Don't miss the Dubai motor show this week

Expatriates arriving from places like Europe or Singapore simply can not believe the cost of owning a luxury car in the UAE. It is perhaps hardly surprising that the traffic is so bad and the incidence of top brands among the highest in the world.

To start with the basic price of a car in the UAE is pretty much tax-free. Then car insurance rates are highly competitive, and therefore on the low side in that the insurers struggle to make a profit. Plus labor costs are low, so maintenance and services are cheap. Finally, the fuel you put into your vehicle is a fraction of the cost elsewhere.

No wonder then that expatriates like to indulge. One final benefit: finance costs on cars are linked to the US dollar and therefore incredibly cheap, often with no down payment required.

Given a booming local UAE economy, thanks to high oil prices and economic reform, and the 8th Middle East International Motor Show has turned into quite a celebration of the motor industry's success this year. More than 500 vehicles will be on display with every major manufacturer taking part.

Greatest show

They are also taking this event much more seriously. BMW has spent 50% more on its stand this time, and every hall of the Dubai International Exhibition Centre complex will be full. Only four years ago the Dubai motor show could be squeezed into four halls, now there is a shortage of space.

New models will be prominently featured. It is a nice coincidence that the first all-new Porsche since the Cayenne has just been launched, so expect to see crowds around the new Cayman S. But there will also be the facelifts of old favorites, as well as the very elite of global motoring from the likes of Rolls-Royce, now part of BMW and Lambourghini and Ferrari.

Sales for all car manufacturers are on an upward curve in the Middle East. General Motors is about to pass the 100,000 cars per annum mark, while BMW sales are up 33% in the year to end of November.

The outlook for 2006 is excellent with the oil boom spreading outwards to other countries, though with the UAE often still a service hub for such expansion. And as more and more executives arrive in the country their first thought after finding accommodation is usually buying a car or 4x4 vehicle.

So whether you are new to town or just fancy upgrading your motor this week's motor show is well worth attending. It only comes around once every two years, and offers a unique chance to review the latest vehicles on offer.