UAE Automotive Loan Market

Best Price Guarantee	Length	Publisher	Published Date	SKU
from $3,500	72 Pages	TechSci Research	August, 2023	TCSI18181513

Best Price Guarantee
Price	from $3,500
Length	72 Pages
Publisher	TechSci Research
Published Date	August, 2023
SKU	TCSI18181513

UAE Automotive Loan Market By Vehicle Type (Two-Wheeler, Passenger Car, Commercial Vehicle), By Provider Type (Banks, NBFCs (Non-Banking Financial Companies, Others)), By Percentage of Amount Sanctioned (Less than 25%, 25-50%, 51-75%, More than 75%), By Tenure (Less than 3 Years, 3-5 Years, More than 5 Years), By Region, By Company, Forecast & Opportunities, 2018-2028F

The UAE automotive loan market is experiencing strong growth throughout the forecast period, driven by the advancements in digital technology, the increasing number of financing aggregators, and the growing awareness of the population towards automotive loans. Moreover, the rising cost of vehicle ownership in the UAE has contributed to the surge in the automotive loan market.

When it comes to obtaining an auto loan in the UAE, automotive purchasers have two primary options: a bank or a dealer. For a bank loan, customers need to visit a branch and complete an application. Once their credit is approved, the bank conducts a credit check and offers a loan with an interest rate based on their credit score. On the other hand, dealer financing allows customers to negotiate directly with the dealership, potentially securing a lower interest rate and bypassing a credit check. However, additional funds might be required.

According to a 2022 article, a survey conducted in Abu Dhabi revealed that 52% of UAE residents are considering hybrid or electric vehicles due to the increase in fuel prices, while 25% stated that they are waiting for more electric vehicle options before making a decision. The International Trade Administration (ITA) reports that passenger cars account for 80% of the UAE market, while commercial vehicles make up the remaining 20% (trucks, vans, and buses). In 2020, a total of 158,711 motor vehicles were sold in the UAE, including 129,901 passenger cars and 28,810 commercial vehicles. Consequently, as the demand for passenger cars and commercial vehicles continues to rise, the demand for automotive loans in the UAE is also expected to increase.

The automotive loan industry is embracing advanced technological innovations to improve operational profitability and enhance customer satisfaction. Customers now expect digital solutions in sectors such as banking and telecom, and they are increasingly seeking a streamlined digital experience when it comes to vehicle purchasing. They desire a quick and straightforward lending process, with the ability to easily access specific monthly payments, obtain digital pre-approval, and utilize electronic transactions. As consumers primarily focus on automobiles, they prefer automotive loans as a convenient payment method with specific interest rates, durations, and EMIs. This trend is projected to drive the growth of the automotive loan market in the UAE during the forecast period.

Rising Preference for Personal Vehicle in UAE Fuels Market Growth

The automotive industry in the UAE has experienced significant growth, attracting multinational manufacturers such as Toyota, Nissan, Mitsubishi, and others. Factors such as low import and fuel prices, a favorable tax structure, and high discretionary incomes have contributed to this growth. For example, new car sales in the UAE increased by 10% during the first quarter of 2022 compared to the same period last year. The demand for automotive loans in the UAE has also been on the rise, driven by the increasing working population and the demand for cars in Dubai and the Northern Emirates region. Additionally, the market for electric vehicles is growing as petrol costs rise. Many drivers, especially those who frequently travel between different emirates, are opting for electric vehicles. Banks are offering attractive interest rates for electric car owners, and the government is supporting the use of electric vehicles. This shift towards electric and hybrid vehicles is also driving the demand for automotive loans in the UAE.

Market Segmentation

The UAE automotive loan market is segmented based on vehicle type, provider type, percentage of amount sanctioned, tenure, region and competitive landscape. The market is divided into two-wheeler, passenger car, commercial vehicle based on vehicle type. Based on the provider type, the market is segmented into banks, NBFCs (non-banking financial companies, others). Based on percentage of amount sanctioned, the market is segmented into less than 25%, 25-50%, 51-75%, more than 75%. By tenure, the market is segmented into less than 3 years, 3-5 years, more than 5 years.

Company Profiles

Dubai Islamic Bank Public Joint Stock Company, Al Hilal Bank PJSC, Emirates NBD Bank PJSC, Abu Dhabi Commercial Bank PJSC, Abdul Latif Jameel United Finance Company, Abu Dhabi Islamic Bank Public Joint Stock Company, Ajman Bank PJSC, Arab Bank Group, The National Bank of Ras Al Khaimah PJSC, Dunia Finance LLC, Reem Finance P.J.S.C. are among the major market players that lead the market growth of the UAE automotive loan market.

