Jafza has seen a four-fold growth in the last 10 years, growing from $1.1 billion in 2004 to $4.7 billion in 2013.
The automotive sector trade in Jebel Ali Free Zone, or Jafza, the flagship free zone of Dubai and the UAE, has seen a four-fold growth in the last 10 years, growing from $1.1 billion in 2004 to $4.7 billion in 2013.
These numbers were revealed by Talal Al Hashimi, chief operating officer of Economic Zones World, or EZW, the parent company of Jafza, in his welcome address during a strategic customer forum for automotive sector that the free zone organised for the industry.
Ibrahim Mohamed Al Janahi, deputy chief executive officer of Jafza and chief commercial officer of EZW, said: “The dynamic growth in the sector reflects the upcoming boom the industry is slated to experience in the coming years. The buoyant mood in the auto sector in the GCC and the Mena region offer huge long-term growth opportunities to Jafza-based existing companies, as well as the new multinationals who want to capitalise on the world’s most attractive market for the auto industry. The total vehicles sales in the Mena are estimated to be close to four million a year, which may grow to nearly seven million by 2020. The auto component market in the region in the next three years is expected to witness double digit growth.”
Al Janahi was referring to a recent report from the Boston Consulting Group that predicted the above vehicle sales growth by 2020. According to Frost & Sullivan, the total number of registered cars and pick-ups in the GCC is expected to record a CAGR of 6.3 per cent in 2012-17 to total 16.36 million units in 2017. Over the same period, the number of trucks and buses on the road is expected to reach 1.42 million in 2017.
This increase will positively impact on the aftermarket, driving up the demand for auto components and services. The remarkable growth in the auto sector is largely driven by the region’s high national wealth, growing per-capita income and significant government investment on building social and economic infrastructure and buoyant private sector.
“This is the reason demand for luxury cars increased significantly in the last two years,” Al Janahi added. “Fiat Chrysler’s Maserati, Jaguar Land Rover, Bentley, Porsche, Rolls-Royce and BMW have seen 80 per cent, 46 per cent, 45 per cent, 26 per cent, 17 per cent and 15 per cent growth in their Middle East sales in 2013, respectively. All these companies have their regional headquarters in Jafza.”© Copyright - Khaleej Times