Dubai's direct trade in auto parts and accessories touches Dh18.2b

Dubai: Dubai's total direct trade in auto parts and accessories stood at Dh18.2 billion, a 30 per cent increase from the previous year, Dubai World's statistics show.

"Total trade doubled between 2003 and 2007. The total trade of auto parts and accessories had witnessed robust growth during 2003-2007. The compound annual growth rate (CAGR) was 23 per cent during the five years," a report said.

About 49 per cent of Dubai import of spare parts and accessories was general spare parts and accessories in 2007. Tyres accounted for 23 per cent of import, it said.

The market for automobiles, automotive parts, accessories and components are a multi-billion dollar business in the Middle East.

According to official industry estimates, there are six million vehicles in the region out of which the UAE vehicle market is about 1.4 million vehicles and it grows annually, on average, by 10 per cent. The main sources of the market supply are Japan, Europe and the US.

Trade show

Sultan Bin Saeed Al Mansouri, Minister of Economy, yesterday inaugurated the Middle East region's leading automotive aftermarket industry event together with the major players, manufacturers' suppliers and distributors of the sector.

The event will be held at the Dubai International Convention and Exhibition Centre till June 3. It provides the industry with a highly competitive, dynamic and tech-savvy environment to conduct business. The event is one of 12 Automechanika trade fairs organised across the globe by Messe Frankfurt.

Al Mansouri toured the exhibition site, and noted that "the exhibition has definitely established itself as the most important event for the industry in this part of the world."

International manufacturers of automotive parts and accessories are expected to target the GCC's parts and accessories market estimated at Dh46 billion at Automechanika Middle East in 2008.