UAE's Automotive Sector and the Regional perspective - rak realestate

Investment Opportunities in
Automotive Sector in RAK
-A Sector Study on Automotive Sector in UAE
with Regional Perspective
Photograph: Ashok Leyland’s
Bus Assembly plant in RAKIA
Industrial Park in Ras Al
Khaimah (UAE)
December 2009

Contents
Executive Summary 3
Introduction
The Changing Nature of Global Manufacturing 6
The Changing Nature of Supply Chain 8
Global Automotive Production & Major Players 10
Automotive Production in the Middle East 12
GCC Automotive Sector
GCC Economic Outlook-Macro-economic Indicators 13
GCC Macro-economic Indicators 13
GCC Auto Industry SWOT 15
Outlook for GCC Automotive Sector 16
GCC Competitive edge 17
Vehicle Assembly in GCC 19
GCC Source of imports 19
GCC Highlights-Foreign trade in Automotive sector 21
UAE Automotive Sector
UAE Auto Industry SWOT 22
UAE Economic SWOT 23
UAE Business Environment SWOT 23
UAE Automotive Sector trade 24
Automotive Manufacturing in UAE 31
Low cost and Luxury car market in UAE 33
Used Car Market in UAE 35
After- sales Business in UAE 36
Car Rental Market in UAE 37
Rationale for setting up projects in RAK 38
Identified Projects 38
UAE Auto Industry Forecast Scenario 54
Automotive Products & Free Trade Agreements 56
About Ras Al Khaimah 57
About RAK Investment Authority 59
References 64
Annexure
I World Motor Vehicle Production By Country And Type In 2008 65
II World Ranking of Vehicle Manufacturers In 2008 66
III UAE Imports & Re-exports of Vehicles in value term 67
IV List of Automobile Component Manufacturers in GCC 68
V-A UAE Trade figures on components 2006-1008 In value term 70
V-B UAE Trade figures on components 2006-1008 In Numbers 71
VI-A UAE Trade on Tyre & Tyre Products-2008 72
VI-B UAE Trade on Tyre & Tyre Products-2007 73
VII Key Global Tyre Manufacturers Contact Details 74
VIII UAE Trade on Vehicle Battery (Accumulators)-2006-2008 75
IX UAE Trade on Electrical Ignition System-2006-2008 76
X List of UAE car dealers 77
References…..
1. Hiromi Oki, “Where intraregional
trade in East Asia is
heading”, JETRO Research Paper
Vol. 06, 2008,
2. Changing Features of the
Automobile Industry in Asia -
Asia-Pacific Research and
Training Network on Trade
Working Paper Series, No. 37,
July 2007
3. Dubai Chamber of Commerce
Economic Bulletin, vol-4, issue-
35, May 2007
4. OICA Statistics on global motor
vehicles production
5. Trade Statistics-2008, Dubai Port
& Customs, Dubai World
6. BMI report on UAE‟s Auto sector
2009
7. GOIC report on sector study on
Automotive Industry in GCC
2009
8. Dubai Chamber of Commerce
Economic Bulletin, vol-4, issue-
35, May 2007
9. Dow Jones Factiva database of
compaies.
Websites:
http://www.researchandmarkets.com
/reports/
http://www.worldbank.org
http://www.unido.org
http://www.gulfnews.org
http://www.khaleejtimes.org
2

Executive Summary
As automobile industry is becoming more and more
standardized, the level of competition is increasing and
production base of most of auto-giant companies are being
shifted from the developed countries to emerging markets
in developing countries, to take the advantage of low cost
of production. Thus, many developing countries are
making serious efforts to grab these opportunities. The
share of developing countries in global exports of
passenger motor vehicles increased from 11 per cent in
1999 to 18 per cent in 2006. Emerging markets will
contribute about two thirds of the growth in global light
vehicle assembly between 2006 and 2014.
State of the Global Automotive Industry
The supply chain of auto industry has completely changed
over the years. Major OEM (original equipment
manufacturer) players world-wide are increasingly
focusing on basic design and assembly operations as well
as servicing the after-sales market and prefer to deal with a
smaller number of large suppliers. Consequently, the
supply chain is morphing into sub-system integrators,
component makers, and commodity players.
With the gradual opening up of the component sector, now
the challenge is for individual governments to support the
development of domestic critical component and subsystem
suppliers through, interalia, improvement in the
investment environment, stronger patent regimes and
incentives for R&D.
Free trade agreements can have important implications
for the automotive sector because of the improved access
(addressing both tariff and non-tariff barriers) which they
can provide and because of the reduction in tariffs which
Highlights…
Global
� The share of developing countries in global exports of
passenger motor vehicles increased from 11 per cent in
1999 to 18 per cent in 2006.
� Global production of passenger cars and commercial
vehicles grew at a rate of 4to 5% between 2002 and
2007.
� In 2007 the world production of automotives reached
73.27 million units
� In 2008 the production fell by -3.7% due to global
recession. Out of this 75% was car and balance
commercial vehicle
� About 69% of the total production was limited to top
10 companies.
� In the Middle East, Iran and Egypt are the two main
producers of automotives. Approx.1.1 million units
were produced in 2007 at a CAGR of 12.4%.
Highlights…
GCC
� There is no significant manufacturing of Vehicles.
Manufacturing is limited to a few assembly lines for
bus and trucks.
� Saudi Arabia and the United Arab Emirates (UAE)
are the two high- consumption markets within
GCC
� 4-5ml passenger cars in the GCC, out of which
1.4million are in UAE
� UAE constitutes about 30% (2007) of the total
GCC‟s demand.
� No significant manufacturing of vehicles except some
assembly lines.
� In 2008 GCC imported 1.2 ml vehicles. About 80%
constitutes passenger car and rest trucks & buses.
� The growth in terms of value of imports of vehicles in
GCC was @ 22% with $24.14bl of imports in 2007.
� Japanese automobiles dominate the GCC auto market
with 60.98%, while the rest of the pie was shared by
Korean brands at 13.78%, American brands at 10.15%,
and European brands at 8.20%.
� There is no significant manufacturing of components.
A few small scale manufactures are the active and
catering to the requirements of aftermarket.
� The value of import of new tyres has gone up from
USD 817 million in 2003 to USD 1.3 billion in 2007
(CAGR 12%).
3

can occur under them. Modern agreements typically also
cover a wide range of issues other than tariffs and these
can be relevant to trade in automotive products or
services.
Global production of passenger cars and commercial
vehicles grew at a rate of 4 to 5% between 2002 and 2007.
In 2007 the world production of automotives reached 73.27
million units. In 2008 however, the production fell by -
3.7% due to global recession to 70.53 million consisting of
52.6 million (75%) cars and 17.9 million (25%)
commercial vehicles.
About 69% of the total production was limited to top 10
companies. This level of output was equivalent to USD
2.8 trillion. It employed over 8 million workforce directly
and five times as much indirectly. Thus nearly 50 million
workforce depend on auto industry for their livelihood.
Middle East in general and Gulf Cooperation
Council (GCC) in particular is a fast growing market for
automotive industry. The region has a high ratio of cars
per household. GCC countries with their high GDP is a
high consumption vehicle market and present enormous
untapped opportunities for the manufacture of vehicles
and its components. The combination of relatively high
living standards, a growing population in the region, as
well as favourable oil prices, have been the key driving
forces behind the growth in the auto sector in the region.
Despite an expected slowdown in auto sales during 2008-
2009, the outlook based on resurgence in consumer
demand on the back of a pick-up in the global economy
is likely to lead to robust growth in 2010 and beyond.
Whilst the GCC (Consisting of UAE, Saudi Arab,
Kuwait, Oman, Qatar and Bahrain) does not possess a
sizable domestic automobile manufacturing, its high
national wealth has created a niche market for sales of
imported vehicles in recent years, and there is a large reexport
trade based on the country‟s regional status as a
key strategic location, With almost 4m passenger cars in
the GCC, out of which 1.4million are in UAE; this region
offers opportunities for car parts and accessories
distributors, retailers and the aftermarket industry, in
general, a huge opportunity to enter a market least
affected by the current credit crunch. Saudi Arabia and
the United Arab Emirates (UAE) are the two highconsumption
markets within GCC and present
enormous and untapped opportunities for automotive
manufacturers.. In 2008 total imports in this sector in
UAE was $16.9bl. of which 77% was imports and
balance re-exports. As regards the 2008 distribution of
total trade within this sector by activity, motor vehicles
accounted for 68%, followed by auto component 24% and
tyre was 8% respectively.
GCC
� Import of auto components too have shown a
healthy double digit growth. Main components
are: tyres, mounted brake components, gear
boxes, drive axle, components, mufflers and
exhausts, automotive spring (leaf and
helical),glass, lead acid batteries and
accessories such as car radios and air
conditioners. The individual import figures of
major items have been given in the report.
Highlights…
United Arab Emirates (UAE)
� There is no significant manufacturing of vehicles.
Manufacturing is limited to a few assembly lines
for bus and trucks.
� In 2008 total imports in the automotive sector in
UAE was approx. $16.9bl. of which 77% was
imports and balance re-exports. As regards the
2008 distribution of total trade within this sector
by activity, motor vehicles accounted for 68%,
followed by auto component 24% and tyre was
8% respectively.
� UAE trade of component and accessories in 2008
were $2.8bl out of which 29% was re-exported.
� The major source of imports being Japan,
Germany, USA and China The top destinations
(Re-exports) of motor vehicle parts and
components are Iran, Russia, Iraq, Libya and
Tanzania respectively.
� The major items of imports are Bumpers & parts,
Suspension shock-absorbers, Parts & accessories
for bodies, Clutches & parts, Brakes and servobrakes,
Road wheels & parts & accessories and
Steering wheels, columns & boxes
4

Despite the size and potential of the UAE market and its
strategic location and well developed logistic support
system, the emirates still have no significant passenger
car assembly or manufacturing operations, although this
is set to change in coming years. The presence of even a
car assembly line in UAE would open the way for a local
tie-up with a foreign car manufacturer seeking to tap into
growing demand for low-cost cars in Africa, the Middle
East, and Asia.
The UAE has also been making strategic investments in
European auto firms, which could pave the way for
building up a domestic industry. Leading the investment
has been Abu Dhabi‟s Aabar Investment, an Abu Dhabi
investment fund, bought a 9.1% stake in German autos
company Daimler in March 2009.
Swedish automaker Scania‟s and India‟s Ashok Leyland
have set up their trucks and bus assembly units in UAE.
However, considering the potential, the manufacturing in
this sector is insignificant and presents enormous
untapped opportunities for the manufacture of vehicles
and its components
One of the strategies of UAE has been to promote
industrialization away from oil and gas based industries
in order to ensure a stable broad based economy for a
balanced growth in the medium to long term. Automotive
industry is an ideal investment scenario. Besides saving
expensive imports, it tends to drive all-round
development by investing in R&D, developing
ancillary industries and generating employment
opportunity for the local population. UAE has taken a
number of steps in broadening the industrial base away
from oil and gas.
The competitive edge of the UAE lies in its excellent
infrastructure such as roads, sea ports, power and
telecommunication and geographical proximity to
MENA, Europe and Asian markets. Apart for this, UAE
has a stable government and sound macro-economy; high
per capita GDP & high standard of living. Fiscal Benefits
include 100% income and corporate tax exemptions,
100% capital and profit repatriation, fully convertible
currency, no financial risk and relatively low Inflation.
Regulatory benefits include 100% ownership in Free
Zones, no trade barriers or quotas, easy licensing
procedures & company formation, liberal labour laws
and no restrictions on hiring expatriate. All these
contribute to lower cost of operations.
Identified Projects for RAK (UAE)
Based on import substitutions of major components
� Car/ bus/ trucks assembly/ manufacturing unit
� Tyre & Battery manufacturing units
� Auto components manufacturing units of both
metallic and plastics particularly,
� Bumpers & parts
� Suspension shock-absorbers
� Parts & accessories for bodies
� Clutches & parts
� Brakes and servo-brakes
� Road wheels & parts & accessories,
� Car Air conditioners
� Automobile ignition system
Rationale for Setting up Project in RAK (UAE)
Competitive Landscape e.g.
� Benefits
� 100% income and corporate tax exemptions
� 100% capital and profit repatriation,
� Fully convertible currency
� 100% ownership in free zones
� Exemption of equipment and raw material required by
industrial units from customs duty.
� No trade barriers or quotas,
� Easy licensing procedures & company formation,
Liberal labour laws
� No restrictions on hiring expatriate.
� Sound Macro-economy & favourable Govt. policies
� Excellent infrastructure and logistic support system
� Increasing demand for vehicles and components
� Strategically located
� Base for Raw materials- Aluminium, Plastics and
float glass
� Aluminium -DUBAL (Dubai)
� Plastics-ADNOC(Abu Dhabi), SABIC (KSA)
� Glass- Guardian (RAK), Emirates Float Glass (Abu
Dhabi)
5

Introduction
The automotive sector, comprising of the automobile and auto component sub sectors, is one of the key segments of the
economy having extensive forward and backward linkages with other key segments of the economy. The automotive
industry is no stranger to change. Many of the changes occurring in the global marketplace today - tightened credit
markets in a capital-intensive industry, declining consumer confidence, increased government involvement - are the
most recent manifestations of this reality.
The combination of these new realities with familiar industry challenges such as volatile raw materials costs and fuel
prices, tighter regulations, capacity and sourcing challenges and the need to satisfy consumer demand for cleaner,
greener cars, have combined to create a business environment that has had a profound effect on the global automotive
industry.
With the global economy in the midst of its worst recession, cash conservation has been the key element to survival for
many automotive companies. However, to survive and prosper successful companies still have to invest for the future.
The silver lining for the auto industry is that the price of oil is set to remain softer during this global downturn, as are
commodity prices. Some experts feel the global slowdown in the auto sector, although harsh, will not be as
pronounced as that during the recession of the early 1990s thanks to the strength of the BRIC nations (Brazil, Russia,
India, and China).
The Changing Nature of Global Manufacturing and Trade in Automotive Products and Services
As automobile industry is becoming more and more standardized, the level of competition is increasing and production
base of most of auto-giant companies are being shifted from the developed countries to developing countries to take the
advantage of low cost of production. Thus, many developing countries are making serious efforts to grab these
opportunities. Auto-giants such as General Motors, Ford, Toyota, Honda, Volkswagen, and Daimler Chrysler, to shift
their production bases in different developing countries which help them operate efficiently in a globally competitive
marketplace.
Different countries adopted different policies to handle the overcapacity problem in the sector. Specialization in
automobile sector is increasingly becoming segment specific as each of these countries is finding its niche. For example
in the emerging markets e.g. China is specalising in components, India in two wheelers and small vehicles, Thailand in
pick-up trucks and passenger cars and Indonesia in utility vehicles. Thailand is exporting to developed countries and
strengthening its position in ASEAN. Indonesia is also increasing its trade relation with ASEAN. India is concentrating
on Middle East and south Asia beside traditional developed country destinations. With the gradual opening up of the
component sector, now the challenge is for individual governments to support the development of domestic critical
component and sub-system suppliers through, interalia, improvement in the investment environment, stronger patent
regimes and incentives for R&D.
6

As with other industries, reductions in trade barriers and lower shipping costs, among other factors, have led to
changes in the global automobile industry. These changes include increased demand for and production of vehicles
in developing countries; the adoption of more globally focused strategies by major automotive producers (of both
vehicles and parts); the development of integrated supply chains, including the use of e-commerce; increased
involvement by suppliers, including in the development, manufacture and bearing of risk; greater diversity of roles
among suppliers, ranging from specialist suppliers to component integrators; and highly specialised trade in vehicles
and components. These changes have resulted in significant restructuring within the industry, particularly among
parts manufacturers, with first-tier suppliers typically operating on a global basis.
According to JETRO data, the share of developing countries in global exports of passenger motor vehicles increased
from 11 per cent in 1999 to 18 per cent in 2006. Papers released for the Review suggest that “emerging markets will
contribute about two thirds of the growth in global light vehicle assembly between 2006 and 2014”. The papers also
note that the automotive components industry is becoming increasingly global, with many companies now having a
production network of well over 20 locations around the world. Manufacturing services, such as design and research
and development are increasingly performed on a worldwide basis.
7

In some respects, however, the motor vehicle industry has not changed as much as other sectors. In contrast to
the information, communications and telecommunications industry, where tariff barriers are mostly at zero as a
result of the WTO Information Technology Agreement, regional and global production networks remain less
significant. This is reflected in the patterns of trade - in East Asia “external trade [i.e. primarily export of assembled
vehicles] is greater than intra-regional trade [of both vehicles and parts] and in investment patterns, as countries,
remain focused on getting behind tariff barriers rather than efficiency-seeking production.
While these factors have all operated to reduce the opportunities for the significant growth of production networks,
the experience of other industries suggests that, as barriers are reduced further - through unilateral action and
bilateral, plurilateral and multilateral agreements - intra-industry trade will increase, bringing with it
opportunities in particular for trade in specialised parts and vehicles.
The Changing Nature of Supply Chain:
The supply chain of auto industry has completely changed over the years. Major OEM (original equipment
manufacturer) players world-wide are increasingly focusing on basic design and assembly operations as well as
servicing the after-sales market and prefer to deal with a smaller number of large suppliers. Consequently, the supply
chain is morphing into sub-system integrators, component makers, and commodity players. The segregation is
increasingly defined by „risk sharing‟ which was earlier defined by only „cost pressure‟. Tier 1 suppliers (concentrating
on system supply, module assembly and sub supplier management) are taking increasing risk from major players
shifting the cost pressure to Tier 2 supplier who concentrate only on production of sub components.
In general, suppliers can be divided into few groups such as Systems Integrator (capable of designing and integrating
components, subassemblies), Global Standardized–Systems Manufacturer (specialist in design, development and
manufacturing of complex systems), Component Specialist (produces specific component or subsystem for a given car
or platform) and Raw Material Supplier.
Many companies (such as Volkswagen and Renault) feel that a mono-supplier strategy (such as in Ford) is not good but
having limited number of large suppliers are of a better strategy. Ford pushes the supplier to own the tools, a strategy of
pushing the risk associated with volume fluctuations onto the supplier rather than Ford. On the contrary, Volkswagen
and Renault, are satisfied with 2 suppliers in each region with an additional one having less responsibility but ready
replace any of the existing supplier. Globally, these companies want their suppliers to invest near their plants or transfer
their knowledge to local players. Companies bring the quality standards and price reduction condition while developing
the contract with the suppliers. In general, contract length and overall value are related to price reduction targets that the
supplier is able to commit to. For some of the assemblers, suppliers can also propose alternative designs that have the
same economy results. The experience shows that magnitude of reduction per year varies from 2 to 8 percent due to
achieving economies of scale. The competitive pressure in the industry is increasingly bringing the cost reduction
targets as a major management decision of assemblers. Nowadays, major companies target cost reduction along with the
design and models over a period of time. For example, German companies are targeting price reduction of 13% for the
next generation model. Ford and Renault targets price reduction of 5-8% per annum and the figure is 13% for Toyota
over 3 years
8

The components industry is now increasingly concentrating in companies that can design and provide systems and subassemblies
across different markets. Several supplier companies were
created by assemblers. In fact, in-house component manufacturing division were given separate identities and
encouraged to compete with other companies. For example, Delphi was created out of
GM‟s component activities. Similarly, Visteon (formerly part of Ford), Magneti, Marelli (Fiat) and ECIA (formerly
owned by Peugeot-Citroen and now fused with Bertrand Faure) were also created in the similar line. M&A activities
among suppliers also became a common feature in 1990s. Lucas and Varity merged in 1996, T&N was taken over by
Allied Signal; Bertrand Faure was acquired by ECIA. New global companies were created through the fusion of smaller
manufacturers also.
In Asia-Pacific region, the growth of component manufacturers has taken a different route. Most of the Japanese
producers followed a tight relationship with their suppliers (independent or quasi-independent). The existence of the
keiretsu system (business affiliation) in Japan greatly facilitated such an arrangement. But other manufacturers
especially Korean, Chinese and Indian gave lot of importance on price and quality while buying from number of trusted
suppliers. As a result of this indigenous auto-component sectors are thriving in many Asian countries though some
MNCs are also present.
9

Global Automotive Production & Major Players
The global automotive industry is a highly diversified sector that comprises original equipment manufacturers (OEM),
component suppliers, dealers and agents, service stations, environmental & transport safety groups, and trade unions.
The growth in world production of automotives is given in Fig.1.
WORLD MOTOR
VEHICLE PRODUCTION
in million units
Year Quantity
2003 60.66
2004 64.50
2005 66.48
2006 69.22
2007 73.27
2008 70.53
Source- OICA Statistics Fig-1 Global production of automotives
According to Fig. 1 above, world production grew at a rate of 4% between 2002 and 2007. In 2007 the world production
of automotives reached 73.27 million units. In 2008 however, the production fell by -3.7% due to global recession to
70.53 million consisting of 52.6 million (75%) cars and 17.9 million (25%) commercial vehicles ( Fig-2).
Category wise distribution of 2008 production
in million units
Type Cars
Commercial
Vehicles
Quantity 52,637,206 17,889,325
Source- OICA Statistics
Quantity in millions
80,00
70,00
60,00
50,00
40,00
30,00
20,00
10,00
0,00
World Vehicle Production in 2008
Fig-2 Product distribution
Region wise breakup of automotive production in 2008 is shown in Fig.3.According to this, Asia pacific, Europe and
NAFTA countries contributed maximum towards world production in 2008. (Annexure-I)
60,66
64,50 66,48 69,22
73,27 70,53
2003 2004 2005 2006 2007 2008
Commerc
ial
Vehicles
25%
Category wise distribution of 2008
production
Cars
75%
10

