# UAE Used Car Market (2023-2028) --- ## Report Summary The UAE Used Car Market worth AED 23.70 billion in 2025 is projected to reach AED 39.80 billion by 2031, growing at a CAGR of 10.90% during 2025-2031. --- ## UAE Used Car Market 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 - 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 - 5. UAE Used Car 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. UAE Used Car End-User Analysis - 8. UAE Used Car Industry Analysis - 9. UAE Used Car Market Competition Landscape - 10. UAE Used Car Future Market 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 - 11. UAE Used Car Future Market Analyst Recommendations - 12. Industry Speaks - 13. Research Methodology - 14. Disclaimer - 15. Contact Us --- ## UAE Used Car Market Overview UAE Used Car Market Highlights In terms of revenue, the UAE used car market expanded from AED 7.8 billion in 2017 to AED 20.4 billion in 2023, reflecting strong growth over the period. The market is projected to reach AED 39.8 billion, growing at a CAGR of 10.9% during the forecast period, supported by rising vehicle replacement cycles and increasing demand for affordable mobility options. In 2023, over 260,000 used cars were sold across the UAE. Additionally, leading multi-brand players such as Al-Futtaim and Cars24 are strengthening their digital and AI-enabled platforms, allowing customers to compare, enquire, and purchase used vehicles online, thereby enhancing transparency and convenience in the market. *In terms of Revenue, the UAE Used Car market started at AED 7.8 Bn in 2017 and has reached AED 20.4 Bn in 2023.* --- ## UAE Used Car Market Definition ### Key Market Definitions **UAE Used Car Market by Value** It includes the total Gross Transaction Value (GTV) generated from the sale of used cars across the UAE in a year from both organized and unorganized segments. ### Fundamental Definitions **Organized Segment** An organized segment includes CPO Dealerships, Multi Brand Dealership and Online Marketplaces (including classified) with more than 30 units of cars in stock or that have more than one branch. **Unorganized Segment** The sector includes sales through local dealership, customer to customer sales as well as sales through Newspaper Classifieds, Auctions & Government Sales. **Multi-Brand Outlets** It includes standalone/clustered dealerships or showrooms that sell used cars of various brands through a physical store. **OEM/Franchise Dealership** Franchise dealerships which sell new cars and used cars, they are associated with brands. They sell certified pre-owned cars. **Online Marketplaces** Online marketplaces include platforms that purchase used car itself and then sell it to the end user. It also includes Online Classifieds that bring buyers and sellers together to transact the sale of used vehicles. Depending on the type of advertisement, e-commerce websites charge listing fee/commission from sellers. --- ## Taxonomy | ID | Parent ID | Label | | --- | --- | --- | | 1 | | Used Car Market Segmentation | | 2 | 1 | Vehicle Type | | 3 | 2 | Sedans | | 4 | 2 | SUVs | | 5 | 2 | Hatchbacks | | 6 | 2 | Pickup Trucks | | 7 | 2 | Luxury Cars | | 8 | 2 | Sports Cars | | 9 | 1 | Price Range | | 10 | 9 | Economy | | 11 | 9 | Mid-Range | | 12 | 9 | Luxury | | 13 | 1 | Condition | | 14 | 13 | Certified Pre-Owned (CPO) | | 15 | 13 | Used | | 16 | 1 | Fuel Type | | 17 | 16 | Petrol | | 18 | 16 | Diesel | | 19 | 16 | Hybrid/Electric | | 20 | 1 | Age | | 21 | 20 | Relatively New (1-5 years) | | 22 | 20 | Old (5-10 years) | | 23 | 20 | Very Old (5-10 years) | --- ## UAE Used Car Market Ecosystem ### Market Ecosystem **Ecosystem of UAE Used Car Market** The used car market in UAE is fragmented with presence of multiple players among OEM and Multi-brand Players. While Online marketplaces in UAE is moderately consolidated. The market is also governed by regulatory bodies & associations and Classified market players. --- ## UAE Used Car Market Size, in (AED Bn), 2017-2023 In terms of revenue, the UAE used car market expanded from AED 7.8 billion in 2017 to AED 23.7 billion, reflecting strong and sustained growth over the period. The market began gaining momentum from 2017 onward due to the introduction of VAT on new cars, which slowed new vehicle purchases and encouraged consumers to consider used alternatives. At the same time, the maturing second-hand car ecosystem, supported by a growing number of organized and digital players, improved market transparency and accessibility. Additionally, consumers increasingly shifted toward affordable and well-maintained used cars, resulting in reduced dependence on new car sales. During 2020–2021, global semiconductor shortages disrupted new car production and extended delivery timelines. Coupled with financial uncertainty and an increased preference for personal mobility during the COVID-19 pandemic, demand for reasonably priced used vehicles accelerated, driving higher growth rates. The market remained resilient in 2022, supported by continued new car shortages, population growth, and sustained demand for personal transportation in the post-pandemic period. --- ## UAE Used Car Market Size, in (AED Bn), 