles is known for.
Dubai's economic stability across logistics, tourism, real estate, and finance supports sustainable automotive growth.
With car ownership in the UAE evolving beyond just new vehicle purchases, how is AAC addressing the growing demand for used cars, flexible financing, and lease-to-own options?
Customer-centricity drives every offering. Our 'Rent to Own' and 'Lease to Own' campaigns provide convenient, cost-effective pathways to vehicle ownership, particularly across Nissan and INFINITI models.
Flexible financing is a core pillar, supported by leading banks offering competitive EMI plans, deferred payments, and streamlined approvals.
Our NXT brand ensures used cars meet strict inspection and certification standards, emphasising quality, safety, and reliability.
Together, these initiatives demonstrate a commitment to modern, adaptive mobility solutions across all stages of the ownership journey.
How do you see customer preferences shifting between buying new vs. used vehicles, and what insights has AAC gathered about what today's buyer prioritises most — price, warranty, tech, or convenience?
Customers today are empowered, research-driven, and increasingly open to alternative ownership pathways. While new vehicles appeal to those seeking innovations and design, the used car segment is growing due to value, flexibility, and reassurance.
Key factors shaping this shift include price sensitivity, value consciousness, and confidence in certified pre-owned programmes.
Convenience has emerged as a decisive driver, with transparent, secure digital transactions making the buying and selling process simpler. Investments in rigorous inspection, flexible financing, trade-ins, and predictive analytics ensure inventory aligns with demand.
Price, flexibility, warranty, aftersales support, technology, and convenience are now all key differentiators across new and used segments.
Given the UAE's diverse and competitive automotive market, what consumer trends have surprised you the most in recent years, and how is AAC using data to adapt and stay ahead of expectations?
A defining trend is growing consumer appetite for innovation and design-led experiences. UAE customers increasingly seek vehicles with advanced technology, intelligent safety, electrified powertrains, and contemporary aesthetics.
Younger, tech-savvy drivers view vehicles as extensions of their lifestyle.
Demand for smart mobility, intuitive infotainment, and sustainable engineering is rising. Data and analytics play a central role in demand forecasting, inventory optimisation, and personalised offers.
Every touchpoint — from showroom layout to digital engagement — is informed by real-time data to ensure relevance. Sustainable mobility adoption continues to grow, supported by national policies and infrastructure investments.
Staying competitive in 2025 means embedding these priorities across the value chain in alignment with evolving customer expectations.
Read:
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Business
2 hours ago
- Arabian Business
Lenovo's Saudi expansion to add $10bn to non-oil GDP with new Riyadh HQ in Al Majdoul Tower
Lenovo has confirmed plans to establish its Regional Headquarters (RHQ) in Riyadh's Al Majdoul Tower and unveiled its new executive leadership team for Saudi Arabia and, a move the company says will contribute up to $10bn to the Kingdom's non-oil GDP by 2030. The announcement marks a key milestone in Lenovo's Middle East growth strategy and reinforces its long-term commitment to supporting Saudi Arabia's Vision 2030, digital transformation, and industrial diversification goals. The RHQ will serve as Lenovo's regional hub, housing operations in R&D, retail, marketing, partnerships, and customer engagement, while positioning the global tech giant at the heart of Riyadh's innovation ecosystem. Lenovo in Saudi Arabia Al Majdoul Tower is already home to several PIF entities, ministries, and technology companies, placing Lenovo at the centre of Saudi Arabia's transformation drive. Lenovo's strategy in Saudi Arabia is closely tied to its collaboration with ALAT, a Public Investment Fund (PIF)-owned company. Together, they broke ground in February 2025 on a 200,000sqm advanced manufacturing facility in the Riyadh Integrated zone, operated by the Special Integrated Logistics Zone (SILZ). Expected to be operational by 2026, the plant will produce millions of 'Saudi Made' devices and, combined with the RHQ, is projected to add up to $10bn to Saudi Arabia's non-oil GDP by 2030. Matt Dobrodziej, Senior Vice President and President, Lenovo EMEA, said: 'The confirmation of Al Majdoul Tower as the future location of Lenovo's Regional Headquarters, alongside the appointment of our new executive leadership team for Saudi Arabia and RHQ, marks a major milestone in our regional strategy. 