Dubai automotive spare parts trade rises 13% to Dh9.65b

Dubai: Dubai's auto parts trade grew 13 per cent to Dh9.65 billion in the first quarter of this year, with Japanese products dominating the local market and Iran claiming the largest share of re-exports, Dubai Customs revealed yesterday.

Dubai imported Dh5.11 billion worth of car parts in the first quarter, while exports and re-exports reached Dh4.54 billion, according to Nassim Saeed Al Mehairi, Senior Manager of the Statistics section in Dubai Customs.

Japan was the top destination from which Dubai's car parts and accessories imports originated, claiming 28 per cent of the market and Dh1.4 billion worth of products.

South Korea followed with Dh609 million in imports and 12 per cent of the market. China was the third most important import source with Dh552 million or 11 per cent.

Iran wass the major re-export destination for car parts and accessories from Dubai with Dh1.35 billion in products and 30 per cent of the export and re-export market, according to the preliminary data.

Impact of sanctions

Asked about the sustained trade volumes with Iran and expectations of future changes amidst the sanctions, analysts say traders will always find inroads.

Saudi Arabia came in second with Dh415 million or nine per cent, followed by Oman with Dh240 million or five per cent, said Al Mehairi.

Last year, the auto spare parts trade contributed Dh36.27 billion or 3.33 per cent of Dubai's total foreign trade which amounted to Dh1.1 trillion, she noted.

Imports amounted to Dh21.5 billion and exports to Dh14.77 billion. Dubai imported Dh6.07 billion of auto parts and accessories from Japan, Dh2.87 from China and Dh2.58 from South Korea in 2011. Dubai's exports and rexports to Iran were Dh4.45 billion or 30 per cent and Saudi Arabia purchased Dh1.29 billion or 8.78 per cent.

South Africa trade

South Africa's auto parts exports to the UAE shrank by about 80 per cent from Dh250 million in 2008 to Dh51 million in 2011 due to the global financial crisis and declining demand from the UAE, according to Dr. Norman Lamprecht, Executive Manager of the Automative Industry Export Council (AIEC).

South Africa hopes to return to its 2008 auto parts trade figure with the UAE this year, said Yacoob Abba Omar, Ambassador of South Africa to the UAE.

South Africa is planning to double its vehicle production from 600,000 vehicles to 1.2 million by 2020, igniting opportunities for foreign investment, said Lamprecht. South Africa produces 80 per cent of Africa's vehicles. South Africa's auto parts exports to the UAE made up 10 per cent of its spare parts exports globally in 2011, he added.