The direct trade in tires for commercial and passenger cars in Dubai is valued at more than AED 4.15 billion for 2007, growth trend is expected to rise further in 2009. “Commercial tires worth AED1.1 billion for buses and lorries were imported to Dubai in 2007, mainly from Japan, China, and India. Out of which Dubai consumes almost 64 percent, re-exporting 36 percent to Iran, Iraq, Saudi Arabia, and Africa,” said Michael Dehn, senior show manager of Automechanika Middle East. “The commercial vehicle market is an essential industry in the UAE, increase of 35 percent is expected from 2008 to 2012.” Dubai is a transport-oriented city - with one car for every 1.84 residents and an average vehicle occupancy rate of 1.7 - it has the highest rate of car ownership than any other city in the world. The absence of automotive manufacturing industries results in most of the vehicles and automotive parts being imported for domestic use and re-export to other countries. “Imports of tires for passenger cars are valued at almost AED1.4 billion, while re-exports amounting to AED1.25 billion,” Dehn added. As a lucrative market for other countries exports, Dubai's potential is larger than its size would indicate. A thriving re-exports trade market increases the demand; large percentage of tires imported into Dubai are for redistribution to neighboring markets. The positive trend for tire industry is not just limited to the UAE, but the entire Middle East is characterized by a diverse structure of economies, climates and transport conditions. The lack of railway connections on the Arabian Peninsula, forces most of the overland-transport on the road, making it a high-volume sales territory for tire manufacturers. Growing economies such as Dubai or Qatar, with a booming fleet, require the latest models and technologies. Emerging markets in Africa (Libya, Kenya, Nigeria) are sourcing their products from the region, mainly from Dubai. __
