UAE Used Car Market Outlook to 2028

Driven by increasing expats population and global shortage of semiconductor chips

Region:Middle East

Author(s):Twinkle and Sunaniya

Product Code:KR1401

Download Sample Report download
Buy the Full ReportStarting from $4750
Published on

January 2024

Total pages


About the Report

About the Report

Market Overview:

The UAE Used Car Market has undergone significant changes since the 1990s, driven by a diversifying economy and an increasing expat community. With the demand for affordable transportation on the rise, the market has transitioned from traditional offline channels to a landscape that includes both organized and unorganized sectors. The market is segmented based on factors such as market structure, car types, and regional influences.

UAE Used Car Market

Notably, major players like Al Futtaim lead in a moderately fragmented market. Future projections indicate steady growth, influenced by improvements in the new car market and sustained demand for mid-level cars. This research report aims to offer valuable insights for industry stakeholders, investors, and enthusiasts navigating the dynamic and evolving UAE Used Car Market.

In the ecosystem of the UAE Used Car Industry, major players like Al Futtaim, AWR-Arabian Automobile, Al Habtoor, Al Nabooda Auto Mobile, and Al Ghandi Auto Group shape a moderately fragmented market. Al Futtaim leads among OEM players with a significant share. The industry, evolving since the 1990s, reflects a shift from traditional channels to a blend of organized and unorganized sectors. Segmentation considers market structure, car types, and regional influences. The competitive landscape is dominated by a few OEM players, contributing to 40% of total market sales. Future growth is expected to be steady, driven by improvements in the new car market and sustained demand for mid-level cars. This report aims to provide insights for stakeholders, investors, and enthusiasts navigating this dynamic marketplace.

UAE Used Car Industry

UAE Used Car Market Analysis

  • UAE used car market evolved in the 1990s and early 2000s with a diversifying economy and growing expat community.
  • Initial transactions were offline through C2C channels and local dealerships, due to limited digital literacy.
  • Recent developments include the entry of unorganized dealers and online platforms like Yalla Motors and Car Switch.
  • Semiconductor chip shortage in new cars has increased demand for used cars.
  • OEM certified dealerships offering attractive financing options boost consumer confidence, especially for eco-friendly vehicles.
  • Improved online infrastructure is shifting the market towards online auto-classifieds.
  • Anticipation of solutions to the semiconductor chip shortage signals market maturity and adaptability in the UAE's used car industry.


Key Trends by Market Segment:

By Market Structure: In 2023, the UAE Used Car Market is segmented based on market structure. The Organized sector, comprising OEMs, Multi-Brand Outlets, and Online Marketplaces, holds a significant share due to the increasing influence of online platforms and value-added services offered by organized stores. In contrast, the Unorganized sector, which includes C2C transactions, local dealers, auction houses, and other sources, commands a larger market share. This dominance is fueled by a robust auction market and the widespread presence of local dealers in various unorganized marketplaces like Al Aweer, Al Quoz, and Souq Al Haraj, reflecting the diverse dynamics of the UAE's used car market.

UAE Used Car Market Size

By Car Type: In 2023, the UAE Used Car Market is distinctly segmented by the type of car, measured in units sold. SUVs stand out as a popular choice, particularly among families, given their spacious and comfortable features, making them ideal for long drives and vacations. The increasing population is contributing to a growing demand for SUVs. Simultaneously, the influx of expats for job opportunities is fueling demand for sedans and hatchbacks. These vehicle types are favored by individuals for daily commuting to and from work or office. This dual trend reflects the diverse preferences within the market, with families opting for SUVs for recreational purposes and single individuals gravitating towards sedans and hatchbacks for practical commuting needs.

