The UAE’s Auto Market has become the most lucrative in the Middle East, with prices in Dubai set to double in a decade.
The UAE is a global leader in auto sales, with more than half of the world’s vehicles sold in the country.
While the market is not all-inclusive, it has become a major drawcard for foreign buyers.
Now, it is set to overtake Europe’s biggest market in 2021, according to a report by market research firm IHS Automotive.
IHS said that the UAE is set for a 40 per cent jump in the number of vehicles sold by 2020, with the average price for a vehicle expected to rise by 20 per cent in 2021.
Dubai has long been one of Europe’s hottest cities, with luxury car sales soaring from 7,000 in 2000 to 20,000 today.
IHS predicts the number will top 50,000 vehicles in 2021 and hit a peak of 1.5 million by 2023.
The market has seen an influx of new buyers in recent years, with an average of 12 per cent increase in the numbers of new car registrations in the past year, according the firm.
With demand outstripping supply, the UAE has seen a steep rise in the price of imported vehicles, with one-year-old cars costing more than $2 million in the UAE, according IHS.
While the UAE currently ranks as the fifth-largest market in the region, it could overtake the UK as the second-largest auto market in a year, with a total of 30 million vehicles expected to be sold by 2021.
The market is expected to account for around 50 per cent of the global market by 2021, with around 3.5 per cent expected to come from Dubai.
One of the largest and most profitable markets in Dubai, the Dubai Auto Market is expected not only to be a major player in the auto industry, but will also become a financial centre for the UAE.
At the moment, the market has the capacity to supply over 100,000 new vehicles annually, with over 300,000 units sold.
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Topics:automotive,business-economics-and-finance,industry,commerce-and.commerce,business,commerce,advertising,tas,united-kingdom,united StatesFirst posted November 18, 2020 06:03:38Contact Alex Hain