Saudi to develop auto parts industry

According to industry figures Saudi Arabia is the biggest importer of vehicle components and accessories in the Middle East. It is estimated there are over 6 million vehicles in the Kingdom and automotive aftermarket imports, excluding tyres, exceeded US $665 million last year.

Speaking at AAME 2003, that concludes its record breaking three-day run at the Dubai International Exhibition Centre (DIEC) tonight, Mohammed A Al-Nutaifi, Marketing Consultant with the Saudi Industrial Development Fund's (SIDF) Projects Department, said the Kingdom is keen to attract more foreign investment and create jobs for its burgeoning population.

'SIDF is offering subsidised loans and other incentives, such as low cost energy and services and tax breaks, to foreign companies wanting to establish factories to help meet the huge domestic demand for vehicle components and accessories,' said Al Nutaifi.

'With better servicing facilities, Saudi car owners are keeping their vehicles longer and with the increase in vehicle life, the market for spare parts, particularly brake parts and batteries, is experiencing double digit growth. Last year replacement vehicle components accounted for over 60% of automotive aftermarket imports.

'Climate and long travel distances are additional factors contributing to the need for spare parts and garage equipment. In addition, the influx of used cars generates further demand, since a large number of these vehicles require repairs and reconditioning before being sold to the retail market.

'AAME is an important international trade show. It is a great opportunity to meet with a broad range of automotive aftermarket companies from different countries and make them aware of the opportunities available in the Kingdom,' said Al Nutaifi.

AAME organiser International Expo-Consults (IEC) said the show is on course to set a new visitor record, with numbers for the first two days up 50% on last year. IEC had already announced a 30% rise in exhibitors for the show compared with last year.

'The move to DIEC from Airport Expo has definitely benefited the exhibition,' said Mohammed Falaknaz, Vice President, IEC. 'From now on this will be AAME's home. The change has significantly increased visitor numbers and raised the event's profile.'

IEC has already announced that next year's event will expand to 4,000 square metres, with both Turkey and Taiwan committing to double the size their national pavilions. And, for the first time, a US pavilion is on the cards for 2004.

'The substantial growth of AAME, and its ability to further expand its exhibitor footprint to countries like the US, underscores the event's key role in providing a window on the Middle East market that is worth US $8 billion and growing annually at 6%,' said Falaknaz.

AAME features over 150 vehicle spare parts, component and accessory manufacturers and suppliers, from North and South America, Europe, the Middle and Far East and Australasia.

The trade only exhibition is open from 10 am to 1 pm and from 5 pm until 9 pm. No one under the age of 18 years will be admitted.