The economic performance of the UAE has been robust with non-oil sectors and structural reforms playing the role of strong driving force. Economic diversification towards non-oil sectors contributed significant share of UAE's GDP in the recent years. Key growth areas include transportation, financial services, construction and information and communication technology. Increasing investment in renewable energy and technology sectors are expected to further boost the economy. Overall there is a positive outlook for the country in the coming years underpinned by strategic diversification and investment initiative. The economy rebounded well since its negative growth during the COVID-19 crisis and is expected to stabilise. In 2024, UAE's real GDP growth rate reached around 3.8% and is expected to reach 4% in 2025 as per IMF
UAE is an important trading partner for India. The two countries share a Comprehensive Economic partnership Agreement (CEPA) which completed three years after its signing in February 2022. Since the signing of the agreement, the bilateral trade between the two countries have increased significantly. As per latest data available, since the signing of CEPA, bilateral merchandise trade has nearly doubled from USD 43.3 billion in FY 2020-21 to USD 83.7 billion in 2023-24
In engineering sector, UAE has been one of the top three export destinations for India. In 2024-25, India's engineering exports to the UAE stood at USD 8.3 billion which is 40.3% higher than the same period last year.
The product profile of Automechanika Dubai 2025 consists of Parts & Components, Electrics & Electronics, Connectivity & Autonomous Driving, Accessories & Customising, Tyres & Batteries, Car Wash, Care & Detailing, Oils, Lubricants & Fuels, Diagnostics & Repair, Body & Paint, Digital Solutions & Services and other related products.
In auto-components sector, India's exports to UAE stood at USD 291 million in 2024-25, which is 29.2% greater than the same period last year. India's share in UAE's import basket in auto components sector is around 2.6% and it ranks within the top 10 suppliers to the UAE.
UAE is home to the global leaders in the automobile market and is also a leading hub of automobile export and re-export especially in the Middle East and North Africa region. Additionally Dubai being home to significantly higher income class is also a significant market for automobile. Already a number of big auto and allied manufacturers have established themselves in Dubai to cater to the international and local demand. Ease of doing business conducive policies, available industrial space and geographical location have also driven these companies to settle in Dubai. Given this background, UAE has the potential to become one of the most sought-after market for Indian auto component manufacturers and the FTA has paved the way further. Hence events such as Automechanika Dubai are extremely important for the Indian auto part exporters.