'Through our strategic partnership with ALAT and investment in advanced manufacturing, we are proud to contribute to the Kingdom's Vision 2030 by supporting industrial diversification, accelerating digital transformation, and enabling sustainable economic growth. 'Our initiatives in Saudi Arabia, including the RHQ, flagship retail space, and the Riyadh-based manufacturing facility are projected to contribute up to $10bn to non-oil GDP by 2030, reinforcing our commitment to the Kingdom's long-term development.' To drive this expansion, Lenovo has named a new leadership team: Lawrence Yu, Head of Regional Headquarters: A Lenovo veteran of 15 years who helped secure the ALAT partnership and Riyadh site Giovanni Di Filippo, Vice President and General Manager, Lenovo Saudi Arabia: Previously grew Lenovo's EMEA ISG market share from 6 per cent to 14 per cent Zoran Radumilo, Chief Technology Officer, Lenovo Saudi Arabia: A 25-year enterprise technology leader with expertise in AI, cloud, and software The RHQ in Riyadh will anchor Lenovo's broader regional strategy, including a flagship retail store, VIP customer centre, and new innovation hubs, while strengthening ties with government and enterprise clients across priority sectors such as energy, telecom, finance, and smart cities. Together with the Riyadh manufacturing facility, these initiatives position Lenovo as a long-term partner in the Kingdome's digital and industrial transformation.
Al Etihad
2 hours ago
- Al Etihad
ADNEC Group awarded UAE Year of Sustainability Seal for landmark progress on green initiatives
21 Aug 2025 00:54 ABU DHABI (ALETIHAD)ADNEC Group has been officially recognised with the 'Plan to Action: Year of Sustainability's Seal' for its tangible, data-backed achievements in environmental stewardship and sustainable innovation. The award was granted following a national open call to UAE-based organisations demonstrating measurable, creative, and community-driven sustainability efforts aligned with the goals of the Year of Sustainability seal, awarded through the UAE's Year of Sustainability initiative, marks a continuation of the national drive to embed sustainable actions across all sectors. This year's focus shifted from learning to doing, encouraging organisations to act across four areas: green transport, energy and water conservation, responsible consumption, and planting wisely. ADNEC Group's submission was recognised for its ambitious, system-wide sustainability efforts. ADNEC Centre Abu Dhabi is now fully powered by clean energy - sourced from solar, wind, and nuclear - through a Clean Energy Trade Agreement with EWEC. This offsets all electricity-related carbon emissions via International Renewable Energy Certificates (IRECs) accredited by the Abu Dhabi Department of Energy, making it the first and largest event venue in the Middle East to achieve this milestone. In parallel, the group has introduced AI-driven HVAC systems at the venue, projected to reduce annual electricity consumption by 20%, or approximately 6 million kilowatt reduction and circularity have become central to the group's operations. More than half of all waste across ADNEC Group's business clusters is now recycled, and, the catering arm of the ADNEC Group, Capital Catering's facilities process up to 1,200 kg of food waste per day into compost or a dry soil enhancer. Used cooking oil is also converted into biodiesel. Meanwhile, TerraTile - a 100% recycled, modular flooring system developed with Terrax -turns event waste into durable flooring, offering a recyclable, UAE-made alternative to conventional stand materials. Additionally, when TerraTiles reach the end of their life cycle, they, in turn, can be recycled to produce new engagement was a key element of ADNEC Group's application. Through partnerships with Tadweer, Ne'ma, and the UAE Red Crescent, the group donates unserved food, expands public awareness campaigns, and encourages responsible waste behaviours at 2024, ADNEC Group contributed Dh8.566 billion in Gross Value Added (GVA) to Abu Dhabi's economy, marking a significant increase from Dh7.4 billion in 2023. The group also supported more than 62,000 jobs across the UAE - up from approximately 51,000 the previous year. Additionally, employee volunteerism nearly doubled year-on-year, with total volunteer hours reaching close to 27,000 in 2024 compared to 13,000 in 2023, underscoring ADNEC Group's growing social and economic recognition from the Year of Sustainability reflects ADNEC Group's broader Net Zero strategy, which includes a full assessment of Scope 1, 2 and 3 emissions and a defined transition plan aiming for a 25% reduction in carbon footprint per employee by 2030. ADNEC Group has also awarded a rooftop solar photovoltaic (PV) project at ADNEC Centre Abu Dhabi, expected to generate more than 8.5 million kilowatt hours of renewable energy in its first year.
