UAE Auto Finance Market is expected to get doubled, generating USD ~100 Bn by 2026F owning to the Potential for Fintech Growth, Growing Digital Advancement, Increase in Private Car Services and Government Initiatives: Ken Research

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Gurugram, India, Jan. 20, 2023 (GLOBE NEWSWIRE) —

  • Growing Digital Advancements and Increasing Number of Finance Aggregators are driving UAE Auto Finance Industry – expected to grow at a CAGR of ~17%.
  • UAE Auto Finance Market is fragmented in nature with around 8+ major lenders (Banks, NBFCs. Captives) holding major market share.
  • UAE Auto Finance Industry is expected to witness good growth in future owing to reasons such as Increasing Population, growing income levels, new and innovative business models and more.

Potential for Fintech Growth:  The Emirates has established fintech adoption and growth as its central national priority, shaping the path for digital financial services to become a profound innovation that would modernize the region’s financial status. Fintech in the UAE will prove to be a phenomenal sector reflecting the nation’s regional progress.

Growing Digital Advancements: Dealers wants to reach online-first car shoppers by investing in an all-encompassing digital marketing solution that leverages mobile, location, and social media. Automotive Financing Companies are increasingly moving towards higher technological advancements to improve operational profits as well as customer experience like, smartTRADE, a Shariah Compliant trade platform designed to facilitate fast and efficient Trade Finance transactions that reduce turnaround time, save operating costs and make international trade financing easy, efficient and secure. Furthermore, Most of the Business Banking active customer base have been on-boarded on “businessONLINE”- the all-new and state-of- the-art comprehensive online banking platform and mobile app, designed for SMEs & Corporate Clients.

Increase in Private Car Services: Large number of people in the UAE are now preferring privately hired cars, as the increase in the oil prices, traffic fines, unavailability of auto parts has resulted in the lower number of potential buyers, leading to a potential increase in the financing of private car services in future. Furthermore, there is also increase in the green car loans, Electric vehicles are an emerging segment in the UAE, as the leading the way for green loans in the country.

Analysts at Ken Research in their latest publication UAE Auto Finance Market Outlook to 2026F – Driven by growing digital penetration, evolving vehicle ownership characteristics and rebates by the Government amidst systematically regulated vehicle ownership and financing policies by the regulatory authorities by Ken Research observed that UAE Auto Finance Market is in the growing phase. The Potential for Fintech Growth, growing digital advancement, rising automobile demand, flexible model of financing and government initiatives, are some of the factors that will contributed to the UAE Auto Finance market growth over the period of 2021-2026F. It is expected that UAE Auto Finance Market will grow at a CAGR of ~17% for the above forecasted period.

Key Segments Covered:-
UAE Auto Finance Market

By Category of Lenders (by Credit disbursed), 2021 & 2026F

  • Captive Financing Companies
  • Universal and Commercial Banks
  • NBFCs

By Type Of Vehicles (by Credit disbursed), 2021 & 2026F

  • Two Wheelers
  • Three Wheelers
  • Four Wheelers

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By Type of Ownership (by Credit disbursed), 2021 & 2026F

  • Used Cars
  • New Cars

By Category of Vehicles (by Credit disbursed), 2021 & 2026F

  • Passenger Vehicles
  • Commercial Vehicles

By Duration of Loan (by Credit disbursed), 2021 & 2026F

  • 12 – 14 months
  • 25 – 48 months
  • 49 – 60 months

Key Target Audience:-

  • Banks and its Subsidiaries
  • NBFCs
  • Captive Finance Companies
  • Government and Institutions
  • Automobile Companies
  • Car Dealers
  • Government and Institutions
  • Existing Auto Finance Companies
  • OEM Dealerships
  • New Market Entrants
  • Investors
  • Auto mobile Associations

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Time Period Captured in the Report:-

  • Historical Period: 2016-2020
  • Base Year: 2021
  • Forecast Period: 2022 – 2026F

Companies Covered:-

  • Dubai Islamic Bank
  • Commercial Bank of Dubai
  • Emirates NBD
  • HSBC
  • Noor Bank
  • Abu Dhabi Islamic Bank
  • Al Hilal Bank
  • Ajman Bank
  • ADCB Islamic Bank
  • Arab Bank
  • RakBank
  • Sharjah Islamic Bank
  • Emirates Islamic Bank
  • First Abu Dhabi Bank
  • Mashreq Bank
  • Dunia Finance
  • Reem Finance
  • Siraj Finance
  • Finance House
  • Dubai First

