Hussam Baghdadi, the Senior Director at Arabian Automobiles Company (AAC), discussed the company’s strategies for thriving in the competitive automotive landscape of the UAE with Gulf Business. He elaborated on the company’s focus on digital transformation in car purchasing, flexible ownership models, and the integration of data-driven strategies to enhance customer experiences in line with the evolving preferences of consumers.
Here are some key points from the discussion.
How is AAC adapting to the changing preferences of consumers in the UAE, particularly regarding the rise of online car buying and the need for transparency in the purchasing process
Customer focus remains central to our strategy. Instead of merely adapting to changes, we strive to anticipate and steer them, as the consumers in the UAE increasingly prefer digital-first interactions.
This commitment has spurred a significant transformation in our retail and service frameworks.
We have placed considerable emphasis on enabling e-commerce and integrating digital campaigns, allowing customers to engage, explore, and act effortlessly across various digital platforms.
Our AWR Connect app empowers customers to oversee their entire ownership experience—from scheduling services and tracking deliveries to accessing aftersales support—using a unified interface.
Additionally, our Customer Experience Division has undergone a comprehensive digital transformation aimed at improving operational efficiency, minimizing wait times, and enhancing service productivity.
Looking forward, emerging technologies like AI-powered concierge services and dynamic inventory systems informed by predictive analytics will enhance personalization, optimize stock distribution, and facilitate seamless online-to-offline transitions.
Our mission is clear: to create an interconnected, transparent, and engaging experience that consistently surpasses expectations.
As Dubai invests significantly in enhancing its automotive ecosystem, how is AAC aligning its strategy to lead in areas such as aftersales innovation, mobility services, and customer experiences
We fully support Dubai’s vision for an automotive ecosystem that is ready for the future. Our strategy is focused on placing customers at the center of every decision, ensuring value is delivered throughout the ownership journey.
Our aftersales offerings encompass real-time service booking, seasonal maintenance plans, proactive service alerts, and convenient pick-up and drop-off during peak times.
Our facilities are consistently upgraded with interactive displays and sophisticated systems designed to create faster, more intuitive service experiences.
We are also enhancing our parts business digitally and establishing a new platform to improve speed, transparency, and flexibility.
Moreover, our mobility services are progressing with adaptable leasing options, bundled packages, and digital tools to empower our customers.
By integrating sales, aftersales, and mobility services, we aim to provide a seamless, forward-thinking experience that aligns with Dubai’s vision as a hub for innovative and sustainable mobility.
How is AAC managing inventory planning, vehicle availability, and delivery timelines in light of ongoing global supply chain challenges
The UAE boasts world-class infrastructure and sophisticated customs systems that keep our supply chains efficient.
Our forward-thinking planning and forecasting, in collaboration with global OEM partners, helps us manage inventory effectively and ensure vehicle availability across our network.
By booking containers early, utilizing diversified shipping routes, and maintaining strong supplier relationships, we can address global challenges with minimal disruptions.
The upcoming Parts Distribution Center (PDC) will further streamline our planning processes, optimize inventory management, and enhance order fulfillment, reinforcing the high service standards associated with Arabian Automobiles.
Dubai’s economic stability, spanning logistics, tourism, real estate, and finance, supports sustainable growth in the automotive sector.
With car ownership in the UAE evolving beyond traditional new vehicle acquisitions, how is AAC responding to the increasing demand for used cars, flexible financing, and lease-to-own models
Our customer-focused approach informs all our offerings. Our ‘Rent to Own’ and ‘Lease to Own’ initiatives provide convenient and economical pathways to vehicle ownership, especially for Nissan and INFINITI models.
Flexible financing options are a key component of our strategy, supported by leading banks that offer competitive EMI plans, deferred payments, and streamlined approvals.
Our NXT brand ensures that used cars undergo thorough inspections and certification processes, ensuring quality, safety, and dependability.
Together, these initiatives reflect our commitment to providing modern and adaptable mobility solutions throughout all phases of the ownership journey.
How do you perceive the shifts in customer preferences between new and used vehicle purchases, and what insights has AAC gained regarding today’s buyer priorities—price, warranty, technology, or convenience
Today’s consumers are well-informed, research-oriented, and increasingly receptive to alternative ownership arrangements. New vehicles attract those interested in innovation and design, while the used car sector is gaining traction due to its value, flexibility, and assurance.
Price sensitivity, value consciousness, and trust in certified pre-owned programs are significant factors driving this change.
Convenience has emerged as a critical factor, with transparent and secure digital transactions simplifying the buying and selling process. Investments in comprehensive inspections, flexible financing, trade-ins, and predictive analytics ensure that inventory meets market demand.
Price, flexibility, warranty, aftersales support, technology, and convenience have become essential differentiators in both new and used segments.
In light of the UAE’s diverse and competitive automotive market, what consumer trends have taken you by surprise in recent years, and how is AAC leveraging data to stay ahead of customer expectations
A notable trend is the increasing consumer demand for innovation and design-focused experiences. Customers in the UAE are progressively seeking vehicles equipped with advanced technology, intelligent safety features, electrified powertrains, and modern aesthetics.
Younger, tech-savvy consumers perceive vehicles as extensions of their lifestyle.
The appetite for smart mobility, user-friendly infotainment, and sustainable engineering is on the rise. Data and analytics are pivotal in demand forecasting, inventory management, and tailoring personalized offers.
Every customer interaction—from showroom layouts to digital engagement—is guided by real-time data to ensure relevance. The shift towards sustainable mobility is gaining momentum, supported by national policies and infrastructure investments.
To remain competitive in 2025, we must incorporate these priorities throughout our value chain in line with the changing expectations of our customers.