World Motor Vehicle Production By Region In
2007-2008 in million units
Region 2007 2008 % Change
Europe 20,834,089 19,590,808 -5.90%
CIS 2,018,489 2,179,977 8.00%
NAFTA 15,454,764 12,974,058 -16.10%
South America 3,699,295 3,942,457 6.60%
Asia-Oceania 29,717,618 30,204,954 1.80%
Middle East 1,101,713 1,166,212 5.80%
Africa 440,093 468,065 7.00%
Total 73,266,061 70,526,531 -3.7%
Source- OICA Statistics Fig-3 Global production of vehicles by region
Auto industry produced over 70 million vehicles in 2008. About 69% of the total production was limited to top 10
companies. This level of output was equivalent to USD 2.8 trillion. It employed over 8 million workforce directly and
five times as much indirectly. Thus nearly 50 million workforce depend on auto industry for their livelihood.
World Ranking of Top 10 Vehicle Manufacturers in the World in 2008 (Annexure-II)
Refer Annexure- for the list of top 50 companies and their production
Rank Total CARS LCV HCV
HEAVY
BUS
1 TOYOTA 9237780 7768633 1102502 251768 114877
2 GM 8282803 6015257 2229833 24842 12871
3 VOLKSWAGEN 6437414 6110115 271273 46186 9840
4 FORD 5407000 3346561 1991724 68715
5 HONDA 3912700 3878940 33760
6 NISSAN 3395065 2788632 463984 134033 8416
7 PSA 3325407 2840884 484523
8 HYUNDAI 2777137 2435471 85133 151759 104774
9 SUZUKI 2623567 2306435 317132
10 FIAT 2524325 1849200 516164 135658 23303
Sub-total 47,923198 39,340128 7,496028 812961 274081
Source- OICA Statistics
World Motor vehicle production by
region in 2008
Middle
East
2%
ASIA-
OCEANIA
44%
Africa
1%
South
America
5%
Europe
27%
NAFTA
18%
11
CIS
3%

Automotive Production in the Middle East
Middle East in general and Gulf
Cooperation Council (GCC) in particular is
a fast growing market for automotive
industry. The region has a high ratio of cars
per household. GCC countries with their
high GDP is a high consumption vehicle
market and present enormous untapped
opportunities for the manufacture of
vehicles and its components.
The combination of relatively high living
standards, a growing population in the
region, as well as a resurgence in oil prices,
have been the key driving forces behind the
growth in the auto sector in the region.
Despite an expected slowdown in auto sales
during 2008-2009, the outlook based on
resurgence in consumer demand on the back
of a pick-up in the global economy is likely
to lead to robust growth in 2010 and beyond.
In the Middle East, Iran and Egypt are the two main producers of automotives in the region. Production of automotives in
the Middle East is shown in Fig.4 According to this, the production of automotives increased from 0.88 million units in
2005 to 1.1 million units in 2007 at a CAGR of 12.4%.
Middle East automotive production in 2008
Year Egypt Iran Total % change
2005 64,549 817,200 881,749
2006 91,518 904,500 996,018 12.96%
2007 104,473 997,240 1,101,713 10.61%
2008 114,782 1,051,430 1,166,212 5.85%
Source- OICA Statistics
Quantity
Middle East Automotive production in 2008
1.400.000
1.200.000
1.000.000
800.000
600.000
400.000
200.000
0
2005 2006 2007 2008
Fig-4 Middle East Automotive production in 2008
Egypt
Iran
Total
12

GCC Economic Outlook
Gulf economies are benefitting from the global economic recovery. Although it is set to contract this year, real GDP
should bounce back in 2010. Expansionary fiscal policy is a key part of the recovery story. If oil price drops substantially
in 2010, the bullish outlook could be jeopardized. Despite the recovery, private sector activity could still be constrained by
slower growth in bank credit.
In its latest GCC brief, National Bank of Kuwait (NBK) reports that the recent months have witnessed an overwhelming
consensus that the global economy is on the road to recovery, suggesting that the bottom of the financial crisis is behind.
A number of recent economic indicators and signs strongly suggest the crisis has subsided. The most recent projections of
the IMF show the world economy is expected to contract by 1.1% in 2009 and expected to recover 3.1% next year. This
represents an improvement of 0.3 and 0.6 percentage points from the Fund‟s projections three months earlier, respectively.
There is, however, less agreement among economists on the shape of the probable global recovery; “W”, “V”, “U” or
something in between.
The road to this recovery has been cemented to a large extent by governments around the globe expanding fiscal and
monetary policies, bailing out firms, and injecting capital and liquidity in the banking system. Nowadays, new economic
concerns are emerging as governments, including the G20, start talking about the post crisis environment and the proper
timing of an “exit” strategy. “Exit”, of course, entails the withdrawal of governments‟ stimulus, whenever the signs of
solid and durable recovery are established. More likely, such an exit strategy will not be executed in most countries before
the second half of 2010.
World economic recovery is good for the region….
The Gulf economies are definitely among the top beneficiaries of any global rebound. As oil continues to be the major
driver of GCC macro performance, the higher oil prices that started stabilize since June of this year began to gradually
restore regional confidence and to leverage its favorable prospects. Recent consumer confidence surveys show a
substantial improvement relative to earlier in the year. Indeed, the region‟s economic performance and outlook have
always been an oil story. Over the last 10 years, oil accounted for an average of 46% of GDP, 75% of merchandise
exports, 84% of governments‟ revenues. Numbers were even higher in recent years.
The global recovery, if robust, is expected to provide further support to oil prices in the near term. For 2009, however, it
has been projected that the real GDP of the region to contract by 2.5%, affected mainly by cuts in oil production. The
largest GDP contractions are to be recorded in the UAE and Kuwait. Growth in the non-oil GDP of the region is expected
to continue in 2009, though at a slower pace (2%), compared to an average growth of 7% in the previous five years.
Meanwhile, it has been projected that Gulf economies will post 4.8% real growth in 2010, outperforming most regions
around the world. There are, however, some downside risks to this projection.
…. but regional fiscal policies should be supportive
Oil prices have been very volatile since Q3-08. The average monthly price of the OPEC basket dropped from USD 131
per barrel in July 2008 to USD 39 in December, but had risen back to USD 78 by late October 2009. The current price
level is considered “fair” by OPEC members who also prefer to see oil prices stabilizing at their current levels. OPEC
members have so far insisted on keeping the cartel‟s production level unchanged, and see no need to reverse the daily 4.2
million barrel in production cut that entered into force since November of last year. Looking ahead, oil prices may move
in either direction depending on a number of issues, including the status of the global economy, demand and supply
conditions for oil, geopolitics, the US dollar outlook, and any other oil-related changes in Western economic policies. Any
forecast of the future direction of oil prices carries more uncertainty than usual. For Gulf countries, the major concern is to
see prices slide again below USD 50 a barrel or below the breakeven price that balances governments‟ budgets. Although
such a scenario would have a negative impact on the region‟s finances and outlook at large, but the net impact would
depend on governments‟ and private sectors‟ reactions to lower oil prices. Historically, government spending programs,
especially on development projects were highly correlated with oil prices. In 2009 for example, and with the exception of
Saudi Arabia and UAE, other GCC countries announced a small rise or a cut in their spending.
If prices witness a substantial drop in 2010 and governments, out of budgetary concerns, decided to reduce spending, then
the bullish outlook of the region would be jeopardized. Instead, Gulf governments would be advised to exploit the positive
atmosphere and to build on it with more spending and more public-private projects. They also ought to pursue economic
reforms and introduce further improvement to the business environment.
13

… as well as banks
Banking services are a leading private sector activity in the Gulf region, contributing between 4-12% of the region‟s GDP,
despite the large share of the oil sector. However, the financial results of most banks across the region during the first half
of 2009 show a drop in profits relative to the same period of last year. At any rate, GCC banks have always been among
the strongest and safest banks in the region according to most financial indicators, including capital, profitability,
government backing, and prudent risk management. It is believed that GCC banks have drawn the proper conclusions, like
others around the globe, and should remain healthier and in better shape than banks in other emerging economies. 2010 is
expected to see the resumption of growth in bank intermediation, though at a slower pace than in previous years.
GCC Macroeconomic Data
2006 2007 2008E 2009F 2010F 2011F 2012F 2013F
Real growth (%)
UAE 9.4 7.6 7.7 0.9 4.3 6.7 7 6.7
Saudi Arab 3.2 3.4 4.2 0.4 3.3 3.7 4 3.9
Qatar 9.9 8.4 14.3 12.4 19.9 8.6 4.7 3.7
Kuwait 6.3 4.7 8.5 0.7 4.3 5.1 5.4 5.2
Bahrain 6.7 8.1 6.1 2.4 3.1 4.6 4.1 1.4
Oman n/a n/a n/a n/a n/a n/a n/a n/a
Nominal GDP (US$ bn)
UAE 170.1 198.7 240.4 201 232.3 266.7 310.6 360.5
Saudi Arab 356.6 381.7 468.1 331.8 393.6 425.1 455.5 467.3
Qatar 56.9 70.4 95.8 75.2 105.2 127.6 140.6 147
Kuwait 101.7 112.1 148.4 108.6 130.9 14909 165.8 175.3
Bahrain 15.8 17.5 18.6 18.1 19.7 21.6 23.5 25.3
Oman n/a 40.3 n/a n/a n/a n/a n/a n/a
CPI (Average %)
UAE 13.5 13.3 14 4.5 6.5 7.3 6 6
Saudi Arab 2.3 4.1 9.9 1.3 3 3.5 3.7 3.5
Qatar 11.8 13.8 15.1 9.2 8.1 6.5 5.4 5.6
Kuwait 3 5.5 10.8 7 5.6 4.5 4 3.2
Bahrain 2 3.8 7 0.8 2.8 3 2.7 2.5
Oman n/a n/a n/a n/a n/a n/a n/a n/a
Population (m)
UAE 4.9 5.3 5.6 5.7 5.9 6.2 6.6 6.9
Saudi Arab 23.7 24.3 25 25.6 26.3 26.9 27.6 28.3
Qatar 1.1 1.3 1.6 1.7 1.9 2 2.2 2.3
Kuwait 3.2 3.4 3.6 3.8 3.9 4.1 4.3 4.6
Bahrain 0.9 1 1.1 1.1 1.2 1.2 1.3 1.4
Oman n/a 2.6 n/a n/a n/a n/a n/a n/a
GDP per capita (US$)
UAE 34,550 37,690 42,690 35,340 39,660 43,030 47,330 52,160
Saudi Arab 15,060 15,700 18,710 12,950 14,980 15,790 16,510 16,530
Qatar 50,190 52,660 61,420 43,670 55,780 62,330 64,970 64,380
Kuwait 31,950 32,980 41,510 28,810 33,280 36,480 38,380 38,460
Bahrain 17,190 16,810 16,510 16,090 16,660 17,390 17,990 18,470
Oman n/a 15,546 n/a n/a n/a n/a n/a n/a
Net FDI (US$ bn)
UAE 1.9 6.6 7.2 3 6.1 4.8 6 6.5
Saudi Arab 17.5 11.2 15 13.6 13.9 14.4 15.7 17
Qatar 32 -4,125 -2,880 -1,290 -2,120 -950 -1,125 -855
Kuwait -8,056 -13,563 -11,078 -9,503 -10,907 -11,994 -13,976 -15,334
Bahrain 1,935 87 -100 320 190 -107 -97 46
Oman n/a n/a n/a n/a n/a n/a n/a n/a
Source- Deloitte Touche Tohmastu- Report on GCC macro-economy indicators, E-Estimated; F-Forecast
14

GCC Automotive Sector
GCC Auto Industry SWOT
Strengths
� The regional economy is still liquid with strong current account balances which will
sustain growth under the present depressed economic conditions for some time.
High business confidence and an increase in disposable income provide a favorable
background for the automotive sector.
� The SUV and luxury car markets are strong and growing on the back of rising
levels of young drivers and disposable income
� Fuel prices are the lowest in GCC
� GCC has potential to become a base for aluminum and plastics based industry due to
availability of raw materials locally. This in turn can be developed into a base for
aluminum and plastic based auto component industry
� There is no local production of passenger cars in GCC and only a small number
of commercial vehicles are assembled.
Weaknesses
� The domestic market is largely dependent on international car manufacturers for their
style and design, and hence its profitability is hostage to the demands of those
major suppliers.
� Lack of awareness of automotive quality standards
Opportunities
� The used car market is expanding. This will help boost spare parts demand locally.
� As a result of climatic conditions and a rugged terrain, there is a vibrant and growing
market for accessories and spare parts
� Trade liberalization between the Gulf Co-operation Council (GCC) states and
the EU will open regional markets to more European imports
� Plans for a car assembly plant could help spawn a local automotive ancillary
manufacturing industry.
� Proximity to markets in MENA region and hence potential for export
Threats
� A potential threat exists if other regional suppliers (Egypt, Turkey, Iran and possibly,
India) become competitive in a wider range of vehicles. But this threat is not significant
to the luxury vehicle market.
15

GCC Automotive Sector
Outlook for GCC Automotive Market
Whilst the GCC ( Consisting of UAE, Saudi Arab, Kuwait,
Oman, Qatar and Bahrain) does not possess a sizable
domestic automobile manufacturing, its high national wealth
has created a niche market for sales of imported vehicles in
recent years, and there is a large re-export trade based on the
country‟s regional status as a key strategic location,
The current global financial crisis does not seem to have
affected GCC vehicle market significantly according to
market analysts. Major economies such as Saudi Arabia
and UAE are still growing though at a reduced pace during
the slow down phase of global economies. Experts feel the
impact will be significant only if the oil price remains
subdued for a longer duration.
Reported research show that the Japanese automobiles
dominate the GCC auto market with 60.98%, while the rest
of the pie was shared by Korean brands at 13.78%, American
brands at 10.15%, and European brands at 8.20%. With
almost 4m passenger cars in the GCC, out of which
1.4million are in UAE; this region offers car parts and
accessories distributors, retailers and the aftermarket
industry, in general, a huge opportunity to enter a market
least affected by the current credit crunch.
Automotive market in GCC is buoyant. According to one
industry estimate, GCC imported 1.2 million vehicles in
2008. Analysts feel the automotive sector in GCC is growing
at an impressive rate of over 10% annually. The growth in
terms of value of import of vehicles into GCC is given in
Fig.5. Overall, the dollar value of imports has grown at an
impressive rate of 22% CAGR.
Growth in import of vehicles into GCC
In billion USD
Item 2007 2006 2005 2004 2003
Vans and
Buses 1.11 0.72 0.62 0.49 0.55
Cars 19.42 14.91 12.06 9.61 8.40
Trucks 3.61 2.10 1.70 1.55 1.78
Total 24.14 17.73 14.38 11.65 10.74
GCC- Highlights
� Higher per capita income, growing population
and low fuel cost are driving the demand for
automotives in GCC. This has led to a rapid
development of an automotive market here.
� In spite of the current downturn in the world
financial market, auto market in GCC is very
strong.
� GCC imported 1.2 million vehicles into GCC in
2008. 80% of these are cars.
� Saudi Arabia and UAE are two prime markets
in GCC leading the way. Import of vehicles is
growing at a rapid rate in GCC. The growth rate
is in excess of 10% per annum between 2003
and 2007.
� The Automotive component industry too has
shown a double digit growth rate. Large number
of used cars on road and inclement road and
weather conditions are fueling the demand for
spare parts.
� Based on import data, import of vehicles into
GCC grew from USD 10.75 billion in 2003 to
USD 24.1 billion in 2007. This is equivalent to
22% CAGR.
� Import of auto components too have shown a
healthy growth rate. Main components are:
Tyres, Mounted brake components, Gear boxes,
Drive axle, components, Mufflers and exhausts,
Automotive spring (leaf and helical),Glass,
Lead acid batteries and Accessories such as car
radios and air conditioners.
� In the case of vehicles, apart from a handful of
truck and bus assembly units there is no serious
automotive manufacturing activity in GCC
currently. GCC‟s entire demand for cars are met
through import.
� In the case of tyres too there is no
manufacturing unit in GCC.
� In the case of components, there are
manufacturing units, currently producing these
items in the GCC. But majority of them supply
to aftermarket only.
16

30,00
25,00
20,00
15,00
10,00
5,00
0,00
Growth in import of vehicles into GCC
CAGR 22%
2007 2006 2005 2004 2003
Fig-5 Growth in import of vehicles into GCC
Saudi Arabia and the United Arab Emirates (UAE) are the two
high- consumption markets within GCC and present
enormous and untapped opportunities for automotive
manufacturers. The total automotive market in GCC can be
broadly divided into the passenger cars (including SUVs), trucks,
and buses.
Saudi Arabian Market:
Trucks
Cars
Vans and Buses
Saudi Arabia with highest population in GCC and blessed with
plentiful oil resources along with its strategic location in the
Middle East is a booming automotive market. Automotive import
into Saudi market is given below.
Automotive import into Saudi
Arabia
In USD,
million
2007 2006 2005 2004 2003
Vans and Buses 400 224 315 247 263
Cars 6,991.00 6,700.00 6,305.00 4,274.00 3,283.00
Trucks 1,385.00 923 1,172.00 862 9,61.0
Saudi- Total 8775 7,847.00 7,791.00 5,384.00 4,507.00
GCC Total 24,141.00 17,730.00 14,386.00 11,646.00 10,748.00
As % of GCC total 36% 44% 54% 46% 42%
GCC- Competitive edge
The competitive edge of the GCC lies in the following
aspects:
� Resilient economies
� High per capita GDP
High standard of living
Reasonably low inflation
� Favorable tax environment with no personal,
corporate, value added or withholding tax
� Favorable business climate
� Excellent infrastructure such as roads, power and
telecommunication Geographical proximity to
MENA, Europe and Asia markets
� Governmental encouragement
One of the strategies of all GCC States has been to
promote industrialization away from oil and gas
based industries in order to ensure a stable broad
based economy for a balanced growth in the medium
to long term.
Automotive industry is an ideal investment
scenario. Besides saving expensive imports, it
tends to drive all-round development by investing
in R&D, developing ancillary industries and
generating employment opportunity for the locals.
GCC states have taken a number of steps in
broadening the industrial base away from oil and
gas. Incentives given to entrepreneurs are:
� Exempt equipment and raw material required by
industrial units from customs duty.
� Exempt profits and earnings of industrial
projects from taxes for a specified period.
� Assistance in export of goods manufactured
locally.
As can be seen from above Table, the share of Saudi automotive market has declined over the years to 36% of GCC
market in 2007.The passenger car segment is the largest and the most important segment of Saudi auto market and
contributed around 80% of the total vehicle sold in Saudi market in 2007.
Toyota is the leading market brand in the Saudi Arabia, followed by Nissan. Daimler is the leading automotive firm in
the commercial vehicle market. The German company operates through the Mercedes-Benz brand. In 2004, Japanese
cars captured approximately 36% of the Saudi market with Toyota topping the list with 29.5%. US manufacturers were
17

the other prominent manufacturers with 25% market share with GM leading the pack from American suppliers.
Popularity of Australian Built cars is on the rise and sales have improved dramatically since 2006.
Car rental services and limousine services are among the largest buyers of passenger cars in Saudi Arabia. Majority of
car purchases were made through local suppliers although some governmental agencies such as Saudi Arabian National
Guard (SANG), the Ministry of Defense and Aviation (MODA) and the Ministry of Interior (MOI) are believed to
purchase directly from overseas suppliers.
Vehicle Assembly in Saudi Arabia
There is no car assembly plant in Saudi Arabia. The Saudi automotive production base is limited to a handful of firms
that assemble commercial vehicles under contract with foreign automakers. The main brands of commercial vehicles
assembled include, Mercedes, Volvo and MAN Trucks.
Mercedes
group
National Automotives Industry, Jeddah, operates a truck assembly company in
partnership with Mercedes group Germany. The plant is designed and run by Mercedes.
Components are imported in CKD condition and assembled here.
The plant has a capability to assemble 15-20 trucks per day to make trucks of 20Ton capacity. Products of this
company is sold in GCC as well as exported. Demand for the truck is very strong. This is indicated by the expansion
drive of Mercedes.
Volvo Group
MAN
Volvo Vehicle truck assembly, Jeddah was set up as a joint venture between Zahid
Tractors, the sole distributor of Volvo vehicles and Volvo Group of Europe. The plant
assembles Volvo trucks from CKD units. The plant has a capacity to assemble 18
trucks per day. However, their current production level is 2 -3 trucks per day.
In January 2009, MAN, together with its Saudi Arabian partner Haji Husein Alireza &
Co. Ltd., opened a truck assembly plant in Jeddah.
The plant is designed to produce 3,000 vehicles a year in single-shift operation. It assembles MAN TGA-WW trucks
and semi-trailer tractors, initially for the local market. In 2007, MAN's share of the market for trucks over 16 tons was
22.7%.
In summary, automotive demand in Saudi Arabia is largely met through imports. The car import is tightly regulated by
the authorities. Prior to 2003, the government set a fixed gross profit margin of 15% for car importers. The ending of
this policy in 2003 stimulated further growth in the market. Nonetheless, until 2005, when the country finally gained
entry to the World Trade Organisation, the Saudi Seaports Authority continued to impose a fixed customs duty,
insurance and freight charge on each vehicle imported into the country. Motor vehicles are currently subject to a 5%
customs tariff. Imported cars are sold through sole distributors who also provide after-sales service. There is greater
competition, however, in the market for spare parts. Sizeable volumes of automotive imports are re-exported to
neighboring countries such as Sudan, Yemen, Djibouti, Ethiopia and Eritrea.
Saudi Arabia Component Sector
Saudi Arabia component market is a dominant one in the Middle East. Saudi automotive component market remains
an import driven market in spite of the presence a large number of local manufacturers. Saudi Arabia imported more
than $650 million worth of parts and service equipment in 2006, compared to $630 million in 2005. Large population
of used cars and extreme weather conditions have boosted the requirement of spares for repair and maintenance.
Presently, Japan, USA, Germany, Australia, and South Korea, are the major suppliers of automobiles, and spare parts.
Tyres come from dozens of countries around the world.
18

