The direct trade in tyres for commercial and passenger cars in Dubai is valued at more than AED 4.15bn for 2007, growth trend is expected to rise further in 2009. The profitable movement will be underscored at the Automechanika Middle East, the largest event for the rapidly developing automotive aftermarket in the wider Middle East and Africa; scheduled to open from 31st May – 2nd June, 2009.
“Commercial tyres worth AED 1.1bn for buses and lorries were imported to Dubai in 2007, mainly from Japan, China, and India. Out of which Dubai consumes almost 64%, re-exporting 36% to Iran, Iraq, Saudi Arabia, and Africa,” said Mr. Michael Dehn, Senior Show Manager of Automechanika Middle East.
“The commercial vehicle market is an essential industry in the UAE, increase of 35% percent is expected from 2008 to 2012.”
Dubai is a transport-oriented city; with one car for every 1.84 residents, and an average vehicle occupancy rate of 1.7, it has the highest rate of car ownership than any other city in the world. The absence of automotive manufacturing industries results in most of the vehicles and automotive parts being imported for domestic use and re-export to other countries.
“Imports of tyres for passenger cars are valued at almost AED 1.4bn, while re-exports amounting to AED 1.25bn,” added Mr. Dehn.
As a lucrative market for other countries exports, Dubai's potential is larger than its size would indicate. A thriving re-exports trade market increases the demand; large percentage of tyres imported into Dubai are for redistribution to neighboring markets.
The positive trend for tyre industry is not just limited to the UAE, but the entire Middle East is characterized by a diverse structure of economies, climates and transport conditions. The lack of railway connections on the Arabian Peninsula, forces most of the overland-transport on the road, making it a high-volume sales territory for tyre manufacturers.
Growing economies such as Dubai or Qatar, with a booming fleet, require the latest models and technologies. Emerging markets in Africa (Libya, Kenya, Nigeria) are sourcing their products from the region, mainly from Dubai.
The automotive industry in the region is one of the fastest growing markets worldwide. Automechanika Middle East is the perfect platform for the tyre related business. Tyre wholesalers and dealers represented the third biggest visitor group at the exhibition in 2008, clearly demonstrating the vast business opportunities.
Dubai is strategically located midway between the Far East and Europe on the east-west trading routes, and between the former Soviet Union and Africa on the north-south axis.
