As you may remember, ArabGT covered the first global public appearance of the electric Porsche Cayenne when the vehicle made its debut during the fifth edition of the Icons of Porsche festival, held in Dubai in November 2025.
The event attracted more than 30,000 people from around the world, setting a new attendance record. This reflects the strong interest in luxury automotive brands in the UAE and highlights Dubai’s growing position as one of the world’s most important destinations for major automakers.
The decision by a company as significant as Porsche to choose Dubai for the first public presentation of an important model such as the electric Cayenne goes beyond simply selecting a launch location. It also reflects the importance of the UAE market in terms of strong demand, the size of its customer base, and the growing presence of luxury vehicles.
The UAE, and Dubai in particular, has become more than just a strong market for luxury car sales. In recent years, it has also developed into an important platform for launching new models and hosting major international automotive events.
Watch ArabGT’s coverage of Icons of Porsche 2025
The Numbers Confirm the Market’s Strength
Dubai’s selection as a destination for major automotive launches is closely connected to the strength of the local market, with forecasts pointing to significant growth in the UAE luxury car sector over the coming years.
According to a report by Expert Market Research, the value of the UAE luxury car market is expected to reach approximately $8.1 billion by 2035, compared with around $4.7 billion in 2025.
The report also forecasts a compound annual growth rate of 5.6% between 2026 and 2035, driven by the increasing number of wealthy residents, rising demand for luxury vehicles, and rapid growth in the electric and hybrid vehicle segments.
Dubai and Abu Dhabi continue to strengthen their positions as major destinations for luxury brands, not only in terms of sales but also by hosting global launches and events that bring together manufacturers, customers, and automotive enthusiasts from around the world.
Wealthy Residents Support Market Growth
The increasing number of wealthy individuals and millionaires choosing to live in the UAE represents one of the main factors supporting growth in the luxury car market.
These customers are driving demand for high-priced vehicles, particularly models offering extensive personalization, strong performance, and advanced technology. This makes the UAE an attractive market for a wide range of luxury automotive brands.
At the same time, local and regional demand for premium vehicles continues to grow, giving the UAE a role that extends beyond being a domestic market and positioning it as an important hub on the region’s luxury automotive map.
Dubai Leads the Market
Dubai appears well positioned to lead this expansion over the coming years, with its luxury car market expected to record a compound annual growth rate of approximately 6%.
The emirate benefits from several factors supporting this growth, including a strong tourism sector, smart city initiatives, the widespread presence of luxury brand showrooms, and the continued increase in wealthy and high-income residents.
This combination has helped make Dubai one of the leading cities for automakers seeking markets capable of supporting their newest and most exclusive models.
Electric Cars Lead Growth
The fastest growth is expected to come from electric and hybrid vehicles, with forecasts suggesting that this segment could record a compound annual growth rate of around 12%.
The sector is benefiting from the UAE’s push toward clean energy and the development of a more sustainable mobility ecosystem, along with continued expansion of electric vehicle charging infrastructure.
The country’s charging network includes around 1,200 stations, helping strengthen customer confidence in electric vehicles while supporting the arrival of more EV models in the market.
Electric vehicle incentives, including certain benefits related to registration fees and parking, are also encouraging more customers to switch to electric and hybrid powertrains.
At the same time, major global automakers continue to expand their luxury electric vehicle lineups across both sedan and SUV segments, giving buyers a wider selection than ever before.
SUVs Remain a Major Part of the Market
SUVs continue to play a major role in the UAE automotive market, with the segment expected to achieve a compound annual growth rate of approximately 6.2%.
This growth reflects the nature of demand in the UAE, where luxury SUVs enjoy significant popularity thanks to their spacious interiors, strong performance, and ability to combine everyday urban usability with off-road capability.
Demand is also increasing for models offering extensive personalization options, an important factor for customers looking for vehicles that combine individuality, performance, and luxury.
With the continued influx of wealthy residents, strong demand for SUVs, and rapid expansion of electric and hybrid models, the UAE luxury car market appears set for several important years of growth.
