Why Is Dubai Becoming the Global Capital of Luxury Cars?
In 2025, luxury isn’t just a lifestyle in the UAE, but it’s turned into an economic engine. With record-breaking millionaire migration and the largest luxury showrooms in the world, the UAE has become a magnet for global wealth.
AI Quick Summary
The UAE, particularly Dubai, is becoming a global luxury car capital due to a massive influx of millionaires and a booming luxury car market fueled by both domestic and international demand. The country boasts the world’s largest luxury car showrooms and is becoming a significant export hub for these vehicles. This growth is driven by favorable economic policies, robust logistics, and a shift in consumer demand towards premium and electric vehicles, including emerging Chinese luxury brands.
This summary was generated by AI using this article’s content.
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This seismic shift is transforming the country’s automotive sector, especially in the luxury and premium segments. From limited-edition G-Wagens to exotic Ferraris and bespoke Rolls-Royce builds, the roads tell a story of rising affluence. And behind it all? Data-backed insights from DubiCars that reveal what’s truly fueling this new luxury era.
How Many Millionaires Are Moving To The UAE?
According to the 2025 Henley Global Citizens Report:
- 9,800 millionaires are expected to move to the UAE this year — the highest globally.
- $63 billion in wealth is forecasted to flow into the UAE economy.
- Major outflows from traditional hubs (e.g., 16,500 millionaires leaving the UK. Many of them are redirecting to Dubai).
Dubai has doubled its millionaire population in the last decade. These HNWIs aren’t just buying penthouses—they’re reshaping the luxury car market. Craig Stevens, CEO of DubiCars, said it best in the AutoTalk Podcast: “The new Luxury Era is more than just about the product. It’s about the experience, the service, the price, and so much more.” Watch the entire episode here for some brilliant stats:
What Are The Luxury Car Trends In The UAE For 2025?
Luxury car demand in the UAE is at an all-time high, driven by:
- Domestic demand from HNWIs
- International export demand
Over 50% of new car sales are SUVs & luxury vehicles. The pre-owned segment is also booming, projected to hit $9.2B by 2028 (up from $5.6B in 2022).
DubiCars Data Highlights:
- 38.9% YoY growth in premium and luxury car demand (2023 to 2024)
- Top-selling luxury brands: Mercedes-Benz, BMW, Lexus
- Highest demand: Dubai, followed by Abu Dhabi and Sharjah
- AED 600K to 1M bracket saw 104.04% growth in H1 2025
- AED 1M+ segment grew by 66.27%
- Surging demand for: Chinese cars (+111.69%), American cars (+45.59%), German cars (+39.34%), and Japanese cars (+32.78%)
What Makes the UAE’s Luxury Car Market Unique?
- Dubai and Abu Dhabi host the largest luxury showrooms in the world
- UAE is the #2 global market for bespoke Rolls-Royce models
- UAE hosts the world’s largest showrooms for:
- Mercedes-Benz (EMC Motors, Abu Dhabi)
- Bentley (Dubai)
- BMW (Abu Dhabi Motors)
- Audi (Al Nabooda Automobiles, Dubai)
- Ferrari, McLaren, and Lamborghini
These showroom investments are a testament to Dubai’s strategy: build it, and they will come—and they did.
What Are the Most Searched Luxury Car Brands in the UAE?
Top 10 Best-Selling Premium and Luxury Brands On DubiCars:
Top Brands by Search Volume:
- BMW
- Bentley
- Mercedes-Benz
- Porsche
- Land Rover
- Ferrari
- McLaren
- Rolls-Royce
- Aston Martin
- Audi
- Maserati
- Lamborghini
Are UAE Consumers Switching to Electric and Hybrid Luxury Cars?
Yes—luxury EVs and hybrids are rapidly gaining traction:
- 15–30% of all new cars sold in the UAE are expected to be electric by 2030
- Hybrid supercars are gaining popularity
DubiCars insights:
- Premium hybrid searches are growing at 17%
- Demand for hybrids grows 4x faster than petrol cars
- Popular luxury hybrid brands: BYD, Porsche, BMW, Ferrari, McLaren, Lamborghini
How Are Chinese Brands Impacting the UAE Luxury Market?
Once seen as budget-friendly, Chinese automakers are now redefining luxury. Chinese brands account for 10–15% of all UAE new car sales
Top Performers:
| Brand | YoY Growth |
| Rox | 534% |
| BYD | 112.5% |
| Xiaomi | 66.3% |
| Tank | 47.7% |
| Avatr | 39.6% |
Noteworthy Chinese brands include:
- Hongqi: Most recognized luxury name; E-HS9 recently added to Dubai Police fleet
- Avatr: Swept 8.3% of the UAE’s high-end EV market within months
- Jetour: Expanding from midsize SUVs to the luxury segment
Is Dubai Becoming A Global Export Hub For Luxury Cars?
Absolutely. The UAE is not just importing luxury cars, but also exporting them globally.
Export Demand Growth via DubiCars:
- Multiple countries saw growth ranging from 32.2% to 409.5%
- UAE resellers are becoming regional redistribution hubs thanks to:
- Favourable re-export policies
- Logistics infrastructure
- Access to global demand
What Does The Future Hold For The UAE’s Luxury Car Market?
The combination of global wealth migration and domestic purchasing power positions the UAE as the capital of automotive luxury. Glenn Harwood, Co-Founder of AlgoDriven, said in the AutoTalk podcast:
“Given that dealers work on a percentage margin, if your average selling price is higher, you’re going to make more money.”
To win in this space, dealerships must:
- Align with consumer expectations
- Digitize the luxury buying experience
- Offer superior after-sales services
The new luxury era isn’t coming. It’s already here.
Why Is Dubai Becoming the Global Capital of Luxury Cars? In 2025, luxury isn’t just a lifestyle in the UAE, but it’s turned into an economic engine. With record-breaking millionaire migration and the largest luxury showrooms in the world, the
