Used car dealers move out of Abu Dhabi

More than 100 used car dealers have moved out of Abu Dhabi to a new location nearly 40 km outside the city at the instruction of authorities seeking to reorganise many businesses in the capital within the emirate’s Vision 2030.

The dealers, who have dotted both sides of the Airport Road in the city, shifted to the newly built Motor World in Shamkha after the end of a one-year deadline given to them by the Abu Dhabi Department of Economic Development (DED).

“All used car shops have completed the move…some of them did not go to Shamkha and preferred to start different business but most of the dealers are now based in Shamkha,” said Abu Saqr, a used car dealer.

Car shop owners had originally been given until mid 2011 to leave but the deadline was extended at their request so they can dismantle their business.

DED has constructed more than 100 show rooms for the dealers in the massive Motor World complex in Shamkha. But many dealers have complained about the exorbitant rents, which they say would make their business unfeasible.Motor World, not far from Abu Dhabi international airport, also includes many other services like car wash, maintenance, and registration and car park spaces. It also comprises a three-star hotel, auto spare parts and accessories shops, restaurants, parks and other facilities.

DED has given no reason for the move but Abu Dhabi, the main oil producing emirate in the UAE, has been locked in a massive development and reorganisation plan within its long-term Vision 2030 strategy.

The plan involves infrastructure expansions, relocation of car repair garages, moving construction workers out of the city and other projects. Most of Abu Dhabi’s used car shops were located on the Airport Road. Scores of new car showrooms are also scattered through the city of nearly 1.5 million people.

“I am not shifting but quitting this business,” Abu Saqr said. “I have already decided to switch to another business for two reasons—the new location is too far and rents are too high.Dealers said rents of car trading shops in Shamkha range between Dh170,000 and Dh500,000, which they describe as very high.In a statement on Saturday, DED told used car dealers they can still retain their shops on Airport Road but should switch to another business.It said businesses allowed at those shops include restaurants, travel agency, hair saloons, photography shops, bakeries, clothes shops and other light businesses.

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