United Arab Emirates Autos Report Q1 2010

The UAE car market is expected to grow in 2010, as it recovers from the impact of the global financial crisis and the country's recession. The Dubai Chamber of Commerce and Industry (DCCI) expects 5% sales growth, despite the continuing tightness of credit and the new Dubai Metro which has broadened public transport options. The DCCI estimates that sales will total US$11.68bn, though it does not explain how it came to that figure. The UAE has become one of the favourite markets for automobile companies around the world, primarily as the Middle East has been one of the more resilient regional markets for automobile manufacturers compared with North America and Europe. Before the global economic crisis, vehicle numbers were easily outpacing the rate of population growth. The number of vehicles on the road rose 49% to 583,015 units in 2008, from 392,546 units in 2006, according to the Abu Dhabi Traffic Department. The growth in the number of vehicles was attributed to the increase in residents and new companies entering the emirate. In Dubai, the number of registered vehicles rose to 1.045mn in 2008, up from 853,827 in 2007. But the economic downturn has taken its toll on this robust growth. Dealers have reported high levels of unsold stock and dwindling profit margins for 2009. The automotive market in the Middle East and Africa (MEA) benefited from a boom in consumer credit in 2005-2007. With a higher proportion of premium brands than most developed markets, the value of the automotive finance market in the Gulf Cooperation Council (GCC) was worth up to US$30bn. In the UAE, up to 80% of new car sales depend on financing, and consequently the global credit crunch has put the brakes on rapid growth in autos sales. While the global credit crisis is likely to lead to a contraction in the UAE autos market in 2009, manufacturers and dealers are taking aim at the problem. In addition to offering the opportunity to lease vehicles, they are trying to make credit more widely available for car buyers. Dealers say there are signs that these efforts are paying off. Sales of luxury vehicles are often used as a barometer of affluence in the MEA. The proportion of prime and luxury car sales is directly correlated with per capita income. BMI estimates that in the UAE, where GDP per capita is approximately US$40,000, up to a quarter of car sales fall into the luxury segment. In addition, the growth of the automotive market in the UAE has led to the creation of the Dubai Autos Zone (DAZ) to act as a centre for the industry, accommodating all areas of industry including dealers. Although the UAE is regarded as a major destination for premium cars, the budget car sector is also growing, as many more buyers are becoming cost conscious amid the global economic downturn. Many dealers are trying to appeal to price-savvy consumers, offering finance plans that let them spread their payments out over longer periods. An area of concern, though, is the second-hand market, which has been hit by a sharp downturn in re-exports due to lack of demand from traditional destinations such as Saudi Arabia and Africa. BMI remains optimistic over the long-term. By 2013, sales should reach 440,468 units. Over the period, BMI expects to see some consolidation within dealerships, with smaller firms at risk of going out of business and larger dealerships taking on their sole distribution rights. There is also scope for the emergence of more cross-Emirates distributors. At present, sole distribution rights differ from emirate to emirate.

• Executive Summary
• SWOT Analysis
• UAE Autos Industry SWOT
• United Arab Emirates Political Swot
• United Arab Emirates Economic Swot
• United Arab Emirates Business Environment Swot
• Regional Overview
• Change Ahead For The GCC
• Trouble In South Africa And Turkey, Uncertainty In Iran
• Impact On Production
• Business Environment Ratings
• UAE - Business Environment Ratings
• Limits Of Potential Returns
• Risks To Realisation Of Potential Returns
• Industry Forecast Scenario
• UAE Autos Sector - Historical Data And Forecasts
• Macroeconomic Forecast Scenario
• United Arab Emirates - Economic Activity
• Competitive Landscape
• Parts And Components Trade
• Manufacturing
• Dubai
• Dubai - Car Ownership By Household, 2005
• Abu Dhabi
• Northern Emirates
• Dubai And Northern Emirates - Dealers
• Abu Dhabi - Dealers
• UAE Autos Sector - Key Players
• Fleet And Rental Contracts
• Automotive Finance
• Low-Cost Cars
• Used Cars
• After-Sales Business
• Luxury Cars
• Company Strategy
• Company Monitor
• Regional Case Study: Nissan Motor
• Production
• Sales
• Company Profiles
• Ford
• General Motors Company
• Nissan Motor
• Al Rostamani Trading Company (ARTC)
• Country Snapshot: UAE Demographic Data
• Section 1: Population
• Section 2: Education And Healthcare
• Section 3: Labour Market And Spending Power
• BMI Methodology
• How We Generate Our Forecasting Model
• Sources
• List of Tables
  • Table: Middle East And Africa Business Environment Ratings
  • Table: Nissan MEA Production Facilities
  • Table: Nissan MEA Distributors
  • Table: Demographic Indicators, 2005-2030
  • Table: Rural/Urban Breakdown, 2005-2030
  • Table: Education, 2002-2005
  • Table: Vital Statistics, 2005-2030
  • Table: Employment Indicators, 2000-2004
  • Table: Consumer Expenditure, 2000-2012 (US$)