Car prices likely to cost 20% more in UAE, says FNC member.

New cars are more expensive in the UAE compared to other Gulf countries, and car prices are likely to be 20 percent more expensive in 2018, a member of the Federal National Council (FNC) said.

FNC member Saeed Saleh Al Rumaithi from the Capital, raised the question to the Minister of Economy, Sultan bin Saeed Al Mansoori, about the prices of vehicles.
He pointed out that consumers are already facing “many problems”, when it comes to purchasing vehicles with a reasonable price, adding that car dealerships and agencies are making a large profit from the consumer’s pocket.
Sultan Bin Saeed Al Mansouri, Minister of Economy, said the proposal to set up a fair value pricing system for car agencies will be considered by the newly set-up car agencies committee.
Al Mansouri noted, however, that market competition is going to make it difficult for car agencies to hike up prices.
“Car agencies in the UAE make no more than 5 percent profit margin,” he said.
“Competition has sent car prices nosediving since the middle of this year. Prices have decreased by 20 percent since mid-August and they are expected to decrease further next year,” Al Mansouri said.