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Report Description

Report Description

The UAE automotive loan market is witnessing robust growth over the duration of the forecast period with the advancement of digital technology, a rise in the number of financing aggregators, population's growing awareness towards automotive loan and increase in the number pf privately own cars. Additionally, the rising cost of owning a vehicle in the UAE has made it more difficult, which has boosted the market for automotive loans.

An auto loan is used to purchase a vehicle. Automotive purchasers in the UAE have two primary options for lending: a bank or a dealer. For a bank loan, the customer must visit a branch and complete an application. If the customer's credit is accepted, the bank will do a credit check and offer them a loan at an interest rate based on their credit score. With dealer financing, customers can negotiate a deal directly with the dealership. They might be eligible for a lower interest rate and be exempted from a credit check. However, they could also need to put down additional money.

According to article of 2022, survey of Abu Dhabi reveals that 52% of UAE residents are contemplating hybrid or electric vehicles as a result of the increase in fuel prices, while 25% stated they're waiting for more EV alternatives before deciding. According to International Trade Administration (ITA), in the UAE, passenger cars account for 80% of the market, while commercial vehicles account up the remaining 20%. (trucks, vans, and buses). In the UAE, 158,711 motor vehicles were sold in total in 2020. This included 129,901 passenger automobiles and 28,810 commercial vehicles. Thus, with the rising demand of passenger cars and commercial vehicles, the automotive loan will also increase in UAE during the forecasted period.

Growing Digitalization of Financial Institution Fueling the Market Growth

The automotive loan industry is implementing more advance technological innovations in an effort to increase operational profitability and customer satisfaction. Customers have become accustomed to digital information in sectors like banking and telecom. Many are also beginning to digitally experience their vehicle purchasing process. Everyone wants a quick and simple lending procedure with control over the process, the ability to look up specific monthly payments, get pre-approved digitally, and the option to use e - transactions. The primary product on which today's consumers are primarily focusing is an automobile, and consumers prefer automotive loan simply as a form of payment with specific interest rate, duration, and EMIs, which is driving the automotive loan in UAE over the forecasted period.

Rising Preference of Personal Vehicle in UAE Fuels Market Growth

Low import and fuel prices, a favorable tax structure, and high discretionary incomes in the UAE have all aided in the growth of the automotive industry and enticed multinational manufacturers like Toyota, Nissan, Mitsubishi, and others to locate here and begin production. For instance, sales of new cars increased 10% in the UAE during the first quarter of 2022 compared to the same period, last year. In recent years, automotive loans outstanding in UAE have been gaining momentum, owing to increased working population and the demand of cars from Dubai & Northern Emirates regions is on rise.. Therefore, the car financing market is predominantly driven by the growing consumer target for car ownership in UAE, during the forecasted period.

Surging Demand of Electric Vehicles to Fuel the Market Growth

With the rising of petrol cost, the demand of electric vehicles are gaining popularity in UAE. Automobile industry officials confirmed that as new brands enter the UAE, more and more drivers, particularly those who frequently travel between different emirates, are moving to electric vehicles. Furthermore, banks are giving electric car owners very appealing interest rates, while the government supports the usage of electric vehicles. According to news article of 2022b, people of UAE are preferring electric vehicles over petrol based vehicles owing to the thought that consumers can pay the same amount in monthly instalments for the new electric vehicle rather than paying out for fuel. Therefore, with the rising popularity of electric and hybrid vehicles, the demand of automotive loan is also increasing which is driving the automotive loan in UAE.


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Market Segmentation

The UAE automotive loan market is segmented based on vehicle type, provider type, percentage of amount sanctioned, and tenure. The market is divided into the 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 services, OEM (original equipment manufacturer), others (fintech companies). 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, 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.

Attribute

Details

Base Year

2022

Historical Years

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Billion and CAGR for 2018-2022 and 2023-2028

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Vehicle Type

Provider Type

Percentage of Amount Sanctioned

Tenure

Region

Regional Scope

Dubai, Abu Dhabi, Sharjah, Ajman, and Rest of UAE

Key Companies Profiled

Dubai Islamic Bank Public Joint Stock Company, Al Hilal Bank PJSC, Emirates NBD Bank PJSC, Abu Dhabi Commercial Bank PJSC, 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.

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail of customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

 

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 Services
    • OEM (Original Equipment Manufacturer)
    • 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.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information:

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

UAE Automotive Loan Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

Table of content

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 Purchase Decision

4.5.  Sources of Information

4.6.  Challenges Faced After Purchase

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 Services, OEM (Original Equipment Manufacturer), Others (Fintech Companies)]

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 Analysis

5.2.5.2.         Abu Dhabi & Northern Market Analysis

5.2.5.3.         Sharjah Market Analysis

5.2.5.4.         Ajman Market Analysis

5.2.5.5.         Rest of UAE Market Analysis

5.2.6.     By Company Market Share Analysis

5.3.  UAE Automotive Loan Market Mapping & Opportunity Assessment

5.3.1.     By Automotive 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.     Expansion 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 Global Automotive Loan Market

10.1.              Impact Assessment Model       

10.1.1.  Key Segments Impacted

10.1.2.  Key Regions Impacted

10.1.3.  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 of 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 Buyer

12.3.              Bargaining Power of Supplier

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.      Product & Services

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, Emirates NBD Bank PJSC

16.1.2.1.      Company Details

16.1.2.2.      Product & Services

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.  Abu Dhabi Commercial Bank PJSC

16.1.3.1.      Company Details

16.1.3.2.      Product & Services

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.  Abdul Latif Jameel United Finance Company

16.1.4.1.      Company Details

16.1.4.2.      Product & Services

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.  Abu Dhabi Islamic Bank Public Joint Stock Company

16.1.5.1.      Company Details

16.1.5.2.      Product & Services

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.  Ajman Bank PJSC

16.1.6.1.      Company Details

16.1.6.2.      Company Details

16.1.6.3.      Product & Services

16.1.6.4.      Financials (As Per Availability)

16.1.6.5.      Key Market Focus & Geographical Presence

16.1.6.6.      Recent Developments

16.1.6.7.      Key Management Personnel

16.1.7.  Arab Bank Group

16.1.7.1.      Company Details

16.1.7.2.      Product & Services

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.  The National Bank of Ras Al Khaimah PJSC

16.1.8.1.      Company Details

16.1.8.2.      Product & Services

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.  Dunia Finance LLC

16.1.9.1.      Company Details

16.1.9.2.      Product & Services

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.                Reem Finance P.J.S.C.

16.1.10.1.    Company Details

16.1.10.2.    Product & Services

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

17.  Strategic Recommendations/Action Plan

17.1.              Key Focus Areas

17.2.              Target Regions

17.3.              Target Vehicle Type

17.4.              Target Provider Type

17.5.              Target Percentage of Amount Sanctioned

17.6.               Target Tenure

18.   About Us & Disclaimer

Figures and Tables

Frequently asked questions

Frequently asked questions

Key factors that are driving the UAE automotive loan market growth include the expansion of privately owned cars, rise of automotive loan aggregators, digitalization of financial institutions in UAE, etc.

The source of income demonstrates your ability to pay back the loan balance. In order to obtain a car loan in the UAE, it is necessary to demonstrate your source of income.

The car loan interest rate ranges 2.10% p.a. to 5.50% per annum in UAE. The interest rates for variable or decreasing car loans range from 2.10% to 10.06% per annum.

Some key players operating in the UAE automotive loan include Dubai Islamic Bank Public Joint Stock Company, Al Hilal Bank PJSC, Emirates NBD Bank PJSC, Abu Dhabi Commercial Bank PJSC, 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.

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