UAE Used Car Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Used Car Market in UAE is segmented by Vehicle Type (Hatchback, Sedan, and Sports Utility Vehicle (SUV) and Multi-Purpose Vehicles (MPVs)), Fuel Type (Gasoline, Diesel, and Others), Booking type (Online and Offline), and Vendor type (Organized and Unorganized). The report offers market size and forecast for Vietnam Used Car market in Value (USD billion) for all the above segments.

UAE Used Car Market Size

United Arab Emirates Used Car Market Size
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Study Period 2018 - 2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR 11.00 %
Market Concentration Medium

Major Players

United Arab Emirates Used Car Market Major Players

*Disclaimer: Major Players sorted in no particular order


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UAE Used Car Market Analysis

The United Arab Emirates Used Car Market was valued at USD 20.03 billion in 2021 and is expected to reach USD 32.07 billion by 2027 registering a CAGR of around 11% during the forecast period (2022 - 2027).

The COVID-19 pandemic had a moderate impact on the market as initial lockdowns in 2020 resulted in a slowdown in demand, however with ease in restrictions in 2021 consumers were encouraged to prefer used cars over new cars in wake of the pandemic coupled with fewer vehicle production due to supply chain disruptions and shortage of some auto components. 

Over the medium term, factors such as the quality of used cars, the large number of expatriates, and demand for new and luxury cars are expected to stand as primary driving factors of the market. However, price discrepancies, lack of standardization, and others are expected to act as major restraints to the growth of market. 

Despite such challenges, growing passion for cars especially demand by youth in the country encouraging several global used car dealers and local certified car dealers to enter the market. In addition, growing expat population in the country and the active online sales of used cars in wake of latest technologies enabled online tools easing the entire process, such trends to further enhance growth of market during the forecast period. For instance, As of July 2021, it is estimated that expat population in UAE constitutes 88.6% of the overall population. Mostly expats in UAE are living for a specific duration of time till their employment contract expires. Due to this nature, these expats prefer buying a pre-owned vehicle rather than spending huge sum of money in buying a brand-new car which has resulted in increased demand of used cars over the years.

Dubai, Sharjah, Abu Dhabi, and others expected to play key role in the development of UAE used car market in coming years as these provinces accommodate large number of expat and high population who are mostly inclined to buying used cars due to viability of easily available used car financing and loans. 

UAE Used Car Industry Segmentation

A Used Car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through various outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales. The scope of the report covers details on the latest technologies, trends, and developments in the market.

The United Arab Emirates Used Car Market is segmented by Vehicle type, Fuel type, Booking type, and Vendor type. By Booking type, the market is segmented into Hatchback, Sedan, and Sports Utility Vehicle (SUV) and Multi-Purpose Vehicles (MPVs)). By Fuel Type, the market is segmented into Gasoline, Diesel, and Others.

By Booking type, the market is segmented into Online and Offline. By Vendor type, the market is segmented into Organized and Unorganized. For each segment, market sizing and forecast have been done on basis of a value (USD billion).

By Vehicle Type
Sports Utility Vehicles (SUV) and Multi-Purpose Vehicles (MPVs)
By Vendor Type
By Booking Type
By Fuel Type

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UAE Used Car Market Trends

This section covers the major market trends shaping the UAE Used Car Market according to our research experts:

SUVs and Sedans Expected to Hold Significant Share in the Market

The SUV segment is the leading segment in terms of value with respect to the market size owing to its added perks of being a family car with off-road capabilities and a spacious cabin. SUVs have become increasingly popular among UAE used car buyers in recent years. Consumers are always interested in looking at the current SUV models on the market, while dealers compete to offer new SUVs for this growing market. 

The SUV trend in the youth may be the driving force for the SUV segment among domestic buyers. In this situation, the existence of SUVs with luxurious and sporty looks generally cater to the higher class while yet providing a reasonable level of comfort.SUVs offer greater deals to customers who have these concerns. Even for a low budget, there is a low-cost SUV that nonetheless gives the image of a robust and latest vehicle. This SUV sector is a good value for money in the middle-class economy.

 The most popular models in the SUV section include the Toyota Land Cruiser and the high-end Mercedes Benz S-Class, famous for its superior comfort, style, innovation, and general luxurious appeal. Although there has been mounting interest in spacious, luxurious cars, price-conscious purchasers are equally interested in easy-to-maintain, affordable sedan models like the Toyota Camry, which is known for its resale value and fuel prices. In wake of such developments and instances it is expected that large number of operational and marketing changes to happen in the market as the companies are becoming more customers centric indicating optimistic growth of SUVs segment of the UAE used car market. 

United Arab Emirates Used Car Market Share

Growing Online Penetration and Digital Platforms to Play Key role in the Market

The United Arab Emirates has a significantly high penetration of internet users in the GCC region and this is primarily attributed to the availability of high-speed internet at an affordable price. In 2021, there were 9.94 million internet users in the United Arab Emirates in January 2022 and the internet penetration rate stood at 99.0 percent of the total population at the start of 2022. This has motivated players to shift their business model from offline shops to online business models to provide an easy and hassle-free experience to their customers.

Many multi-brand and independent dealerships are expected to develop their online presence in order to participate in the online used vehicle market. Some dealerships are investing in their own websites and Instagram pages in addition to advertising used car inventory on internet marketplaces. For example, Companies like AL-FUTTAIM UAE, ALBA CARS UAE, AUTO DEALS UAE, cars 24 UAE, and others are some of the active online used car dealers. Further, used vehicle platforms are likely to focus on establishing a transactional marketplace to enable 100 percent online end-to-end transactions without having to visit showrooms from the comfort of their homes.

