Al Futtaim Group Case Study

Al Futtaim Motors

INTRODUCTION
The UAE is to position itself as a regional focal point for the commercial vehicles industry in the Middle East, which is aiming for more major growth as the market recovers from the effects of the global economic crisis.
This is already a thriving business in the Middle East, and all the signs point to a great deal of expansion over the next few years as the market recovers from the economic crisis and more manufacturers start production here.
The UAE is at the centre of regional growth in the commercial vehicles sector, largely due to the country's expanding public transport requirements.

An overview of the Automotive Industry in UAE
Auto sales in the UAE are expected to rise 5 per cent between 2009 and 2010 as an easing in liquidity conditions boosts confidence in the sector. 1
A general high-level of disposable income and renewed consumer confidence in the UAE on the back of easing liquidity conditions, provides a favorable background for the auto sector in the coming months. Furthermore, plans for a car production plant in the UAE could help initiate a local automotive manufacturing industry.

Since the UAE is the fastest growing auto market in the Middle East, the sector is in a position to expand with preliminary plans for a car production plant to help spawn a local auto manufacturing industry already in place.
The automotive sector was affected by the financial crisis as banks became more cautious in granting auto loans; but with the UAE accelerating on the path to economic recovery, banks are now being more flexible with auto financing which will no doubt benefit the sector, fuel the demand, and ultimately increase sales.

The analysis disclosed that it is increasingly apparent that the UAE automotive market is mature, with vehicle ownership rates of over 540 per 1,000 inhabitants a rate that exceeds most of the developing world.  

Car dealers in the UAE are optimistic on the outlook for the second half... [continues]

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