Report Scope:

In this report, the UAE Automotive Loan market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

UAE Automotive Loan Market, By Vehicle Type:
Two-Wheeler
Passenger Car
Commercial Vehicle
UAE Automotive Loan Market, By Provider Type:
Banks
NBFCs (Non-Banking Financial Companies)
Others
UAE Automotive Loan Market, By Percentage of Amount Sanctioned:
Less than 25%
25-50%
51-75%
More than 75%
UAE Automotive Loan Market, By Tenure:
Less than 3 Years
3-5 Years
More than 5 Years
UAE Automotive Loan Market, By Region:
Dubai
Abu Dhabi
Sharjah
Ajman
Rest of UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the UAE automotive loan market.

Company Information

Detailed analysis and profiling of additional market players (up to five).

Please Note: Report will be updated with the latest data and delivered to you within 3-5 working days of order. Single User license will be delivered in PDF format without printing rights

1. Introduction: 1.1. Product Overview; 1.2. Key Highlights of the Report; 1.3. Market Coverage; 1.4. Market Segments Covered; 1.5. Research Tenure Considered
2. Research Methodology: 2.1. Objective of the Study; 2.2. Baseline Methodology; 2.3. Key Industry Partners; 2.4. Major Association and Secondary Sources; 2.5. Forecasting Methodology; 2.6. Data Triangulation & Validation; 2.7. Assumptions and Limitations
3. Executive Summary: 3.1. Market Overview; 3.2. Market Forecast; 3.3. Key Regions; 3.4. Key Segments
4. Voice of Customer Analysis (B2C Model Analysis): 4.1. Sample Size Determination; 4.2. Respondent Demographics; 4.2.1. By Gender; 4.2.2. By Age; 4.2.3. By Occupation; 4.3. Brand Awareness; 4.4. Factors Influencing Loan Availing Decision; 4.5. Sources of Information; 4.6. Challenges Faced
5. UAE Automotive Loan Market Outlook: 5.1. Market Size & Forecast; 5.1.1. By Value; 5.2. Market Share & Forecast; 5.2.1. By Vehicle Type Market Share Analysis (Two-Wheeler, Passenger Car, Commercial Vehicle); 5.2.2. By Provider Type Market Share Analysis (Banks, NBFCs (Non-Banking Financial Companies, Others)); 5.2.3. By Percentage of Amount Sanctioned Market Share (Less than 25%, 25-50%, 51-75%, More than 75%); 5.2.4. By Tenure Market Share (Less than 3 Years, 3-5 Years, More than 5 Years); 5.2.5. By Regional Market Share Analysis; 5.2.5.1. Dubai Market Share Analysis; 5.2.5.2. Abu Dhabi Market Share Analysis; 5.2.5.3. Sharjah Market Share Analysis; 5.2.5.4. Ajman Market Share Analysis; 5.2.5.5. Rest of UAE Market Share Analysis; 5.2.6. By Top 5 Companies Market Share Analysis, Others (2022); 5.3. UAE Automotive Loan Market Mapping & Opportunity Assessment; 5.3.1. By Vehicle Type Market Mapping & Opportunity Assessment; 5.3.2. By Provider Type Market Mapping & Opportunity Assessment; 5.3.3. By Percentage of Amount Sanctioned Market Mapping & Opportunity Assessment; 5.3.4. By Tenure Market Mapping & Opportunity Assessment; 5.3.5. By Region Market Mapping & Opportunity Assessment
6. UAE Two-Wheeler Automotive Loan Market Outlook: 6.1. Market Size & Forecast; 6.1.1. By Value; 6.2. Market Share & Forecast; 6.2.1. By Provider Type Market Share Analysis; 6.2.2. By Percentage of Amount Sanctioned Market Share Analysis; 6.2.3. By Tenure Market Share Analysis
7. UAE Passenger Car Automotive Loan Market Outlook: 7.1. Market Size & Forecast; 7.1.1. By Value; 7.2. Market Share & Forecast; 7.2.1. By Provider Type Market Share Analysis; 7.2.2. By Percentage of Amount Sanctioned Market Share Analysis; 7.2.3. By Tenure Market Share Analysis
8. UAE Commercial Vehicle Automotive Loan Market Outlook: 8.1. Market Size & Forecast; 8.1.1. By Value; 8.2. Market Share & Forecast; 8.2.1. By Provider Type Market Share Analysis; 8.2.2. By Percentage of Amount Sanctioned Market Share Analysis; 8.2.3. By Tenure Market Share Analysis
9. Market Dynamics: 9.1. Drivers; 9.1.1. Growth in Automotive Industry; 9.1.2. Increase in Number of Consumers Preferring Personal Vehicles; 9.1.3. Increasing Number of Finance Aggregators; 9.2. Challenges; 9.2.1. Increasing Interest Rate Competition; 9.2.2. Bad Credit History
