The UAE’s automobile finance market is worth an estimated US$2.3 billion (Dh8.45bn), according to industry figures. A report published by the Dubai Chamber of Commerce and Industry (DCCI) says the auto finance market has flourished in recent years, leading to banks and companies offering flexible financing contracts with extended repayment periods.
The DCCI report sourcing figures from Business Monitor International (BMI) said that the auto finance sector in 2005 was estimated to be worth US$2.1bn (Dh7.71bn) in the United Arab Emirates.
BMI estimated that the country’s domestic auto market comprised about 1.4 million vehicles last year, growing at an annual rate of 10 per cent, resulting in a figure of Dh8.45bn for today’s auto finance market.
The main sources of the UAE’s vehicle market supply are Japan, Europe and the United States, according to the DCCI report.
Within the UAE, Dubai has been taking the lead in the vehicle market, having 50 per cent of the vehicles’ stock. Continuous growth in automobile sales across the whole GCC has led to a boom in the Middle East aftermarket industry. The organizers of the Automobile Aftermarket Middle East (AAME) show, which will run from March 12 to 14, are expecting to surpass the Dh368 million in deals closed at this year’s show.
“International vendors from 25 countries have already registered their participation, in comparison to 19 countries in 2006.” Apart from a heavy influx of visitors from the UAE, the trade show attracts substantial participation from Iran, India, Russia, GCC and other Middle East countries.
The GCC automobile industry relies on imports, with Japan accounting for 65 to 70 per cent of sales, Europe 15 to 20 per cent, the United States 6.5 per cent and the rest coming from other countries. (Emirates Today)
