Recent waves of US-led tariffs on automotive imports - especially those targeting European, Japanese, South Korean and Chinese automakers - are triggering seismic changes in global automotive supply chains. But few regions remain as insulated and opportunistic as the Middle East automotive market.
While trade tensions ripple across North America, Europe, and Asia, the Middle East emerges as an unlikely beneficiary - particularly for its consumers.
Global shake-up, regional advantage
Why? Because the Middle East has not responded in kind. While the US has imposed tariffs, the Middle East has maintained a largely open trade stance. As a result, this region becomes a critical alternative destination for global automakers looking to offload excess production and maintain factory utilisation rates.
For consumers in the UAE, Saudi Arabia and the wider region, this means better availability, more choice and potentially lower prices - particularly in the luxury and mass-market segments.
Japanese and South Korean recalibration
Japanese brands dominate the Middle East automotive landscape, accounting for up to 60 per cent of all vehicle sales in key markets. If tariffs restrict their competitiveness in the US - a 15 million vehicle market versus the Middle East’s 1.5 million - they will need to pivot aggressively to other export destinations. The Middle East, with its absence of trade barriers, becomes a natural recipient of this pivot.
South Korean manufacturers face a similar calculus. As global trade constraints narrow their traditional pathways, competition in the Gulf region will only intensify. This sets the stage for a consumer-friendly market where automakers compete not only on quality, but increasingly on pricing and availability.
Luxury cars: From waiting lists to immediate delivery?
Traditionally, new luxury models were prioritised for western markets, especially the US. That may now change.
For European automakers, softening demand in North America due to tariffs could result in redirected stock to the Gulf - particularly the UAE, where luxury cars represent 13 pre cent of the market.
This shift could resolve long-standing supply issues in the region, reducing wait times and even bringing price moderation in the premium segment.
Impact on North American vehicle production
The imposition of tariffs between the US, Canada and Mexico presents additional complexities. When the US applies tariffs on Canadian or Mexican components, it drives up the cost of manufacturing for American brands, ultimately leading to higher prices for cars produced in North America. Though these price rises do not directly affect the Middle East due to the region’s tariff-free policies, they could make American vehicles pricier, making them less competitive in the Gulf compared to European, Japanese, South Korean or Chinese alternatives.
For consumers in the Middle East, this means American brands may experience a rise in pricing as the additional production costs are passed down the supply chain. The knock-on effect will likely cause a shift in the purchasing preferences of customers, as they gravitate toward manufacturers unaffected by such tariffs, further benefiting non-American global brands operating within the region.
China’s quiet domination
Perhaps the most profound transformation is the meteoric rise of Chinese automotive brands in the Middle East. In just five years, their market share has surged from less than 1 per cent to more than 20 per cent in 2024. This is not just a statistic - it’s a signal.
With Chinese manufacturers largely blocked from US and European markets due to previous and new tariffs and protectionist policies, they have turned east and south - to Asia, Africa, South America and, crucially, the Middle East.
Armed with ultra-modern factories, rapid model development cycles of 2-3 years versus 6–7 for legacy brands, and aggressive pricing strategies, Chinese automakers are redefining the competitive landscape. And because they face no local tariffs, their ability to undercut rivals is unmatched.
The hidden cost: A new challenge for dealerships
While consumers stand to gain, the picture is more complex for regional automotive businesses. Increased competition, oversupply, and price deflation could strain dealer margins and business sustainability.
Dealers and distributors will need to adapt quickly, focusing on efficiency, innovation, after-sales excellence, and digital transformation. Those who cling to outdated models risk being swept aside by the very forces that are benefiting the consumer.
A rare moment of leverage
For Middle Eastern consumers, these shifting global dynamics represent a rare window of opportunity. More cars, better prices, and improved access to luxury and cutting-edge technology—without the baggage of trade wars or retaliatory tariffs.
For industry leaders, however, this is a moment of recalibration. The region’s open trade policy is attracting global attention, but success will depend on navigating this new, ultra-competitive environment with clarity, speed, and strategic foresight.
The automotive future of the Middle East will be shaped not in Washington, Brussels, or Beijing - but on the showroom floors of Abu Dhabi, Riyadh and Dubai.
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
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Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Most wanted allegations
- Benjamin Macann, 32: involvement in cocaine smuggling gang.
- Jack Mayle, 30: sold drugs from a phone line called the Flavour Quest.
- Callum Halpin, 27: over the 2018 murder of a rival drug dealer.
- Asim Naveed, 29: accused of being the leader of a gang that imported cocaine.
- Calvin Parris, 32: accused of buying cocaine from Naveed and selling it on.
- John James Jones, 31: allegedly stabbed two people causing serious injuries.
- Callum Michael Allan, 23: alleged drug dealing and assaulting an emergency worker.
- Dean Garforth, 29: part of a crime gang that sold drugs and guns.
- Joshua Dillon Hendry, 30: accused of trafficking heroin and crack cocain.
- Mark Francis Roberts, 28: grievous bodily harm after a bungled attempt to steal a £60,000 watch.
- James ‘Jamie’ Stevenson, 56: for arson and over the seizure of a tonne of cocaine.
- Nana Oppong, 41: shot a man eight times in a suspected gangland reprisal attack.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
England ODI squad
Eoin Morgan (captain), Moeen Ali, Jonny Bairstow, Jake Ball, Sam Billings, Jos Buttler, Tom Curran, Alex Hales, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, David Willey, Chris Woakes, Mark Wood.
How to increase your savings
- Have a plan for your savings.
- Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
- Decide on a financial goal that is important to you and put your savings to work for you.
- It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings.
- Carol Glynn, founder of Conscious Finance Coaching
New schools in Dubai
Killing of Qassem Suleimani
The specs
Engine: 1.5-litre 4-cyl turbo
Power: 194hp at 5,600rpm
Torque: 275Nm from 2,000-4,000rpm
Transmission: 6-speed auto
Price: from Dh155,000
On sale: now
ACL Elite (West) - fixtures
Monday, Sept 30
Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)
Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)
How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
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A Bad Moms Christmas
Dir: John Lucas and Scott Moore
Starring: Mila Kunis, Kathryn Hahn, Kristen Bell, Susan Sarandon, Christine Baranski, Cheryl Hines
Two stars
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
More from Rashmee Roshan Lall
Mohammed bin Zayed Majlis
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UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
Barcelona 3
Messi (27’, 32’, 87’)
Leganes 1
El Zhar (68’)
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
Mohammed bin Zayed Majlis
How much of your income do you need to save?
The more you save, the sooner you can retire. Tuan Phan, a board member of SimplyFI.com, says if you save just 5 per cent of your salary, you can expect to work for another 66 years before you are able to retire without too large a drop in income.
In other words, you will not save enough to retire comfortably. If you save 15 per cent, you can forward to another 43 working years. Up that to 40 per cent of your income, and your remaining working life drops to just 22 years. (see table)
Obviously, this is only a rough guide. How much you save will depend on variables, not least your salary and how much you already have in your pension pot. But it shows what you need to do to achieve financial independence.
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
