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Arabian Business

UAE emerges as hub for limited-edition luxury cars amid wealth influx

The influx of ultra-high-net-worth individuals (UHNWIs) into the UAE from around the world has set off a personalisation-based trend in the ultra-luxury auto sector in the region, with wealthy buyers demanding vehicles that reflect their status, cultural identity, and individuality through bespoke creations and limited editions, industry experts said. The market is also seeing a major shift in buyer profiles, with younger purchasers – often successful entrepreneurs or upwardly mobile executives in the 18-29 age bracket – emerging as the new demand setters with frequent vehicle changes and upgrades, displaying their success through highly customised, ultra-rare vehicles. Adding to the new excitement for market players is the trend of women increasingly becoming influential in this segment, with direct purchase decision-making as they occupy more senior professional positions. 'Personalisation has of late become the defining element of the ultra-luxury automotive experience [in the UAE],' Christophe Caïs, Founder and CEO of CXG, a leading data-driven consulting and solutions provider for premium and luxury brands, told Arabian Business. 'The new set of UAE buyers specifically expect premium features, customised interiors, and climate-specific adaptations,' he said. Industry insiders said the region's favourable road infrastructure, lower vehicle costs, and accommodating tax policies add to create an ideal environment for ultra-luxury vehicles to thrive. SUVs dominate due to their versatility in both urban environments and challenging terrain, they said. The segment's newfound market drivers are evidenced by substantial investments in increasingly immersive retail experiences, with Dubai seeing the opening of the world's largest independent McLaren showroom and the inauguration of a Rolls-Royce showroom. View this post on Instagram A post shared by Rolls-Royce Motor Cars Dubai (@rollsroyce_agmc) Luxury car market trends Market players said the luxury automotive sector in the UAE – as well as in the wider Middle East – is also seeing distinctive preferences compared to other global markets. While European and Asian buyers increasingly prioritise fuel efficiency and environmental considerations due to regulations and social norms, Middle Eastern customers embrace bold displays of wealth and performance without social stigma, they said. Caïs said their clients demand vehicles that reflect their status, cultural identity, and individuality through bespoke creations and limited editions. 'This trend has reached extraordinary levels – from Rolls-Royce's diamond-infused paint finishes to Ferrari's Gulf-inspired special editions featuring regional design elements like beige leather interiors with golden embroidery,' he said. Caïs said nearly every ultra-luxury manufacturer now operates dedicated personalisation divisions, with programmes like 'Q by Aston Martin' and 'Rolls-Royce Bespoke' seeing 100 per cent customisation rates for certain models in the region. Industry observers said the fundamental driver of the current shifts taking place in the region's ultra-luxe auto sector is emotional resonance. Middle Eastern buyers want vehicles that represent their unique identity, expressed through bold colour choices, precious materials, and intricate details that ensure absolute uniqueness, they said. The shifting preferences, driven by unique regional preferences, economic strength, are projected to help the ultra-luxury automobile market in the UAE and wider region to grow at a steady close to 5 per cent rate through 2032, from the estimated over $20 billion in 2024. Luxury EVs gain momentum in UAE, KSA, wider Middle East Sector experts said electric vehicles are fast gaining traction in the ultra-luxury segment in the region, though adoption remains in early stages in some of the markets. Established brands are introducing electric flagship models, such as the Rolls-Royce Spectre and the upcoming Ferrari Elettrica, while Chinese EV leader BYD, though yet to make a mark as a luxury auto player, is making inroads into the segment with its Yangwang and Denza brands. Developments such as Saudi Arabia's Public Investment Fund (PIF) investing in Lucid Motors to establish local manufacturing in Jeddah and the UAE's aggressive push on expanding charging infrastructure, offering tax incentives, are also aiding uptick in EV adoption in the region. Caïs said the next 2-4 years promise continued growth with electric vehicles playing an increasingly central role in the region. 'Asian luxury brands like BYD will intensify competition, while autonomous driving will gradually penetrate the segment – primarily in limousine-style vehicles rather than sports cars, where the driving experience remains paramount,' he said. The CXG chief executive, however, said to maintain a competitive edge, brands must differentiate through elevated customer experiences that make clients feel part of an exclusive community. 'The real battleground, however, will be after-sales service. Over-the-air (OTA) software updates and AI-enabled deeper customisation through technologies like 3D printing will become critical differentiators, with brands implementing robust service strategies best positioned to capitalise on regional momentum,' he said.