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25 April 2024

Dubai maintains its position as ME automotive Hub

Published
By Staff

Dubai continues to maintain its position as the Middle East's automotive hub, following the extremely successful Commercial Vehicles Middle East (CVME) exhibition this month.

The lack of automotive manufacturing industry within the Gulf region has created a demand for a well-developed and strong re-export trading sector, particularly for commercial vehicles as investment and projects in the region are on the rise.

Year-on-year growth of Dubai re-exports in workshop equipment, tires, batteries, parts and systems, and accessories has surged, and the region has seen significant movement, partly as a result of a huge construction boom in Saudi Arabia requiring companies to expand their vehicles fleets.

Double digit growth in the UAE commercial vehicles market in 2011 is expected to continue throughout 2012, according to Emirates Money a consumer finance company. A-MAP, the region's leading distributor of automotive spare parts, batteries and tyres, grew a whopping 60 percent in 2011 compared to 2010, with plans to consolidate further in 2012.

"Having previously only focused on passenger cars, there has been a great demand for products within the commercial vehicle industry from clients locally," said Asad Badami, managing director of A-MAP.

"We've brought on board local clients like Bilal Transport, Al Faris and Swaidan Trading, and we saw CVME as a prime opportunity to create relationships with regional and international companies," he added.

A-MAP saw an incredibly busy and successful 2011. Last year saw A-MAP expand its logistical operations considerably within the UAE, with a branch office opening in Jebel Ali Free Zone along with increased warehousing facilities for smoother distribution to regional customers. 2012 will see A-MAP increase its domestic distribution network with plans to open a distribution facility in Abu Dhabi. Sustained growth is expected throughout 2012 in both revenue and manpower, with the company aiming to increase its annual turnover to Dh1 billion by 2015.

A-MAP is the exclusive distributor of the Solite brand of batteries, and officially launched the range to commercial vehicles at CVME, as the only battery exhibitor on site.

"We forged significant relationships with many great local and international companies as a direct result of our participation at CVME. We expect to be able to bring on board as many as 10 to 15 new customers following the exhibition and carve out a significant share of the commercial vehicle market," said Badami.