Automotive and Spare Parts Sector in Jafza

August 14, 2016 | By Yasir Saeed

Automotive and Spare Parts Sector in Jafza


Global automotive production is expected to exceed 100 million vehicles by 2017, according to Moody’s Investor Service, which sees auto sales improving in 2016, with steady growth in the US and strong sales in Western Europe. This will offset the lower sales  in Japan and slowing growth in China.

The Middle East Market

In the Middle East and Africa region, 45 percent of the consumers prefer buying new cars, and 30 percent opt for used vehicles. By 2021, nearly 3 million cars will be built yearly in the Middle East and Africa region, an output increase of about 50 percent, according to PwC Autofacts. To gain a strong sales foothold in the Middle East and Africa region, PwC emphasises the need for automakers to have a substantial factory and distribution presence.

Frost & Sullivan, sees total light vehicle sales in the Middle East reaching 4.4 million by 2020, with the number of vehicles in operation on the Region’s roads touching 44.5 million. This rapid growth is also expected to drive up demand for part and accessories too, for which sales are forecast at reaching US$ 17.2 billion.

Within the AGCC region, increased government spending, low interest rates and  private sector activity are expected  to boost demand for light vehicles by 25 percent, to 1.75 million, according to Carmudi.

The Jafza Advantage

In 2015, Jafza’s specialised trade platform supported the trade of US$ 5 billion worth of vehicle and auto parts with its customisable manufacturing spaces, warehouse facilities and dedicated areas for packaging and repackaging, and a customs bonded corridor connecting Jebel Ali Free Zone to one of the world’s largest air cargo and shipping hubs. More than 620 of the world’s largest automotive and spare parts companies share this unsurpassed infrastructure with over 7,000 companies from 125 countries from around the world.

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