33.1 billion dirhams UAE car trade in 3 months

The total value of the UAE’s foreign trade in cars rose to more than AED 33.1 billion during the first quarter of this year, an increase of 9.3% compared to the same period last year.

Statistics from the Federal Competitiveness and Statistics Centre, a copy of which was obtained by “Emarat Al Youm”, showed that the three most important countries with which the state dealt in the car trade were Japan, which came in first place with a value exceeding six billion dirhams, followed by China in second place with a value of 4.1 billion dirhams, then the United States in third place with a total of 3.2 billion dirhams.

Two economic experts attributed the growth of the UAE’s car trade to several factors, most notably its strategic location, the presence of global companies specialised in the car industry, which have now established their regional headquarters in the country, the provision of an attractive business environment, advanced infrastructure, and distinguished logistical services.

In detail, the Federal Competitiveness and Statistics Center in the country revealed that the total value of the UAE’s foreign trade in cars rose to 33 billion and 121 million dirhams during the first quarter of this year, compared to 30 billion and 298 million dirhams during the same period last year, with a growth rate of 9.3%.

The centre explained in recent statistics obtained by “Emirates Today” that the value of the UAE’s total car exports, including exports and re-exports, amounted to nine billion and 348 million dirhams in the first three months of 2024, compared to eight billion and 268 million dirhams in the same period in 2023, an increase of 13.1%, while the value of the country’s car imports amounted to 23 billion and 773 million dirhams, compared to 22 billion and 30 million dirhams, an increase of 7.9% during the comparison period.

Regarding the three most important countries that were dealt with in the car trade during the first quarter of this year, statistics showed that Japan came in first place with a value exceeding six billion dirhams, followed by China in second place with a value of four billion and 136 million dirhams, then the United States came in third place with a total of three billion and 213 million dirhams.

According to statistics related to the most important countries to which cars were exported during the first three months of this year, Iraq came in first place with a value exceeding three billion dirhams, followed by Jordan in second place with a value of 717 million dirhams, while China came in third place with a value of 470 million dirhams.

As for the most important countries from which imports were made, Japan came first with a total of approximately six billion dirhams, followed by China in second place with a total of three billion and 666 million dirhams, while the United States came in third place with a total of three billion and 194 million dirhams.

In this regard, Ibrahim Al Bahar, retail expert and Chairman of Al Bahar Consulting, said that the UAE has become a major regional hub for the car trade, due to its strategic location and the presence of a large number of international companies based in the country, to manufacture and export to countries around the world, in addition to the ease of trade movement to and from it, and the attractive legislative system, which supported the increase in the country’s car trade to exceed 33 billion dirhams, in just three months. Al Bahar explained that the increase in the value of car imports is due to the increase in population, the rise in the standard of living, and the trend of a large number of wealthy people to live in the UAE, especially in Dubai, which is met with an increase in spending and demand for goods, in particular.

He pointed out that the increase in the UAE’s total car exports during the first quarter of this year, compared to the same period last year, is an important and encouraging matter for this emerging industry.

He stated that the local manufacturing of a number of cars was a major reason for the increase in exports during the recent period, pointing out that there are high-quality cars currently manufactured in the UAE, at reasonable prices, and comparable to international brands in terms of quality standards, which helped increase exports to a number of markets.

For his part, economic expert Ali Al Hamoudi said that the increase in the value of the UAE’s car trade is due to the country’s success in attracting more companies and the increase in residents, which led to a significant growth in the population. The UAE in general and Dubai in particular are a thriving market for car trade, especially since the city is famous for its luxurious lifestyle, and there is a high demand from residents for cars, which has created a competitive market and facilitated finding a wide range of luxury cars at competitive prices. Al Hamoudi explained that there is an advantage related to car trade from Dubai in particular, which is the city’s strategic location, which connects Europe, Asia and Africa, and is a gateway to these regions, which means easy access to a wide market outside the borders of the UAE, and the ease of benefiting from international markets and reaching customers who are eager to obtain luxury cars.

Al Hamoudi added that Dubai is characterised by a business-friendly environment, with advanced infrastructure and excellent logistics services, as the city’s ports and free zones provide seamless connectivity for exporting, re-exporting and importing cars. He pointed out that the country offers various tax incentives and benefits to companies, making it an attractive destination for car exporters. There are also many incentives, especially in the free zones, regarding the car trade in general.