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Biannual Automechanika Dubai Network gathers regional automotive experts to highlight the role of remanufacturing in the circular economy

8 Mar 2024

Industry leaders convened at Automechanika Dubai Network to discuss remanufacturing in the MEA region’s automotive industry

The latest statistics from the Global Automobile Manufacturing Market Report suggest the remanufacturing market will reach USD 68.71 billion in 2024

H.E. Maria Al Qasim, Assistant Undersecretary of Economic Research and Policy Sector, Ministry of Economy, UAE shared insights at the event on the circular economy in the UAE’s automotive industry

Automechanika Dubai

Dubai, UAE: Automechanika Dubai, the MEA region’s largest international trade exhibition for the automotive aftermarket industry, held the biannual Automechanika Dubai Network this week, gathering speakers and international experts to discuss the topic of remanufacturing in the automotive industry.

Remanufacturing involves restoring used parts to like-new condition. This process saves energy and resources by reducing the need for new parts to be manufactured. Remanufacturing is a key part of the circular economy, which aims to minimise waste and maximise the use of resources. Approximately 86% of a vehicle can be recycled, with recyclable parts including tyres, fluids, lubricants and glass.

Opening Automechanika Dubai Network, Mahmut Gazi Bilikozen, Portfolio Director at Automechanika Dubai organiser Messe Frankfurt Middle East, said: “Automechanika Dubai 2023 was a resounding success, breaking records with exhibitors from 61 countries and trade visitors from 156 countries. As we gear up for the upcoming edition in December, sustainability is once again at the forefront of our agenda. In light of this, we want to place the spotlight on remanufacturing and its vital role in meeting the industry's sustainability goals. We are pleased to provide a platform for important industry discussions and fuel conversations around sustainability and the circular economy.”

Remanufacturing is one of the key elements of the sustainability agenda of the automotive sector. According to the Global Automobile Remanufacturing Report, the automobile remanufacturing market is expected to grow from USD 62.11 billion in 2023 to USD 68.71 billion this year, with a CAGR of 10.6%.  While the concept is still not yet widely adopted in the MEA region, initiatives such as the UAE Circular Economic Policy 2021-2031 are helping to drive sustainability in the automotive industry.

Addressing the circular economy in the UAE automotive sector, H.E. Maria Al Qasim, Assistant Undersecretary of Economic Research and Policy Sector, Ministry of Economy, UAE said: “The UAE has embarked on a transformative journey towards a more circular and sustainable economy in the field of transport and the automotive industry. At the heart of the UAE’s vision is an unwavering commitment to a sustainable future where economic growth and environmental stewardship co-exist harmoniously.

“The UAE’s strategic efforts are playing a key role in helping us to achieve the ambitious goals of our decarbonisation strategy. The aim is not only to reduce the environmental impact of traditional transport but to create a reputable, sustainable model that the world can benefit from.”

The priority sectors for the UAE Circular Economic Policy are sustainable manufacturing, green infrastructure, sustainable transportation and sustainable food production and consumption. By adopting circular economy strategies in the transport sector, the UAE Government aims to facilitate safe and efficient transportation while reducing environmental pollution and congestion.

Speaking at Automechanika Dubai Network, Oweis Zahran, Chief Executive Officer OWS Automotive said: “Re-manufacturing brings renewed life to used parts, extending their lifecycle, and delivering the same, if not better, performance and durability as the old parts. It is therefore environmentally sustainable, economically viable and strategically pivotal to the automotive industry and the region’s needs.

“At OWS, we focus on remanufacturing parts and components to provide sustainable solutions for our government and private entities, helping them be efficient, competitive and sustainable.”  

The speakers unanimously agreed that the remanufacturing industry still has a long road ahead to become more widely adopted. The industry faces a number of challenges, including a lack of consumer awareness, technological limitations, and the absence of a solid regulatory framework. The development of innovative solutions and best practices as well as educating vehicle owners on how remanufactured parts align with the growing demand for sustainable solutions, were outlined as key strategies for the growth of remanufacturing in the region.

Automechanika Dubai will return from 10-12 December at Dubai World Trade Centre. The regional trade show covers eight specialised product categories: Parts & Components, Electronics and Systems, Accessories and Customizing, Tires and Batteries, Car Wash and Care, Oils and Lubricants, Diagnostics and Repair and Body and Paint. The exhibition will also feature the Automechanika Dubai Awards, the Automechanika Academy and Innovation4 Mobility, among other industry-leading features.