2017-2023 ### UAE Used Car Market Segmentation by Market Structure (in units sold), 2023 The UAE used car market is characterized by a near-equal presence of organized and unorganized sectors. In 2023, the unorganized sector held a slightly higher share at 52.5%, compared to 47.5% for the organized sector. The dominance of the unorganized segment is driven by a strong auction-based ecosystem and the extensive presence of local dealers operating in well-known unorganized marketplaces such as Al Aweer, Al Quoz, and Souq Al Haraj. Meanwhile, the organized sector continues to gain traction due to the rising adoption of online platforms and the availability of value-added services, including warranties, certified vehicles, transparent pricing, and a more convenient buying experience. These factors are gradually strengthening the organized segment’s position within the UAE used car market. ### AE Used Car Market Segmentation by Type of Car (in units sold), 2023 In the UAE Used Car market of 2023, car types are divided into SUVs, Sedans, Hatchbacks, Coupes, Pickup Trucks, and others. SUVs lead the market with the largest contribution, selling 124,859 units, making up 46.4% of total sales. Their popularity among families for trips and vacations, along with the growing population's preference for spacious and comfortable vehicles, drives the demand for SUVs. In 2023, SUVs have the largest share at 46.6%, followed by Sedans at 34.1%. The influx of expatriates for job opportunities has increased demand for sedans and hatchbacks, mainly used for daily commuting. While hatchbacks and coupes also contribute, SUVs and sedans dominate the market, reflecting diverse consumer preferences in the UAE Used Car market. ### UAE Used Car Market Segmentation by Region (in units sold), 2023 In 2023, the UAE used car market exhibited distinct regional dynamics, with Dubai leading sales at 133,142 units, accounting for nearly 50% of total market volume. Dubai’s dominance is supported by its large resident population, strong tourist inflows, and status as a major business and employment hub, which continues to attract professionals and expatriates, driving sustained demand for used vehicles. Abu Dhabi followed with over 65,000 units sold, contributing around 24.5% of the market, backed by stable economic activity and high vehicle ownership levels. Sharjah is witnessing rising demand as it strengthens its business and industrial infrastructure, while smaller emirates such as Fujairah and Ras Al Khaimah record comparatively lower sales due to smaller populations. Overall, the regional segmentation reflects diverse demand patterns across emirates, shaped by population density, economic activity, and mobility needs. --- ## UAE Used Car Industry Analysis ### UAE Used Car Market Porter’s Five Force Analysis **Bargaining Power of Suppliers** Various sales channels for used cars use distinct valuation methods. Dealerships use inspectors; classifieds and online platforms have preset metrics. Individual sellers' pricing challenges come from a lack of knowledge about buyers' willingness to pay. Despite this, sellers can leverage their power to provide optimal offers. **Bargaining Power of Buyers** Buyers lack the power to negotiate prices in the UAE's used car market. Most sales channels, except word of mouth, don't allow negotiation. Yet, with many sellers and platforms, buyers can choose, research, and find suitable prices, giving them autonomy. **Threat of Substitutes** Car rental and leasing platforms are a significant threat to the used car market which cater to customers seeking personal transportation without large upfront costs. **Rivalry among Competitors** The UAE used car market is a fiercly competitive space, featuring major players like Al Futtaim Motors, Arabian Automobiles Company etc. Their offerings from various brands and price ranges intensify price competition. **Threat of New Entrants** Online preference and lower investment needs for physical spaces gives an advantage to new entrants. With milder market regulations and no entry barriers, new players can easily enter, thereby intensifying competition and challenging existing sellers. ### UAE Used Car Market Growth Drivers **Rising Demand for Expat Population** About 88% of the UAE population are Expats and most of them live there on a temporary basis until their contract expires. That’s why they prefer purchasing a used vehicle rather than spending more money on new cars which has increased the demand for used cars in the country. **COVID-19 Impact** Used car market increased during 2021 as people focused more on isolation and avoided public transport and users were looking for a car at reasonable price. For some, buying a used car instead of a new one is a more budget-friendly option, especially considering potential financial strains and job insecurities. **Increasing Internet Penetration** The penetration rate of internet users stood at 99% in UAE in 2022 which is leading to players shifting their business models online. This has boosted sales as consumers can easily browse through online platforms increasing the efficiency in entire process **Reducing Ownership Period** The duration for