A rich bidder paid a world-record 55 million dirhams ($15 million or 123 crore) for a unique automobile registration plate in Dubai, breaking a record established in the UAE more than a decade ago, Bloomberg reported.
According to the corporation, Emirates Auction LLC sold plate number P 7 - which seems to be the number 7 alone, with the P off to the side - on Saturday during a charity auction. The proceeds will benefit Dubai ruler Sheikh Mohammed bin Rashid's 1 Billion Meals Initiative, a global food relief effort.
The UAE has made a habit of auctioning off vanity plates, which are used by the ultra-rich to flaunt their riches and position, for charity. The most recent auction eclipsed the record established in 2008 by local businessman Saeed Abdul Ghaffar Khouri, who paid 52.2 million dirhams for an Abu Dhabi number plate with the number 1.
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The winner of this weekend's auction was not revealed.
Vanity plates have also achieved exorbitant prices in the Middle East, with a single-letter "R" plate fetching HK$25.5 million ($3.2 million) at auction in Hong Kong earlier this year.
For years, Dubai has been a safe haven for the world's super-rich to flaunt their wealth and enjoy a tax-free lifestyle. While the rest of the world is worried about an economic slowdown, the emirate's economy is thriving, thanks to high oil prices that benefit its neighbours and most important clients. The real-estate market has benefited from an inflow of riches.
Even middle-class expats splurge out on automobiles they can now afford because of lower sales tax rates than at home. Yet, the recent Covid-era boom has driven up rents and put a strain on middle-class people.
In 2016, businessman Balvinder Singh Sahni, also known as Abu Sabah, paid 33 million dirhams for plate D 5.
"Dubai is a city of gold. It's a city of big people, secure people, nice people. So everybody wants to show their status," he said in an interview, Bloomberg reported.
(With Inputs From Bloomberg)