There are over 350 dealers for supplying automotive parts in Saudi
Arabia.U.S. companies command a leading position in the supply
of transmission, steering, suspension, and braking components
and parts. Nonetheless, Japanese car manufacturers and spare
parts suppliers still command the lion share of the Saudi market at
more than 40 %.
Manufacture of components in Saudi Arabia
The automotive component industry in Saudi Arabia comprises
more than 300 small and medium-sized firms manufacturing
and stocking of parts and accessories. Most of these firms have
low capacities. A number of joint ventures for manufacturing have
been established in recent years providing high-volume, fast-
moving car components, especially filters, oils and fluids, batteries,
brakes and exhaust systems. However, majority of these units are
catering to the requirement of aftermarket. The government aims to
encourage further development of car-parts manufacturing as part
of its strategy to develop more industrial production in the
kingdom.
A comprehensive list of major manufacturers under these
categories is given in Annexure -4.
UAE Market:
UAE automotive import market is given in Table next page. As
can be seen from this table, UAE market constituted 30% of the
GCC total. The major suppliers in UAE auto market are Toyota,
Nissan, Mitsubishi, Honda, Mercedes, BMW, Volkswagen, Ford
and General Motors.
UAE Autos Sector - Key Players
Company Segments
Toyota Motor (Al-
Futtaim) Passenger, SUVs, Commercial
Ford Motor Passenger, SUVs, Commercial
General Motors Passenger, Luxury, Commercial
DaimlerChrysler Passenger, Luxury, Commercial
Honda Motor (Al-
Futtaim) Passenger, SUVs, Motorcycles
Nissan Motor Passenger, SUVs, Commercial
GCC- Source of import
GCC automobile industry relies on imports with
Japan accounting for 65%- 70% of sales, Europe
15%-20%, USA contributing 6.5% and the rest
coming from other countries. Virtually, the
entire car and light vehicles required in GCC is
currently being imported. Barring a couple of
truck units assembling CKD components, there
is no serous manufacturing activity taking place
in GCC to manufacture automotive vehicles.
Leading players in Middle East are:
� Toyota tops the Middle East car sales
chart. Toyota recorded Jan to June 2008
sales of 260,000 units up 31% from the
same period 2007. GM sold 128,000 units
in 2007 and ranked 2 nd in 2007 However,
they are likely to be overtaken by
Nissan this year after the Japanese
company's Jan-June (2008) performance
showed an increase of 27 % to more than
74,000 units - nearly 8,000 more than GM.
� Others in the Gulf top five are
Mitsubishi and Hyundai with Honda
making up ground after a 52 % sales
increase in the first half of 2008.
� Although no official data exists on the
market's overall vehicle sale industry
executives expect sales of new vehicles in
the Gulf market -comprising Saudi Arabia,
Bahrain, Kuwait, Oman, Qatar and the
UAE -to grow to around 1.2 million cars
and light trucks this year, up about 10 %
from 2007.
� And recent figures issued by the Japan
External Trade Organisation (JETRO) on
the UAE-Japan trade figures, showed that
the export of cars with engines up to three
litres, surged by 71 % while more highpowered
vehicles increased by 67 %.
19

Automotive import Market of UAE
Unit: USD, million
2003 2004 2005 2006 2007 2008
Vans and Buses 121.00 113.00 134.00 244.00 387.35 766.19
Cars 1,987.00 2,451.00 3,183.00 3,923.00 6,017.88 7,307.52
Trucks 265 177 142 371 956.52 1113.13
UAE- Total 2,373.00 2,741.00 3,459.00 4,538.00 7361.75 9,186.84
GCC Total 10,748.00 11,646.00 14,386.00 17,730.00 24,141.00 N/A
As % of GCC total 0.22 0.24 0.24 0.26 30%
The automotive component segment is also growing rapidly in UAE. In 2008, the UAE automotive parts and
accessories market was estimated to be worth approximately $2.83bl. About 29% of the auto parts and accessories that
have been imported are re-exported to other countries. Auto components are among the top 10 re-export products of
UAE. The main destinations of these re-exports are Middle East, Africa and East Europe. The main sources of the
imports are Japan, Europe and the US.
UAE market for automotive parts is open and highly competitive. Like Saudi Arab, UAE automotive component
market remains an import driven market. There are few companies manufacturing fast moving automotive parts a list of
those major companies has been attached in Annexure-4. Supply of spurious components is the main threat affecting
this sector.
A detailed analysis of UAE Auto sector has been given separately in subsequent chapters.
20

GCC Automotive Sector
Trade -Highlights
√GCC- Highlights of foreign trade in Automotive sector
Components Import to GCC
1 Import of Vehicles
2 Import of Tyres
3 Import of mounted
brake components
4 Import of leaf and
helical springs
5 Import of filter-air, oil,
fuel types
6 Import of glass
products
7 Import of accessories
such as car radios and
car air conditioners
8 Import of lead acid
batteries
9 Import of mufflers and
exhausts
10 Import of Transmission
components (gear box
and drive axles)
√GOIC report on Automotive sector
In terms of USD, the value of net import of vehicles have grown from USD 10.7
billion in 2003 to USD 24.1 billion in 2007. This corresponds to a CAGR of 22%.
The value of import of new tyres has gone up from USD 817 million in 2003 to
USD 1.3 billion in 2007 (CAGR 12%). In terms of weight of new tyres imported,
the net import rose from 340,000 tons in 2003 to 433,000 tons in 2007. The CAGR
in terms of weight is approximately 6%.
Import of mounted brake components rose from1,121 ton (USD 12.0 million) in
2003 to 11,558 ton (USD 81.0 million) in 2007 (CAGR 79%).
Import of leaf springs rose from 7,300 tons in 2003 to 13,300 tons 2007 (CAGR
16%).Import of helical springs rose from 2,200 tons in 2003 to 3,500 tons 2007
(CAGR 12%).
Import of oil and fuel filters rose from 8,960 tons (USD 51million) in 2003 to
13,460 ton (USD 102 million) in 2007 (CAGR 11%). Import of air filters rose from
3,226 ton (USD 37million) in 2003 to 8,930 ton (USD 103 million) in 2007(CAGR
29%).
Import of toughened safety glass (tempered) rose from 870 tons (USD 8.3 million)
in 2003 to 3600 ton ( USD 30.0 million) in 2007(CAGR 43%). Import of laminated
glass rose from 1,900 tons (USD 10.4 million) in 2003 to 5,240 ton (USD 35.8
million) in 2007(CAGR 30%).
Import of car air conditioners rose from USD 5.6 million in 2003 to USD 7.6
million in 2007(CAGR 8%). Import of car radios rose from USD 22 million in
2003 to USD 24.5 million in 2007(CAGR 2%).
Import of lead acid batteries has gone up from USD 65.7 million in 2003 to USD
97.4 million in 2007.This corresponds to an increase of 10%.
Import of muffler and exhausts rose from USD 9.5 million in 2003 to USD 18.5
million 2007(CAGR 18%).
Import of gear box has gone up from 3,440 ton (USD 29 million) in 2003 to 4,480
ton USD 55 million in 2007 (CAGR 7%). mport of drive axle components has gone
up from 3600 tons (USD 20 million to 15,370 ton (USD 84 million) 2007 (CAGR
45%).
21

UAE Automotive Sector
Auto Industry SWOT
UAE Auto Industry SWOT
Strengths
� The luxury car market is strong and growing on
the back of rising levels of disposable income
� Investment in European auto firms lays the
foundation for future partnerships
Weaknesses
� There is no local production of passenger cars, and
only a small number of commercial vehicles are
assembled locally
� The domestic market is largely dependent on
international car manufacturers for the style and
design of autos, and its profitability is dictated by
their demands
Opportunities
� As a result of climatic conditions and a rugged
terrain, there is a vibrant and growing market for
accessories and spare parts
� Trade liberalization between the GCC states of
Saudi Arabia, UAE, Kuwait, Oman, Qatar, and
Bahrain and the EU will open regional markets to
more European imports
� Plans for a car assembly plant could help spawn a
local automotive manufacturing industry
� Car leasing is becoming more attractive with
residents preferring to hire a car rather than take out
loans
Threats
� The rising cost of living is putting pressure on
sales and could lead to a decline in the market share
of luxury brands, which have led growth in recent
years
UAE- Competitive edge
The competitive edge of the UAE lies in the following
aspects:
� Resilient economies
� High per capita GDP
� High standard of living
� Reasonably low inflation
� 100% tax exemptions with no personal, corporate,
value added or withholding tax
� 100% ownership in free zones
� 100% repatriation of profits
� No restriction on hiring of expatriate workers
� Stable Government
� Excellent infrastructure such as roads, sea ports,
power and telecommunication Geographical
proximity to MENA, Europe and Asian markets
� Low cost of operation (in RAK) compared to
other (Emirates) and GCC countries
� Governmental encouragement
One of the strategies of UAE has been to promote
industrialization away from oil and gas based
industries in order to ensure a stable broad based
economy for a balanced growth in the medium to
long term.
Automotive industry is an ideal investment
scenario. Besides saving expensive imports, it
tends to drive all-round development by investing
in R&D, developing ancillary industries and
generating employment opportunity for the locals.
UAE has taken a number of steps in broadening the
industrial base away from oil and gas.
22

UAE Automotive Sector
Economic & Business Environment SWOT
UAE- Economic SWOT
Strengths
� The UAE is a member of the Gulf Co-operation
Council, which being a common market can
access the GCC market with common favourable
terms.
� The UAE has one of the most liberal trade regimes
in the Gulf, and attracts strong capital flows from
across the region
� In common with most Gulf states, there are a high
number of expatriate workers at all levels of the
economy, making up for the otherwise small
workforce
� The UAE is progressively diversifying its economy,
minimizing vulnerability to oil price movements
Weaknesses
� The UAE's currency is pegged to the dollar, giving it
minimal control over monetary policy and reducing
its ability to tackle inflationary pressure
Opportunities
� Oil prices are expected to stay high (by historical
standards)
� Economic diversification into gas, tourism, financial
services and high-tech industry offers some
protection against volatile oil prices
� The construction, tourism and financial sectors are
growing rapidly, driven by domestic and foreign
investment
Threats
� Some bottlenecks have been forming in the
construction sector and there is a chance of delays
in several high-profile construction projects
UAE Business Environment SWOT
Strengths
� The UAE is a member of the Gulf Co-operation
Council, a six member common market, and has
been a member of the WTO since 1996
� The state has invested large amounts in
infrastructure, and will continue to do so over the
next 10 years
� The UAE's diversified economy reduces risks
from volatile oil prices
Weaknesses
� Due to the state's federal nature, regulations can
vary considerably across the emirates
� The regional economy is oil-dependent. This has
historically been very cyclical, which increases
risks for long-term projects
Opportunities
� Large number of free trade zones offering tax
holidays and full foreign ownership
� Comparatively relaxed rules on expatriate
employment
� The UAE's social stability and relative prosperity
means that there is far less concern for security
than in some other Gulf states
Threats
� Oil prices have massively increased liquidity in
the region. This has resulted in strong financial
inflows,
23

UAE Automotive Sector
Trade
Automotive parts, accessories and components are a thriving business in the region, and UAE is the undisputed leader
in the region for the auto parts trade and re-export activities.
Around 29% percent of imported auto goods (spare parts, accessories & equipment) were re-exported to neighbouring
Middle East countries, Africa and the CIS. Iran, Saudi Arabia, Kuwait and Oman are amongst the most important trade
partners. Eastern African states such as Kenya and Sudan have strong trade relations with UAE.
The latest official figures indicate that a total number of 5 to 6ml vehicles are on the road in the GCC countries. Of those,
1.4ml vehicles are registered in the UAE with the figure growing at an annual rate of about 10 percent. The vehicles on
the road in the Arabian Gulf are mainly Japanese (66 percent), followed by European with 23 percent, USA with 6.5
percent and 4.5 percent from other countries.
Trade in Motor Vehicles & Auto Components
In 2008, total trade in this sector accounted for $16.9 billion of which 77% were imports, 23% were re-exports. Locally
manufactured vehicles, spare parts and accessories are sparse. As regards the 2008 distribution of total trade within this
sector by activity, motor vehicles accounted for 68%, followed by auto component 24% and tyre was 8% respectively.
Trade in Motor Vehicles and Components in 2008 in million USD
Items Imports Re-exports Total
Motor Vehicles 9,187 2,287 11,474
Automobile components 2,831 1,146 3,977
Automobile Tyre & Tubes 922 473 1395
Total 12,940 3,906 16,846
Reexports
23%
Trade Pie
Fig-6 Total trade distribution Fig-7 Trade within the Automotive sector
Trade in Motor Vehicles
Imports
77%
Auto
compone
nts
24%
Tyre &
Tubes
8%
Trade within the sector
Motor
Vehicles
68%
This activity includes the trade of tractors, motor vehicles for transport of goods and people, cars, special purpose
vehicles. UAE automotive import market is given in Table below. As can be seen from this table, UAE market
constitutes 22-28% of the GCC total during 2003-2007 and increased to 30% in 2008.
24

Table : Automotive import market of UAE (In million USD)
Category 2003 2004 2005 2006 2007 2008
Vans and Buses 121 113 134 244 387.35 766.19
Cars 1,987.00 2,451.00 3,183.00 3,923.00 6,017.88 7,307.52
Trucks 265 177 142 371 956.52 1113.13
UAE- Total 2,373.00 2,741.00 3,459.00 4,538.00 7,361.75 9,186.84
GCC Total 10,748.00 11,646.00 14,386.00 17,730.00 24,141.00 N/A
As % of GCC total 22% 24% 24% 26% 30%
in million USD
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
Fig -8 Import of vehicles during 2004- 2008
The passenger car segment in UAE accounted for about 82 % of the total UAE market in 2007 while trucks and buses
together accounted for the remaining 18%.
Trade in 2008- Cars, Bus & Transport
Vehicle
Reexports
20%
Automotive import market of UAE
2003 2004 2005 2006 2007 2008
Imports
80%
Vans and Buses
Fig -9 Percent of Imports & Re-exports in 2008 Fig-10- Share of car, buses & trucks trade in 2008
Cars
Trucks
UAE trade-2008-Share of car, Trucks &
Buses
Trucks
and
Buses
20%
Car
80%
25

Trade in Automobile Components
It is important to note that trade of spare parts, and accessories are related to the trade of motor vehicles. During the period
2007 to 2008, imports within this activity increased annually by 17 per cent, while re-exports grew by 14 per cent,
Import of Components (in million AED) Source- Dubai port & customs, Dubai World
HS Code HS Code Description 2008 2007 2006
87081000 Bumpers & parts 251.12 142.68 78.55
87082100 Safety seat belts 8.20 5.61 2.58
87082910 Luggage carriers 11.84 21.05 6.38
87083000 Brakes and servo-brakes 195.96 1.25 0.00
87083100 Mounted brake linings 3.16 41.62 42.87
87083900 Brakes & servo-brakes & parts-II 51.55 404.35 161.27
87084000 Gear boxes 71.61 56.34 40.26
87085000 Drive-axles with differential, 31.37 48.05 32.06
87087000 Road wheels & parts & accessories 283.27 220.27 196.58
87088000 Suspension shock-absorbers 200.00 304.48 242.86
87089100 Radiators 65.20 51.66 40.23
87089200 Silencers & exhaust pipes 27.32 12.18 12.26
87089300 Clutches & parts 441.09 502.78 228.04
87089400 Steering wheels, columns & boxes 182.83 181.53 97.83
87089500 Safety airbags 6.55 0.05 0.00
87089900 Parts & accessories of vehicle body 8,558.91 6,855.48 5,391.18
Total in million AED 10,389.97 8,867.91 6,591.61
Total in million USD 2831.05 2416.35 1796.10
Re-exports of Components (in million AED) Source- Dubai port & customs, Dubai World
HS Code HS Code Description 2008 2007 2006
87081000 Bumpers & parts 58.96 48.96 26.28
87082100 Safety seat belts 30.30 31.68 17.85
87082910 Luggage carriers 1.08 7.99 1.00
87083000 Brakes and servo-brakes 13.13 0.09 0.00
87083100 Mounted brake linings 0.20 5.08 4.75
87083900 Brakes & servo-brakes & parts-II 9.69 74.83 31.45
87084000 Gear boxes 13.35 25.48 15.89
87085000 Drive-axles with differential, 5.14 12.54 6.75
87087000 Road wheels & parts & accessories 91.14 100.38 91.03
87088000 Suspension shock-absorbers 97.48 84.89 70.12
87089100 Radiators 17.22 68.65 46.66
87089200 Silencers & exhaust pipes 4.03 4.32 1.52
87089300 Clutches & parts 108.73 128.75 78.92
87089400 Steering wheels, columns & boxes 88.99 26.28 6.10
87089500 Safety airbags 0.62 0.01 0.00
87089900 Parts & accessories of vehicle body 3,665.59 3,072.04 2,088.00
Total in million AED 4,206.72 3,693.54 2,487.77
Total in million USD 1146.24 1006.41 677.87
26

in million AED
12000
10000
8000
6000
4000
2000
Fig-11 Trade of Spare Parts and Accessories during 2006-2008
Imports- Major Trading Partners
Parts like bumpers, brakes, Road wheels & parts & accessories, Suspension shock-absorbers, Clutches & parts, Steering
wheels, columns & boxes and Parts & accessories of vehicle body are the major items traded during 2008. In value terms
constitutes 97% of the total amount of imports in 2008. The major sources of these items and the amount imported in
value terms have been next page. It is internationally known that Japanese, German, American motor vehicle
manufacturers dominate the world market. As a result, a similar representation can be seen with respect to the top import
partners of the UAE automotive market.
Re-exports- Major Trading Partners
0
6592
2488
On the other hand, the top destinations of motor vehicle parts and components are Iran, Russia, Iraq, Libya and
Tanzania respectively. The Table as given below gives the destination countries in different regions. Re-exports to
Middle Eat constitute 50% of the total re-exports.
Regions Re-exports-2008
8868
Africa 517,483,149
Middle East 2,109,020,953
Cis-Russia 396,182,709
Asia 357,914,786
Europe 283,301,009
Others 542,821,892
Total 4,206,724,498
Auto Component Imports & Re-exports
3694
This can be attributed to the fact that UAE‟s political stability and strategic location within the Middle East has helped
it establish and emerge as regional headquarter for many international market players. In view of above, the buoyancy
of the automotive trade market is a result of the increasing domestic and neighboring countries consumption of
vehicles and related goods and services. However, to further boost this market, avenues surrounding the
encouragement of local manufacturing and assembling of motor vehicles needs to be stimulated in order to gain an
edge over the competitors and market players from other neighbouring countries.
10390
2006 2007 2008
Asia
9%
Cis-Russia
9%
4207
Imports
Re-exports
MAJOR DESTINATIONS OF RE-EXPORTS IN
2008
Europe
7%
Others
13%
Middle
East
50%
Africa
12%
27

Major Re-export Destinations
Region Country Name
Africa Nigeria, Kenya, Tanzania, Algeria, Sudan, Angola, Congo Republic, Ghana, Uganda, Mozambique,
Ethiopia
Asia Singapore, Pakistan, Afghanistan, Hong Kong
Middle East Iran, Iraq, KSA, Libya, Egypt, Kuwait, Syria, Yemen, Bahrain, Oman, Lebanon, Qatar
Cis-Russia Kazakhstan, Ukraine, Azerbaijan, Russia
Europe Turkey, Germany, Finland, Italy, UK (United Kingdom)
Major Sources of Imports
The major source of imports of the following automobile components, having strong imports and re-exports
and volume of trade seen over the years in UAE, have been given below. Each of these components have
been discussed separately under the chapter identified projects.
Parts & accessories for bodies (in 2008)
Major Sources AED
GERMANY 2,250,738,758
JAPAN 2,151,491,599
SOUTH KOREA 982,790,828
USA 857,427,987
CHINA 539,775,411
OTHERS 1,776,684,113
Total in AED 8,558,908,696
Clutches & parts thereof (in 2008)
Major Sources AED
JAPAN 182,019,154
GERMANY 125,161,324
SOUTH KOREA 41,254,048
CHINA 23,719,789
OTHERS 68,940,566
Total 441,094,881
Brakes and servo-brakes (in 2008)
Major Sources AED
CHINA 42,895,708
GERMANY 42,341,874
JAPAN 26,571,417
SOUTH KOREA 20,859,796
USA 16,322,222
OTHERS 46,970,918
Total 195,961,935
Bumpers & parts(in 2008)
Major Sources AED
JAPAN 129,518,989
GERMANY 40,438,403
USA 16,715,145
CHINA 12,673,187
OTHERS 51,775,410
Total 251,121,134
Suspension shock-absorbers (in 2008)
Major Sources AED
JAPAN 82,715,745
GERMANY 40,575,703
CHINA 30,243,377
OTHERS 46,461,975
Total 199,996,800
Steering wheels, columns & boxes
Major Sources AED
JAPAN 103,767,143
BRAZIL 54,649,599
OTHERS 24,411,426
Total 182,828,168
Road wheels & parts & accessories (in 2008)
Major Sources AED
CHINA 187303058
GERMANY 24385475
USA 14423613
OTHERS 57157734
Total 283,269,880
28

UAE Tyre market
The Middle East is a very important market as it exceeds the growth potential of other areas, such as Europe and
America. The buoyancy of this region is due to its increasing population and continued economic growth. According to
Goodyear, in 2008 saw the industry sell some 25 million tyres into the Middle East. Some countries in the region, which
covers the whole of the Middle East, North and West Africa, are registering annual growth of up to 5%. Another
contributory growth factor is the fact that local product is virtually non-existent and re-treading is still in its infancy in
most countries within the Region. The Table below gives the UAE imports on all types of Automobiles Tyres and Tubes
in 2008
UAE Trade on new All Types of Automobile Tyres & Tubes in 2008
Imports Re-exports
NEW PNEUMATIC TYRES Value (AED) Units Value (AED) Units
cars 1853365027 9636233 1324694809 4898306
buses & lorries. 1190378134 2198087 284566493 565151
argriculture or forestry vehicles 22,579,890 100,365 71,065 405
Industrial handling vehicles < 61 cm 47,346,029 50,155 2,678,296 13,644
of a kind used on construction or
industrial handling vehicles>61 cm 9,167,141 4,520 1,179,262 225
of a kind used on agricultural or forestry
vehicles & machines. 969519 5193 247606 603
having a herring-bone" or similar tread,
n.e.s. 3,170,660 11,167 1,147,181 3,444
of a kind used on agricultural or forestry
vehicles & machines 54,418,049 21,847 8,757,438 146,936
New pneumatic tyres of rubber, n.e.s. 95787325 448235 58258875 159414
SUB-TOTAL 3,277,181,774 12,475,802 1,681,601,025 5,788,128
RETREATED TYRES
of a kind used on motor cars
(including station wagons & racing
cars) 633119 2701 2711137 19571
of a kind used on buses or lorries. 3726889 20852 645368 250
SUB-TOTAL 4,360,008 23,553 3,356,505 19,821
USED PNEUMATIC TYRES
Used pneumatic tyres, of rubber 199842 3702 12043841 268279
TYRE TREADS AND TYRE FLAPS
Solid or cushion tyres, tyre treads
& tyre flaps, of rubber 11,952,010 135,866 2,098,940 1,902
INNER TUBES
For motor cars buses or lorries. 88229683 531643 40286988 206381
TOTAL IN AED 3,381,923,317 13,170,566 1,739,387,299 6,284,511
TOTAL in million USD 921.50
Source- Dubai port & customs, Dubai World
473.95
29

