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with the Specialty Equipment Market Association) specifying requirements for the modification of passenger vehicles in the UAE came into effect on June 1, 2017, to limit the modification of passenger vehicles in the UAE in a bid to improve safety. The new rules are applicable to used and new passenger vehicles modified by the addition, substitution, or alteration of vehicle equipment or systems and car service centers and workshops which introduce car modifications in the country have to comply with certain technical specifications. Excluded from this, however, are the motorcycles, trailers, caravans and tractors.
Commercial Vehicles
The construction sector will continue to see increased demand for new heavy commercial vehicles (HCVs), especially in the run-up to Expo 2020 in Dubai. Construction opportunities related to hosting the event continue to flourish with facilities directly related to the Expo encouraging investments in tourism infrastructure. These will lead to increased HCV sales. Also, with rising tourism flows, will boost bus/minibus sales in the UAE.
With major infrastructure and housing projects being planned, this sector will experience continued growth. While light commercial vehicles sales should see a surging effect due to increased business and investments due to increased migration from neighboring countries, heavy commercial vehicles sales will remain supported by extensive infrastructure and other construction projects. Also, to cater to increased tourism and hospitality activities in the UAE, as well as growing demand for use by construction workers, the demand for bus and minibus will see continued positive growth.
Leading sellers of commercial vehicles in UAE include Toyota and Nissan. In the bus sub-segment, Hyundai is reportedly the leading player followed by other Chinese brands.
Market Entry & Barriers
Currently, there are relatively few barriers to exporting automotive products to U.A.E. beyond the conformity requirements previously mentioned. Since there is currently negligible automotive-related production in the U.A.E., U.S. vehicle and parts exports to the U.A.E. Arabia are currently supported by the country’s acceptance of vehicles/parts produced to U.S. standards. Therefore, relatively few homologation changes are needed prior to export to the U.A.E..
The U.A.E. currently is the sixth largest destination for U.S. exports of new passenger cars ($ 1.4 bn.) and second largest destination for used vehicles ($ 426 MN.). These present an opportunity for increased exports of U.S. aftermarket parts for those vehicles.
Aftermarket parts for off-road vehicles and SUVs have good potential in the U.A.E.. SUVs and 4x4 cars
market Entry