Key Topics Covered in the Report:-

  • Executive Summary for UAE Auto Finance Market Outlook to 2026F
  • Country Overview of UAE
  • UAE Auto Finance Market Overview and Genesis
  • Ecosystem of Major Entities in UAE Auto Finance Market
  • UAE Automotive Market – Major OEM Brands basis Passenger Car Sales
  • Objectives of Captives
  • Types of Car Loans in UAE Auto Finance Industry
  • Value Chain of UAE Auto Finance Industry
  • UAE Auto Finance Market Size
  • UAE Auto Finance Market Segmentations
  • Industry Analysis of UAE Auto Finance Market
  • Decision Making Parameters for selecting Auto Finance Vendors
  • Trends and Developments in UAE Auto Finance Market
  • Challenges faced by End Users in UAE Auto Finance Market
  • SWOT Analysis of UAE Auto Finance Market
  • Government Regulations in the UAE Auto Finance Market
  • Customer Journey
  • COVID 19 Impact on UAE Auto Finance Industry
  • UAE Auto Finance Aggregator Market
  • Cross Comparison of Major Companies in UAE Auto Finance Market
  • Future Outlook and Market Size for UAE Auto Finance Market 2021-2026F
  • Analyst Recommendations

For more insights on the market intelligence, refer to below link:-
UAE Auto Finance Market

Related Reports By Ken Research:-
Singapore Auto Finance Market Outlook to 2025 (Edition II) – Driven by exorbitant Car Prices, Growing Digital Penetration and evolving Vehicle Ownership Characteristics amidst Systemically Regulated Car Ownership Policies by the Government

The Singapore Auto Finance industry is expected to increase at a CAGR of ~11% basis Auto credit disbursed and ~0.4% basis Auto Loan Outstanding during 2020 to 2025. The credit disbursed is expected to rise in Singapore at higher than average CAGR owing to higher number of cars financed in the future. The government of Singapore is working towards expansion of Green Car Sales in the country, which is expected to increase the demand of ‘Green Car Loans’ in the future years. New Business Models such as Shared Ownership Financing may also emerge in the country in the coming years. Lastly, Industry is expected to move towards a digital growth with the expansion of Artificial Intelligence, Machine Learning, Big Data and more to further simplify loan application process.

Egypt Auto Finance Market Outlook to 2027– Driven by women drivers entering the market, digital advancements and initiatives by the Government

Urbanization is expected to rise to more than 60% by 2030, which means increased demand for jobs, housing, infrastructure, and social services such as public transportation. Moreover, the recent increase in the cost of public transportation has led to increase in demand for personal vehicles. Egypt Auto Finance Market is currently at the growth stage and the market is currently increasing at a double digit CAGR owing because of lower interest rate, growing disposable income and easy financing options.

Malaysia Automotive Finance Market Outlook to 2026-Driven by exorbitant car prices, growing digital penetration, preference for owning passenger cars amidst systematically regulated car ownership policies by the Government

Number of passenger car ownership in Malaysia exceeded the population in Malaysia. Poor public transport infrastructure is one of the reasons. The used car industry is also enjoying a boom in business, and is reportedly on-track to register double-digit growth in sales. Import of vehicles still exceeds the exports resulting huge trade deficit. Government has taken various initiatives to support domestic manufacturing of vehicles by setting up companies like Proton and Perodua. Government also gives various incentives on purchasing of National Car. The market is at maturity stage with stable population, high ownership of car and small domestic commercial vehicle market, the opportunity of growth in Malaysia is quite limited.

Philippines Auto Finance Market Outlook to 2026- Driven by change in consumer spending, ease in provision of loans, improving technology and government support

Philippines Auto Finance Market is Expected to grow at a  good  CAGR  in between 2021 and 2026F, one of the major determinants for the surging growth in coming years is the Increasing Population and growing income levels leading to rise in sales of cars , the rise in Auto Outstanding Loans in Philippines, the increase in Auto Loan Outstanding is expected a high growth rate between 2021F-2026F, High-Mid range car models are expected to witness strong success as the majority of car buyers segment includes the High Income people leading to larger Loan amount per customer, Expectation of high growth in car sales especially in Green cars as the government is building the infrastructure like the charging point at public parks . Higher digitization and usage of Artificial Intelligence and Machine Learning to improve customer convenience. New Business Models such as Subscription Lending, Shared ownership financing are coming into play which will lead the way for high growth rate in the Philippines Auto Finance Market.

Indonesia Auto Finance Industry Outlook to 2026- Driven by growing digital penetration, evolving vehicle ownership characteristics and rebates by the Government amidst systematically regulated vehicle ownership and financing policies by the regulatory authorities

Indonesia Auto Finance Market is Expected to grow with a high  CAGR  in between 2021 and 2026F, one of the major determinants for the surging growth in coming years is the Increasing Population and growing income levels leading to rise in sales of cars , the rise in Auto Outstanding Loans in Indonesia, the increase in Auto Loan Outstanding is expected a high growth rate between 2021F-2026F, Four-Wheeler car models are expected to witness strong growth as the majority of car buyers segment includes the High Income people leading to larger Loan amount per customer, Expectation of high growth in car sales especially in Green cars as the government is building the infrastructure like the charging point at public parks . Higher digitization and usage of Artificial Intelligence and Machine Learning to improve customer convenience. New Business Models such as Subscription Lending, Shared ownership financing are coming into play which will lead the way for high growth rate in the Indonesia Auto Finance Market.

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Ken Research Private Limited
Ankur Gupta, Director Strategy and Growth
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