Also, COVID-19 has further aided the used car market owing to lockdowns and restricted movement which made most dealers rely on internet enquiries and bookings, to boost sales. Virtual tours and remote inspections are being made available through online portals, and home delivery services are being offered by enterprises, including OEM certified/authorized dealerships. Thus, in wake of such developments, several online platforms are expanding their presence in the region to increase their market share and revenues. For instance,

  • In February 2022, Cars24 a renowned online platform has recently launched AI-enabled software in the U.AE. allowing vehicle enthusiasts to purchase and sell cars within 30 minutes of downloading the program. Customers can also calculate their monthly EMI and track other characteristics like engine, steering, and tires. It is one of the most advanced platforms for consumers to obtain car financing, insurance, maintenance, and other important services.
  • In November 2021, Dubai-based is set to invest USD 122 million in the region to expand its consumer sector, with the launch of, a also raised USD 35 million in fresh funds from Sanabil Investments which is a wholly-owned subsidiary of Saudi’s Public Investment Fund, Kuwait-based Gulf Investment Corp. and Riyadh-based Olayan Financing Co, the startup. Apart from expansion, will use the funds to expand its product line which would also include the launch of to allow consumers to sell to consumers in the UAE. 

Such developments expected to improve online segment of the market during the forecast period and poised to create positive outlook for the market. 

United Arab Emirates Used Car Market Growth

UAE Used Car Industry Overview

The UAE Used Car market is considered to be moderately fragmented, accommodating several leading players like Al Tayer Group, Al-Naboodah, Al-Futtaim group,, Car switch, Yalla Motors, and other prominent players. While several key offline used car dealers are focused on adopting expansion strategies like collaborative agreements, mergers, acquisitions, etc. other new entrants are also encouraged to explore the market and are actively focused on fleet expansion, varied offerings, etc.

  • In May 2021, CARS24 has begun operations in the United Arab Emirates. Cars on the CARS24 platform undergo a 150+ point quality check, are refurbished thoroughly, and go through the stringent RTA test before they go on sale. Every CARS24 car comes with a 7 days return policy and 2 years warranty.
  • In November 2021, Al-Futtaim announced that set to introduce battery electric vehicles from the start of 2022 as the company drives forward its pioneering approach to sustainable transport as part of its fleet expansion strategy.

UAE Used Car Market Leaders

  1. Arabian Automobiles Co LLC

  2. Yalla

  3. Alfuttaim Group

  4. AlNabooda Automobiles

  5. AlTayer Motors

*Disclaimer: Major Players sorted in no particular order

Al Tayer Group, Al-Naboodah, Al-Futtaim group,, Car switch, Yalla Motors

UAE Used Car Market News

  • In February 2022, Cars24, an online platform for pre-owned vehicles, announced that the company's newly opened mega refurbishment lab (MRL) in UAE would roll out close to over 20,000 cars in a year. Through its next-generation, e-commerce platform for used cars and its new MRL, the company aims to continue its expansion plans in the region. Since the launch of its operations in the UAE in May 2021, CARS24 has sold close to 3,500 plus cars and 100 percent of these transactions were conducted online.
  • In February 2022, Al-Futtaim Trading Enterprises, the official distributor of Honda in the UAE, launched its certified approved pre-owned program, providing customers the opportunity to purchase a pre-owned Honda with the same brand guarantee and high-quality service pledge as a brand-new Honda. With these appealing service plans, flexible in-house finance solutions, and competitive trade-in offers the approved pre-owned program offers appealing deals for aspiring Honda customers.
  • In November 2021, Al-Futtaim Automotive opened the largest pre-owned car showroom in the UAE at Dubai Investment Park. The second branch in the emirate of Dubai, Al-Futtaim Automall DIP is a one-stop shop for those who are looking to buy and sell pre-owned cars from all brands and manufacturers.

UAE Used Car Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Vehicle Type

      1. 5.1.1 Hatchbacks

      2. 5.1.2 Sedans

      3. 5.1.3 Sports Utility Vehicles (SUV) and Multi-Purpose Vehicles (MPVs)

    2. 5.2 By Vendor Type

      1. 5.2.1 Organized

      2. 5.2.2 Unorganized

    3. 5.3 By Booking Type

      1. 5.3.1 Online

      2. 5.3.2 Offline

    4. 5.4 By Fuel Type

      1. 5.4.1 Petrol

      2. 5.4.2 Diesel

      3. 5.4.3 Others


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Al Nabooda Automobiles LLC

      2. 6.2.2 Al-Futtaim group

      3. 6.2.3 CARS 24

      4. 6.2.4 Yalla Motors. com

      5. 6.2.5 ALBA TRADING FZC


      7. 6.2.7

      8. 6.2.8 SellAnyCar.Com

      9. 6.2.9 Al Tayer Motors

      10. 6.2.10 Carswitch


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UAE Used Car Market Research FAQs

The UAE Used Car Market is projected to register a CAGR of 11% during the forecast period (2023-2028).

Arabian Automobiles Co LLC, Yalla, Alfuttaim Group, AlNabooda Automobiles and AlTayer Motors are the major companies operating in the UAE Used Car Market.

UAE Used Car Industry Report

Statistics for the 2023 United Arab Emirates Used Car market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Arab Emirates Used Car analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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