UAE Used Car Market Share

By Region: In 2023, the UAE Used Car Market is segmented by region. Dubai leads with the highest share, driven by its large population, frequent influx of tourists, and thriving business hub. Sharjah is witnessing growth in demand, focusing on improving business infrastructure. However, smaller-population emirates like Fujairah and Ras Al-Khaimah currently experience lower demand for used cars. Regional differences highlight the impact of demographics and economic factors on the market dynamics.

UAE Used Car Market Trends

Competitive Landscape:

Major Players in UAE Used Car Market

UAE Used Car Market Players

  • The UAE Used Car Market is moderately fragmented.
  • Key players include Al Futtaim, AWR-Arabian Automobile, Al Habtoor, Al Nabooda Auto Mobile, and the Al Ghandi Auto Group.
  • The market features a moderate level of fragmentation, with a presence of OEM-certified and brand-authorized dealerships.
  • Al Futtaim leads the market among OEM players, commanding approximately 12% of the share.
  • The top 5 OEM players collectively contribute to around 40% of the total market sales.
  • Other market drivers include the strategic presence of OEM-certified dealerships, emphasis on brand authority, and the reliability associated with major players, influencing consumer preferences and market trends.

UAE Used Car Market Research

Future Outlook:

UAE Used Car Market Outlook

  • UAE used car market to witness growth slowdown in 2023 due to improved conditions in the new car market related to semiconductor shortages.
  • Reduced waiting periods for new cars shift consumer preference, but strong demand in the used car market persists, especially for mid-level cars.
  • Factors driving demand include affordability, availability, the necessity for mobility, and a substantial expat population.
  • Future market growth expected to maintain a steady rate of approximately 6%.
  • Improved new car market conditions will result in more vehicles entering the used car segment, supporting continued growth in the UAE used car market.

Scope Of The Report

Scope of the Report

UAE Used Car Market Segmentation

By Market Structure

·       Organized Sector

·       Unorganized Sector

By Organized Sector

·       OEMs/Franchise Dealers

·       Multi-Brands Dealerships

·       Online Marketplaces/Classified

By Unorganized Sector

·       Auction Houses

·       C2C & Others

·       Local Dealers

By Car Type

·       SUV

·       Sedan

·       Hatchback

·       Coupe

·       Pickup Truck

·       Others

By Brands

·       Toyota

·       Nissan

·       Mitsubishi

·       Hyundai

·       Ford

·       Chevrolet

·       Kia

·       Others

By Country of Origin

·       Japan

·       USA

·       South Korea

·       Germany

·       China

·       Others

By Region

·       Ajman

·       Ras Al-Khaimah

·       Umm Al-Quwain

·       Sharjah

·       Abu Dhabi

·       Fujairah

·       Dubai

Customize This Report for You
Need a Specific Data? Like: Pricing Analysis Competitor Analysis Benchmarking Data Business Planning
Customize Now!



Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report:

  • Automotive industry stakeholders
  • Dealerships and automotive retailers
  • OEMs (Original Equipment Manufacturers)
  • Financial institutions and lenders
  • Government and regulatory bodies
  • Market analysts and research organizations
  • Investors and venture capitalists
  • Automotive technology providers
  • Consumers and potential car buyers
  • Advertising and marketing agencies in the automotive sector


Time Period Captured in the Report:

  • Historical Period: 2017-2023
  • Base Year: 2023
  • Forecast Period: 2023-2028


Major Players Mentioned in the Report:

  • AL Futtaim​
  • AWR - Arabian Automobile​
  • Al Habtoor​
  • Al Futtaim Automall​
  • NXT​
  • Dubizzle​
  • Dubi Cars

Table of Contents

Table of Contents

1. Executive Summary

1.1 Executive Summary of UAE Used Car Market

2. Country Overview of UAE

2.1 Economic Overview (Overview of UAE, Inflation Rate, UAE Nominal GDP, and Key Indicators)

2.2 Population Demographics (Total Population by Gender, Emirates, Employment and Age Group)

3. Automotive Industry in UAE

3.1 Automobile Manufacturing Hubs in UAE (Major Automobile Manufacturing Hubs and Growth Drivers of UAE Automotive Manufacturing Hubs)