The imports of all types of tyres and tyre products of UAE in 2008 were valued at Dhs 3.4bl ($0.92bl/ 13 million in
numbers),(compared to Dh2.73bl($0.74bl/ 11.9 million in numbers) in 2007 with an increase of 24% out of which about
97% constitute new pneumatic tyres for car, bus and lorries. The growth trend is expected to rise further in 2009. Out of
total import of new pneumatic tyres, car tyres constitute 56% followed by bus & lorry tyres of 36% and rest being tyres
for other end uses. Car tyres worth Dhs 1.85bl and Commercial tyres worth Dhs 1.19bl for buses and lorries were
imported respectively to UAE in 2008, mainly from Japan, China, and India. Out of which UAE consumed almost 66%,
re-exporting 34% mainly to Iran, Iraq, and African countries.
UAE Trade on Pneumatic Automobile Tyres in 2008
Imports Re-exports
Value (AED) Units Value (AED) Units
New pneumatic tyres 3,277,181,774 12,475,802 1,681,601,025 5,788,128
Retreated Tyres 4,360,008 23,553 3,356,505 19,821
Used pneumatic tyres 199,842 3,702 12,043,841 268,279
Tyre treads & tyre flaps 11,952,010 135,866 2,098,940 1,902
Inner Tubes 88,229,683 531,643 40,286,988 206,381
Total in AED 3,381,923,317 13,170,566 1,739,387,299 6,284,511
In Million USD 921.50
The commercial vehicle market is an essential industry in the
UAE, increase of 35% is expected from 2008 to 2012 according
to industry sources. UAE (particularly Dubai) is a transportoriented
country with one car for 1.84 residents, and an average
vehicle occupancy rate of 1.7, it has the highest rate of car
ownership than any other city in the world. The absence of
automotive manufacturing industries results in most of the
vehicles and automotive tyres and parts being imported for
domestic use and re-export to other countries.
Break up of Import of Pneumatic Auto Tyres in 2008
Imports Percent
New pneumatic tyres 3,277,181,774 96.90%
Retreated tyres 4,360,008 0.13%
Used pneumatic tyres 199,842 0.01%
tyre treads & tyre flaps 11,952,010 0.35%
Inner Tubes 88,229,683 2.61%
The positive trend for tyre industry is not just limited to the
UAE, but the entire Middle East (with about 4 to 5ml
passenger cars and booming fleet of transport vehicles) is
characterized by a diverse structure of economies, climates
and transport conditions. The lack of railway connections
on the Arabian Peninsula, forces most of the overlandtransport
on the road, making it a high-volume sales
territory for tyre manufacturers. Emerging markets in
Africa are sourcing their products from the region, mainly
from UAE. In general, there exists a huge opportunity to
enter UAE market least affected by the current credit
crunch.
Re-
Exports
34%
473.95
UAE Trade on new Pnematic
AutomobileTyres
Imports
66%
Break up of Import of Pneumatic
Tyres in 2008
New
pneumat
ic tyres
97%
30

UAE Automotive Sector
Manufacturing
Despite the size and potential of the UAE market, the emirates still have no significant passenger car
assembly operations, although this is set to change in coming years. The presence of a car assembly line in UAE would open
the way for a local tie-up with a foreign car manufacturer seeking to tap into growing demand for low-cost cars in Africa,
the Middle East, and Asia.
The UAE has also been making strategic investments in European auto firms, which could pave the way for building up a
domestic industry. Leading the investment has been Abu Dhabi‟s Aabar Investment, an Abu Dhabi investment fund,
bought a 9.1% stake in German autos company Daimler in March 2009. It agreed to invest EUR1.95bn in the automaker,
making it the largest shareholder in the group. In addition to producing luxury Mercedes-Benz vehicles, Daimler
manufacturers Smart cars, and the two companies intend to team up to develop electric vehicles (EVs). Under the
agreement, an industry training centre will also be established in Abu Dhabi. Such investments would eventually encourage
technology transfer.
SCANIA
Swedish automaker Scania‟s JAFZA plant opened recently. With this new factory, the
automaker will become the first vehicle assembler in the UAE. It will provide completed
vehicles to all states in the GCC.
The plant is modest with a capacity for 1,400 vehicles a year, initially for construction haulage, such as tipper and concrete
trucks, but is to be adapted for bus chassis assembly in the future. It will assemble vehicles from semi knocked down kits
(SKDs), adding locally-sourced components.
Ashok Leyland
Ashok Leyland of India is one of the biggest names in industry set up their assembly
unit in Ras Al Khaimah, the northern most emirate. The company's integrated assembly
plant is to build 1000 buses per year in RAK and has started its operations in the year
2008.This is the first fully integrated Bus/truck manufacturing in the whole of GCC.
In 2008, Hafilat Industries of the UAE won an AED30mn (US$8.17mn) contract to supply locally assembled buses for
export. A new purpose-built plant in the Industrial City of Abu Dhabi has been inaugurated for the assembly of the buses
under licence from Australia‟s Volgren.
VOLGREN
The buses will be built on the chassis of Euro IV-compliant Mercedes-Benz models,
imported from Spain, but will take the form of Volgren‟s New Generation City Bus, which
is made from aluminium in order to be lighter and stronger.
Production of the buses began in May‟09, and the order should take four months to fill. Hafilat will assemble double-decker,
compressed natural gas (CNG), hybrid, and trolley buses for public transport. The company occupies a niche in providing in
European-standard buses, through its use of Mercedes-Benz chassis and the Swiss technology used in its assembly
processes.
Praktiko
In 2007, Dubai-based engine producer Praktiko GT announced plans to begin car
production in the UAE. From a new production plant in Dubai Investment Park, the
company plans to produce the Tiger Kub budget model for export to Africa and India,
where small cars under INR100,000 (US$2,500) represent the growth segment.
Investor interest has also focused on bus assembly. Founded in 2003, Trans Continental Industries is the UAE‟s first facility
for manufacturing buses and other additional components and began operations in 2006 with initial capital of AED15.5mn
(US$4.2mn). The company‟s assembly operations are based in the Mussaffah Industrial Complex in Abu Dhabi. It is jointly
owned by Advanced Industries of Arabia (51%), through its UAE partner Bin Jabr Group, and the UK‟s Vectra Azad
(49%). The facility, the first of its kind in the UAE, is planning to expand its manufacturing base, targeting production of
mini buses, school buses, public transport buses, luxury coaches and built-to-order buses. At present, it
manufactures bus bodies and components, including the base structure for chassis, doors and seats.
31

Also in March‟09, Abu Dhabi state-owned group International Petroleum Investment Company (IPIC) completed its
purchase of a majority stake in MAN Ferrostaal, a unit of German industrial group MAN. The EUR490mn deal will
provide greater market access to countries where Ferrostaal is active.
According to figures published by the Dubai Chamber of Commerce and Industry (DCCI), companies operating in Dubai‟s
automotive sector, including retail, maintenance, repair, parts, and accessories, have an average annual turnover of
AED4.5mn (US$1.23mn) and employ an average of seven people. According to DCCI data, these sub-sectors are
dominated by small-sized companies, those with fewer than 10 employees, and 84% of motor traders fall into this category.
However, 61% of total turnover in the motor trade sector is generated by medium-sized companies with workforces of 10-
99 employees.
In 2007, the DCCI‟s database showed that around 365 companies were actively involved in the trading of motor vehicles
and related items, 2,018 companies were involved in trading of motor vehicle parts and accessories, 204 companies were
involved in the maintenance and repair of motor vehicles, and 73 companies were involved in other activities (trading,
maintenance, and repair of motorcycles and related parts and accessories). These companies collectively employ about
14,400 people. Together they have invested paid-up capital of AED3.1bn and have an annual turnover of AED8.6bn. The
number of traders in spare parts and maintenance represents about 83.5% of the automotive market, with vehicle trade
accounting for 13.7%. Vehicle trading companies employ over 4,100 people, have a paid-up capital of AED1.3bn, and an
annual turnover of AED5.5bn.
UAE component manufacturing sector
UAE has a sizable presence of automotive component manufactures. There are approximately 17 major manufacturers of
auto components such as radiators, filters, exhaust, glass, springs etc. (refer Annexure -IV).
32

UAE Automotive Sector
Low Cost & Luxury Car Market
Low-Cost Cars
Although the UAE is regarded as a major destination for premium cars, the budget car sector is also growing, as many more
buyers are becoming cost conscious amid the global economic downturn. Many dealers are trying to appeal to price-savvy
consumers, offering finance plans that let them spread their payments out over longer periods. According to Emirates
Business, the Tiida from Nissan has gained popularity in Dubai since it became available in 2005, and more attractive
repayment terms are making it possible for families to incorporate the model into their budget.
The increasing popularity of budget cars also suggests that the effects of congestion are taking their toll and consumers
are turning to smaller cars. The number of cars on the road in the UAE and Dubai in particular, has prompted a number
of government measures aimed at reducing congestion, including the Salik road toll and the possible introduction of an
autos-rickshaw service. However, the road toll has, in some cases, backfired, with reports claiming that people are less
likely to be forced out of their cars and into taxis if the toll will push up fares. This creates a market for a smaller, more
cost-efficient way of maintaining independent transport.
Luxury Cars
Sales of luxury vehicles are often used as a barometer of affluence in the MEA. The proportion of prime and luxury car sales
is directly correlated with per capita income. BMI estimates that in the UAE, where GDP per capita is approximately
US$40,000, up to a quarter of car sales fall into this segment.
BMW, Mercedes-Benz, and Audi are traditionally regarded as premium brand car manufacturers, but from the early 1990s
Japanese luxury cars the Toyota Lexus and Nissan Infiniti have gained a strong foothold in the Middle East‟s luxury market.
Non-luxury brands such as Saab have also moved into the segment with premium models, while sports car manufacturers
such as Aston Martin, Porsche, and Maserati have brought out luxury models. In the ultra-luxury niche, Rolls-Royce,
Maybach, and Bentley Cars dominate.
High-income economies such as the UAE tend to have strong demand across the sub-segments of the luxury market.
Despite robust growth and the potential for further rises in sales, for most luxury car brands the Middle East represents just
1-2% of global sales. However, the Gulf is a significant region for ultra-luxury carmakers, buoyed by the high net worth of
many Arab residents and their tendency for opulence and extravagance. In recent years, luxury brands have seen doubledigit
growth across the Middle East, with Mercedes-Benz leading the segment. There are demographic variations between
Gulf countries, with expatriates making up 50% of luxury car customers in the UAE, the largest luxury car market in the
Gulf, compared to just 10% elsewhere in the region.
The Gulf countries are, by far, the most competitive in the Middle East in terms of luxury car sales. While
Mercedes-Benz, Lexus, and BMW make up just below 60% of luxury car sales, other groups are seeking
to challenge their dominance, with US carmakers at a competitive advantage due to the depreciation of
the US dollar against the euro. The most competitive market is the UAE, which has the largest luxury car
market in the MEA. BMW‟s exclusive distributor for Abu Dhabi and Al Ain, Abu Dhabi Motors, reported record sales for
the BMW and Mini brands in 2008. New product launches and the availability of servicing and repair packages have helped
the brand‟s growth. Strategic links with the customer are also being strengthened through the expansion of Abu Dhabi
Motors‟ showroom network to include a new showroom in Umm Al Nar, which will be the group‟s largest in the Middle
East. The AED220mn facility will house the BMW, Mini, and Rolls-Royce brands, as well as after-sales servicing bays.
Due for completion in 2010, the centre will take the total number of BMW facilities in Abu Dhabi and Al Ain to 10,
comprising three showrooms, two workshops, two body shops, two car warehouses and a Pre-Delivery Inspection (PDI)
centre.
33

UAE is one of the most important regional and global markets for Rolls-Royce. In 2008, the Gulf region contributed 18% to
car sales, with 216 units sold out of over 1,200 units sold globally. Abu Dhabi and Dubai accounted for sales of 100 units.
UAE is the regional leader and number two globally in terms of market for Rolls Royce. According to TradeArabia News
Service, German autos manufacturer Porsche‟s largest dealership, Porsche Centre Dubai (PCD), of the Al Nabooda
Automobiles group, registered its best ever December sales. In December 2008, sales were up by 50% y-o-y compared with
sales in December 2007, resulting in a 28% y-o-y increase.
Going forward, the UAE is likely to remain the largest luxury car market in the MEA. While luxury car
sales are broadly correlated with per capita income, BMI‟s forecasts suggest some variance between
markets largely due to income distribution. In the Gulf states, the UAE will retain its dominant position as
the largest luxury car market in the region, growing by around 70% over the forecast period (up to end-
2013).
Brand competition is set to heat up throughout the region, particularly in the entry-level segment, where
non-luxury brands are introducing new top-of-the-line models falling into this category. Exchange rates
will also play an important role in determining demand in this segment. These factors will lead to erosion
in the market share of European manufacturers such as Mercedes and BMW, with US carmakers as, to a
lesser extent, Japanese brands likely to reap the rewards of rising demand.
34

UAE Automotive Sector
Used Car Market
The UAE has positioned itself as a regional exporter of used cars in the Middle East, but the economic downturn has
triggered unprecedented volatility in the second-hand market. Exports have been reeling due to a regulation implemented in
Saudi Arabia in June‟09 that bans the import of cars older than five years old. Lack of demand from Africa has also weighed
on used car sales, according to a report in Emirates Business. One used car dealer told the online newsletter that his
business has fallen by nearly 95%, and another said that prices had dived 40%.
Emirates Business said while used car dealers are suffering, used car auctions are booming. Car auctions often times are able
to offer even lower prices than dealers on second-hand cars, and it isn‟t just consumers who are flocking to the auctions. Banks
which have repossessed cars from owners who have defaulted on loans, as well as rental firms and leasing companies, are also
turning to auction companies to unload their vehicles.
Dubai‟s Used Car Complex hosts nearly 200 showrooms, offering a single place for customers to purchase vehicles. In April
2008, the Dubai Municipality began construction of an AED65mn multi- storey building for storing cars at the complex in Ras
Al Khor. The project is due to be completed in 2009. The storage facility is intended to overcome the shortage of space
currently available by adding 1,500 extra parking spaces for showroom owners in the complex. This is testament to the growth
in used vehicle sales in the UAE.
Elsewhere, in the second-hand premium segment, Mercedes distributor Gargash Enterprises opened a
new showroom for used cars in June 2008. Based in Dubai‟s new autos Market complex, the centre has
the capacity to show 60 models, with plans to further expand the used car division. Gargash announced growth of 13% y-o-y
for its second-hand division in Q1-08, on the back of rising demand in the UAE for second-hand premium vehicles. It
opened its first used showroom in 2006. The centre offers approved used cars from the Mercedes-Benz range, which have
been tested and awarded a two-year warranty. The operator claimed at the time that the new showroom made its Approved
Used Car division the largest in the Middle East, with an inventory of around 500 cars and average annual sales growth of
38%.
Other UAE dealerships are following Gargash‟s example. In June 2008, Western Motors, sole distributor of Jeep in Abu
Dhabi and Al Ain and a member of Alfahim Group, expanded its facilities with the opening of a pre-owned Jeep Car
showroom in Umm Al Nar in Abu Dhabi. Western Motors is projecting used car sales of 200 cars in 2008 with strong growth in
the years ahead.
With new car buyers in GCC countries changing models regularly, the region has a large used vehicle
sector. Older used vehicles are often exported to poorer states in the region, such as Yemen and Iraq. In the GCC itself, there is
a growing demand for quality used vehicles with stringent technical and quality checks before sale. Sales growth shows that
there is still demand for used premium vehicles, despite the influx of small and budget models, marked especially by the arrival
of Chinese brands.
The trend towards nearly-new cars in the UAE is likely to be boosted as a result of new regulations which
will lead to a ban on the registration of all light vehicles aged 20 years and over. This was due to be
implemented from January 2009, but was delayed due to concerns over the impact on people on low incomes at a time of
economic downturn. Currently, Abu Dhabi has 5,600 light vehicles and Dubai and Northern Emirates have 61,400 light
vehicles that are set to be banned under the decree, which is intended to alleviate pollution. From January 2010, vehicles aged
over 15 years were due to be banned, affecting 100,000 vehicles on the UAE‟s roads, although this deadline is likely to be put
back. The decision also involved a ban on the transfer of ownership of light vehicles aged 10 years or above. The government‟s
move will lead to a radical shift in the Gulf automotive market. Old vehicles likely to be exported to other
markets in the GCC over the next few months, helping to drive down used vehicle prices in these
countries. Meanwhile, newer used vehicles, particularly those aged under five years, are likely to rise in
value as they become more sought after.
35

UAE Automotive Sector
After- sales Business
Despite the lack of a significant vehicle production industry in the UAE, the after-sales business is a
healthy one, with average annual growth of 20%, according to the Autos Parts Merchant Group (APMG), which
represents automotive and spare parts dealers in the UAE. The new car import market is also one of the fastest growing
in the region, as well as a re-export hub for the rest of the Middle East, providing increasing demand for after-sales
services. In the UAE, Japanese brands have the biggest slice of the market, accounting for about two-thirds of all
passenger vehicles, according to an al-Bawaba report. European brands follow with about a 15% share. Korean and US
car brands account for nearly 8% and 4% of the market, respectively.
There are reportedly 4mn passenger vehicles in the Gulf region, with about 1.3mn of them in the UAE. This large number of
vehicles offers much opportunity for the after-sales industry, which is valued at around US$5bn. With an expanding service
infrastructure in place, it now remains to be seen whether vehicle manufacturers will take the plunge in establishing
operations in the Emirates. The possibility has been raised following Abu Dhabi‟s EUR1.95bn investment in Daimler.
In 2007, the UAE-based Sharaf Group signed an agreement to distribute automotive parts and accessories for Japan‟s
Yellow Hat. Under the Master Franchise Agreement, Sharaf will set up at least five stores throughout the UAE over the next
five years, beginning with a store in Dubai in April 2007. Outlets will also be integrated into fuel stations.
Around 50% of imported spare parts and accessories are re-exported to other countries in the Middle East, Africa (where
new destinations such as Libya and Sudan are increasing their share of the UAE re-export trade), and the countries of the
former Soviet Union. The automotive accessories re-export trade is growing at around 15% per year. However, counterfeit
products account for a major slice of the market, estimated at between 30-35% when compared with sales of original
replacement products (40-45%) and the after-market segment, which takes the remainder.
36

UAE Automotive Sector
Car Rental Market
The UAE‟s rental sector is becoming more competitive, with firms reducing charges to encourage drivers to rent cars
instead of buying them. Car rental is also a cheaper option to buying a car at a time when car loan rejections are rising in the
UAE and expatriates in particular tend to hire vehicles rather than take on more debt. More competitors are also entering the
rental market. According to local media, some used car firms are launching their own rental businesses and giving customers
the option to lease a vehicle.
Rental companies may also be looking to take advantage of the increasing tourist inflow in the UAE. Tourism is a key
pillar in the growth strategies of the individual emirates. Abu Dhabi, for example, plans to increase the number of tourist
visitors from 1.8mn in 2007 to 3.3mn in 2013.
Car rental company Budget Rent A Car has a total of 16 offices in the UAE, including offices at the Abu Dhabi, Dubai
and Sharjah international airports. In Q1-09, DTG, which includes Thrifty Car Rental and Dollar Rent a Car, revealed its
plan to open three new outlets in the UAE. The move increases its locations served to 21 and its workforce to 135. Dollar
also expanded its dealership network with new centres at the Abu Dhabi and Sharjah airports, Fujairah and Ras al-Khaimah.
Furthermore, a new call centre was opened to enhance DTG‟s customer service activities. Dollar‟s expansion includes
adding franchisees in Qatar, Kuwait, Oman, Saudi Arabia, Lebanon and Jordan.
Other rental companies are also expanding their fleets. In February, Audi Dubai (Al Nabooda Automobiles) delivered 330
vehicles to the rental company German Rent A Car. The delivered cars will be used by the rental company to service
government and embassies, the Emirates Group, airlines and tourism companies, several five star hotels, a number of
international and local companies as well as individuals.
Other players in the market include Hertz UAE, which is aiming to become the leading provider of specialist luxury and
sports vehicles in the country; global car and truck rental organization National Car Rental, which has established offices
in strategic locations throughout the country, including Dubai International Airport, and has opened an office in Abu Dhabi
office; and Go Rent a Car, Go International‟s licensee in the UAE, which offers short- and medium-term vehicle hire to
corporate accounts and individuals, as well as offering leasing and chauffeur-driven services.
The car rental sector generally purchase cars in bulk.
Automotive Finance
The automotive market in the MEA benefited from a boom in consumer credit over 2005-2007. With a higher proportion of
premium brands than most developed markets, the value of the automotive finance market in the GCC was worth up to
US$30bn. In the UAE, up to 80% of new car sales depend on financing, and consequently the global credit crunch has put
the brakes on growth in autos sales.
While the global credit crisis is likely to lead to a contraction in the UAE autos market this year, manufacturers and dealers
are taking aim at the problem. In addition to offering the opportunity to lease vehicles, they‟re trying to make credit more
widely available for car buyers. Dealers say there are signs that these efforts are paying off. The head of retail loans at
Emirates NBD, the biggest consumer bank in the UAE, told Emirates Business in July‟09 that there have been „signs of
stabilization‟ in demand for loans.
Banks have had to offer more attractive deals in order to entice buyers, according to local media. Emirates Business reported
offers of zero-down and interest rates as low as 4.5%. According to the online newsletter, the UAE auto finance market is
worth Dh8-10 billion annually, or close to two-thirds of the expected value of the total auto market in 2009. Leading
distributor Al-Futtaim announced in March 2009 that it was teaming up with banks to provide autos loans to buyers who
wouldn‟t normally be able to qualify for a loan because they don‟t earn enough, the Middle East North Africa - Financial
Network has reported. In April, HSBC Middle East reportedly halved the minimum salary requirement for consumer and
autos loans to AED10,000. The bank said the move was „in line with current market conditions,‟ Gulf News has reported.
Likewise, Emirates NBD cut its minimum salary requirement for autos loans to AED4,000 from AED6,000, the Englishlanguage
newspaper reported.
37

