The automotive industry in the UAE is one of the fastest growing markets worldwide.

In the last two years the registration rate for new passenger vehicles has increased further. Dubai’s Roads and Transport Authority (RTA) has reported that new vehicle registrations in the Emirates amounted to around 70,000 in 2006, bringing the total number of vehicles on the roads to 700,000. Alone in Dubai the rate has increased by 21 percent in 2006. According to reports, the total increase in the number of all kinds of vehicles including trucks and buses has reached over a quarter of a million in the last five years, rising from 31,472 in 2001 to 237,891 on 15 January 2006 in the UAE. Thereof, Dubai has been taking the lead in the vehicle market, having 50 percent of the vehicle’s stock.

The market for used vehicles has, with about 240,000 vehicles per year, a much bigger volume than the market for new cars. Trade and service of vehicles has developed into a very important industry for the UAE. According to figures from the Dubai Chamber of Commerce and Industry (DCCI) Dubai alone is responsible for Dh nine billion per year in this industry and has 13,000 employees in this sector.

Dubai is the most important market place for vehicle spare parts within the Emirates. Automobile spare parts trade through Dubai recorded 40 percent growth in 2005 compared the previous years. The total value of vehicle spare parts trade in 2005 was more than Dh 18 billion compared with Dh billion in 2004. Japan ranked first on the list of top automobile spare parts exporters to Dubai. China was second followed by Germany, the US and Italy. The commercial vehicle market is another important sector in the UAE, an increase of 38.9 percent is expected from 2006 to 2010.

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