3.2 UAE Motor Vehicles Import Scenario (UAE Motor Vehicles Import Data and Major Motor Vehicles Exporting Countries)

3.3 Landscape of Total Number of Cars in UAE Automotive Market (No. of Car Parc in UAE and Number of Car Parc per 1,000 people in UAE from 2017 to 2022)

3.4 Passenger Car Landscape (UAE New Passenger Cars Market Sales Data in Units, 2017-2023 and Average Age of Passenger Cars)

3.5 Passenger Car Market by Type and Brand of Car (UAE New Passenger Cars by Type of Cars and UAE New Passenger Cars by Major Brands)

4. UAE Used Car Market Overview

4.1 Ecosystem of the UAE Used Car Market

4.2 Business Cycle of the UAE Used Car Market

4.3 Timeline of Major Players in UAE Used Car Market

4.4 Step-by-Step Sales Process of Used Cars in UAE

4.5 Value Chain Analysis for UAE Used Cars Market 

4.6 Role of Entities in Value Chain Analysis of UAE Used Cars Market 

4.7 Sourcing of Used Cars by Dealers in UAE

4.8 Lead Generation in Used Cars for UAE Used Cars Market 

5. Market Sizing and Segmentation, 2017-2023

5.1 Market Sizing of UAE Used Car Market, 2017-2023 (UAE Used Car Market Size by Revenue and By Units Sold, Average Price and Used to New Car Ratio)

5.2 Market Segmentation by Market Structure, 2023 (By Organized Sector and Unorganized Sector)

5.3 Market Segmentation by Organized and Unorganized, 2023 (Organized Sector by OEMs, Multi- Brands and Online Marketplaces and Unorganized Sector by Local Dealers, Auction Houses, C2C and others)

5.4 Market Segmentation by Type of Car, 2023 (By SUV, sedan, Hatchback, Coupe, Pick-up Truck and Others)

5.5 Market Segmentation by Brand, 2023 (By Toyota, Nissan, Mitsubishi, Hyundai, Ford, Chevrolet, Kia and Others)

5.6 Market Segmentation by Country of Origin, 2023 (By Japan, USA, Germany, South Korea, China and Others)

5.7 Market Segmentation by Region, 2023 (By Dubai, Abu Dhabi, Sharjah, Ras Al-Khaimah, Ajman, Umm Al-Quwain and Fujairah)

6. Used Car Financing Market in UAE

6.1 Overview of Used Car Financing in UAE

6.2 Customer Preferences and Trends regarding Used Car Financing in UAE

6.3 Cross-Comparison of Major Banks in UAE

7. End-User Analysis

7.1 Customer Profiling in UAE Used Car Market (By Gender, Age and Income)

7.2 Customer Preferences in UAE Used Car Market (Factors Influencing Used Car Purchasing Over New Car Purchasing Decision and Focus Areas for Dealerships)

7.3 Buying Criterion of Customers in UAE Used Car Market (On basis of Budget, Services Offered, Buying Channel, Purpose, Color, Age and Milage)