Rationale for Setting up Project in RAK (UAE)
Competitive Landscape of UAE
� Government Incentives
One of the strategies of UAE has been to promote industrialization away from oil and gas based industries in order to
ensure a stable broad based economy for a balanced growth in the medium to long term. UAE offers a number of
incentives/ benefits to companies/investors to this effect.
Fiscal Benefits; include 100% income and corporate tax exemptions, 100% capital and profit repatriation, Fully
convertible currency, Exemption of equipment and raw material required by industrial units from customs duty.
Regulatory benefits include; 100% ownership in Free Zones, No trade barriers or quotas, Easy licensing procedures
& company formation, Liberal labour laws and no restrictions on hiring expatriate.
Highlights..
■ Government Incentives
■ Sound Macro-economy
■ Excellent infrastructure and logistic support system
■ Strategic location
■ Increasing demand for vehicles and components
■ Base for Raw materials-Aluminium, Plastic and glass for automotive sector
� Sound Macro-economy; High per capita GDP, High standard of living, Relatively low inflation. High
business confidence and an increase in disposable income provide a favorable background for the automotive sector
� Excellent infrastructure and logistic support system; UAE has invested large amounts in
infrastructure, and will continue to do so over the next to come.
� Increasing demand for vehicles and components; In 2008, total trade in this sector accounted for $16.9 billion
in UAE alone of which 77% were imports, 23% were re-exports. Locally manufactured vehicles, spare parts and accessories
are sparse. As regards the 2008 distribution of total trade within this sector by activity, motor vehicles accounted for 68%,
followed by auto component 24% and tyre was 8% respectively
� Strategically located; Easy access to huge markets like Middle East & North Africa( MENA), India, South-East Asia
and CIS countries
� Base for Raw materials- Aluminium, Plastic and float glass; UAE has potential to become a base for
aluminum, plastics, glass based industry due to availability of raw materials locally. This in turn can be developed
into a base for aluminum, plastic etc based auto component industry.
Aluminium
DUBAL (in Dubai, UAE) has evolved into a global aluminium producer and presently has a production capacity of more
than 980,000 metric tonnes of quality hot metal per year. More than 92 per cent of DUBAL's total production is
exported to global markets. Presently exporting to 48 countries, with key markets including the Far East, Europe, the
ASEAN region, the Middle East, the Mediterranean region and North America. DUBAL produces extrusion billets for
wheel forging, as well as for automotive applications. DUBAL also produces high purity aluminium used in the
manufacture of electronic components.
38

Plastics
With the drive to reduce fuel efficiency and to meet new emission regulations gaining importance, the attempt to use more and
more plastics in car is gaining momentum. It is estimated that about 13-15% of the weight of an average-sized family car is
now made out of plastic. This compares to about 6% twenty years ago. As an example, the use of Thermoplastic Elastomer
(TPE) in auto industry has increased from 185,000 tons in 1991 to 280,000 tons in 1995, an increase of by 51%.
Currently the auto components are made from plastics are Dash Boards, Manifolds, Air bags, Bumpers, Clutch activating
system, Interior trims, Window glazing and wind shields. Types of plastics used include Thermoplastic Elastomer,
Polyamide, Polyphthalamide, Polycarbonate, Polypropylene, etc. Abu Dhabi Polymers Company Limited (BOROUGE)
under ADNOC (Abu Dhabi, UAE) and SABIC (Saudi Arab) producing basic plastic raw material and a range of
differentiated products for high-value applications including automotive components. With GCC striving to become a
leader in the field of plastics, this is an opportunity to develop UAE as a plastic based automotive component supply base.
Float Glass
There are two major float glass manufacturers in UAE with total approx. capacity of 0.45 million tonnes/ yr, started
operation during 2007-2008 producing glass for use in automotive and also for construction applications
US firm Guardian, UAE‟s dominant float glass supplier, built the UAE‟s first float glass manufacturing facility
(Guardian Zoujaj International Float Glass Co Llc) with joint venture with The National Company for Glass
Investments (Zoujaj) of Saudi Arabia and Zamil Group also of Saudi Arabia, in the RAKIA Industrial park, Ras Al-
Khaimah in 2007. Guardian RAK produces 700 tons of glass per day for use in automotive and construction
applications, including high-performance coated glass. Emirates Float Glass, a subsidiary of Dubai Investments
PJSC, a 600-tons/day float glass facility has launched commercial operations at its manufacturing facility in Abu
Dhabi. The $200 million plant, located at the Industrial City of Abu Dhabi, has commenced manufacture and supply of
premium float glass products to the architectural and automotive markets for local market and exports.. The plant is
built with technological assistance from US-based PPG Industries, global leaders in glass manufacturing technology.
39

Identified Projects
The present study has investigated automotive sector in GCC with major emphasis in UAE, with a view to
identify potential investment opportunities. In view of the strong imports seen over the years for vehicles and
its components in the GCC, UAE in particular, there is a strong case for the development of automotive
industry in UAE. However, Because of its competitive edge in terms favourable investment environment and
strategic location, UAE has the potential to become a manufacturing hub for whole range of components,
both for OEMs and Replacement/After Market manufacturers and accessories like Light Fittings, HAVC
system, Seats. Tyres, Batteries, Fasteners etc. not only to serve the local market but also exports to
various markets.
However, the emphasis would be to attract Vehicles manufacturers (OEMs), the anchor industry and
the catalyst for the development of the whole automotive sector.
The identified projects based on strong imports and re-exports and volume of trade seen over the years
for vehicles and its components in the GCC/ UAE, have been listed below. However, it requires carrying out
detailed feasibility studies before embarking upon projects of this nature.
� OEM & Vehicle Assembly Units
� Auto Parts Components
� Parts & accessories of vehicle body
� Clutches & parts
� Road wheels & parts & accessories
� Bumpers & parts
� Suspension shock-absorbers
� Brakes and servo-brakes and parts
� Steering wheels, columns & boxes
� Electrical Ignition system
� Automobile Tyres
� Vehicle Battery (accumulators
Please find market/ trade information on the above in subsequent pages.
40

I. Vehicle Assembly Plant
Barring a few truck & bus assembly units there is no major vehicle manufacturer in GCC.
GCC therefore depends entirely on import for its vehicle requirement. Annual import of nearly a
million vehicles is a strong enough case for setting up a vehicle assembly plant in the GCC. As per
import data, the number of vehicle imported into GCC in 2007 is estimated to be
approximately 880,000 units. In 2008 approx. 475,000 vehicles (approx. $9.2bl) were imported in
UAE alone, out of which about 25% were re-exported. Vehicles assembled in GCC can also have
access to MENA markets.
UAE Trade-2007-2008
In ml AED 2008 2007 In no of units 2008 2007
Imports 33,715,713,151 27,017,622,902 Imports 475,567 542,141
Re-exports 8,393,202,038 6,192,020,288 Re-exports 161,041 136,784
In billion AED
40.000
35.000
30.000
25.000
20.000
15.000
10.000
5.000
0
2008 2007
Imports
Re-exports
Type of Vehicle Imports in Y 2008 in UAE
Category Value (AED) Units
Car 26,818,609,248 408,903
Motor Vehicle for
Transport of People 2,811,911,927 16,202
Motor Vehicle for
Transport of Goods 4085,191,976 50,462
Grand Total 33,715,713,151 475,567
Type of Vehicle Re-exported in Y 2008 from UAE
Category Value (AED) Units
Car 6,660,332,310 136,168
Motor Vehicle for
Transport of People 242,806,432 3,645
Motor Vehicle for
Transport of Goods 1,490,063,296 21,228
Grand Total 8,393,202,038 161,041
In millions
0,60
0,50
0,40
0,30
0,20
0,10
0,00
2008 2007
Bus etc
8%
Bus
etc
3%
Transpo
rt
vehicles
12%
Transpo
rt
vehicles
18%
Imports
Re-exports
Imports-2008
Car
80%
Re-exports-2008
Car
79%
41

II. Auto Parts Components
Automotive parts, accessories and components are a thriving business in the region, and UAE is the
undisputed leader in the region for the auto parts trade and re-export activities. The total import in the Y2008
was $2.83bl an increase of @17% over the Y2007 while re-exports grew by 14 per cent. The major source
of imports being Japan, Germany, USA and China
Around 29 percent of imported auto goods (spare parts, accessories & equipment) are re-exported to
neighbouring Middle East countries, Africa and the CIS. The top destinations of motor vehicle parts and
components are Iran, Russia, Iraq, Libya and Tanzania respectively. Re-exports to Middle Eat constitute
50% of the total re-exports.
This can be attributed to the fact that UAE’s political stability and strategic location within the Middle East has
helped to establish and emerge as regional headquarter for many international market players. The
buoyancy of the automotive trade market is a result of the increasing domestic and neighboring countries
consumption of vehicles and related goods and services.
The UAE is the second largest car market among the Gulf Cooperative Council (GCC) countries. The latest
official figures indicate that a total number of 4 to 5 million vehicles are on the road in the GCC countries out
of which about 1,4 million vehicles are registered in the UAE with the figure growing at an annual rate of
about 10 percent. The vehicles on the road in the Arabian Gulf are mainly Japanese (66 percent), followed
by European with 23 percent, USA with 6.5 percent and 4.5 percent from other countries.
Because of its competitive edge in terms favourable investment environment and strategic location,
UAE has the potential to become a manufacturing hub for the whole range of automotive
components, both for OEMs and Replacement/After Market manufacturers, not only to serve the
local market but also exports to various markets.
UAE has potential to become a base for the development of automobile and automobile components as
the basic ingredients for vehicle and components manufacturing like aluminum, plastics, glass etc
are available locally,. Major automobile parts by material and process has been given in Table below.
Major automobile parts by material and process
Automotive Part Primary Materials Primary Process
ENGINE
Block Iron, Aluminum Casting
Cylinder Head Iron, Aluminum Casting, Machining
Intake Manifold Plastic, Aluminum Casting, Molding, Machining
Connecting Rods Powder Metal, Steel Molding, Forging, Machining
Pistons Aluminum Forging, Machining
Camshaft Iron, Steel, Powder Metal Molding, Forging, Machining
Valves Steel, Magnesium Stamping, Machining
Exhaust Systems Stainless Steel, Aluminum, Iron Extruding, Stamping
TRANSAXLE
Transmission Case Aluminum, Magnesium Casting, Machining
Gear Sets Steel Blanking, Machining
Torque Converter Magnesium
Steel
CV Joint Assemblies Steel
Rubber
Stamping, Casting
Casting, Forging, Extruding
Stamping
42

BODY STRUCTURE
Body Panels Steel, Plastic, Aluminum Stamping, Molding
Bumper Assemblies Steel, Plastic, Aluminum Stamping, Molding
CHASSIS/SUSPENSION
Steering Gear/Column Steel, Magnesium, Aluminum Casting, Stamping, Forging
Machining
Rear Axle Assembly Steel, Plastic Stamping, Molding
Front Suspension Steel, Aluminum Stamping, Forging
Wheels Steel, Aluminum Stamping, Forging
Brakes Steel, Friction Materials Stamping, Forging
SEATS/TRIM
Seats Steel, Fabric, Foam Molding, Stamping
Instrument Panel Steel, Fabric, Foam Molding, Stamping
Headliner/Carpeting Synthetic Fiber Molding
Exterior Trim Plastic, Aluminum
Zinc Die Casting
Molding, Casting, Stamping
HVAC SYSTEM
A/C Compressor Aluminum, Steel, Plastic Casting, Molding, Stamping
Radiator/Heater Core Copper, Aluminum, Plastic Extruding, Molding
Engine Fan Plastic, Steel Stamping, Molding
However, from the trend of UAE’s trade volume of auto components (import and re-export), and
possible opportunities for expansion of the existing units or addition of new capacities the
following auto components have been identified. Parts like bumpers, brakes, road wheels & parts &
accessories, suspension shock-absorbers, clutches & parts, steering wheels, columns & boxes and
parts & accessories of vehicle body are the major items traded during 2008. In value terms
constitutes 97% of the total amount of imports in 2008.
List of Auto Components with substantial UAE trade
HS Code Identified Projects
87089900 Parts & accessories of vehicle body
87089300 Clutches & parts
87087000 Road wheels & parts & accessories
87081000 Bumpers & parts
87088000 Suspension shock-absorbers
87083900 Brakes and servo-brakes and parts
87089400 Steering wheels, columns & boxes
8511-1000
to -9000 Electrical Ignition System
43

Parts & accessories of vehicle body
Dents, bumps, scratches and rust - these are just some of the damages that a vehicle’s body parts suffers
from. They are caused by numerous factors such as accidents and constant exposure to the elements. Over
a period of time, the vehicle’s body parts will begin to exhibit signs of abuse and damage and it will be time to
repair or replace it with new components. A car’s body parts include some of the largest pieces of that
compose a car’s body such as the front and rear fenders.
Both import and re-exports of these items have seen significant increase over the years. There has been an
increase 25% of imports in 2008 over 2007 in value term. Similarly, the re-exports had gone up by 19%.
UAE Trade-2006-2008
In ml AED 2008 2007 2006
In no of
units 2008 2007 2006
Imports 8,558.91 6,855.48 5,391.18 Imports 30,309,298 5,606,998 3,684,515
Re-exports 3,665.59 3,072.04 2,088.00 Re-exports 28,208,085 3,151,127 2326588
in billion AED
9,00
8,00
7,00
6,00
5,00
4,00
3,00
2,00
1,00
0,00
2008 2007 2006
Imports
Re-exports
About 80% of import of these items were from Germany, Japan, South Korea, USA and China.
Source of imports
Major Sources In ml AED
GERMANY 2,250,738,758
JAPAN 2,151,491,599
SOUTH KOREA 982,790,828
USA 857,427,987
CHINA 539,775,411
OTHERS 1,776,684,113
Total in AED 8,558,908,696
In million nos
CHINA
6%
35
30
25
20
15
10
5
0
Parts & accessories for vehicle bodies
USA
10%
2008 2007 2006
OTHERS
21%
SOUTH
KOREA
12%
GERMANY
26%
JAPAN
25%
Imports
Re-exports
44

Bumpers & parts
The bumper is designed to absorb and safe guard against minor and low-speed collisions.
Both import and re-exports of these items have seen significant increase over the years. In 2008 the local
demand had increased tremendously There has been an increase 76% of imports in 2008 over 2007. In value
terms. Similarly, the re-exports had gone up by 20%.
UAE Trade-2006-2008
In million AED
In ml AED 2008 2007 2006
In no of
units 2008 2007 2006
Imports 251.12 142.68 78.55 Imports 790,993 205,650 210,030
Re-exports 58.96 48.96 26.28 Re-exports 175,947 21,700 29,332
300
250
200
150
100
50
0
2008 2007 2006
Imports
About 80% of import of these items were from Japan, Germany, USA and China.
Source of imports
Major Sources AED
JAPAN 129,518,989
GERMANY 40,438,403
USA 16,715,145
CHINA 12,673,187
OTHERS 51,775,410
Total 251,121,134
Re-exports
millions
CHINA
5%
USA
7%
0,90
0,80
0,70
0,60
0,50
0,40
0,30
0,20
0,10
0,00
2008 2007 2006
Bumpers & parts
OTHERS
21%
GERMANY
16%
JAPAN
51%
Imports
Re-exports
45

Suspension shock-absorbers
There has been an 34% decrease in imports in 2008 over 2007 in value term but in terms of units there was
considerable increase in numbers. This is mainly due to reduction in price in 2008 and increase of Chinese
market share in this segment with lower price. The re-exports had gone up by 15% in terms of value term.
About 77% of import of these items were mainly from Japan, Germany and China.
UAE Trade-2006-2008
In ml
AED 2008 2007 2006
In no of
units 2008 2007 2006
Imports 200.00 304.48 242.86 Imports 1,169,773 410,777 508,149
Re-exports 97.48 84.89 70.12 Re-exports 194,847 266,495 113,710
The main reason behind China’s increased market share is not only due to aggressive marketing but also the
pricing which is considerably lower than others. China has been promoting heavily through some of the
established agents and has been able to make a breakthrough by introducing some products in the lower
price segment.
In million AED
350
300
250
200
150
100
50
0
2008 2007 2006
Source of imports-2008
Imports
Major Sources AED
JAPAN 82,715,745
GERMANY 40,575,703
CHINA 30,243,377
OTHERS 46,461,975
Total 199,996,800
Re-exports
In million nos
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
Suspension shock-absorbers
CHINA
15%
2008 2007 2006
OTHERS
23%
JAPAN
42%
GERMANY
20%
Imports
Re-exports
46

Clutches & parts
A clutch is a subcomponent of an engine's transmission designed to allow engagement or disengagement of
the engine to the gearbox or whatever apparatus is being driven.
There are many different clutch designs, but most are based on one or more friction discs, pressed tightly
together or against a flywheel using springs. The friction material is very similar to the material used in brake
shoes and pads and used to contain asbestos. The spring pressure is released when the clutch pedal is
depressed and the discs are held less tightly and allowed to rotate freely. A wet clutch is immersed in
lubricating fluid to keep the surfaces clean and to cool it, for improved performance and longer life; while a
dry clutch is not
There was significant increase in imports in 2008 compared to previous years in terms of number of units.
However in value terms it was less This may be due to decline in price due to lesser demand. However the
volume of trade was quite significant compared to other components.
UAE Trade-2006-2008
In ml
AED 2008 2007 2006
In no of
units 2008 2007 2006
Imports 441.09 502.78 228.04 Imports 1,835,596 394,930 338,029
Re-exports 108.73 128.75 78.92 Re-exports 562,674 29,504 94,577
In million AED
600
500
400
300
200
100
0
Imports
2008 2007 2006
Re-exports
Source of imports
Major Sources AED
JAPAN 182,019,154
GERMANY 125,161,324
SOUTH KOREA 41,254,048
CHINA 23,719,789
OTHERS 68,940,566
Total 441,094,881
In million nos
2,00
1,50
1,00
0,50
0,00
CHINA
6%
SOUTH
KOREA
9%
2008 2007 2006
Clutches & parts
OTHERS
16%
GERMANY
28%
JAPAN
41%
Imports
Re-exports
47

Brakes and servo-brakes and parts
There was significant increase in imports in 2008 compared to previous years. However in value terms it
was less This is mainly due to increase in Chinese market share (19%) in this segment with pricing
considerably lower than others..However the volume of trade was quite significant compared to other
components.
UAE Trade-2006-2008
In ml
AED 2008 2007 2006
In no of
units 2008 2007 2006
Imports 247.51 405.6 161.27 Imports 1,764,751 548,361 445,730
Re-exports 22.82 74.92 31.45 Re-exports 77,481 140,259 75,091
In million AED
450
400
350
300
250
200
150
100
50
0
2008 2007 2006
Imports
Re-exports
Source of imports
Major Sources AED
CHINA 46,884,445
GERMANY 62,251,233
JAPAN 42,104,277
SOUTH KOREA 25,516,527
USA 17,192,137
OTHERS 53,564,048
Total 247,512,667
In millions
2
1,5
1
0,5
0
USA
7%
2008 2007 2006
SOUTH
KOREA
10%
Brakes and servo-brakes
OTHERS
22%
JAPAN
17%
Imports
Re-exports
CHINA
19%
GERMANY
25%
48

Road wheels & parts & accessories
Imports of these items have seen significant increase over the years. There has been an increase 29% of
imports in 2008 over 2007. However, the re-exports had gone down by 9%. About 80% of import of these
items were mainly imported from China, Germany and USA.
UAE Trade-2006-2008
In ml
AED 2008 2007 2006
In no of
units 2008 2007 2006
Imports 283.27 220.27 196.58 Imports 2,889,040 1,385,680 1,051,517
Reexports
91.14 100.38 91.03 Re-exports 536,184 191,462 262,776
In million AED
300
250
200
150
100
50
0
2008 2007 2006
Imports
Re-exports
Source of imports
Major Sources AED
CHINA 187303058
GERMANY 24385475
USA 14423613
OTHERS 57157734
Total 283,269,880
jn millions
3,50
3,00
2,50
2,00
1,50
1,00
0,50
0,00
Road wheels & parts & accessories
USA
5%
GERMANY
9%
2008 2007 2006
OTHERS
20%
CHINA
66%
Imports
Re-exports
49

Electrical Ignition system
The imports of all types of electrical Ignition System in 2008 were valued at Dhs 159 ml ($43ml/ 2.7 million in
numbers), compared to Dh 117ml ($32ml/ 0.07 million in numbers) in 2007 with an increase of 36% in value term. The
growth trend is expected to rise further in 2009. Imports in 2008 were mainly from Japan, Germany, China, UK & USA.
Re-exports were mainly to- Middle East & African countries like Iran, Iraq, Kenya and Pakistan. Re-exports were about
35% in value term.
The ignition system consists of the following,
UAE Trade on Ignition System in Y 2008
Year-2008
In million AED
HS Code HS Code Description Value (AED) Units Value (AED) Units
85111000 Sparking plugs. 65,783,493 2,410,352 24,946,131 25,039
85112000 Ignition magnetos; magneto-dynamos etc 206,981 1,052 596,664 1,656
85113000 Distributors; ignition coils. 10,374,531 47,824 2,240,557 4,961
85114000 Starter motors & dual purpose starter-generators. 23,277,776 26,943 10,811,500 12,626
85115000 Generators for internal combustion engines,. 30,529,240 58,876 35,581,344 16,917
85118000 Electrical ignition or starting equipment 7,437,748 44,770 2,909,280 2,936
85119000 Parts of electrical ignition or starting equipment 21,460,893 115,850 7,391,844 9,076
Total 159,070,662 2,705,667 84,477,320 73,211
UAE Trade-2006-2008
(Ref Annexure-11 for detailed Break-up)
In ml AED 2008 2007 2006
In no of
units 2008 2007 2006
Imports 159.07 117.15 109.60 Imports 2,705,667 200,104 505,209
Re-exports 84.48 58.12 47.01 Re-exports 73,211 57,290 68,216
180,00
160,00
140,00
120,00
100,00
80,00
60,00
40,00
20,00
0,00
2008 2007 2006
Imports
Re-exports
In millions
3,00
2,50
2,00
1,50
1,00
0,50
0,00
2008 2007 2006
Imports
Re-exports
50

III. Automobile Tyres
Based on foreign trade analysis, GCC imported 433,000 tons (net) of tyres in 2007. There are no local manufacturers for
tyres in GCC. Extreme climatic conditions prevailing in GCC shorten the life span of tyres and increase the frequency
of replacement. According to Goodyear, last year saw the industry sell some 25 million tyres into the Middle East.
Some countries in the region, which covers the whole of the Middle East, North and West Africa, are registering annual
growth of up to 5%. Another contributory growth factor is the fact that local product is virtually non-existent and retreading
is still in its infancy in most countries within the Region.
The imports of all types of tyres and tyre products of UAE in 2008 were valued at Dhs 3.4bl ($0.92bl/ 13 million in
numbers), compared to Dh2.76bl($0.74bl/ 12 million in numbers) in 2007 with an increase of 24%, out of which about
97% constitute new pneumatic tyres for car, bus and lorries. The growth trend is expected to rise further in 2009. Out of
total import of new pneumatic tyres, car tyres constitute 56% followed by bus & lorry tyres of 36% and rest being tyres
for other end uses. Car tyres worth Dhs 0.89ml and Commercial tyres worth Dhs 0.324ml for buses and lorries were
imported respectively to UAE in 2008, mainly from Japan, China, and India. Out of which UAE consumed almost 66%,
re-exporting 34% mainly to Iran, Iraq, and African countries.
UAE Trade on Pneumatic Automobile Tyres in 2008
Imports Re-exports
Value (AED) Units Value (AED) Units
New pneumatic tyres 3,277,181,774 12,475,802 1,681,601,025 5,788,128
Inner Tubes 88,229,683 531,643 40,286,988 206,381
Total in AED
3,365,411,457 13,007,445 1,721,888,013 5,994,509
In Million USD 917.00
469.18
UAE Trade-2007-2008
In bl AED 2008 2007
In mllion
units 2008 2007
Imports 3,365.41 2,764.08 Imports 13.01 12.11
Re-exports 1,721.89 1,781.27 Re-exports 5.99 6.21
In million AED
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0
2008 2007
Imports
Re-exports
In million
14,00
12,00
10,00
8,00
6,00
4,00
2,00
0,00
2008 2007
Imports
Re-exports
51

