No Image

Launching Future Drainage & Stormwater Networks KSA Seminar

January 18, 2017 UAE Business 0

Advanced Conferences & Meetings (ACM) is launching Future Drainage & Stormwater Networks KSA Seminar on 17-18 April 2017 in Riyadh. This specialized conference will focus on the updates, strategies, and technologies for optimizing stormwater, drainage and sewage projects across Saudi Arabia. It will also discuss the recent drainage contracts, worth $267m across 14 governorates in KSA, as well as Riyadh Municipality’s flood management projects, and Jeddah Stormwater Drainage Programme Updated Masterplan. Read more

No Image

Frost & Sullivan’s Yearly Sectoral Analysis on Automotive Sector in GCC

January 13, 2017 Vitali Bielski 0
MARKET OVERVIEW As GCC (Gulf Cooperation Council) economies end the second year of low oil prices, Frost & Sullivan analyzed the year 2016 for the automotive market and what can be expected in 2017. The year 2016 has certainly been tough for the automotive industry across virtually all countries in the GCC. New vehicle sales dropped by double-digit number, overstocking of parts by distributors, lack of clarity for the near future – these were the main causes for a volatile year. Despite that, one thing remains clear: automotive industry will only grow in the region. There are several reasons for it. The market is characterised by relatively low price elasticity in demand. Still underdeveloped public transportation network (with the exception of urban areas like Dubai and Riyadh) and lack of alternative fuels means that recent fuel price increases are not likely to have a significant impact on the industry in 2017. But as new vehicle sales are expected to remain moderately positive in the medium term, automotive companies will look for alternative profit sources. There are still several untapped areas, which offer significant profit margins but will require more effort in order to reap them. Such opportunities include used car sales, F&I (finance and insurance) as well as car accessories. Top Eight Predictions for the Automotive Industry in the GCC:

1)        Pre-VAT sales rush. After an unstable 2016 resulting in a drop in new vehicle sales (reaching 1.35-1.40 million units) across the GCC, the market is expected to stabilise and show a moderate growth in 2017 (up to 1.48-1.50 million units) due to several key factors. Firstly, the region’s macroeconomic situation is improving (non-oil Gross Domestic Product in the GCC is set to accelerate to 3% in 2017 from 1.8% in 2016 IMF, 2016) and new vehicle sales in 2017 are likely to be uplifted by a planned VAT (Value Added Tax) introduction by most GCC states in 2018. Although for majority of businesses it means additional complexity, VAT is ultimately paid by the customer. Customers previously planning a vehicle purchase in the next two years from now are likely to purchase vehicles before a 5% tax (most likely rate to be adopted) is levied in 2018. Read more