Dubai car sales to rise

The Dubai Chamber of Commerce and Industry expects a rise of five percent in car business in 2010 taking the industry sales to $11.08bn in 2010 from current business of $11.03bn in 2009 so far.

The analysis also predicts car ownership levels to rise above 55 percent this year, for the first time in UAE's history, according to a report published in Gulf News. 

It is important to note that owing to a sizable re-export of cars, growth in imports does not necessarily mean growth in domestic business.

The UAE auto industry has been weathering severe recessionary headwinds in recent months with dealers going all out with incentive's and discounts to lure potential car buyer's in the showrooms.

The chamber's analysis points at the slowdown in bank's lending for car loans as a key reason for the sluggish sales and expects car sales to bounce back with monetary loosening and improving sentiments.