Tyre manufacturing is heavily dependent on raw materials like natural rubber (NR), synthetic rubbers (SR) and
carbon black which accounts for 70% of the raw material cost. The major sources of NR are being South-East Asia
and Far East (Thailand, Indonesia, Malaysia, India, Vietnam, China and Sri lanka) which accounts for about 95% of
global production in 2008. The major sources of Synthetic Rubber are being South-East Asia and Far East which
accounts for about 46% of global production in 2008 followed by Europe and USA. All these have to be imported.
Both natural and synthetic rubbers are being imported in UAE for manufacturing of various other rubber products.
UAE trade figure in 2008 has been given below. The major sources of imports of NR being India, Thailand,
Malaysia and Sri Lanka. The major sources of imports of SR being France, Belgium, UK, South Korea.
Netherlands & Germany.
UAE trade on NR & SR in 2008 Source- Dubai port & Customs-Dubai World
IMPORTS RE-EXPORTS
Description Weight (KG) Value (AED) Weight (KG) Value (AED)
Natural rubber
1,789,744 17,810,676 278,487 2,358,589
√Synthetic rubber 27,324,125 233,950,113 1,762,351 17,618,129
Similarly, Carbon Black is being imported in UAE for use in manufacturing rubber products, plastic, inks, paints &
coatings and other end-uses. UAE trade figure in 2008 has been given below. The major sources of imports are being
Netherlands, Germany, India, Iran & USA.
UAE trade on Carbon Black in 2008Source- Dubai port & Customs-Dubai World
IMPORTS RE-EXPORTS
Description
Weight (KG) Value (AED) Description Weight (KG)
Carbon Black 15,564,719 86,326,022 1,192,764 4,930,562
52

IV. Vehicle Battery (Accumulators)
A car battery is a type of rechargeable battery that supplies electric energy to an automobile. Usually this refers to an
SLI battery (starting, lighting, ignition) to power the starter motor, the lights, and the ignition system of a vehicle‟s
engine. This also may describe a traction battery used for the main power source of an electric vehicle.
UAE Trade on Vehicle Batteries in Y 2008
IMPORTS RE-EXPORTS
HS Code HS Code Description Value (AED) Units Value (AED) Units
85071000 Lead-acid electric accumulators(!) 540,685,783 1,486,667 195,855,500 729,548
85072000 Lead-acid electric accumulators(ii), 98,882,052 174,370 6,146,077 14,022
85073000 Nickel-cadmium electric accumulators. 31,085,088 140,181 37,734,888 248,898
85074000 Nickel-iron electric accumulators. 211,193 71 381,650 62
85078000 Electric accumulators, n.e.s. 51,760,920 146,718 6,596,153 2,607
85079000 Parts of electric accumulators. 3,736,475 35,947 483,097 5,393
Total 726,361,511 1,983,954 247,197,365 1,000,530
The imports of all types of accumulators in 2008 were valued at Dhs 726 ml ($198ml/ 2 million in numbers), compared
to Dh 554ml($151ml/ 1.7 million in numbers) in 2007 with an increase of 31%. The growth trend is expected to rise
further in 2009. Imports in 2008 were mainly from South Korea, Indonesia, China, Malaysia, Thailand & India. Re-exports
were mainly to- Middle East & African countries like Iran, Iraq, Saudi Arabia, Lybia, Yemen, Tanzania, Nigeria, Sudan,
Algeria and Cameroon. Re-exports were about 25% in value term.
UAE Trade on Vehicle Batteries in Y 2006-2008
(Ref Annexure-10 for detailed Break-up)
In ml AED 2008 2007 2006
Imports 726.36 553.85 334.91 Imports
Re-exports 247.20 227.13 151.11 Re-exports
In million AED
800,00
700,00
600,00
500,00
400,00
300,00
200,00
100,00
0,00
Imports
2008 2007 2006
Re-exports
In no of
units 2008 2007 2006
Achsentitel
2,50
2,00
1,50
1,00
0,50
0,00
1,983,954.00 1,704,628.00 1,740,073.00
1,000,530.00 669,439.00 536,862.00
2008 2007 2006
Imports
Re-exports
53

UAE Automotive Sector
Industry Forecast Scenario
2008e 2009f 2010f 2011f 2012f 2013f
Total autos sales(US$bn) 10.38 9.62 9.95 10.75 11.96 13.23
Total autos sales (CBUs) 355,118 324,901 331,606 353,352 387,487 422,145
Total re-exports (US$bn) 2.02 1.72 1.81 2.07 2.28 2.43
Total re-exports (CBUs) 78,876 66,144 68,880 77,759 84,408 88,512
Car ownership (%
population0 54.8 55.4 56.2 56.8 57.3 57.9
E Autos Sector -
e/f = estimate/forecast. Sources: Dubai Chamber of Commerce and Industry, UAE Ministry of Planning, UAE Ministry of
Interior, BMI
The UAE has become one of the favourite markets for automobile companies around the world, primarily due to the fact that
the Middle East region has been one of the more resilient markets for automobile manufacturers when compared to the North
American and European markets. Before the global economy hit the skids, vehicle numbers were easily outpacing the rate of
population growth. The number of vehicles on the road rose by 49% to 583,015 units in 2008 from 392,546 units in 2006,
according to Gulf News (citing the Abu Dhabi Traffic Department). The growth in the number of vehicles was attributed to the
increase in residents and new companies entering the emirate. In Dubai, the number of registered
vehicles rose to 1.045mn in 2008, up from 853,827 in 2007, Gulf News said.
But the economic downturn has taken a temporary toll on this robust growth. Dealers have reported high levels of unsold stock
and dwindling profit margins this year. According to the Licensing Agency of the Dubai Roads and Transport Authority, there
has been a rapid slowdown in the number of new registered vehicles in the emirate. As reported by Gulf News, new vehicle
registrations in Dubai rose just 4.5% in the first six months of the year, compared to a 17% increase in the year-ago period. In
the first two months of the year, the number of vehicle registrations dropped 3% y-o-y, according to the Vehicles and
Drivers‟ Licensing Department of the Abu Dhabi police. The daily registration rate fell to 500 vehicles,
down from 700-1,000 in 2008.
With 70-80% of UAE sales financed through credit, restrictions on lending have severely hit the market. The government has
put in place policies to stabilize the economy and get credit flowing. According to Bloomberg, it has made approximately
US$32.6bn available to banks in an effort to get them to make financing available to business and consumers. While financing
still remains, for the most part, difficult to come by, there are signs that these efforts are starting to stabilise the market.
In March „09, leading distributor Al-Futtaim announced it was teaming up with banks to provide autos loans to buyers who
wouldn‟t normally be able to qualify for a loan because they don‟t earn enough, the Middle East North Africa - Financial
Network has reported. Around the same time, HSBC Holdings slashed the minimum monthly salary required for consumer and
autos loans in the UAE by 50% to AED10,000, according to published reports.
Along with an improved credit conditions, there are signs that UAE economy overall is on the road to recovery. In August, the
head of the UAE‟s central bank told Al Ittihad newspaper that he expects crude prices to rebound in 2010. As reported by
Emirates Business, he predicted that this would help the economy return to growth. The sharp fall in crude prices in the last
year has been the main source of the decline in Gulf economic growth, and consequently, auto sales. BMI believes that as the
UAE economy gains strength, this will help lay the foundation for a recovery in auto sales.
The credit freeze may be starting to thaw, but credit is trickling down very slowly to the consumer level
and it will some time before the heady days of credit-fuelled buying return - if ever. Still, auto sales are showing some signs of
life. Evidence suggests consumers are paying cash for vehicles in response to aggressive pricing and promotional offers.
Dealers are deeply discounting prices and offering free add-ons in a bid to move stock, making it a buyer‟s market. The
54

luxury segment has been largely unaffected by credit issues, although sales have not been immune from the downturn. In Q109,
BMW Middle East posted a 9% fall in sales. But regional sales and marketing director James Crichton said the
drop was in line with its estimates and that the company remains optimistic about the region‟s growth.
BMI envisages that the premium segment will continue to thrive, even during the downturn, as residents
with high net worth will remain relatively unaffected by the credit crunch. Although, anecdotal evidence
suggests that dealers in the UAE are turning to leasing schemes as customers find it increasingly difficult
to secure loans. The UAE‟s car dealers say that lower-cost cars are the worst performing, although BMI
believes that over the medium term smaller, more economical models will become more popular. At the
present time, consumers who are most likely to purchase vehicles from this segment are holding back purchases, waiting for
further discounts, more favourable credit terms and mindful of the uncertainties in the wider economy.
The market for commercial vehicles is also showing some signs of life. The Department of Transport in Abu Dhabi placed an
order with German autos manufacturer MAN‟s affiliate MAN Nutzfahrzeuge for 400 city and intercity buses. The supply of
250 MAN Lion‟s City low-floor buses and 150 MAN Lion‟s Regio intercity buses started in April‟09.
55

Automotive Products & Free Trade Agreements
Free trade agreements can have important implications for the automotive sector because of the improved access
(addressing both tariff and non-tariff barriers) which they can provide and because of the reduction in tariffs which can
occur under them. Modern agreements typically also cover a wide range of issues other than tariffs and these can be
relevant to trade in automotive products or services. Agreements can provide, for example:
• enhanced cooperation in relation to standards, technical regulations and conformity assessment
procedures;
• disciplines encouraging more efficient customs procedures, including WTO-plus provisions encouraging the
availability of advanced rulings on tariff classification, questions relating to customs valuation, and the origin of
goods;
• commitments to improve access for trade in services;
• commitments to enhance the protection of investments, increase the transparency of investment regimes, and ease
restrictions on Australian investment; and
• commitments to enhance the protection and enforcement of the rights of intellectual property holders.
In UAE all FTAs are conducted on the GCC level, with the exception of FTA with US was on bilateral level and this has
not been signed. The GCC has signed two FTAs, the first one with Singapore last December 2008, and the last one was
with The European Free Trade Association (EFTA) the countries are (Iceland, Liechtenstein, Norway and Switzerland)
signed on the 22nd of June 09. The two FTAs need to be ratified by both sides in order to come into force.
The GCC currently negotiating with the following countries and economic blocks e.g. EU (27 countries), Turkey,
Australia, New Zealand, Mercosur (Argentina, Brazil, Paraguay and Uruguay), Japan, S.Korea, China, India & Pakistan.
All two agreements impose obligations on the parties in relation to trade in automotive products. These
obligations include a general requirement to provide „national treatment‟ to goods originating in the other party (that
is to treat goods originating in the other party no less favourably than like goods originating in UAE in regard to
domestic taxation and regulation). They also include obligations to remove or reduce tariffs in accordance with
agreed schedules and timetables.
56

About Ras Al Khaimah (UAE)
A LOCATION OF CHOICE
With a favourable geographical location at the crossroad of
trade between the East and West, the excellent
infrastructure, strong government support towards the
private sector, and not to mention its unmatched natural
beauty, it is no surprise that the emirate of Ras Al Khaimah
has emerged as a destination of choice for investors and
leisure travellers alike. Ideally positioned to service and
access markets like the Middle East, Africa, the Indian
Subcontinent and the CIS countries, Ras Al Khaimah has
become a growth-driven emirate with an increased focus on
manufacturing, services, real estate, construction and
tourism.
RAK ECONOMY
Ras Al Khaimah, the fourth-largest emirate in the UAE, today boasts of a rapidly growing economy, thanks to the
ambitious process of economic diversification adopted by the government that primarily focuses industry, trade &
commerce, tourism and real estate. While Ras Al Khaimah‟s business-friendly policies have ensured a brisk increase in
foreign direct investments, it has also helped the emirate steadily increase its global appeal as a superior choice
destination for business and leisure.
The natural topography of Ras Al Khaimah which consists of 65 kilometers of sun-kissed sandy beaches, the Al Hajar
Mountain range, the vast desert plains in the central region and the green belt in the southern region, have added to the
success of Ras Al Khaimah as a destination of choice.
Ras Al Khaimah has been witnessing impressive economic growth in the past few years under the visionary leadership
of H.H. Sheikh Saud Bin Saqr Al Qassimi, the Crown Prince & Deputy Ruler of Ras Al Khaimah.
In recent years, Ras Al Khaimah has witnessed an increase in GDP figures with growth in manufacturing, services, and
tourism sectors, along with the increase in foreign trade and per capita income, rise in the standard of living, growth in
education, development in world class housing and health-care facilities among other positive developments that point
towards the all round socio–economic prosperity of Ras Al Khaimah. Ras Al Khaimah was recently rated the best
investment destination by the FDI Magazine, Financial Times, London.
The RAK Government encourages development through private sector and believes that the role of the Government is
primarily to create an optimum environment for enterprises, providing enabling infrastructures, utilities and services and
making sure that the Government is an effective partner- supporting and empowering the private sector.
Ras Al Khaimah has negligible deposits of hydrocarbons unlike some of the other emirates or countries in the GCC. As
a result has sought to diversify its economy over the course of the last decades by opening up to foreign investors and
industries. The aim was to make the best use of the emirate‟s strategic positioning by improving its infrastructure and
creating the right incentives and liberal business environment to attract major industrial enterprises from around the
world.
INFRASTRUCTURE
The Government of Ras Al Khaimah‟s constant endeavor to enhance infrastructure facilities across the emirate has been
a major factor in attracting major foreign investments to Ras Al Khaimah. With a well-planned road network, an
international airport, fully equipped seaports, and advanced communications network, Ras Al Khaimah is wellpositioned
for rapid socio-economic growth.
57

RAK INFRASTRUCTURE- Highlights
RAK is well connected to most of the neighboring countries by air, sea and roads
The emirate has an excellent road network making overland trans-shipment
throughout the Middle East a realistic possibility
Excellent telecom system
RAK airport is one of the six international airports in the country
Saqr port in RAK is one of the largest bulk handling ports in the region with
container handling facilities
Although the drive to attract foreign companies has been a recent development, RAK has long been one of the
industrial centres of the UAE. The industrial sector has been dominated by the three main industries of Cement,
Ceramics and Pharmaceuticals. The sector has diversified in the recent years especially since the creation of free
zones as well as partnerships between government and foreign investors.
Ras Al Khaimah has a natural advantage when it comes to
the production of cement as the Al Hajar mountain range
holds vast supplies of high quality limestone, which is a
key raw material for cement manufacturing. The emirate
is also rich in other raw materials such as clay, quartz and
other minerals.
The pharmaceutical industry in RAK is about 30 years
old and has been one of the key focus areas of
government plans since several years. The industry in
RAK is dominated by the Gulf Pharmaceutical
Industries, known as Julphar. The company has grown
into a pharmaceuticals giant by Middle East standards
and now exports to over 80 countries. Julphar is the
biggest pharmaceuticals manufacturer in the UAE.
What RAK lacks in oil is somewhat compensated for by
its natural mineral water resources. RAK is the origin of
Masafi mineral water brand, the region's leading mineral
water brand, with its source lying in several rich
underground springs in the mountainous city of Masafi.
Masafi water, has developed into an international brand
which exports bottled water and fruit juices to more than
20 countries.
RAK INDUSTRIAL ACTIVITIES- Highlights
� One of the largest producers of cement in the
Gulf region. Al Hajar range of mountains
contain high quality limestone deposits.
� One of the largest producers of medicines in
the UAE (Julphar)
� One of the largest producers of ceramic tiles
and sanitary ware in the world (RAK Ceramics)
� Region’s leading brand of mineral water
(Masafi)
� Increased industrial activities with the creation
of free zones and partnerships between
government and foreign investors
� Thousands of small and medium scale
industries in diversified sectors of
manufacturing
� Emphasis on high-tech industries
RAK Ceramics is the single largest, state-of-the-art, ceramic tile manufacturer in the world with its 12 plants spread
across the UAE, India, Bangladesh, Sudan, Iran and China, producing over one hundred million square meter of tiles
and 3 million pieces of sanitary-ware annually, exporting to 135 countries. The UAE operation is the largest single
location ceramic manufacturing facility in the world with more than 6,000 active models in the ceramic and porcelain
tiles segment, and an exclusive range of more than 600 active models of sanitary ware to offer with a wide choice in
designer bathroom sets, wash basins, bathtubs and related items. RAK Ceramics has diversified horizontally by forming
several joint ventures including Kludi RAK LLC, RAK Porcelain LLC, Laticrete RAK LLC and many more in Ras Al
Khaimah.
58

About RAK Investment Authority (RAKIA)
The RAK Investment Authority (RAKIA) was
constituted as per Emiri Decree No. (2)/ 2005 issued
by H.H. Sheikh Saqr Bin Mohammed Al Qasimi,
Supreme Council Member and Ruler of Ras Al
Khaimah. The mandate for the authority is to work
towards reinforcing the investment climate in the
emirate and to promote its various economic sectors.
Under the direction of H.H. Sheikh Saud bin Saqr Al
Qasimi, the Crown Prince & Deputy Ruler of Ras Al
Khaimah, we are pursuing the goal of making Ras Al
Khaimah a regional hub for industrial manufacturing,
trade and commerce. The GDP of RAK has grown
significantly over the past few years. The growth is
driven by increased focus on manufacturing, services,
real estate, construction and tourism.
Soon after the formation of RAKIA in the year 2005, RAKIA undertook the development of the industrial parks
which include the free zones and non free zones in the Al Hamra. In the same year the infrastructure and allied work
were started in the Industrial parks which resulted in overall development of industries in the Emirate. In a period of
16 months from RAKIA inception 100% of the Free zone land (2.20 million Sqm) was leased out to 114 companies
and also around 2.2 million sqm were leased out to 94 companies in the non-free zone Industrial area. With the
success in attracting very large conglomerates around the world, RAKIA took the task of developing 25 million sqm
of Industrial land in Al Ghail area of Ras Al Khaimah at the end of year 2006. RAKIA has already licensed over 220
manufacturing companies in Al Ghail Industrial and is self sufficient with a 64 MW of captive power plant. The
strategy of RAKIA is to attract sustainable industries and RAKIA offeres investment advisory services and equity
participation on selected projects. This has resulted in an atmosphere of trust among investors and generated a solid
network of opportunities. As a result of that within a span of 3 to 4 years of its inception, RAKIA has been
instrumental in attracting over US$2.5 billion of industrial investments alone, powering an unprecedented economic
surge that has made Ras Al Khaimah as one of the fastest growing emirates in the UAE and the region.
In response to Ras Al Khaimah‟s growing emergence as a business destination of choice, RAKIA established
RAKOFFSHORE – and the International Business Company (IBC) concept- a move designed to address the growing
demand for offshore markets, and also complementing the emirate's ongoing economic diversification program. RAK
OFFSHORE is an innovative initiative that establishes a true offshore facility and regulatory body providing complete
offshore non-resident business registration and financial services through registered and reputed law firms.
After successfully running industrial parks in Ras Al Khaimah, RAKIA is setting up a Free Industrial zone in Georgia
(Eastern Europe), under the aegis of a subsidiary company of RAKIA. This is the first free zone in the Caucasus
Region and is strategically located for easy access to the EU, Central Asia and Caucasus/ Eastern European markets.
The free zone is being established next to the Poti Sea Port, which is also a subsidiary of RAKIA, the largest sea port
in the Black Sea region and offers tremendous supply chain cost advantage for movement of goods.
RAKIA is now in the expansion mode and has various Strategic Business Units, e.g.
� Education/ Technology
� Real Estate
� Transportation
� Investments
� Manufacturing & Energy
� RAK Offshore
� Real Estate Regulatory Authority (RERA).
Vision & Mission
Our vision is to build a diverse economy that enjoys
strong, sustainable growth, by attracting
investments from the domestic and foreign markets
that will create wealth and raise the standard of
living for the people of Ras Al Khaimah.
Our mission is to offer complete solutions to the
needs of every investor and provide value and
customer satisfaction, ensure minimum transaction
& conversion cost, enable businesses to flourish in
the quickest possible time and to make investment
in Ras Al Khaimah simple, easy and a pleasant
experience.
59

RAKIA Milestones- Achievements
Since its inception, over 5200 local and foreign investors
have set up operations within the emirate under RAKIA,
fueling an unprecedented pace of economic growth that has
made Ras Al Khaimah one of the fastest growing emirates
in the UAE and a regional economic force to reckon with.
Out of which over 2300 are registered under RAKIA free
zones and non-free and over 2800 are registered under
RAK Offshore.
No of Licenses under RAKIA Free Zones & Non Free Zones
No of Licenses under RAK Offshore
RAKIA has attracted very strategic companies in diverse
industry segments ranging from glass and table ware, float
glass, vehicle assembly, steel products, building materials,
electrical equipment, rubber, plastics and food processing.
The winning strategy that RAKIA adopted was to forge
partnership with some investors who had viable projects.
Performance Highlights
� 5200 local and foreign investors have set up
operations within the emirate under RAKIA. Out of
which over 2300 are registered under RAKIA free
zones and non-free and over 2800 are registered
under RAK Offshore
� In RAKIA free zone and non free zone. About 85%
of the investors have come from outside UAE
� Overall composition of license issued in RAKIA
Free Zones & Non Free Zones so far-- Commercial-
24%, Industrial-23%, Consultancy-24%, Trading-
19% and Media-10%.
� Attracted close to US$ 2.5 billion worth of
investments from 95 countries e.g. from the Middle-
East including UAE, Indian sub-continent including
Pakistan, South-East Asia, US & Europe and other
ME countries.
� Non-free zone (Industrial zone) Phase-I, II, Extn
Zone and Ceramic zone at Al Hamra of total area of
2.83 million sqm have been completely leased out
to 94 companies with 90% of these are in
manufacturing.
� Free Zone at Al Hamra with total area of 2.20
million sqr mtr have been completely leased out to
about 114 companies registered in free Zone out of
which 89% are in manufacturing.
� “Al Ghayl” industrial park, spanning 25 million sq
mtr of which 6 million sq mtr is Free Zone. Already 5
million sqm have been leased out to 230 companies
so far.
RAKIA ADVANTAGES
� Easy licensing procedure
� Single window clearance for approvals & permits
� Every investor gets personal attention
� Ready availability of power
� Issue of visit and residence visa under one roof
� Open door policy.
� Easy access to decision makers.
This strategic partnership has given the investing companies competitive edge in the way of early implementation,
fund and many functional support. RAKIA continues to have many strategic partners in European countries and also
has its own representative offices in France and Germany. RAKIA has also participated in various events in Europe,
Asia and also in the UAE to show case its investment opportunities to companies looking for investments in UAE and
in the region.
60

