Given the fact that the passenger car and commercial vehicle sales in the UAE grew at a CAGR of more than 10 per cent during 2010-2014 with the rate of growth expected to spill over into 2016, it is but obvious that this will benefit both, the tyre and the replacement tyre market across the United Arab Emirates. Major cities in the UAE such as Dubai, Abu Dhabi and Sharjah are among the leading demand generators for tyres, and are anticipated to continue as the primary contributors to the growth of the region’s tyre market over the forthcoming years.
Some of the leading tyre players operating in the UAE include Bridgestone, Michelin, Dunlop, Goodyear and Yokohama. According to a recent industry report, due to significant industrial growth, the region’s automotive industry has been flourishing at a swift pace over the last decade. The UAE’s economy is highly dependent on the oil sector, and consequently, the government of the UAE has been increasing its focus on non-oil sectors over the last five years. As a result, the region has been witnessing significant developments in real estate, logistics and infrastructure sectors, which have led to substantial growth in mining and construction industries, thereby boosting demand for construction vehicles, mining equipment and OTR vehicles in the country. These factors have had a positive impact on the country’s tyre industry during 2010-2014 and the trend is likely to continue.
According to another report titled ‘UAE Tyre Market Forecast & Opportunities, 2019’, the UAE tyre market revenues are projected to grow at a CAGR of around 11 per cent during 2014-19. UAE’s demographics and macro-economic indicators have been ensuring significant growth in tyre demand. Besides, the region is the largest consumer products importer, including tyres, within the GCC regions.
Globally, tyre manufacturers are striving to develop a zero-collision driving environment. In terms of road safety, TPMS and anti-collision braking system have become an integral part of the UAE automotive market. Moreover, the UAE government’s liberal taxation policies and investment support systems are encouraging foreign investors to invest into the country. All of these factors are cohesively augmenting the tyre market in the UAE.
Source: TechSci Research, Research & Markets