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3 June 2015

Dubai auto parts and accessories trade valued at AED44.37 billion in 2014 – Dubai Customs

Emirate’s booming automotive aftermarket trade grows 10 per cent year-on-year, Automechanika Academy’s Commercial Vehicles Conference hears

Dubai, UAE: Dubai’s trade for auto parts and accessories was valued at AED44.37 billion in 2014, a 10 per cent increase over the previous year, new figures released by Dubai Customs have revealed today.

Imports of the Emirate’s booming automotive aftermarket trade were valued at AED26 billion last year, while the value of exports and re-exports coming out of Dubai was AED18 billion.

Commenting on these figures, the Director of Dubai Customs, H.E. Ahmed Mahboob Musabih stated: “Dubai Customs has further enhanced automotive spare parts trade through an array of first-rate Customs facilitations and services provided to traders in this sector, enabling them to cater for the market needs without delay thanks to streamlined and speedy clearance procedures.

“This comes in line with the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in regard to diversifying the texture of national economy.  Serving a pivotal role in automotive spare parts trade, Dubai acts as liaison between Asian, European and North American manufacturing countries and the consuming markets in the region.

H.E. Ahmed Mahboob added: “The development achieved by Dubai in all fields, especially in transport infrastructure with advanced and world-class road networks, ports, and airports, is one of the basic factors that promote the Emirate's ability to attract larger share of the world trade.

“Dubai is the destination of choice for trade exhibitions regionally and globally. And with Expo 2020 looming closer, everything is being set ready by putting in place sophisticated services and facilities to deliver to the world what would be the best mega exhibition experience in history.”

According to Dubai Customs, Japan (AED6.14 billion), South Korea (AED3.57 billion), China (AED3.31 billion), Germany (AED3.16 billion), and the USA (AED3.11 billion) were Dubai’s top country partners last year in terms of total auto parts trade.

Meanwhile, Saudi Arabia (AED2.37 billion), Iraq (1.08 billion), and Afghanistan (800 million) were the Emirate’s biggest export and re-export markets in 2014, accounting for a combined 23 per cent of Dubai’s exports and re-exports of auto parts, accessories, tyres, and engine components for the year.

Three major trading partners claimed a 49 per cent share of Dubai’s total automotive parts imports in 2014. Japan was the top destination from which Dubai’s car parts originated, claiming AED6.12 billion of the market. South Korea followed with AED3.55 billion worth of imports. China was the third most important import source valued at AED3.23 billion.

The figures were announced to an audience of auto parts manufacturers, suppliers, fleet operators, and regulators at the Automechanika Academy’s Commercial Vehicles Conference, which took place on the side-lines of Automechanika Dubai 2015.

The Dubai auto-parts statistics update was provided by Nasim Saeed Al Mehairi, Senior Manager for Statistics and Studies Section at Dubai Customs. These figures further reinforce Dubai’s status as the epicentre of regional automotive aftermarket trade.

The Automechanika Academy’s Commercial Vehicles Conference attracted a unique gathering of regulators and key thought leaders in the commercial vehicles sales, servicing and aftermarket industry, addressing the latest regional developments and trends.

It put a spotlight on the surge of demand for commercial vehicles in the GCC, fuelled by increased government expenditure on infrastructure, growing economies, and robust crude oil exports.

According to global analysts Frost & Sullivan, 115,171 trucks and buses were sold in the GCC in 2014, bringing the total number of commercial vehicles on the region’s roads to 1.2 million.

The 1.84 million Light, Medium and Heavy Commercial Vehicles expected to be operational in the GCC by 2020 has in turn created a big demand for the CV spare parts market, which was valued at US$3.38 billion in 2014, and likely to reach US$5.49 billion by 2020, growing 8.4 per cent annually.

Subhash Joshi, Regional Head for Automotive & Transportation in the Middle East and North Africa at Frost & Sullivan, spoke about the trends and opportunities in the GCC CV market, as crude oil exports and economic indicators point toward an accelerated growth path.

“Crude Oil Price is the most important factor controlling growth of economy in the GCC, and good economic growth drives government investments, resulting in higher commercial vehicle sales,” said Joshi.

“Increasing population and rising per capita incomes are also driving higher consumption of goods, and the GCC economy is highly dependent on imports for these goods.  Any growth in consumption patterns will lead to more transportation and logistics activities, resulting in higher demand for trucks and buses.”

The rise of the regional commercial vehicles industry and correlating demand for CV auto parts and services will come as good news to the Truck Competence exhibitors at Automechanika Dubai 2015.

A total of 891 out of 1,889 exhibitors at the three-day event have truck spare parts, equipment and services within their product portfolio, a massive 76 per cent increase over the previous year.

According to Frost & Sullivan, Saudi Arabia and the UAE dominate the Gulf region’s CV auto components market, accounting for a combined 84 per cent regional market share in 2014.

Saudi Arabia’s CV Spare Parts demand was valued at US$2.05 billion in 2014, and projected to be worth US$3.65 billion by 2020, while the UAE’s US$800 million market in 2014 is expected to reach US$1 billion by 2020.

Maintenance (Filters, Spark Plugs, Belts, Brakes and Shoes/Linings) and Mechanical Parts (Pumps, Alternator, Thermostat, Starters, and Absorbers) account for 72 per cent of the market, while there’s also high demand for collision parts in the UAE, Saudi, and Kuwait.

Taking place from 2-4 June at the Dubai International Convention and Exhibition Centre, Automechanika Dubai 2015 is the Middle East and Africa’s largest automotive aftermarket trade show, featuring 1,889 exhibitors from 59 countries.

The annual showpiece event has firmly established itself as the must-attend trade show for the regional automotive aftermarket, and is expected to attract more than 29,000 trade visitors from 130 countries.


  • 2015