Some of the events that RAKIA participated recently are the Hanover Industrial fair in Germany, Forum for Trade and
Investment in Zurich organized by OSEC, Global India Forum organized by Horasis in Munich to name a few and
many local events like Middle East Manufacturing Exhibition in Abudhabi and also BIG 5 in Dubai apart from
hosting many business delegation in RAK from across the world. RAKIA has been giving importance for a
knowledge based approach with its dedicated team conducting sector analysis and identifying and communicating
with potential large Industrial investors in the target countries. It has in the past forged partnership with prominent
international consulting companies line KPMG, PWC, Financial Times etc. for various studies and opportunity
assessments.
It is evident from the above table that the number of companies registered in RAKIA in Y2009 has increased by over
120% over year 2007, is indicative that the efforts of RAKIA to attract investment to RAK is showing fruitful results.
In the year 2010, RAKIA is expecting to attract large number of Industrial companies as it has already seeing signs of
improvement in many countries after the global economic meltdown during 2008-09.
The licenses RAKIA has issued show a remarkable balance among key sectors – 25 per cent went to commercial
companies, 24 per cent to consultancy and service companies, 23 per cent to industrial firms and the balance to trading
and media companies. Investors have come from 96 countries around the world, out of which 36% are from the Middle
East, 35% from Asia & Far East, 18% from Europe, and the balance from other parts of the world. RAKIA has
experienced considerable increase in the registration of European companies from its previous years. Almost 85% of the
European investments in RAKIA are coming from the six Industrialised countries like Germany, UK, France, Holland,
Switzerland and Austria.
RAKIA through its customer relationship approach has
identified the investors need and has diversified its
product offerings with the introduction of RAKIA
Business Tower, a multi-stored commercial complex
located in the Al Hamra region of RAK that houses
corporate offices of clients from diverse segments.
RAKIA has also developed warehousing facilities to
cater to its growing needs and moreover, workers‟
accommodation and studio flats were also made
available.
Besides managing industrial/business parks, RAKIA
also delivers a wide range of complementary services
to ensure that investment potentials are maximized.
RAKIA offers investment advisory services and equity
participation in selected projects, a key move that
Geographic Trend-Overall
rest of ME
21%
USA
3%
UAE
15%
KEY ENABLERS
Russia/cis
Miscellaneous 2%
6%
Europe
18%
INDIA
28%
ASIA/SE Asia
7%
� Good infrastructure & logistic support system
� Excellent port facilities
� Competitive energy cost
� Easy access to GCC countries
� Strategic location being near to large and important
markets
� Zero corruption and minimum bureaucracy
� Stable government and investor friendly policies
� Presence of local and international banks for project
funding
61

einforces investor trust and confidence. Due to Its
investor-friendly policies and flexibility, brought in an
array of international brands including Guardian Glass,
Arc International, Franke, Duscholux, Mitsui, Kludi,
Becker Industries, Kempe, Ashok Leyland and many
others.
RAKIA is a one stop shop for all the investor needs
providing statutory support like issue of licenses,
assistance in company formation, project approvals,
investor‟s visa, design approvals & construction
permits, occupancy certificates etc.,
Among the myriad of advantages which the foreign investors avail of are full ownership of their businesses and a tax
free haven apart from duty exemptions. Other key benefits offered to investors are 100 per cent capital and profit
repatriation; easy availability of labour; easy licensing procedures; excellent port facilities; and absence of foreign
exchange controls, trade barriers and quotas.
Apart from the above advantages RAK had the unique traits, well differentiated from its competing locations like
excellent terms for leasing, low cost of operations, favorable business environment, friendly government policies and
high quality infrastructure. Because of all these, RAK was rated the „Best Foreign Direct Investment destination in the
Middle East‟ for 2009 by Financial Times London in the year 2007.
RAKIA has signed a memorandum of co-operation with banks in Ras Al Khaimah in a move that will greatly benefit
investors in the emirate. Under the agreement, the banks will provide financing to firms for their projects in RAKIA
industrial parks. S&P affirmed its “A” long-term and “ A-1” short-term sovereign credit ratings on RAK which has
build tremendous confidence for banks as well as investors.
RAKIA's ongoing success largely reflects the Ras Al Khaimah Government's own success in establishing reforms,
instituting new laws and regulations and enforcing policies that are hospitable to local, regional or international
investors.
Major companies in RAKIA
Sector wise break-up- Non free zone
Metal
Products
30%
Building
materials
22%
Auto &
Related
2%
Food
processing
2%
Electricals
7%
Rubber &
Plastics
7%
Others
17%
Wood
products
4%
Chemicals
9%
Accolades for RAK/RAKIA
� S&P affirmed its “ A” long-term and “ A-1” shortterm
sovereign credit ratings to RAK.
� Ras Al Khaimah was rated as “Most Cost
Efficient FDI Destination” by Financial Times
London in the year 2007.
� Ras Al Khaimah has been awarded “Most
Attractive Destination For FDI” in the 2008 –
2009 Middle Eastern Cities of the Future
benchmark rankings
Sector wise break-up- Free zone
Metal
Products
36%
Auto &
Related
Food 4%
processing
2%
Wood
products
6%
Rubber &
Plastics
6%
Chemicals
11%
Building
materials
11%
Ashok Leyland of India is one of the biggest names in industry in the automobile industry. The company's integrated
assembly plant is to build 1000 buses per year in RAK has started its operations in the year 2008. This is the first fully
integrated Bus/trck manufacturing in the whole of GCC.
Others
20%
Electricals
4%
62

Zamil Steel of Saudi Arabia is a strong example of a company based in the Middle East that is starting to establish an
important presence in RAK. Zamil, which is actually one of the largest industrial groups in the Middle East, registered
with RAKIA in 2005. The company manufactures pre-engineered buildings and galvanized steel for electricity towers.
The pre-engineered structures are mainly used for construction projects' show rooms, military bases, factories and
temporary or semi-temporary structures.
Arc International – based in France –
came to RAK in 2004 to establish a
production facility in the region for
easier access to surging Middle Eastern
markets. Arc International is one of the
world's top producers of glassware and
stemware.
Guardian Glass of USA With an initial
investment of approximately $115
million, established Guardian RAK with
a production capacity of 700 tons of
glass per day for use in automotive and
construction applications, including
high-performance coated glass.
Global Glass Solutions has recently set
up a glass processing facility in the Al
Ghail Industrial Park in Ras Al Khaimah.
The state-of-the-art factory is one of the
largest glass-processing facilities in the
region with up to 1,000 sqm glass
processing capacity per day, providing
clients in the region a complete array of
world-class solutions for their processed
glass requirements. The facility will
manufacture all kinds of processing glass
and will initially cater to markets in the
UAE and the rest of the GCC.
RAK Steel, a joint venture of Ras Al Khaimah Investment Authority,is a new energy efficient and environment
friendly steel rolling mills. The mill produces 500,000 tonnes per annum 8mm to 40 mm diameter „steel deformed
reinforcement bars (REBARS) to international British and American standards.
JBF Industries has teamed up with Ras Al Khaimah Investment Authority in its initial stages and set up Polyster PET
Resin Packaging chips plant in RAKIA. The cost of the plant would be around $100 million.
Naturelle LLC – Dabur International Subsidiary
Naturelle LLC, subsidiary of Dabur International Ltd., has started its production in RAK in the year 2008. Dabur
India Limited is one of the leading FMCG Companies in India, with interests in health care, personal care products,
with powerful brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real.
Maico Gulf LLC
NAME SECTOR COUNTRY
INVESTMENT
Million USD YEAR
KEC Cables Industrial Cables India 60 2009
Pikko Steel Connectors Finland 10 2009
POSCO Steel South Korea 35 2008
Becker Paints Paints Manufacturing France 20 2008
Novas Sealing Industrial Gaskets UK 10 2008
Kludi RAK Water Taps & Faucets Germany 30 2007
Kempe Engineering Industrial Equipments Australia 10 2007
Guardian Industries Float Glass USA 130 2006
Franke SS Kitchen Product Austria 55 2006
Ashok Layland Bus & Truck Assembly India 50 2006
Kirby Steel Steel Kuwait 30 2006
Dabur India Herbal Products India 25 2006
RAK Ghani Glass Glass Containers Pakistan 25 2006
RAK Steel Steel Products India 25 2006
Mitsui Japan Heavy Fabrication Japan 150 2005
JBF RAK Polyester Chips & Films India 100 2005
Falcon International Blue Ray DVD Switzerland 70 2005
Zamil Steel Steel KSA 35 2005
Duscholux Sanitaryware Fittings Germany 30 2005
Pioneer Cements Cement India 105 2005
Arc International Tableware France 100 2004
Global Glass
Solution Glass mfg Jordan 30 2009
Maico Gulf Ventilation system Germany -- 2009
Maico Gulf LLC, a reputed company in air ventilation systems has set up its manufacturing unit in Al Ghail Industrial
Park. Maico Gulf LLC is a joint venture company between Maico Holding GmbH of Germany and Hira Holding BVI.
The Maico products include Ventilation Fans, Industrial & Jet Fan, Smoke vents and Air Handling Units.
63

References
1. Hiromi Oki, “Where intra-regional trade in East Asia is heading”, JETRO Research Paper Vol. 06, 2008,
2. Changing Features of the Automobile Industry in Asia - Asia-Pacific Research and Training Network on Trade
Working Paper Series, No. 37, July 2007
3. Dubai Chamber of Commerce Economic Bulletin, vol-4, issue-35, May 2007
4. OICA Statistics on global motor vehicles production
5. Trade Statistics-2008, Dubai Port & Customs, Dubai World
6. BMI report on UAE‟s Auto sector 2009
7. GOIC report on sector study on Automotive Industry in GCC 2009
8. Dubai Chamber of Commerce Economic Bulletin, vol-4, issue-35, May 2007
9. Dow Jones Factiva database of compaies.
Websites:
http://www.researchandmarkets.com/reports/
http://www.worldbank.org
http://www.unido.org
http://www.gulfnews.org
http://www.khaleejtimes.org
64

Annexure-I
World Motor Vehicle Production By Country And Type In 2008
Source: OICA Statistics
Country Cars
Commercial
vehicles
Total % change
Argentina 399,577 197,509 597,086 9.60%
Australia 285,590 43,966 329,556 -1.50%
Austria 125,436 25,441 150,877 -33.80%
Belgium 680,131 44,367 724,498 -13.20%
Brazil 2,561,496 658,979 3,220,475 8.20%
Canada 1,195,436 882,153 2,077,589 -19.40%
China 6,737,745 2,607,356 9,345,101 5.20%
Czech Rep. 933,312 12,510 945,822 0.90%
Egypt 72,485 42,297 114,782 9.90%
Finland 18,000 376 18,376 -24.40%
France 2,145,935 423,043 2,568,978 -14.80%
Germany 5,526,882 513,700 6,040,582 -2.80%
Hungary 342,359 3,696 346,055 18.50%
India 1,829,677 484,985 2,314,662 2.70%
Indonesia 431,423 169,421 600,844 46.00%
Iran 940,870 110,560 1,051,430 5.40%
Italy 659,221 364,553 1,023,774 -20.30%
Japan 9,916,149 1,647,480 11,563,629 -0.30%
Malaysia 419,963 110,847 530,810 20.20%
Mexico 1,241,288 949,942 2,191,230 4.60%
Netherlands 59,223 73,271 132,494 -4.40%
Poland 840,000 110,908 950,908 20.00%
Portugal 132,242 42,913 175,155 -0.60%
Romania 231,056 14,252 245,308 1.50%
Russia 1,469,429 320,872 1,790,301 7.80%
Serbia 9,818 1,810 11,628 17.40%
Slovakia 575,776 0 575,776 0.80%
Slovenia 180,233 17,610 197,843 -0.30%
South Africa 321,124 241,841 562,965 5.30%
South Korea 3,450,478 356,204 3,806,682 -6.80%
Spain 1,943,049 598,595 2,541,644 -12.00%
Sweden 252,287 56,747 309,034 -15.60%
Taiwan 138,709 44,260 182,969 -35.40%
Thailand 401,309 992,433 1,393,742 8.30%
Turkey 621,567 525,543 1,147,110 4.30%
Ukraine 400,799 22,328 423,127 5.10%
UK 1,446,619 202,896 1,649,515 -5.80%
USA 3,776,358 4,928,881 8,705,239 -19.30%
Uzbek 195,038 13,000 208,038 12.50%
others 332,917 170,993 503,910 -15.80%
Total 52,637,206 17,889,325 70,526,531 -3.70%
65

Annexure-II
World Ranking Of Vehicle Manufacturers In 2008
Source: OICA Statistics
Rank GROUP Total CARS LCV HCV
HEAVY
BUS
Total 69,561,356 55,846,163 10,652,432 2,598,495 464,266
1 TOYOTA 9,237,780 7,768,633 1,102,502 251,768 114,877
2 GM 8,282,803 6,015,257 2,229,833 24,842 12,871
3 VOLKSWAGEN 6,437,414 6,110,115 271,273 46,186 9,840
4 FORD 5,407,000 3,346,561 1,991,724 68,715
5 HONDA 3,912,700 3,878,940 33,760
6 NISSAN 3,395,065 2,788,632 463,984 134,033 8,416
7 PSA 3,325,407 2,840,884 484,523
8 HYUNDAI 2,777,137 2,435,471 85,133 151,759 104,774
9 SUZUKI 2,623,567 2,306,435 317,132
10 FIAT 2,524,325 1,849,200 516,164 135,658 23,303
11 RENAULT 2,417,351 2,048,422 368,929
12 DAIMLER AG 2,174,299 1,380,091 330,507 395,123 68,578
13 CHRYSLER 1,893,068 529,458 1,356,610 7,000
14 B.M.W. 1,439,918 1,439,918
15 KIA 1,395,324 1,310,821 83,159 1,344
16 MAZDA 1,349,274 1,241,218 105,754 2,302
17 MITSUBISHI 1,309,231 1,175,431 128,233 5,567
18 AVTOVAZ 801,563 801,563
19 TATA 798,265 489,742 160,966 128,169 19,388
20 FAW 637,720 637,720
21 FUJI 616,497 552,096 64,401
22 ISUZU 538,810 47,101 488,488 3,221
23 CHANA AUTOMOBILE 531,149 531,149
24 DONGFENG
BEIJING
489,266 489,266
25 AUTOMOTIVE 446,680 446,680
26 CHERY 350,560 350,560
27 SAIC 282,003 282,003
28 VOLVO 248,991 17,964 218,542 12,485
29 BRILLIANCE 241,553 241,553
30 HARBIN HAFEI 226,754 226,754
31 GEELY 220,955 220,955
32 ANHUI JIANGHUAI 207,711 207,711
33 BYD 192,971 192,971
34 GAZ 187,053 22,043 140,985 24,025
35 MAHINDRA 162,816 100,615 62,201
36 PROTON 157,306 156,813 493
37 GREAT WALL 129,651 129,651
38 PACCAR 125,084 125,084
39 CHONGQING LIFAN 122,783 122,783
40 M.A.N. 108,053 100,566 7,487
41 JIANGXI CHANGHE 107,422 107,422
42 CHINA NATIONAL 106,377 106,377
43 PORSCHE 96,721 96,721
44 LUAZ 90,548 88,316 2,232
45 NAVISTAR 90,264 76,302 13,962
46 SCANIA 79,874 72,067 7,807
47 SHANNXI AUTO 75,220 75,220
48 UAZ 72,181 30,953 41,228
49 ASHOK LEYLAND 71,485 1,019 50,539 19,927
50 KUOZUI 67,891 63,827 1,792 2,272
66

Y-2008
Annexure-III
UAE Imports & Re-exports of Vehicles in 2008 & 2007
in value & Number of units Source- Dubai Port & Customs(Dubai World)
Imports
Category Value (AED) Units
Car 26,818,609,248 408,903
Motor Vehicle for Transport of People 2,811,911,927 16,202
Motor Vehicle for Transport of Goods 4085,191,976 50,462
Grand Total 33,715,713,151 475,567
Re-exports
Category Value (AED) Units
Car 6,660,332,310 136,168
Motor Vehicle for Transport of People 242,806,432 3,645
Motor Vehicle for Transport of Goods 1,490,063,296 21,228
Grand Total 8,393,202,038 161,041
Y-2007
Imports
Category Value (AED) Units
Car 22,085,635,576 450,325
Motor Vehicle for Transport of People 1,421,562,276 22,390
Motor Vehicle for Transport of Goods 3,510,425,050 69,426
Grand Total 27,017,622,902 542,141
Re-exports
Category Value (AED) Units
Car 4,936,000,803 113,362
Motor Vehicle for Transport of People 122,293,508 2,500
Motor Vehicle for Transport of Goods 1,133,725,977 20,922
Grand Total
6,192,020,288 136,784
67

Annexure-IV
Auto component Manufacturers in GCC Source: GOIC report on GCC Autosector 2009
SI.
Business
No Company Name
activity Location Address Phone
1 Gulf Exhaust Exhaust Bahrain-
Factory 107, Road
97317701126
Maameer 3402, Maameer 634
2 National Automobile
Industry Co
3 Arabian Axles, Foundries
and Spare parts Co
Assembly KSA- Jeddah PO Box 5938, Jeddah
21432
Axles KSA-Dammam PO Box 8491,2nd ind
city, Dammam 31482
4 Rezayat Friction Co Ltd Brakes KSA-Dammam PO Box 90, Al Khobar
31952
5 Saudi Germany
BrakeShoes
manufacturing Co Ltd
6 Akam Brake production
factory
7 Al Saraha Car Bodies
Factory
Brakes KSA-Jeddah PO Box 42221, Jeddah
21541
Brakes KSA- Riyadh PO Box 42004, Riyadh
11541
Chassis KSA-Dammam
Hassa
8 Arabic Car Bodies Factory Chassis KSA-Dammam,
Seihat
9 Modern steel Fabrication
& Exhaust factory
Exhaust, shock
absorber
10 Otaibi Silencer Factory Exhaust, shock
absorber
11 Saudi Exhaust System Co Exhaust, shock
absorber
12 Alkamil Mufflers Factory Exhausts,
Mufflers
13 Saudi Filter Industry
Company
PO Box 5356, Hassa
31982
PO Box 14044,
Dammam 31424
KSA-Dammam PO Box 1963,
Dammam 31441
KSA-Dammam PO Box 294, Dammam
31411
KSA-Jeddah PO Box 10873, Jeddah
21443
KSA-Jeddah-Taif PO Box 147, Jeddah
21944
Filters KSA- Dammam PO Box 31872, 2nd
Industrial City, Al-
Khobar 31952
14 Al Mutlaq Filters Co Filters KSA-Jeddah PO Box 2076,Industrial
Estate,
Phase#2,Jeddah
15 Al Nahdi Spare parts &
Foundries & Filters
Filters KSA-Jeddah PO Box 22287, Jeddah
21495
16 Desert Filters Factory Filters KSA-Riyadh PO Box 120, Riyadh
11383
17 Saudi American cars
Spare parts Industry
Gear box KSA- Riyadh PO Box 7315, Riyadh
11642
18 Technoglass Co Glass KSA-Jeddah PO Box 32013, Jeddah
21428
19 National Glass & Mirrors
Ltd
Glass KSA- Jeddah PO Box 32226, Jeddah
21426
20 Saudi Lamino Ltd Glass KSA-Riyadh PO Box 43130, Riyadh
11561
21 Car Seat & Cushion
Factory Co
Interior KSA- Riyadh PO Box 171, Riyadh
11383
+96626822000
009663 812 1267/1147
Ext:116
00966-3-8140363 / 0362
00966 26080783
00966 1 4466624
5966 848
Factory- 9663 837 1968,
office-8203353
00966 3 847 1350
00966 38472815
00966 2 6379281
966 2 7440736
00966 3812 1184 Extn 223
009662 636
9317
00966 2 650
4745
009661 265 0567
009661 422 0243
00966 2 637 9909
9662 608 1320, 6377124,
6378637
9661 2652325
966 1 242
9225
68

SI.
No
Company Name Business
activity
22 Sasco Renewing Engine
&Car Water Pumps
Factory
Location Address Phone
Pumps KSA-Riyadh PO Box 51880, Riyadh
11553
23 Al Nahda Radiator factory Radiators KSA-Dammam PO Box 121, 1st
Ind. City, Dammam
24 National Radiator Factory Radiators KSA- Dammam PO Box 2464,
Dammam 31952
25 Zaid Md Drawaish &
Partner Radiator Factory
26 Al Aman For Radiator
Factory
Radiators KSA-Dammam PO Box 7835, 2nd Ind.
City, Dammam
Radiators KSA-Dammam
Hafouf
PO Box 98, Hafouf
31982
27 Gulf Radiator Factory Radiators KSA-Jeddah PO Box 124929,
Jeddah 21342
28 El Salama Radiator
Factory
29 Al Fawzan Radiator
Factory
Radiators,
brakes
Radiators,
brakes
KSA-Dammam PO Box 1043, 1St
Ind city, Dammam
KSA- Riyadh PO Box 41411, Riyadh
11521
463 0722
8571618/84 71472
966 38220679
009663 834 8559
9663 5864500
00966 2635 2590
00966 3 828 3205/6/3
009661 448 0612
30 Rifai Glass Glass Kuwait-Safat PO Box 1941, Kuwait
13020
(+965) 24817162- 24843719-
31 Reem Batteries & Power
Appliance con SAOG
Glass Oman PO Box 123, Rusail Tel.: (968) 2444 6191/92/93
32 Oman Filters Industry Co Filters Oman- Rusail PO Box 45, Rusail 124 00968 626 420/21
33 Sea Shore Car Bodies
and Chassis Factory
34 Nemeh Enterprises Radiators,
brakes
35 National Radiator Factory
WLL(Nemeh Enterprises
36 Al Khaleej Car Exhaust
factory
37 Skyline Exhaust Industry
LLC
38 Consolidated Filters
Industry LLC
Chasis Qatar- Al Khor PO Box 60100, Al Khor 00974 472 2843/44
Radiators,
brakes
Qatar-Ind. Area
Doha
Qatar- Ind. Area
Doha
PO Box 3410, Doha 4607 962
PO Box 99, Doha 4114782/43 76922
Exhaust UAE- Dubai PO Box 1162, Dubai 8801203
Exhaust UAE- Dubai PO Box 3710, Dubai 97143389775
Filters UAE- Dubai PO Box 26322, Dubai 3472221
39 Gulf Filters Establishment Filters UAE- Musafah PO Box 2175, Abu
Dhabi
5554300/55 43393
40 Reliable Fabricators LLC Fuel injectors UAE-Dubai PO Box 16648, Dubai 9714333 2399
41 Gulf Engineering & Heavy
Car Body Factory
Fuel tank UAE- Al Ain PO Box 18099, 9713782 4450
42 Lumi Glass Industry Glass UAE- Dubai, Alquz, P.O. Box;113744 9714 340 3919
43 National Finland Auto
Glass
Glass UAE- Umm Al
Quwain
44 Wellfit Co interior UAE- Ajman PO Box 20767, Ajman 9716743 7012
45 Dolphin Industrial Ltd Radiators UAE-Ajman PO Box 20678, Ajman 9716743 2565
46 International Radiators
Industry
Radiators UAE-Sharjah PO Box 388, Sharjah 9716 5344999
47 Sabah Car Radiator
Industry
Radiators UAE-Sharjah PO Box 44,Sharjah 9716 5341926
48 Serck Services-Gulf ltd Radiators UAE-Sharjah PO Box 5834,Sharjah 9716558 2607
49 Automotive Ancillaries Ltd Spring UAE-Dubai PO Box 16755, Dubai 8816645
50 Al Baqa Mechanical &
Eng. CO Ltd
51 Aswan International
Engineering Co LLC
Spring UAE- Ajman PO Box 1546, Ajman 9716 7435942
Valves UAE-Dubai PO Box 31550,Dubai 8851300
52 Dolphin Brake linings UAE 971-6-7432565
69

