Dubai Auto Zone (DAZ) has experienced a 63% rise in trade during the first half of 2014, corresponding to an increase of $544.5m in the value of transactions compared with the first six months of 2013, and the African market has been identified as a key driver of this growth.
Information supplied by DAZ, which is part of Economic Zones World and linked to the Jebel Ali Free Zone Authority, indicates that the major African export markets for cars from the auto industry hub between 2005 and 2011 were Tanzania, Burundi and Rwanda.
Ibrahim Mohamed Al Janahi, deputy CEO of the Jebel Ali Free Zone Authority, noted: “Africa remains DAZ’s key market, followed by Asia and lately Russia, and our infrastructure and fast procedures provide DAZ customers a cutting edge to win larger market share in the region.”
Jamal Hassan Ibrahim, senior VP at DAZ, added: “Dubai is a re-export hub of cars for the Africa, so for a company dealing in automobiles, establishing operations in DAZ makes sense. Japanese brands remain the top sellers for re-export because of their high resale value.”
Africa’s auto parts market for passenger vehicles is currently valued at $7.68bn, and could as much as double by 2020 with ongoing contributions from countries such as Nigeria, Kenya, Uganda and Ghana, all of which have witnessed double digit growth in auto parts over the past five years.
Subhash Joshi at Frost & Sullivan further highlighted that Sub-Saharan African countries such as Nigeria, Angola, the Republic of the Congo, and others in North Africa, now account for around a third of all auto exports from the UAE, and could claim a 50% share within several years.
Salma Ali Saif Bin Hareb, CEO of Economic Zones World, summed: “DAZ’s remarkable growth can be attributed to excellent service quality, ease of operations and upgraded procedures that the zone has committed to support the growth of the auto industry within the region.”