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Overview of the United Arab Emirates’ Automobile Market in 2021

In the United Arab Emirates,192,445 vehicles were sold in 2021, up 26.4% from the previous year. However, sales were down 10.9% from 2019, and were only half of the record high level of 415,897 units in 2015. Toyota maintained its top position with 58,845 units, up 14.8% year-on-year. The No. 1 model was the Toyota Land Cruiser station wagon with 13,101 units.

United Arab Emirates: Recent Developments

Market Trends

・Automobile sales in 2021 increased by 26.4% year-on-year to 192,445 units, but decreased 10.9% compared to 2019. - Toyota went up 14.8% to 58,845 units, maintaining its top position; however, its market share declined 3.1 pp to 30.6%. - The Toyota Land Cruiser became the top-selling model in 2021 with 13,101 units, going down a mere 1.4% year-on-year. It surpassed the previous year's top model Nissan Patrol which dropped 15.6% year-on-year to 11,950 units.

Industry Trends

・By the end of 2024, 10% of vehicles procured by government agencies will be electrified vehicles (BEVs or HEVs). After that, the ratio of electrified vehicles will be increased to 20% from 2025 to 2029 and to 30% after 2030. ・By the end of 2022, the UAE aims to make 50% of its taxi fleet electrified. It introduced 200 Tesla vehicles in 2021.

Policy Trends

・In February 2022, the Ministry of Finance announced that it would introduce corporate tax rates from June 2023. - Corporate tax applies at a standard rate of 9% with the following tax segmentations and rates: 0% for taxable income up to 375,000 AED and 9% for taxable income above 375,000 AED. - One of the aims is to bring the country's business rules closer to international standards. Other aims include raising the employment rate of the country's citizens and introducing an unemployment insurance system.

Economic Trends

・The GDP growth rate in 2021 was 2.1% year-on-year. The growth forecast for 2022 is 3.0% (IMF, as of March 2022).
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