Dubai Tyre Trade Worth £729 million

Dubai’s direct tyre trade (both commercial and passenger car products) amounted to 4.15 billion UAE dirhams (£729 million, 773 million euros, US$1.13 billion) in 2007, according to the Gulf Daily News. Further growth is expected next year, the paper reported.

“Commercial tyres worth 1.1 billion (175 million, 186 million euros) dirhams for buses and lorries were imported to Dubai last year, mainly from Japan, China, and India,” said Automechanika Middle East senior show manager Michael Dehn, adding: “…Dubai consumes almost 64 per cent, re-exporting 36pc to Iran, Iraq, Saudi Arabia, and Africa. The commercial vehicle market is an essential industry in the UAE and an increase of 35 per cent is expected from this year to 2012.”

Dubai itself is a transport-oriented city. With one car for every 1.84 residents, and an average vehicle occupancy rate of 1.7, it has a higher 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 parts being imported for domestic use and re-export to other countries.

As a lucrative market for other countries exports, Dubai’s potential is larger than its size would indicate. A thriving re-exports trade market increases the demand with a large percentage of tyres imported into Dubai for redistribution into neighbouring markets. “Imports of tyres for passenger cars are valued at almost 1.4 billion dirhams, while re-exports amounted to 1.25 billion,” said Dehn.

The positive trend for tyre industry is not just limited to the UAE, but the entire Middle East is characterised by a diverse structure of economies, climates and transport conditions. The lack of railway connections on the Arabian Peninsula, is known to force most of the overland-transport on the road, making it a high-volume sales territory for tyre manufacturers.

Organisers of the region’s Automechanika Middle East show, the largest event for the rapidly developing vehicle aftermarket in the wider Middle East and Africa, are looking to introduce the show to still more tyre traders. According to the show’s organisers, tyre wholesalers and dealers represented the third biggest visitor group at the exhibition this year. In 2008 it featured over 900 exhibitors from 44 countries and a visitor attendance of more than 17,500 from 127 countries. Next year’s exhibition is scheduled to take place between 31 May and 2 June.

Organisers of the region’s Automechanika Middle East show, the largest event for the rapidly developing vehicle aftermarket in the wider Middle East and Africa, are looking to introduce the show to still more tyre traders. According to the show’s organisers, tyre wholesalers and dealers represented the third biggest visitor group at the exhibition this year. Next year’s exhibition is scheduled to take place between 31 May and 2 June.