Dubai Times All About Dubai
The used car market in the United Arab Emirates has reached a stage of maturity, experiencing steady growth over the past few years. Market size, measured by transaction value, has registered single-digit growth in the last five years, supported by an increase in both the volume of pre-owned cars sold and their average price. Additionally, the reduction in the average car ownership period has contributed to the market’s expansion. However, following 2015, the market experienced a slowdown due to declining oil prices, which adversely affected the UAE’s overall economy, leading to decreased consumer demand for vehicles.
Despite these challenges, several key drivers continue to propel market growth. The improving quality of used cars, a large expatriate population, and the rising demand for both new and luxury vehicles, coupled with the country’s economic recovery, have strengthened the sector. However, several hurdles persist, including price discrepancies, lack of standardization, and issues surrounding transparency. The passion for automobiles in the UAE remains a major factor attracting more dealers to enter the market, with manufacturer-certified cars gaining traction due to their reliability and quality assurance.
Market Segmentation
A significant proportion of pre-owned vehicles are exported from the UAE to neighboring Gulf Cooperation Council (GCC) nations and African countries. Domestically, the used car market is dominated by B2B and B2C sales through dealerships, along with transactions facilitated via online classified platforms and C2C word-of-mouth exchanges.
Among vehicle types, crossovers account for the majority of used car sales, followed by luxury SUVs, full-size sedans, and premium sedans. SUVs remain one of the most popular categories in the market, alongside other segments such as:
- Luxury SUVs
- Full-size sedans
- Premium sedans
- Luxury sedans
- Full-size SUVs
- Convertibles
- Supercars
- Coupes
- Entry-level sedans
- Hatchbacks
- Luxury hatchbacks
- Pickup trucks
In terms of brand preference, Japanese-manufactured cars lead the used car sales volume, followed by German and American brands. Vehicles from other regions account for a smaller market share.
Geographically, Dubai commands the highest sales volume within the UAE, followed by Sharjah and Abu Dhabi. The remaining emirates, including Umm Al Quwain, Ras Al Khaimah, Fujairah, and Ajman, contribute less significantly to overall market activity.
Dubai to Africa: The Market for Used Cars
Dubai has emerged as a major hub for car exports to Africa, offering consumers a wider range of vehicles, from luxury SUVs to budget-friendly sedans. Previously, African markets relied on second-hand imports from Europe and Asia, but Dubai’s diverse selection and strict quality control standards have made its vehicles increasingly popular. The city’s strategic location and efficient shipping routes also contribute to faster and more affordable vehicle imports.
As Dubai continues to attract dealerships and manufacturers, its influence on Africa’s automotive sector grows. Countries like Kenya are seeing increased competition, lower prices, and job creation in the automotive industry.
With expanding trade links and infrastructure, Dubai’s role in the African car market is expected to strengthen further, bringing more options and affordability to consumers across the continent.
Competitive Landscape
The used car market in the UAE is highly fragmented, with numerous players competing for market share. Major dealerships leverage both classified portals and word-of-mouth referrals for promotion. Currently, the market consists of more than 400 dealerships and over 40 classified platforms. Leading classified portals include Dubizzle, DubiCars, Yalla Motors, and Carmudi, while SellAnyCar and Al-Futtaim dominate in terms of market share.
Most dealerships operate within established automotive clusters; however, larger players have expanded beyond these traditional hubs to reach a broader customer base. Companies compete on factors such as pricing, value-added services, brand reputation, and customer service. Promotional campaigns, including discounts, vehicle inspection reports, and additional services, have become key strategies for attracting buyers. The primary revenue model for dealerships involves acquiring vehicles at low prices, refurbishing them, and reselling at a markup. Additionally, retail space expansion and enhanced showroom aesthetics are emerging as differentiating factors among competitors.
Future Outlook
Looking ahead, the UAE’s used car market is poised for robust growth, with transaction values expected to increase at a double-digit rate over the next five years. The rise in demand for high-value and supercars is anticipated to drive revenue growth, outpacing volume expansion. Key growth drivers include economic recovery, improving vehicle quality, increasing competition, and a declining average age of used cars.
Operational and marketing transformations are also expected as companies become more customer-centric. Domestic sales are projected to grow at a faster pace compared to exports between 2020 and 2025, with Sharjah leading in volume growth, followed by Dubai and Abu Dhabi. Meanwhile, demand in other emirates is expected to remain relatively stable.
As the industry continues to evolve, enhanced digital marketing strategies, improved transparency, and greater standardization in pricing and quality assurance will likely shape the future of the UAE’s used car market.
Market Access: Used Car Importers Directory
The DUBAI CAR IMPORTERS DIRECTORY is specially useful for those looking to export cars to Dubai and are looking for a database of car importers in Dubai to reach wholesalers of cars in Dubai.
This DUBAI CAR IMPORTERS DATABASE contains the latest and complete information about car importers in Dubai.
- Listings of Top Car Importers in Dubai
- In MS Excel format
- Up-to-date database of car importers in Dubai
- Over 2,000+ listings
- Available for direct download in Excel spreadsheet format
- Perfect email list for email marketing campaigns
The DUBAI CAR IMPORTERS DIRECTORY is essentially produced for international exporters, importers, manufacturers, traders and merchants of cars looking to establish contacts with car importers in Dubai, UAE.
