According to recent statistics released by Dubai Customs, Dubai’s automotive spare parts trade has been growing at a respectable pace in recent years.
From 2010, when the figure was Dhs32 billion, it grew to Dhs36 billion in 2011, and in 2012 Dubai’s automotive spare parts trade was worth Dhs37 billion.
Factors contributing to the steady growth rate include economic incentives as directed by the government such as infrastructure improvements, including the presence of Free Zones and Industrial Areas within Dubai contribute to facilitate investment in Dubai’s ports and customs areas. Further, the presence of pragmatic government policies have worked to enhance the logistical support services which assist operations at the parts, storage & transport levels in this segment.
The bulk of Dubai’s foreign trade in automotive spare parts and accessories is made up of import/export and re-export activities.
Japan is the leading importer of spare parts from Dubai at 28 percent of the city-state’s automotive spare parts exports, translating to a value of Dhs6.1bn, followed by China with a share of 13 percent equivalent to Dhs2.8bn. South Korea bagged third position having a share of 11 percent, with a value of Dhs2.3bn. The three countries make up a total of 51 percent of Dubai’s exports in the automotive spare parts import/export business.
Dubai has been successful in playing a significant role in the development of the automotive spare parts trade by linking together with countries such as Saudi Arabia, Oman and Afghanistan, which also participate in the import/export of spare automotive parts. Its position is further strengthened by the other UAE emirates, which also import automotive spare parts from Dubai.
Further legislative enhancements are planned, to promote more special economic zones and other financial incentives to allow this, and other import/export success stories to capture more of the global market share in the automotive spare parts and accessories trade — and in other import/export/re-export businesses.