The National
3 hours ago
- The National
Fed minutes: Inflation outweighs employment concerns in divided decision
Federal Reserve officials were concerned in July about the effect that tariffs would have on inflation and unemployment, although minutes released from the meeting showed on Wednesday that a large majority found it too soon to begin cutting interest rates. The minutes underscored the division within the central bank, which voted to maintain its target interest rate range at 4.25 to 4.50 per cent despite two Fed officials voting to reduce the rate. The UAE Central Bank, which follows the Fed's decisions due to the dollar peg, also maintained rates after the announcement on July 30. The July meeting minutes showed 'almost all' Fed officials supported the decision. US President Donald Trump's tariff agenda has weighed heavily on the Fed this year. Officials entered last month's meeting debating whether tariffs would have a greater impact on inflation, which still remains above the Fed's 2 per cent target, or on its employment mandate. The minutes appeared to suggested that Fed governors Christopher Waller and Michelle Bowman – two Trump appointments reported to be in consideration as the next Fed chief – were alone in their dissent. 'A majority of participants judged the upside risk to inflation as the greater of these two risks, while several participants viewed the two risks as roughly balanced, and a couple of participants considered downside risk to employment the more salient risk,' the minutes read. Fed chairman Jerome Powell delivered a hawkish sentiment when speaking to reporters after the decision, suggesting that the Fed could continue to delay cutting rates as it awaited further clarity on how tariffs would affect inflation. 'When we have risks to both goals, and one of them is farther away from goal than the other, and that's inflation, that means policy should be tight, because tight policy is what brings inflation down,' Mr Powell said at the time. A dismal jobs report released two days after the meeting drastically changed the rate-cut calculus expected to play out later this year. The report showed that not only had employers added fewer jobs than expected in July, but significant downwards revisions from previous months pointed to signs of a weakening labour market. Adding to the mixed messages the Fed has received, underlying inflation data has also come in hotter than expected since July. The report from the Bureau of Labour and Statistics showed that prices for imported items such as household furnishing, apparel and recreational goods all increased last month, while medical care services and airfare prices were also higher than previous. Wholesale inflation data also saw its biggest increase in three years in July, in another sign that companies are raising their prices to offset higher costs. Those reports have done little to dent expectations of a September rate cut, however. About 83 per cent of traders believe the Fed will resuming cutting rates next month, according to the CME Group's FedWatch tool, before reducing policy again in December. 'The labour market will be the swing factor on whether the Fed cuts interest rates in September or not,' Oxford Economics chief US economist Ryan Sweet wrote to clients. The minutes come at a crucial time for Mr Powell, who is due to deliver a keynote address at the annual Jackson Hole symposium in Wyoming on Friday. Mr Powell will deliver the highly anticipated speech under pressure on several fronts from Mr Trump, the two dissenting Fed governors and the looming arrival of a key Trump ally to the Federal Reserve board. Friday's address during the annual gathering, attended by central bankers from around the world, is expected to include Mr Powell's short-term and long-term views on monetary policy. Earlier on Wednesday, Mr Trump opened a new line of attack on the US central bank, calling for the resignation of Fed governor Lisa Cook after one of his allies accused her of mortgage fraud. Ms Cook's term as Fed governor expires in 2038. Together they, along with a rotating group of regional fed bank presidents, make up the Federal Open Market Committee that sets its interest rates. The move follows a pattern of attempts by Mr Trump to exert control of the Fed, whose independence is generally considered sacrosanct among economists and policymakers
