The automobile spare parts market in the region is expanding at a remarkable pace, with total trade through Dubai recording an amazing 40 per cent growth in 2005 over the previous year, according to trade traffic statistics compiled by the Statistics Department of Dubai Ports, Customs and Free Zone Corporation (PCFC). Between the year 2000 and 2005, spare parts trade increased by 155 per cent.
The total value of automobile spare parts trade in 2005 was above AED 18 billion, as against AED 13 billion in 2004. Total imports increased from AED 8 billion to AED 11 billion last year, whereas exports jumped from AED 524 million in 2004 to AED 934 million in 2005. Total value of re-exports was pegged at AED 5.8 billion, up from AED 4 billion in 2004.
Imports accounted for 63 per cent of the total trade, with re-exports making up 31 per cent and exports 5 per cent. Automobile parts and accessories comprised the bulk of the total trade with a 30 per cent share, followed by pneumatic tires and liquid pumps at 19 per cent and 7 per cent respectively. Petroleum oils and oils obtained from bituminous minerals contributed 6 per cent and engine parts added another 5 per cent, with miscellaneous items forming the remaining 33 per cent.
“The automobile industry in the region has been flourishing in recent years, asevidenced by the burgeoning number of vehicles on the Middle East roads. This has created a huge market for automobile spare parts market in the Middle East, and being the regional trading hub, Dubai has naturally been the centre of activity,” said Adel Al Ashram, Senior Manager, Department of Statistics, PCFC.
“A 40 percent year-on-year growth is remarkable by any standards, and all indications point towards a continuation of the growth momentum in the coming years.
At the same time, these remarkable figures reinforce Dubai’s reputation as a major re-export hub, with about half the total spare parts imports being re-exported to countries in the region and elsewhere in the world,” Al Ashram added.
Japan ranked first on the list of top automobile spare parts exporters to Dubai,with exports totaling AED 2 billion. China was second with exports of AED 1.9 billion, followed by Germany, USA and Italy at AED 1.5 billion, AED 724 million and AED 643 million respectively.