UAE Car Market is Growing without Break
High living standards of the people in UAE and lucrative oil revenues collected by the GCC states is driving rapid growth in the auto industry and is generating demand for expensive cars.
Arabian Automobiles, a major automobile dealer, is confident of 23% growth in the UAE market for new cars in the period between 2007 and 2010.
Growth in double digits has become the norm in the UAE auto market since the past five years. Michel Ayat, the Chief Executive Officer of Arabian Automobiles, said that the estimate for the market is to surpass 320,000 units by 2010. Ayat went on to say that new car sales alone would exceed 260,000 in 2007, as published by the Gulfnews.
The UAE automobile market owes its healthy status to the escalating purchasing power of its population, following the lucrative oil revenues of the GCC states for which the 2006 estimate alone was around $300 Billion.
The incomparable growth of the Gulf automotive sector is also attributed to the high living standards in the GCC region where some of the highest per capita incomes in the world can be found, flourishing economies fuelled by surging oil prices, and an increasing population. Powerful auto finance markets of the GCC states also boost the demand for automobiles. The present value of the auto finance market in UAE itself is around US$2 Billion.
The luxury car also makes up for a substantial chunk of the country's total car sales. The strategic importance of the Gulf to luxury car manufacturers, despite having below 1% of the global population, is due to the demand for the most highly priced cars in the country; Gulf also makes the largest profit.
Lower costs in the UAE are compelling the auto manufacturing companies who are eying the country as a potential new destination for the manufacturing of automotive components. The attractive energy prices that are being offered are added incentives for the car companies considering the relocation of their production in the UAE. The UAE also scores as a cheaper supplier of raw materials like aluminum.
A research analyst at RNCOS concludes, "The UAE auto industry is already established and has bright prospects. Affluent lifestyle of the people has driven the car market to success. Even in terms of foreign investment, the scenario couldn't be better as all the conditions for growing auto industry are in place. It is only natural that the growth in the UAE car industry will propel the entire country’s auto industry to the global forefront". Source
Arabian Automobiles, a major automobile dealer, is confident of 23% growth in the UAE market for new cars in the period between 2007 and 2010.
Growth in double digits has become the norm in the UAE auto market since the past five years. Michel Ayat, the Chief Executive Officer of Arabian Automobiles, said that the estimate for the market is to surpass 320,000 units by 2010. Ayat went on to say that new car sales alone would exceed 260,000 in 2007, as published by the Gulfnews.
The UAE automobile market owes its healthy status to the escalating purchasing power of its population, following the lucrative oil revenues of the GCC states for which the 2006 estimate alone was around $300 Billion.
The incomparable growth of the Gulf automotive sector is also attributed to the high living standards in the GCC region where some of the highest per capita incomes in the world can be found, flourishing economies fuelled by surging oil prices, and an increasing population. Powerful auto finance markets of the GCC states also boost the demand for automobiles. The present value of the auto finance market in UAE itself is around US$2 Billion.
The luxury car also makes up for a substantial chunk of the country's total car sales. The strategic importance of the Gulf to luxury car manufacturers, despite having below 1% of the global population, is due to the demand for the most highly priced cars in the country; Gulf also makes the largest profit.
Lower costs in the UAE are compelling the auto manufacturing companies who are eying the country as a potential new destination for the manufacturing of automotive components. The attractive energy prices that are being offered are added incentives for the car companies considering the relocation of their production in the UAE. The UAE also scores as a cheaper supplier of raw materials like aluminum.
A research analyst at RNCOS concludes, "The UAE auto industry is already established and has bright prospects. Affluent lifestyle of the people has driven the car market to success. Even in terms of foreign investment, the scenario couldn't be better as all the conditions for growing auto industry are in place. It is only natural that the growth in the UAE car industry will propel the entire country’s auto industry to the global forefront". Source
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