Used Car Financing in the UAE, New and Used Car Financing in UAE, Islamic Banks UAE Car Loan Market - Ken Research - PowerPoint PPT Presentation

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Used Car Financing in the UAE, New and Used Car Financing in UAE, Islamic Banks UAE Car Loan Market - Ken Research

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Title: Used Car Financing in the UAE, New and Used Car Financing in UAE, Islamic Banks UAE Car Loan Market - Ken Research


1
Growing Used Car Sales Coupled with Rising
Penetration of New and Used Car Finance to
Stimulate the UAE Car Financing Market Growth
Ken Research
2
Increasing number of expatriate population has
infused an improved growth in the used car
market, which is regarded as a driving force for
the markets growth in the coming
years. Government initiatives to promote the use
of electric cars as a step to reduce the fuel
emissions is expected to raise the demand for car
finance within the country. Rising value of used
cars is expected to increase the amount of credit
disbursed for used car finance.
3
Though at a slow pace, the UAE car finance market
is anticipated to recover during the forecast
period 2017-2021, from the fall in the credit
disbursement that has been observed towards the
end of the review period. Real time deposit rates
have been negative since 2013 and the major
factor that discourages people from depositing in
banks is the low interest rates. The banks are
expected to focus more on consolidation rather
than growth and be more cautious in consumer
lending such as personal and car loans. Further,
the credit worthiness of the applicant is assumed
to be strictly assessed with the help of the
credit bureau, before lending. Hence, the rate of
rejections is expected to rise in near future.
Car finance has become extremely competitive in
recent years, to the point where it is almost a
loss-leader for some financial institutions. With
so low margins and the higher processing costs
associated with car loans, interest rates are
more likely to rise in the coming years. The
introduction of value added tax in 2018 and the
liquidity crunch in the country is expected to
affect the car sales, reducing the demand for car
finance.
4
  • However, UAEs economic growth is expected to
    accelerate from the year 2017 by more than 4 a
    year until 2020, owing to the new projects
    underway driven by real estate, transport and
    power projects. The economic growth is expected
    to increase the household spending and improve
    the standard of living, increasing the demand for
    cars thereby increasing demand for car finance.
  • Ken Research in its latest study, UAE Car Finance
    Market Outlook to 2021 observed that the
    introduction of Al Etihad Credit Bureau by the
    Central Bank of UAE will enable the banks to
    assess the creditworthiness of their prospective
    customers and to prevent the risk of credit loss,
    provided that the measures are properly
    implemented. To withstand competition in the
    market, many players are in plans to introduce
    more bundling options in loans. For banks, car
    loans are a more attractive proposition when it
    is packaged with a suite of other products that
    cater to multiple customer requirements.

5
The UAE car finance market is estimated to
register a positive CAGR during 2017-2021. Future
growth in the expatriate population, rising
demand for electric vehicles and standardization
of Islamic financial products are expected to be
key drivers for spiked demand for car loans in
the country. The report provides information on
the number of new cars financed, new and used car
penetration, tenure of new and used car loan and
the emirates dominating the market in terms of
credit disbursed and number of cars financed. It
also covers the major players in the market such
as Emirates NBD, Dubai Islamic Bank, Mashreq
Bank, Emirates Islamic Bank, Al Hilal Bank, Al
Wifaq Finance and Finance House.
6
  • Key Topics Covered in the Report
  • UAE Auto Loan Market
  • Top UAE Car Loans Banks
  • Dubai Average Loan Rate
  • Competition UAE Car Loan
  • Car Financing Option in UAE
  • Car Loans UAE Top 5 Banks
  • Vehicle Financing in the UAE
  • Used Car Financing in the UAE
  • Finance the Car in UAE Process
  • Islamic Banks UAE Car Loan Market
  • New and Used Car Financing in UAE
  • Emirates NBD Market Share Auto Loan
  • Passenger and Commercial Vehicles Sales in the
    UAE

7
For more coverage click on the link below
https//www.kenresearch.com/banking-financial-ser
vices-and-insurance/loans-and-advances/uae-car-fin
ance-market/110143-93.html Related Reports by
Ken Research https//www.kenresearch.com/banking-f
inancial-services-and-insurance/loans-and-advances
/india-car-finance-market-report/679-93.html http
s//www.kenresearch.com/automotive-transportation-
and-warehousing/automotive-and-automotive-componen
ts/indonesia-used-car-report/79410-100.html https
//www.kenresearch.com/automotive-transportation-a
nd-warehousing/automotive-and-automotive-component
s/india-used-car-2015-edition/654-100.html
8
Contact Ken Research Ankur Gupta, Head
Marketing Communications query_at_kenresearch.com
91-124-4230204
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