7.4 Used Car Pricing and Depreciation in UAE (Price preference and Country wise Depreciation)

8. Industry Analysis

8.1 Porter’s Five Forces Analysis on UAE Used Car Market

8.2 Growth Drivers of UAE Used Car Market

8.3 Challenges and Pain-Points by UAE Used Car Industry 

8.4 Trends and Developments in UAE Used Car Market

8.5 Government Regulations in UAE Used Car Market

9. Competition Landscape

9.1 Competition Scenario of OEM Players in UAE Used Car Market

9.2 Market Share of Major OEM Players in UAE Used Car Market, 2023

9.3 Competition Scenario of Multi- Brand Players in UAE Used Car Market

9.4 Market Shares of Major Multi- Brand Players in UAE Used Car Market, 2023

9.5 Competition Scenario of Online Marketplaces in UAE Used Car Market

9.6 Market Share of major Online Marketplaces Players in UAE Used Car Market, 2023

10. Future Outlook and Segmentation, 2023-2028

10.1 Future Market Outlook 2023-2028

10.2 UAE Used Car Market Segmentation by Market Structure, by Organized Sector and by Unorganized Sector, 2028

10.3 UAE Used Car Market Segmentation by Type of Car, 2028

10.4 UAE Used Car Market Segmentation by Brand and Country of Origin, 2028

10.5 UAE Used Car Market Segmentation by Region, 2028

10.6 Future Trends and Way Forward in UAE Used Car Market

11. Analyst Recommendations

11.1 Factors Influencing Different Business Models

11.2 Focus Area for Existing AWR Businesses

11.3 Strategy for Car Mobility-as-a-Service

11.4 Operating Models in Mobility-as-a-Service

11.5 Success Factors to Capture Future Market

12. Industry Speaks

13. Research Methodology (Market Definitions, Abbreviations Used, Market Sizing Approach, Consolidated Research Approach, Sample Size Inclusion, Research Limitations and Future Conclusions)


Contact Us

You can also purchase parts of this report.
Do you want to check out a section wise price list?
Get Price Break-up

Research Methodology

Research Methodology

Step 1: Identifying Key Variables: Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.

Step 2: Market Building: Collating statistics on used car market over the years, penetration of marketplaces and service providers ratio to compute revenue generated for UAE Used Car market. We will also review service quality statistics to understand revenue generated which can ensure accuracy behind the data points shared.

Step 3: Validating and Finalizing: Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.

Step 4: Research output: Our team will approach multiple used cars providing channels and understand nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from used car providers.

UAE Used Car Market Revenue

UAE Used Car Industry Research

Frequently Asked Questions

Frequently Asked Questions

How big is UAE Used Car Market?

The UAE Used Car Market was valued at ~AED 20.4 Bn in 2023.

What are the Key Factors Driving the UAE Used Car Market?

Rising Demand from Expat Population, Shared Mobility Companies and Reducing Ownership Period are likely to fuel the growth in the UAE Used Car Market.

Who are the Key Players in the UAE Used Car Market?

AL Futtaim​, Dubizzle and Dubi Cars are some of the key players in the Market

What is the Future Growth Rate of the UAE Used Car Market?

The UAE Used Car Market is expected to reach ~AED 39.8 Bn by 2028.

Why Buy From US?

Refine Robust Result (RRR) Framework

What makes us stand out is that our consultants follows Robust, Refine and Result (RRR) methodology. i.e. Robust for clear definitions, approaches and sanity checking, Refine for differentiating respondents facts and opinions and Result for presenting data with story

Our Reach Is Unmatched

We have set a benchmark in the industry by offering our clients with syndicated and customized market research reports featuring coverage of entire market as well as meticulous research and analyst insights.

Shifting the Research Paradigm

While we don't replace traditional research, we flip the method upside down. Our dual approach of Top Bottom & Bottom Top ensures quality deliverable by not just verifying company fundamentals but also looking at the sector and macroeconomic factors.

More Insights-Better Decisions

With one step in the future, our research team constantly tries to show you the bigger picture. We help with some of the tough questions you may encounter along the way: How is the industry positioned? Best marketing channel? KPI's of competitors? By aligning every element, we help maximize success.

Transparency and Trust

Our report gives you instant access to the answers and sources that other companies might choose to hide. We elaborate each steps of research methodology we have used and showcase you the sample size to earn your trust.

Round the Clock Support

If you need any support, we are here! We pride ourselves on universe strength, data quality, and quick, friendly, and professional service.

Why Client Choose Us?

400000+ Reports in repository
150+ Consulting project a year
100+ Analysts
8000+ Client Queries in 2022