Many perceive Western billionaires to be the most present in international auctions for classic cars. However, wealthy Middle Easterners have also been active in the domain. West Coast Shipping, a heavy equipment shipping service based in California, has noticed an increasing trend of shipping classic cars to the Middle East. Saudi Arabia, the UAE, Kuwait and Bahrain were the top Middle Eastern markets for classic cars in 2015.

Classic cars are amongst the most expensive collectables in the world. Although they do not generate an income, the past decade has been a great time to invest in them.

According to The Economist, the index for the 50 finest and most valuable Ferraris, Porsches and other marques compiled by the Historic Automobile Group increased by 53 percent in the two years prior to July 2013. The index has outweighed the value of any other antique asset as well as the MSCI World, a rich-world stock market index. Besides, the Knight Frank Luxury Investment Index has found the value of classic cars to have increased by 487 percent in the past decade.

Although classic cars require a large amount of capital to maintain, they provide investors with promising financial returns over time due to their capital appreciation. Considered a blue-chip business, investing in classic cars has therefore proven to positively operate in economic downturns of the global market and to attract investors in times of economic uncertainty.

The growing interest in classic cars in the Middle East has not been an easily observable trend, especially because Arab collectors tend to either be known only in the West or appreciate their classic cars in closed garages hidden away from the public. However, Mazin Al Khatib is an exception.

Al Khatib, CEO of Nostalgia Classic Cars Company and former investment banker of Palestinian origins, opened a classic car showroom in late January 2017. According to its website, Nostalgia Classic Cars is the first of its kind in the Middle East.

Al Khatib buys and sells classic cars in a 1,000 square meter showroom. His business also offers restoration and appraisal services in a 500 square meter restoration workshop in Dubai. This service is also offered by Nostalgia in Abu Dhabi and other Arabian Gulf countries such as Saudi Arabia, Kuwait and Oman.

Nostalgia Classic Cars is located in Alserkal Avenue in Dubai, an avenue hosting multiple art galleries and exhibitions, suggesting that classic cars, similarly to art pieces, are beloved by their owners and highly appreciated. In an interview with The Gazelle, Al Khatib revealed that a passion for classic cars was his main drive when opening the showroom.

“I have always loved classic and vintage cars since I was a teenager. I collected them for 20 years and I have been converting my passion to a business for about two years now. I have taken this decision after 26 years of investment banking. It has been in my mind for many years, that one day I want to have a gallery. I wanted to show my collection and offer part of it for sale,” said Al Khatib.

When asked about the origin of the name for his company, the Palestinian collector revealed that he associates it with the past.

“It brings back good old memories. Nostalgia. This is what it reminds me of,” added Al Khatib.

Despite his love for his collection, the former investment banker seems to have a preference for one specific car.

“AC Cobra! I have always admired and dreamed of this car since I was 15 years old. Still, all my collection is prestigious, exceptional and old. I collect it from all around the world. Some cars were hard to find than others. As the price has no limit, some were also more expensive than others.”

As much as certain collectors are motivated by the returns on this blue-chip stock, Al Khatib has confirmed that in other cases, classic cars hold a huge part of their owners’ hearts. Therefore, it is rare to see collectors drive their classic cars on the street. Typically, they only present them at special events.

In the future, Al Khatib plans on expanding his business in the Gulf region.

“I have been approached by many enthusiasts across the Gulf to partner with me and replicate Nostalgia. Indeed, Arab collectors actually represent a big and meaningful percentage of the worldwide collectors,” concluded Al Khatib.

Although all Gulf Cooperation Council countries have several classic car collectors, the UAE outweighs them in number. According to Efroan Triana, a custom car builder at Et Designs, the UAE is one of the biggest markets for classic cars after Germany and the U.K. In fact, it remained the top U.S. importer of classic and vintage cars in the second quarter of 2015. The main models in demand were the Ford Mustang, Datsun 280ZX, Chevrolet Camaro, Rolls Royce Phantom and Jaguar XKE.

With West Coast Shipping, the average cost for shipping one car in a dedicated 20 feet container from California to Jebel Ali is around 9550 AED and would last an average duration of 52 days. Thus, it seems that the growing trend of collecting classic cars within the UAE will continue to increase due to the relatively cheap and relatively easy process of acquiring them.