Annexure-V-A
UAE Imports & Re-exports of Parts and Accessories
in 2006, 07 & 08 in value term Source- Dubai Port & Customs(Dubai World)
Table- Imports
HS Code HS Code Description 2008 2007 2006
ml AED ml AED ml AED
87081000 Bumpers & parts 251.12 142.68 78.55
87082100 Safety seat belts 8.20 5.61 2.58
87082910 Luggage carriers 11.84 21.05 6.38
87083000 Brakes and servo-brakes 195.96 1.25 0.00
87083100 Mounted brake linings 3.16 41.62 42.87
87083900 Brakes & servo-brakes & parts-II 51.55 404.35 161.27
87084000 Gear boxes 71.61 56.34 40.26
87085000 Drive-axles with differential, 31.37 48.05 32.06
87087000 Road wheels & parts & accessories 283.27 220.27 196.58
87088000 Suspension shock-absorbers 200.00 304.48 242.86
87089100 Radiators 65.20 51.66 40.23
87089200 Silencers & exhaust pipes 27.32 12.18 12.26
87089300 Clutches & parts 441.09 502.78 228.04
87089400 Steering wheels, columns & boxes 182.83 181.53 97.83
87089500 Safety airbags 6.55 0.05 0.00
87089900 Parts & accessories of vehicle body 8,558.91 6,855.48 5,391.18
Total 10,389.97 8,867.91 6,591.61
Table- Re-exports
HS Code HS Code Description 2008 2007 2006
ml AED ml AED ml AED
87081000 Bumpers & parts 58.96 48.96 26.28
87082100 Safety seat belts 30.30 31.68 17.85
87082910 Luggage carriers 1.08 7.99 1.00
87083000 Brakes and servo-brakes 13.13 0.09 0.00
87083100 Mounted brake linings 0.20 5.08 4.75
87083900 Brakes & servo-brakes & parts-II 9.69 74.83 31.45
87084000 Gear boxes 13.35 25.48 15.89
87085000 Drive-axles with differential, 5.14 12.54 6.75
87087000 Road wheels & parts & accessories 91.14 100.38 91.03
87088000 Suspension shock-absorbers 97.48 84.89 70.12
87089100 Radiators 17.22 68.65 46.66
87089200 Silencers & exhaust pipes 4.03 4.32 1.52
87089300 Clutches & parts 108.73 128.75 78.92
87089400 Steering wheels, columns & boxes 88.99 26.28 6.10
87089500 Safety airbags 0.62 0.01 0.00
87089900 Parts & accessories of vehicle body 3,665.59 3,072.04 2,088.00
4,206.72 3,693.54 2,487.77
70

Table- Imports
Annexure-VB
UAE Imports & Re-exports of Parts and Accessories
in 2006, 07 & 08 in no of units (Source- Dubai Port & Customs(Dubai World)
HS Code HS Code Description 2008 2007 2006
87081000 Bumpers & parts 790,993 205,650 210,030
87082100 Safety seat belts 34,606 162,357 247,485
87082910 Luggage carriers 57,820 53,912 39,083
87083000 Brakes and servo-brakes 1,743,193 10,396 0
87083100 Mounted brake linings 3,612 98,944 73,550
87083900 Brakes & servo-brakes & parts-II 21,558 537,965 445,730
87084000 Gear boxes 154,678 49,022 20,354
87085000 Drive-axles with differential, 771,396 21,011 10,002
87087000 Road wheels & parts & accessories 2,889,040 1,385,680 1,051,517
87088000 Suspension shock-absorbers 1,169,773 410,777 508,149
87089100 Radiators 369,700 119,072 94,541
87089200 Silencers & exhaust pipes 115,346 71,800 46,849
87089300 Clutches & parts 1,835,596 394,930 338,029
87089400 Steering wheels, columns & boxes 193,487 71,948 70,168
87089500 Safety airbags 20,572 10 0
87089900 Parts & accessories of vehicle body 30,309,298 5,606,998 3,684,515
40,480,668 9,244,910 6,861,373
Table- Re-exports
HS Code HS Code Description 2008 2007 2006
87081000 Bumpers & parts 175,947 21700 29,332
87082100 Safety seat belts 430,409 2136 46676
87082910 Luggage carriers 6,764 2675 9411
87083000 Brakes and servo-brakes 54,364 125,067 0
87083100 Mounted brake linings 603 5,702 14,199
87083900 Brakes & servo-brakes & parts-II 23,117 15,192 75091
87084000 Gear boxes 24,570 72,717 6335
87085000 Drive-axles with differential, 39,001 25,631 5,225
87087000 Road wheels & parts & accessories 536,184 191462 262,776
87088000 Suspension shock-absorbers 194,847 266,495 113710
87089100 Radiators 107,738 190,185 77,448
87089200 Silencers & exhaust pipes 78,261 5,745,781 7025
87089300 Clutches & parts 562,674 29,504 94577
87089400 Steering wheels, columns & boxes 497,625 143,086 7,022
87089500 Safety airbags 458 12 0
87089900 Parts & accessories of vehicle body 28,208,085 3,151,127 2326588
30,940,647 9,988,472 3,075,415
71

Annexure-VI-A
UAE Trade On Tyre & Tyre Products-2008
Source- Dubai Port & Customs(Dubai World)
NEW PNEUMATIC TYRES
of a kind used on motor cars (including station
wagons & racing cars).
of a kind used on buses & lorries.
of a kind used on aircraft.
of a kind used on motorcycles.
of a kind used on bicycles.
of a kind used on argricultural or forestry
vehicles
of a kind used on construction or industrial
handling vehicles < 61 cm
of a kind used on construction or industrial
handling vehicles>61 cm
of a kind used on agricultural or foresty vehicles
& machines.
having a herring-bone" or similar tread, n.e.s.
of a kind used on agricultural or forestry
vehicles & machines
ew pneumatic tyres of rubber, n.e.s.
SUB-TOTAL
RETREATED TYRES
of a kind used on motor cars (including station
wagons & racing cars)
of a kind used on buses or lorries.
of a kind used on aircraft.
Others
SUB-TOTAL
USED PNEUMATIC TYRES
Used pneumatic tyres, of rubber
TYRE TREADS AND TYRE FLAPS
Solid or cushion tyres, tyre treads &
tyre flaps, of rubber
INNER TUBES
For motor cars buses or lorries.
For bicycles.
SUB-TOTAL
TOTAL
Source- Dubai port & customs, Dubai World
IMPORT RE-EXPORT
Value (AED) Units
1853365027 9636233
1190378134 2198087
34923969 9062
9795180 153801
14,681,597 118,722
22,579,890 100,365
47,346,029 50,155
9,167,141 4,520
969519 5193
Value (AED) Units
1324694809 4898306
284566493 565151
4738330 1054
7603778 37086
9,071,693 44,959
71,065 405
2,678,296 13,644
1,179,262 225
247606 603
3,170,660 11,167
1,147,181 3,444
54,418,049 21,847 8,757,438 146,936
95787325 448235
3,336,582,520 12,757,387
633119 2701
3726889 20852
4,670,578 1,707
550,244 1,140
9,580,830 26,400
199842 3702
11,952,010 135,866
88229683 531643
11836720 692572
16855195 135604
116921598 1359819
3,475,236,800 14,283,174
58258875 159414
1,703,014,826 5,871,227
2711137 19571
645368 250
6,246,604 1,010
222,875 128
9,825,984 20,959
12043841 268279
2,098,940 1,902
40286988 206381
5121461 622739
10736405 55839
56144854 884959
1,783,128,445 7,047,326
72

Annexure-VI-B
UAE Trade On Tyre & Tyre Products-2007
Source- Dubai Port & Customs(Dubai World)
NEW PNEUMATIC TYRES
of a kind used on motor cars (including station wagons &
racing cars).
of a kind used on buses & lorries.
of a kind used on aircraft.
of a kind used on motorcycles.
of a kind used on bicycles.
of a kind used on argricultural or forestry vehicles
of a kind used on construction or industrial handling
vehicles < 61 cm
of a kind used on construction or industrial handling
vehicles > 61 cm
having a "herring-bone" or similar tread, n.e.s.
of a kind used on agricultural or foresty vehicles &
machines.
of a kind used on construction or industrial handling
vehicles < 61 cm.
of a kind used on construction or industrial handling
vehicles > 61 cm.
New pneumatic tyres of rubber, n.e.s.
SUB-TOTAL
RETREATED TYRES
of a kind used on motor cars (including station wagons &
racing cars)
of a kind used on buses or lorries.
of a kind used on aircraft.
Other
SUB-TOTAL
USED PNEUMATIC TYRES
Used pneumatic tyres, of rubber.
TYRE TREADS AND TYRE FLAPS
Solid or cushion tyres, tyre treads & tyre flaps, of rubber.
INNER TUBES
For motor cars, buses or lorries.
For bicycles
Other
SUB-TOTAL
Total
Source- Dubai port & customs, Dubai World
IMPORT RE-EXPORT
Value(AED) Unit
1382503324 8439240
1111091646 2614907
17529785 9640
7617082 57483
15,405,549 80,598
16602029 65806
12096654 34443
21,532,173 13,661
1688460 1165
3,672,028 21,834
16,044,455 36,624
33,403,103 10,971
58265503 208821
2,697,451,791 11,595,193
865890 3746
5322149 26467
4,372,001 2,396
478971 1599
11,039,011 34,208
427123 4415
11389461 48330
56177100 418678
8076551 68390
2,370,762 23,116
66,624,413 510,184
2,786,931,799 12,192,330
Value(AED) Unit
1260471315 4629483
404045338 1323997
5602363 5360
9265834 46425
7,360,456 14,083
271193 195
2916918 7563
111,808 117
208195 47
1,274,758 6,697
5,893,978 1,357
4,475,423 4,559
47336695 65397
1,749,234,274 6,105,280
6410729 1819
1816104 1570
2,499,150 638
468865 2583
11,194,848 6,610
14687184 27251
2149187 2728
23376127 54742
2759298 8055
5,896,957 38,893
32,032,382 101,690
1,809,297,875 6,243,559
73

Annexure-VII
Key Global Tyre Manufacrurers Contact Details
Company Contact Information
Bridgestone Shoshi ARAKAWA, Chairman of the Board , 10-1 Kyobashi 1-chome, Chuo-ku, Tokyo, 104-8340,
Japan, Tel- 81 3 35636822/ 81-3-3535-2553
Michelin Chairman Supervisory Board: Éric Bourdais de CharbonnièreCompagnie Générale des
Établissements Michelin, 23, place des Carmes-Déchaux, 63040 Clermont-Ferrand, France, Tel.
+33-4-73-32-20-00/ Fax +33-45-66-15-53
Goodyear Chairman, President, and CEO: Robert J. (Bob) Keegan, The Goodyear Tire & Rubber Company,
1144 E. Market St.Akron, OH 44316-0001,OH, USA, Tel. 330-796-2121/ Fax 330-796-2222
Continental Elmar Degenhart (CEO and Chairman of the executive board), Continental AG, Vahrenwalder
Strasse 9, D-30165 Hannover, Germany, Tel. +49-511-938-01/ Fax +49-511-938-81-770
Sumitomo Rubber Mitsuaki Asai, Chairman, Sumitomo Rubber Industries, Ltd.3-6-9 Wakihama-cho, Chuo-ku, Kobe
651-0072, Japan
Tel. +81-78-265-3004/ Fax +81-78-265-3113
Toyo Tire & Rubber Kenji Nakakura, President & CEO, Toyo Tire & Rubber Co., Ltd., 1-17-18 Edobori, Nishi-ku, Osaka
550-8661, Japan
Tel. +81-6-6441-8801/ Fax +81-6-6446-2225
Yokohama Tadanobu Nagumo, President and Representative Director, The Yokohama Rubber Co., Ltd. 36-11,
Shimbashi 5-chome, Minato-ku, Tokyo 105-8685, Japan, Tel. +81-3-5400-4531/ Fax +81-3-5400-
4570
Kumho Jong Ho Klm, President and CEO, Kumho Tires Co Inc, 555, Schon-dong, Gwangsan-gu, Guangju,
Korea, TEL- 062-9402114/ 82-2-6303-8297
Hankook Cho Yang-Rai , Chairman, Hankook Tire Co., Ltd. 647-15 Yeoksam-dong, Gangnam-gu, Seoul 135-
723, South Korea
Tel. +82-2-2222-1000/ Fax +82-2-2222-1100
Cooper Roy V. Armes, Chairman, President, Cooper Tire & Rubber Company, 701 Lima Ave., Findlay, OH
45840, OH , USA Tel. 419-423-1321, Toll Free 800-854-6288, Fax 419-424-4212
Nokian Henrik Therman, Chairman, Nokian Tyres plc, Pirkkalaistie 7, FIN-37101 Nokia, Finland,
Tel. +358-10-401-7000/ Fax +358-10-401-7799
GT Radial Dr Enki Tan, Chairman, No.280-2,linhong Road, Changning District, Shanghai 200335,P.R.China
Tel- (86-21) 2207 3333/ Fax- (86-21) 2207 3000
CEAT R. P. Goenka, Chairman, CEAT Limited, CEAT Mahal, 463, Dr Annie Besant Road, Worli, Mumbai -
400 030 Telephone: +91 22 2493 0621/ Fax: +91 22 2493 8933
MRF MRF Limited, 124, Greams Road, Chennai - 600 006, India.
Phone : 91 - 44 – 28292777/ Fax : 91 - 44 - 2829 1844 / 0562
Apollo Onkar S Kanwar (CMD), Apollo Tyres Limited, Apollo House, 7 Institutional Area, Sector 32,
Gurgaon 122001 , Haryana, India Tel: +91 124 2721000/ Fax- 91 124 2721000
JK Tyre H.S.Singhania, Chairman, JK Tyre and Industries Ltd. Link House,, Bahadurshah Zafar
Marg, New Delhi - 110 002 Tel-91-11-23311112-7/ Fax- 91-11-23322059
Pirelli Marco Tronchetti Provera (Chairman of the board and CEO),, Pirelli Group, Viale Sarca, 222 Pirelli
& C. S.p.A 20126 Milano, Tel- +39 02 64421/ +39 02 6442 2670
74

Annexure-VIII
UAE Trade On Vehicle Battery (Accumulators)-2006-2008
Source- Dubai Port & Customs(Dubai World)
YEAR-
2008 IMPORTS RE-EXPORTS
HS Code HS Code Description Value (AED) Units Value (AED) Units
85071000 Lead-acid electric accumulators 540,685,783 1,486,667 195,855,500 729,548
85072000 Lead-acid electric accumulators,
Nickel-cadmium electric
98,882,052 174,370 6,146,077 14,022
85073000 accumulators. 31,085,088 140,181 37,734,888 248,898
85074000 Nickel-iron electric accumulators. 211,193 71 381,650 62
85078000 Electric accumulators, n.e.s. 51,760,920 146,718 6,596,153 2,607
85079000 Parts of electric accumulators. 3,736,475 35,947 483,097 5,393
Total 726,361,511 1,983,954 247,197,365 1,000,530
YEAR-
2007
HS Code
: HS Code Description : Value(AED) Unit Value(AED) Unit
85071000 Lead-acid electric accumulators 447973827 1330067 198792553 648740
85072000 Lead-acid electric accumulators
Nickel-cadmium electric
54743681 101951 2092049 7704
85073000 accumulators. 15745827 182782 14497591 3608
85074000 Nickel-iron electric accumulators. 81864 878 152967 1469
85078000 Electric accumulators, n.e.s. 27462288 70435 11010986 3921
85079000 Parts of electric accumulators. 7843938 18515 584591 3997
Total 553,851,425 1,704,628 227,130,737 669,439
YEAR-
2006
HS Code
: HS Code Description : Value(AED) Unit Value(AED) Unit
85071000 Lead-acid electric accumulators 251928815 1217169 126624400 486322
85072000 Lead-acid electric accumulators,
Nickel-cadmium electric
34952404 78544 2716978 15272
85073000 accumulators. 20118595 178373 10528256 7113
85074000 Nickel-iron electric accumulators. 337725 1634 134328 1553
85078000 Electric accumulators, n.e.s. 23279397 71290 10452681 19870
85079000 Parts of electric accumulators. 4295687 193063 654809 6732
Total 334,912,623 1,740,073 151,111,452 536,862
75

Annexure-IX
UAE Trade On Electrical Ignition system - 2006-2008
Source- Dubai Port & Customs(Dubai World)
Year-2008
HS Code HS Code Description Value (AED) Units Value (AED) Units
85111000 Sparking plugs. 65,783,493 2,410,352 24,946,131 25,039
85112000 Ignition magnetos; magneto-dynamos;etc 206,981 1,052 596,664 1,656
85113000 Distributors; ignition coils. 10,374,531 47,824 2,240,557 4,961
85114000 Starter motors & dual purpose starter-generators. 23,277,776 26,943 10,811,500 12,626
85115000 Generators for internal combustion engines, n.e.s. 30,529,240 58,876 35,581,344 16,917
85118000 Electrical ignition or starting equipment 7,437,748 44,770 2,909,280 2,936
85119000 Parts of electrical ignition or starting equipment 21,460,893 115,850 7,391,844 9,076
Total 159,070,662 2,705,667 84,477,320 73,211
Year-
2007
HS Code
: HS Code Description : Value(AED) Unit Value(AED) Unit
85111000 Sparking plugs. 46915241 48616 22420671 26984
85112000 Ignition magnetos; magneto-dynamos;etc 2781649 3492 1342357 1981
85113000 Distributors; ignition coils. 6199984 18272 969775 1260
85114000 Starter motors & dual purpose starter-generators. 13970749 33556 6163814 10657
85115000 Generators for internal combustion engines, n.e.s. 20271941 32638 17539776 10187
85118000 Electrical ignition or starting equipment 7301082 17865 1792090 946
85119000 Parts of electrical ignition or starting equipment 19707847 45665 7889298 5275
Total 117148493 200104 58117781 57290
Year-
2006
HS Code
: HS Code Description : Value(AED) Unit Value(AED) Unit
85111000 Sparking plugs. 33041892 360992 17130059 27584
85112000 Ignition magnetos; magneto-dynamos;etc 409,348 432 82,662 193
85113000 Distributors; ignition coils. 11315771 14780 1492687 3836
85114000 Starter motors & dual purpose starter-generators. 18,745,929 28,864 4,745,644 6,638
85115000 Generators for internal combustion engines, n.e.s. 18722176 29643 14410455 16017
85118000 Electrical ignition or starting equipment 6684512 21062 1199042 1044
85119000 Parts of electrical ignition or starting equipment 20683080 49436 7953729 12904
Total 109602708 505209 47014278 68216
76

Annexure-X
UAE Auto Dealers
Company Brand Coverage area
AGMC BMW, MINI, Alpina UAE
Al-Futtaim Toyota Motor, Lexus UAE
Al Ghandi Auto Fiat, Proton, Chevrolet, General Motors Dubai, Sharjah
Al Habtoor Motors Mitsubishi Motors, Galloper UAE
Al Khoory Automobiles Subaru Dubai, Northern Emirates
Al Majid Motors Kia Motors, Renault UAE
Al Nabooda Automobiles Volkswagen, Porsche, Audi UAE
Ford Motor*, Rover, Range Rover, Jaguar Cars,
Al Tayer Motors Ferrari, Maserati
GM Daewoo Auto & Technology, Daihatsu
UAE
Al Yousuf Motors
Motor UAE
Arabian Automobiles Nissan Motor, Renault Dubai and Northern Emirates
Autostar Trading Škoda Auto UAE
Bin Dhahir Motors SEAT
Mazda Motor, Mahindra & Mahindra, Bajaj
UAE
Galadari Automobiles Tempo UAE
Gargash Motors Mercedes-Benz Dubai, Northern Emirates
Genavco Isuzu Motors UAE
Al Jazira Motors Lamborghini UAE
Juma Al Majid Est Hyundai UAE
Liberty Automobiles Cadillac, Hummer, Opel ‡ , Chevrolet § UAE
Nadoo Motors Pudmani, LDV UAE
National Auto General Motors ‡ , SsangYong Motor UAE
Swaidan Trading Peugeot ‡ Jeep+, Honda Motor, Chrysler, Volvo Cars,
UAE
Trading Enterprises Dodge UAE
Abu Dhabi Motors BMW Abu Dhabi
Al Masaood Automobiles Nissan Motor Abu Dhabi
Ali and Sons Motors Porsche, Volkswagen, Audi Abu Dhabi and Al Ain
Bin Hamoodah Autos Opel, General Motors Abu Dhabi
Emirates Motor Company Mercedes-Benz Abu Dhabi
Omeir Bin Youssef Peugeot Abu Dhabi
Western Motors Fiat, Jeep Abu Dhabi
77