UAE Car Finance Market Outlook to 2021: Ken Research REQUEST FOR SAMPLE REPORT Buy Now Request For sample Report × Report Title Name Email Designation Phone No Comapny Name Comapny URL Country -- Please Select Your Country -- Afganistan Africa Albania Algeria Andorra Angola Anguilla Antigua and Barbuda Argentina Armenia Aruba Asia Australasia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire Bosnia Herzegovina Botswana Brazil BRICS British Virgin Islands Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Central and South America Chad Chile China Colombia Comoros Congo Costa Rica Cote d'Ivoire Croatia Cuba Curacao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Europe European Union Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia Georgia Germany Ghana Gibraltar Global Great Britain Greece Greenland Grenada Guadeloupe Guam Guatemala Guerney & Alderney Guinea Guinea-Bissau Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Ivory Coast Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Man (Island of) Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Middle East Minnesota Moldova Monaco Mongolia Monserrat Montenegro Morocco Morroco Mozambique Myanmar Namibia Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue North America North Korea Norway Oman Pakistan Palau Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Helena Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa Samoa (American) San Marino Sao Tome and Principe Saudi Arabia Scandinavia Senegal Serbia Seychelles Sierra Leone Singapore Sint Maarten Slovakia Slovenia Solomon (Islands) Somalia South Africa South Korea South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Islands Swaziland Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Timor Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Virgin Islands Western Sahara Yemen Zambia Zimbabwe Requirement Submit How Car Finance Market Is Positioned In UAE? The United Arab Emirates is the second-largest automotive market including cars, parts and accessories, trailers and semi-trailers, trucks, public transport vehicles, and tractors in the GCC after Saudi Arabia. Passenger cars account for approximately ~% of the UAE automotive market, with commercial vehicles such as trucks, vans and buses accounting for the remaining ~%. Owing to low car prices, well constructed highways, and most importantly the low fuel prices and easy availability of car finance, owning a car is relatively easier in UAE. UAE’s financing methods are different from the conventional methods of financing. Majority of the banks and finance companies follow the Sharia system which does not include the concept of interest. Until May 2011, the customers were eligible for 100% loan on cars; a system of down payment did not exist for car loans. In May 2011, the government, as a reform to tighten car financing, introduced the system of down payment. From then, the customers can obtain ~% of the cost as loan and ~% of the cost is mandated to be paid as down payment by them. During the review period, 2011-2016, the market has displayed a decent growth until 2015, but by the end of 2015 the market started declining. A fall in the credit disbursement had been observed during 2016 that was resulted out of the falling oil prices, increasing loan rejection rates, stringent lending policies adopted by the banks due to the piling up of non-performing loans and other such factors. However, upcoming trends such as increased demand of electric vehicles, growth of used car market and others are expected to enable the market recover in the coming years. What Are The Major Trends And Issues In UAE Car Finance Market? From the past few years, the demand for used cars is rising in the country. In 2014, the market for used cars has increased by ~% due to which it is estimated that the used car market will overtake the new car market in the next ten years. The used car market of UAE is worth nearly USD ~ billion as of 2016. The introduction of quotas for hybrid cars in government vehicle fleets, coupled with campaigns aimed at encouraging Dubai’s motorists to switch to environment friendly cars, is expected to open up new markets for the sector. Recently, the government of Dubai has decided that, 10% of all new vehicles bought by the Dubai government will be electric cars with a motive to reduce emissions by 16%, by the end of 2020. The rising rate of non-performing loans has induced the Central Bank of UAE to appoint an assessor of individual and corporate credit worthiness named Al Etihad Credit Bureau in 2014. The introduction of consumer credit data from the bureau has led to more cautious lending policies. This has increased the rejection rates of loans in the country thereby impacting the credit disbursed for car loans. What Is The Future Outlook For UAE Car Finance Market? The market is expected to recover during the forecast period from the fall that was observed towards the end of the review period. It is anticipated that the car finance market in the country will grow at a CAGR of ~% during the forecast period 2017-2021. The recovery is presumed to be at a slow pace due to various factors such as low deposit rates prevailing in the market and high rate of non-performing loans compelling the banks to consolidate their existing activities rather focusing on growth. Moreover, the impact of credit reports made available by the credit bureau is expected to raise the loan rejection rates. However, a growth is expected to be observed in the market even in the midst of all the aforementioned factors, which will be supported by an increased number of bundled offerings, new innovative strategies adopted by the banks and dealers and other entities. In accordance with the current trend, the used car penetration is displaying a consistent lift. Hence, it is anticipated that a rise in the demand for used car serve as a driving force for the proliferation of car finance market. Companies Cited In the Report List of Companies Companies Covered in the Report Mashreq Bank Dubai Islamic Bank Emirates Islamic Bank Major Players in UAE Car Finance Market Al Hilal Bank Emirates NBD Al Wifaq Finance Finance House Key Factors Considered In the Report UAE Car Loan Industry NBAD UAE Auto Finance Used Car Sales in the UAE Financing a Used car in UAE Compare Auto Loans in the UAE Car Financing Option in UAE Vehicle Financing in the UAE Used Car Financing in the UAE For more coverage click on the link below: https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/uae-car-finance-market/110143-93.html Related Reports by Ken Research https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/india-car-finance-market-report/679-93.html https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/indonesia-used-car-report/79410-100.html https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/india-used-car-2015-edition/654-100.html Contact: Ken Research Ankur Gupta, Head Marketing & Communications query@kenresearch.com +91-124-4230204 Tags: Car Financing Option in UAE, Compare Auto Loans in the UAE, Financing a Used car in UAE, NBAD UAE Auto Finance, UAE Car Loan Industry, Used Car Financing in the UAE, Used Car Sales in the UAE, Vehicle Financing in the UAE