Auto-sales across the GCC fuel the booming aftermarket

300 international vendors from across the globe showcase their latest products, designs and ideas during the premier aftermarket show. The exhibitors include industry leaders covering the entire range of automobile parts, accessories, repairs and maintenance, garage equipment, tyres, batteries and performance systems would be showcasing their product lines as 10,000 sq m of floor space gets converted into a single window showcase for the latest and the most diversified product lines in the aftermarket industry.

Announcing the show, Abdul Rehman Falaknaz, President, International Expo Consults, said,

'The international interest in the Middle East aftermarket industry can be gauged from the fact that AAME-2007 is earmarked for a stupendous 25 % growth rate. Everybody wants to be a part of the action in one of the most happening and lucrative markets in the world.'

Continuous growth in the automobile sales across the GCC is hugely catalyzing the boom in the Middle East aftermarket industry. The demand for automobiles is collaborated by the fact that GCC states are characterized by strong auto finance markets. The auto finance market in UAE alone is valued at roughly US$ 2.1 bn.

Official figures indicate that there are six million vehicles in the GCC states. Of the total, around 1.4 million vehicles comprise the domestic market in the UAE, with an average annual growth rate of 10 %. Incidentally, UAE is world's second largest per capita market for four wheel drives, Australia being the largest.

The relatively high standards of living in GCC countries collaborated by the fact that some of the countries boast the highest per capita incomes in the world, the rising oil prices, the booming economies along with a growing population are the driving forces behind the growth of the automotive sector.

These factors along with the fact that the market at large is characterized by a lack of significant domestic automobile production, makes the region an area of key interest for international industry and observers alike. 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.

Therefore not surprisingly Japan ranks first on the list of top automobile spare parts exporters to Dubai with exports totaling Dh 2 billion. Imports from China account to Dh 1.9 billion. The overall business potential of the regional aftermarket industry is pegged above US$ 18 billion per year.

The global interest generated by the soaring Middle East Aftermarket industry is evident from the fact that countries like the United Kingdom, Italy, Singapore, China, Taiwan , Turkey are have sought greater participation and would be setting up big pavilions. Group participation from Korea , Malaysia, Pakistan and India is also very much on the cards. The positive trends in the industry increase the possibility of doing greater business in the coming show.

'The 2007 show will be bigger and more diversified than last year's show. International vendors from 25 countries have already registered their participation in comparison to 19 countries in 2006. The 2006 show attracted visitors from 74 countries. Apart from a heavy influx of visitors from the UAE, the trade show attracts substantial participation from Iran, India, Russia, CIS, GCC and other Middle East countries', added Falaknaz.

In addition to serving as a meeting point for leading international manufacturers, suppliers and the regional buyers, AAME attracts industry analysts, key decision makers and consultants, as it showcases the opportunities created by one of the world's fastest growing markets.