Dubai auto parts trade rises 10%

Dubai’s auto parts and accessories trade was estimated to be worth more than $12 billion U.S. for 2014, a 10 percent increase compared to its value in 2013, Dubai Customs said Saturday.

“Dubai Customs has further enhanced automotive spare parts trade through an array of first-rate customs facilitations and services provided to traders in this sector, enabling them to cater for the market needs without delay thanks to streamlined and speedy clearance procedures,” Director of Dubai Customs Ahmed Mahboob Musabih said. “This comes in line with the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and ruler of Dubai, in regard to diversifying the texture of national economy.

“Serving a pivotal role in automotive spare parts trade, Dubai acts as liaison between Asian, European and North American manufacturing countries and the consuming markets in the region,” Musabih said.

“The development achieved by Dubai in all fields, especially in transport infrastructure with advanced and world-class road networks, ports, and airports, is one of the basic factors that promote the Emirate's ability to attract larger share of the world trade,” Musabih said. “Dubai is the destination of choice for trade exhibitions regionally and globally. And with Expo 2020 looming closer, everything is being set ready by putting in place sophisticated services and facilities to deliver to the world what would be the best mega exhibition experience in history.

Dubai Customs said Japan, South Korea, China, Germany and the U.S. were Dubai’s top country partners last year in terms of total auto parts trade.

“Crude oil price is the most important factor controlling growth of economy in the GCC (Gulf Cooperation Council), and good economic growth drives government investments, resulting in higher commercial vehicle sales,” Frost & Sullivan Regional Head for Automotive and Transportation in the Middle East and North Africa Subhash Joshi said. “Increasing population and rising per capita incomes are also driving higher consumption of goods, and the GCC economy is highly dependent on imports for these goods. Any growth in consumption patterns will lead to more transportation and logistics activities, resulting in higher demand for trucks and buses.”