Abu Dhabi is poised to become a major player in the region for the re-export of automotive goods, coming on the back of a recent announcement by the government-backed agency ZonesCorp of a new automobile city in the Mussafah area of Abu Dhabi.

Re-exports in the capital have recovered significantly since the economic downturn within the last five years, surpassing 2005 values by almost AED 3 billion in 2010 according to the Abu Dhabi Statistics Centre.

The lack of automotive manufacturing industry within the Gulf region has created a demand for a well-developed and strong re-export trading sector, with Abu Dhabi’s newly announced ‘Automobile City’ set to serve the future growth needs of the industry.

“Abu Dhabi is strategically located to serve countries within the Gulf and is well on its way to becoming a logistical hub for this region. Domestic demand has increased all over the UAE, and in fact the region, and we are experiencing exponential growth as far as automotive goods are concerned,” said Asad Badami, Managing Director of A-MAP, which specializes in the distribution of aftermarket automotive spare parts, automotive batteries, tyres, and lubricants.

“Without a dedicated automotive manufacturing industry in the Middle East, Dubai has become the regional distribution centre for automotive parts and accessories not only to the Middle East but to African nations and some European countries such Russia. Abu Dhabi is certainly within a position to compete with this position, it is an industrial city attracting international companies to set up operations there and geographically is very close to countries such as Saudi Arabia and Qatar,” he added.

Badami continued that almost all vehicle manufacturers have experienced upwards of 15 percent growth within the region over 2011, indicating that further growth can be expected in future.

“A significant milestone for A-MAP throughout 2012 is to open a distribution facility within Abu Dhabi. A-MAP has grown immensely and we feel it’s important to have a presence within the capital to cater to the surging demand across the Emirates,” he added.

A-MAP, which is expecting to double in size by 2013, is currently expanding into new markets, having already established operations in Africa, Asia, and North America.

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