10. Impact of COVID-19 on UAE Automotive Loan Market: 10.1. Impact Assessment Model; 10.1.1. Key Segments Impacted; 10.1.2. Key Provider Type Impacted
11. Market Trends & Developments: 11.1. Growing Digital Penetration; 11.2. Growing Digital Advancements of Financial Institution; 11.3. Flexible Model of Financing and Government Initiatives; 11.4. Suring Demand for Loan for Electric Vehicles; 11.5. Competitive Interest Rate on Automotive Loan
12. Porter’s Five Forces Model: 12.1. Competitive Rivalry; 12.2. Bargaining Power of Buyers; 12.3. Bargaining Power of Suppliers; 12.4. Threat of New Entrants; 12.5. Threat of Substitutes
13. SWOT Analysis: 13.1. Strengths; 13.2. Weaknesses; 13.3. Opportunities; 13.4. Threats
14. Policy & Regulatory Landscape
15. UAE Economic Profile
16. Competitive Landscape: 16.1. Company Profiles; 16.1.1. Dubai Islamic Bank Public Joint Stock Company; 16.1.1.1. Company Details; 16.1.1.2. Products; 16.1.1.3. Financials (As Per Availability); 16.1.1.4. Key Market Focus & Geographical Presence; 16.1.1.5. Recent Developments; 16.1.1.6. Key Management Personnel; 16.1.2. Al Hilal Bank PJSC; 16.1.2.1. Company Details; 16.1.2.2. Products; 16.1.2.3. Financials (As Per Availability); 16.1.2.4. Key Market Focus & Geographical Presence; 16.1.2.5. Recent Developments; 16.1.2.6. Key Management Personnel; 16.1.3. Emirates NBD Bank PJSC; 16.1.3.1. Company Details; 16.1.3.2. Products; 16.1.3.3. Financials (As Per Availability); 16.1.3.4. Key Market Focus & Geographical Presence; 16.1.3.5. Recent Developments; 16.1.3.6. Key Management Personnel; 16.1.4. Abu Dhabi Commercial Bank PJSC; 16.1.4.1. Company Details; 16.1.4.2. Products; 16.1.4.3. Financials (As Per Availability); 16.1.4.4. Key Market Focus & Geographical Presence; 16.1.4.5. Recent Developments; 16.1.4.6. Key Management Personnel; 16.1.5. Abdul Latif Jameel United Finance Company; 16.1.5.1. Company Details; 16.1.5.2. Products; 16.1.5.3. Financials (As Per Availability); 16.1.5.4. Key Market Focus & Geographical Presence; 16.1.5.5. Recent Developments; 16.1.5.6. Key Management Personnel; 16.1.6. Abu Dhabi Islamic Bank Public Joint Stock Company; 16.1.6.1. Company Details; 16.1.6.2. Products; 16.1.6.3. Financials (As Per Availability); 16.1.6.4. Key Market Focus & Geographical Presence; 16.1.6.5. Recent Developments; 16.1.6.6. Key Management Personnel; 16.1.7. Ajman Bank PJSC; 16.1.7.1. Company Details; 16.1.7.2. Products; 16.1.7.3. Financials (As Per Availability); 16.1.7.4. Key Market Focus & Geographical Presence; 16.1.7.5. Recent Developments; 16.1.7.6. Key Management Personnel; 16.1.8. Arab Bank Group; 16.1.8.1. Company Details; 16.1.8.2. Products; 16.1.8.3. Financials (As Per Availability); 16.1.8.4. Key Market Focus & Geographical Presence; 16.1.8.5. Recent Developments; 16.1.8.6. Key Management Personnel; 16.1.9. The National Bank of Ras Al Khaimah PJSC; 16.1.9.1. Company Details; 16.1.9.2. Products; 16.1.9.3. Financials (As Per Availability); 16.1.9.4. Key Market Focus & Geographical Presence; 16.1.9.5. Recent Developments; 16.1.9.6. Key Management Personnel; 16.1.10. Dunia Finance LLC; 16.1.10.1. Company Details; 16.1.10.2. Products; 16.1.10.3. Financials (As Per Availability); 16.1.10.4. Key Market Focus & Geographical Presence; 16.1.10.5. Recent Developments; 16.1.10.6. Key Management Personnel; 16.1.11. Reem Finance P.J.S.C.; 16.1.11.1. Company Details; 16.1.11.2. Products; 16.1.11.3. Financials (As Per Availability); 16.1.11.4. Key Market Focus & Geographical Presence; 16.1.11.5. Recent Developments; 16.1.11.6. Key Management Personnel
17. Strategic Recommendations/Action Plan: 17.1. Key Focus Areas; 17.2. Target Vehicle Type; 17.3. Target Provider Type
18. About Us & Disclaimer: (Note: The companies list can be customized based on the client requirements.)