The UAE is taking further steps to strengthen its automotive industry, with new investments in spare parts logistics and local vehicle manufacturing. From Dubai's expanding automotive distribution infrastructure to Abu Dhabi's growing vehicle production capabilities, the country is building a more integrated automotive ecosystem.
Dubai Expands Its Automotive Spare Parts Logistics Network
One important development is the launch of a new automotive aftermarket logistics hub at Jebel Ali Free Zone (JAFZA).
Developed through a partnership involving Ghassan Aboud Holding, EasyLease and Gallega Global Logistics, the facility covers approximately 215,000 square feet and is projected to handle more than 10 million automotive parts annually.
The hub is designed to improve spare parts storage, inventory management and distribution across the UAE and the wider GCC region. With technology-enabled warehouse management systems and dedicated delivery services, it aims to make automotive parts distribution faster and more efficient.
This investment highlights the growing importance of reliable logistics and local inventory in supporting the automotive aftermarket.
ROX Motor Begins Vehicle Production in Abu Dhabi
Another significant milestone is the development of local vehicle manufacturing in Abu Dhabi.
Automotive brand ROX has started production at its advanced manufacturing facility in Khalifa Economic Zones Abu Dhabi (KEZAD). The facility covers approximately 10,000 square metres and incorporates vehicle component sub-assembly, complete vehicle assembly, calibration, testing and final inspection.
ROX aims to reach an initial annual production capacity of 20,000 vehicles by 2027, with a longer-term target of 300,000 vehicles annually by 2030.
The project represents an important step in Abu Dhabi's ambition to develop a stronger automotive manufacturing base and attract further investment into the industrial sector.
It also demonstrates the growing role of Chinese automotive companies in the UAE's industrial development.
What This Means for the UAE Automotive Aftermarket
The UAE automotive industry is gradually moving beyond its traditional role as a vehicle trading and distribution centre.
The combination of local manufacturing, advanced logistics infrastructure and international investment is helping create a more connected automotive ecosystem.
For spare parts businesses, this transformation brings both opportunities and higher expectations. Product availability, competitive pricing, reliable quality and efficient delivery will become increasingly important factors in building customer relationships.
From the new automotive logistics hub in Jebel Ali to ROX's vehicle manufacturing operations in Abu Dhabi, the UAE is strengthening different parts of its automotive industry. These developments reflect a broader shift towards local industrial capabilities, stronger supply chains and more efficient aftermarket services.
