Favorable government regulations, logistics infrastructure, and real estate growth are boosting the tire market in the United Arab Emirates, according to TechSci Research.
Economic variables such as per capita income, crude oil prices, import-export competence and demographics of the non-UAE population coupled with growing foreign investments are positively influencing the UAE tire market, the research firm announced May 8.
The UAE tire market is expected to see a compounded annual growth rate (CAGR) of 11 percent between this year and 2019, according to TechSci's "UAE Tyre Market Forecast and Opportunities."
The UAE is the largest importer of consumer goods within the GCC regions, and imported $273 billion worth of consumer products in 2012.
Bridgestone, Michelin, Goodyear, Pirelli, and Continental maintain the largest market share in the UAE tire market. These companies continue to grow their market share, according to the report.
"In terms of road safety, TPMS and anti-collision braking system have become an integral part of the UAE automotive market," said Karan Chechi, TechSchi research director. "Moreover, the UAE government's liberal taxation policies and investment support systems are encouraging foreign investors to invest into the country. All of these factors are cohesively augmenting the tire market in the UAE."