Saudi Arabia has come a long way in the transportation sector, which the Kingdom has been developing continuously, according to Abdur Rahman Abumilha, undersecretary in the ministry of transport, who inaugurated the Second Autocare Arabia, and Freight Logistics Arabia exhibition - ATA ‘10 - at the Jeddah Center for Forums & Events on Sunday. “Right now we are doing a study in the main cities in the Kingdom concerning all aspects of transportation, which includes railways, and buses,” Abumilha said. He added that for the first time, coastal transportation will be developed, which will help boost domestic tourism. Abumilha said exhibitions such as the present one help improve and develop the Saudi market. They give a fillip to the national industry, and provide an opportunity for technological transfer. Saudi Arabia accounts for more than 2 million of the 4.5 million passenger cars in the Gulf Cooperation Council (GCC). Moreover, the Kingdom's pre-owned cars market constitutes 46 percent of owned cars. The growing car servicing, parts and accessories market is worth $2.5 billion with an annual sale of 4 million tires and 1.5 million batteries. The Kingdom, currently the biggest automotive market in the region, imported more than SR38 billion worth of cars and spare parts in 2008. Auto sales in the Kingdom reportedly increased by 5 percent in 2009 to surpass the 545,000 units sold in 2008. According to a Frost & Sullivan analysis - Strategic Assessment of the Middle East Automotive Markets, Saudi Arabia is a booming automotive market. The passenger car segment is the largest and the most important segment and contributes to around 73.3 percent of the total revenue in this market. The analysis says that the automotive parts segment in Saudi Arabia is also growing rapidly. The Kingdom remains an import-driven automotive market where almost one-third of the vehicle imports are used ones. The revenue of the automotive parts market in Saudi Arabia reached over $1.1 billion in 2004. However, the Saudi Arabian market for automotive parts is open and highly competitive, and prices play an important role in determining market share. The Middle East with a high ratio of cars per-household and increasing number of vehicles on the road is a fast growing automotive market. Large automotive companies across the globe introduce new models of passenger cars each year and customers in the region keep pace with the latest automotive technologies and designs. - SG. Furthermore, with an estimated GDP per capita of SR89,700 as of 2008, according to figures from the World Bank, the country's strong spending power has helped make Saudi Arabia one of the most lucrative automotive markets in the world. In addition, nearly 60 percent of the country's population of over 25 million comprises young Saudis, many of whom are car enthusiasts with strong interest in automotive vehicles and accessories, customizing, and in-car entertainment. - SG. The Saudi government has also greatly influenced the expansion of the automotive and auto parts sectors by offering attractive financial plans and investment incentives. These factors open up huge opportunities for dealers, car parts and accessories distributors, retailers and aftermarket service providers. Under these conditions, participants stand to gain from comprehensive and reputable industry forums such as the ATA, where all stakeholders showcase market best practices, trends, products, technologies, and prospects.