vehicle ownership is reducing in UAE to about 5 years. Therefore, used car owners in UAE prefer buying fairly new and maintained cars which boosts the demand for used cars amid the current generation. **Shared Mobility Companies** Companies offering car rental, ride-sharing, ride-hailing etc., also opt for second hand cars while developing a comprehensive fleet of vehicles. Hence, growth of such players will increase the demand for used cars. ### UAE Used Car Market Trends & Development **Rise of EVs** UAE ranks 8th globally for readiness in the EV market. There has been an increase of about 60% in inquiries for electric cars on used car platforms. EV demand is expected to grow by 30% increasing the demand for used EVs as well. **Digital Penetration** Many multi-brand players like Al-Futtaim, Cars24 are expanding their online presence and AI integration on their platforms, providing convenience to customers to compare, enquire and purchase used cars online. **Value Added Services** Companies focus on enhancing their service standards and aftersales assurance to the customers. They are offering services and benefits like inspection, warranty, paperless process etc. to increase the ease of making a purchase. **Shifting Demographics** Millennials account for more than 60% of the demand for used cars in UAE. However, the demand from GenZ buyers is also increasing gradually two-fold in 2022. Moreover, Female buyers also saw higher growth than male buyers. **Financing Options** Huge number of players offer financing options for used cars in terms of easy loans because of which used cars are becoming more affordable. Around 65% buyers preferred to finance their used car in 2022 with an average loan value of AED 61,000. **Increasing Residual Value** The disruption in supply of new cars because of semiconductor shortage and COVID-19 caused the demand for used cars to increase in 2021. Hence, models depreciated much less and price for used cars was 10% higher in 2021 compared to 2019. ### UAE Used Car Market Challenges **Switch from Fuel to Battery Cars** 1. UAE's demand for electric vehicles (EVs) is increasing with improving technology, affordability, and government incentives. 2. High fuel prices make EVs appealing. Shifting towards EVs is practical and symbolic, since it reduces emissions and symbolizes embrace sustainable transportation. **Stable Prices & Robust Module Preference** 1. In 2023, new car prices in UAE are expected to stay steady due to reduced shipping expenses and a strong US dollar. 2. Decreasing waiting time, currently at 2-3 months for new cars due to low supply, poses a challenge to the used car market. **Regulations around Emission** 1. The Environment Agency - Abu Dhabi (EAD) plans to employ advanced technology to remotely monitor vehicle emissions, which will help in air quality management and influencing the market against older diesel cars due to stringent emission standards. **Credibility & Quality of Cars** 1. Sellers will work to make product attractive, while customers aren’t aware of repairs & its actual condition. 2. Around 50% of cars have repainted panels (potential accidents), 40% have dented rims affecting alignment, 10% featured costly worn brake pads, and 5% exhibit battery or rare engine/transmission issues. 3. Verifying seller credibility is a challenge because of information gaps, which makes buyers lean towards new cars with easy financing. --- ## UAE Used Car Future Market Outlook ### UAE Used Car Future Market Size (in AED Bn), 2023-2028 The UAE used car market was valued at AED 23.7 billion in 2023 and is projected to reach AED 39.8 billion, growing at a CAGR of 10.9% during the forecast period. Growth is expected to moderate in the near term as conditions in the new car market improve, particularly with the easing of semiconductor supply constraints, which has reduced waiting periods for new vehicles. Despite this, demand for used cars is expected to remain strong, especially for mid-range vehicles, driven by their lower price points, immediate availability, mobility needs, and the UAE’s large expatriate population. Over the longer term, the market is anticipated to grow at a more normalized rate of around 6%, supported by higher new car sales that will gradually feed into the used car ecosystem, ensuring continued supply and sustained demand in the UAE used car market. --- ## Frequently Asked Questions (FAQs) Find quick answers to common questions about the UAE Used Car Market **Q: How big is the Used Car Market in UAE?** A: UAE Used Car Market was valued at 23.7 AED Bn in 2023. **Q: What is the future of UAE Used Car market?** A: UAE Used Car market is expected to reach 39.8 AED Bn in 2028 at a CAGR of 10.9%. **Q: Who are the key players of UAE Used Car Market?** A: Al Futtaim, NXT, Dubizzle are key players in UAE Used Car Market. **Q: What factors drive UAE Used Car Market?** A: Increasing internet penetration, rising demand from expat population & decrease in ownership period are driving the market **Q: What are challenges of UAE Used Car Market?** A: Switch from fuel to electric vehicles, stable prices & robust model preference & regulations around emissions can hinder the market.