UAE Car Finance Market Outlook to 2021
Rising Car Finance Penetration and Multiple Car Finance Products Offered by Banks to Foster Growth
Region:Middle East
Product Code:KR485
May 2017
84
About the Report
The UAE car finance market is segmented by new and used car finance, by tenure of loan for new and used car on the basis of number of cars financed and by emirate on the basis of number of new cars financed.
On the basis of credit disbursed, the new car dominated the market with a share of ~% in 2016 followed by used cars.
For new cars, the tenure of three years dominated the car finance market with a share of ~% on the basis of number of new cars financed in 2016.
Dubai holds the highest share among all other emirates of UAE in terms of number of new cars financed. It held a share of ~% during 2016. Abu Dhabi holds the second position in the market followed by Sharjah, Ras Al Khaimah, Umm Al Quwain, Al Ain and Fujairah.
UAE car finance market comprises of players such as banks and private finance companies; banks being the major player. The market is highly fragmented with more than ~ banks and ~ private finance companies. Banks are spread across the country with more than 1,000 branches. Strict competition is existent in the market with over five dozen financing schemes for both used and new cars offered by these players. The banks and private finance companies compete with each other on the basis of various loan parameters such as interest rates or profit rates, loan tenure, early settlement charges, feature packed loans, additional offers, minimum salary requirement and various other parameters. Major players in the market include Emirates NBD, Dubai Islamic Bank, Mashreq Bank, Al Wifaq Finance, Finance House and others.
During the forecast period 2017-2021, the UAE car finance market is expected to recover from the fall it has experienced towards the end of the review period, 2011-2016. It is anticipated that the car finance market in the country will grow at a CAGR of ~% during the forecast period 2017-2021. The recovery is presumed to be at a slow pace due to various factors such as low deposit rates prevailing in the market and high rate of non-performing loans compelling the banks to consolidate their existing activities rather focusing on growth. However, a growth is expected to be observed in the market which will be supported by an increased number of bundled offerings, new innovative strategies adopted by the banks and dealers and other entities. Moreover, increasing demand for electric cars within the country will enable the development of fresh car loans.
- UAE Car Finance Market Overview and Genesis
- UAE Car Finance Market Size
- UAE Car Finance Market Segmentation
- Government Regulations on UAE Car Finance Market
- Trends and Issues in UAE Car Finance Market
- Product Features of Car Loans by Banks and Private Finance Companies in UAE Car Finance Market
- Competitive Landscape of Major Players in UAE Car Finance Market
- Future Outlook and Projections of UAE Car Finance Market
- Macroeconomic Factors affecting UAE Car Finance Market
Products
Auto Loan, Car Loan, New Car Credit, Credit Penetration, Number of Cars Financed, New and Used Car Term Loan, Credit Disbursed, Tenure, Interest Rate, Early Settlement Fees, Islamic Financing
Companies
Emirates NBD, Dubai Islamic Bank, Mashreq Bank, Emirates Islamic Bank, Al Hilal Bank, Al Wifaq Finance and Finance House
Table of Contents
1. Executive Summary
Market Potential
Market Segmentation
Trends and Issues
Competitive Landscape
Future Analysis And Projections
2. Research Methodology
2.1. Market Definitions
2.2. Abbreviations
2.3. Market Size And Modeling
Approach - Market Sizing
Market Sizing -- UAE Car Finance Market
Variables (Dependent and Independent)
Multi Factor Based Sensitivity Model
Final Conclusion
3. UAE Car Finance Market - Genesis and Overview
Overview
System of Down Payment
Islamic and Conventional Car Finance
Salient Features of the Market - Customer's Viewpoint
4. UAE Car Finance Market Size, 2011-2016
4.1. By Credit Disbursed, 2011-2016
4.2. By Number of New Cars Financed, 2011-2016
4.3. By New Car and Used Car Finance Penetration, 2011-2016
5. UAE Car Finance Market Segmentation
5.1. By New Car and Used Car Finance, 2011-2016
5.2. By Tenure of Loan - New Car, 2016
5.3. By Tenure of Loan - Used Car, 2016
5.4. By Emirate, 2016
6. Government Regulations in UAE Car Finance Market
7. Points To Consider Before Taking Car Loan From a Bank in UAE
Minimum Salary Requirements
Mandatory Salary Transfer
Listed and Non-Listed Employers
Profit Rates and Other Charges
Maximum Loan Amount and Documentation Requirements
8. Trends and Issues in UAE Car Finance Market
Rising Used Cars Market
Promotion for the Use of Electric Vehicles
Sharia Board to Develop Standardized Islamic Financial Products
Increasing Number of Expatriates
Launch of Credit Bureau
Falling Oil Prices
9. Product Features in the UAE Car Finance (Tenure, Interest Rate and Conditions)
9.1. Mashreq Bank
9.2. Dubai Islamic Bank
Al Islami Car Finance
Al Islami Car Ijarah
9.3. Emirates Islamic Bank
9.4. Al Hilal Bank
9.5. Emirates NBD
9.6. Al Wifaq Finance
9.7. Finance House
10. Competitive Landscape
10.1. Competitive Scenario in UAE Car Finance Market
Overview
Conventional and Islamic Banks
Rewards and Offers
Down Payment and Early Settlement Fees
10.2. Major Banks and Auto Finance Companies in UAE
10.2.1. Mashreq Bank
10.2.2. Dubai Islamic Bank
10.2.3. Emirates Islamic Bank
10.2.4. Al Hilal Bank
10.2.5. Emirates NBD
10.2.6. Al Wifaq Finance
10.2.7. Finance House
11. Future Outlook and Projections For UAE Car Finance Market, 2017-2021
12. Macroeconomic Factors affecting UAE Car Finance Market
12.1. New Car Sales in UAE, 2011-2021
12.2. Consumer Expenditure in UAE, 2011-2021
12.3. Number of Bank Branches in UAE, 2011-2021
12.4. Gasoline Prices in UAE, 2011-2021
Disclaimer
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