• Ryan Hughes, joint owner of RMA Motors, with a Jeep Wrangler Sport. Supply issues for semiconductors and computer chips are leading to delays of up to two years for some new models. Chris Whiteoak / The National
    Ryan Hughes, joint owner of RMA Motors, with a Jeep Wrangler Sport. Supply issues for semiconductors and computer chips are leading to delays of up to two years for some new models. Chris Whiteoak / The National
  • Second-hand car dealers report booming demand due to a lack of new cars coming into the market and a shortage of stock. Chris Whiteoak / The National
    Second-hand car dealers report booming demand due to a lack of new cars coming into the market and a shortage of stock. Chris Whiteoak / The National
  • Alba Cars deals in mid-luxury vehicles and says demand for European brands is on the rise.
    Alba Cars deals in mid-luxury vehicles and says demand for European brands is on the rise.
  • Talib Alrubai, chief executive of Alba cars in Dubai, said shortages have forced a change in the buying habits of dealerships.
    Talib Alrubai, chief executive of Alba cars in Dubai, said shortages have forced a change in the buying habits of dealerships.

UAE

Shortage of new cars causes older models to soar in value

Dearth of computer chips delays arrival of latest cars into UAE's showrooms

Nick Webster
Nick Webster

June 02, 2022

  • English
  • Arabic

Read More: Top five fuel-efficient cars on the road today

A shortage of new cars arriving in the UAE is pushing up the second-hand car market to unprecedented levels, traders said.

The issue stems from a global scarcity of computer microchips used inside the vehicles.

A lag in the shipping of new cars, with some high-end vehicles requiring a two-year wait, has forced people to keep older vehicles for longer.

The knock-on effect has affected the second-hand car market, meaning some cars still cost the same as they would have in 2020, despite being two years older now.

The main dealers have nothing to sell. We are buying back the same cars we sold a year ago for the same price
Talib Alrubai,
chief executive of Alba Cars

Ryan Hughes, co-owner of RMA Motors, a car dealership specialising in prestige sports cars in Dubai Investment Park, said it was a simple issue of supply and demand.

“On some vehicles, people are paying the same price for a car that they did two years ago,” he said.

“For example, there is an 18-month waiting list for the latest Range Rover, so that keeps value retention on used models.

“Also, there is a lot less depreciation on certain models, from 15-20 per cent down to just 10 per cent, or even just 5 per cent.”

Ryan Hughes, joint owner of RMA Motors, with a 2018 Mercedes C200. Chris Whiteoak / The National
Ryan Hughes, joint owner of RMA Motors, with a 2018 Mercedes C200. Chris Whiteoak / The National

Much of the delay in the shipping of new models is a result of global shortages of computer microchips.

They are used in semi-conductors that help improve a vehicle’s efficiency and lower emissions, but many have been swallowed up by a surge in demand for computers after the pandemic forced many people to work from home.

In July, Ford limited production at many sites as a result of the shortages, with the company’s Chicago Assembly Point shutting down completely for a month in 2021.

Eight Ford plants were affected across the US, with production cut by about 1.1 million vehicles last year.

Jaguar Land Rover also mothballed production at two of its main UK car manufacturing plants in April 2021, owing to the shortage of computer chips.

“We just can’t get our hands on new cars, so we are buying back cars we sold a year ago for the same price,” said Mr Hughes.

“Factories are prioritising their bestsellers, so there are long waiting lists for other vehicles.

“The Jeep Wrangler market is through the roof. It is the most expensive I have seen it in five years.

“People who bought cars two years ago are making money if they sell now.

“The market was saturated four years ago, but it will take at least 18 months to correct. It is a good time to sell.”

  • A 1964 Porsche 356 C has been converted into an EV, which makes it twice as quick in acceleration.
    A 1964 Porsche 356 C has been converted into an EV, which makes it twice as quick in acceleration.
  • The company behind the conversion, Electrogenic, aims to 'save the world one car at a time'.
    The company behind the conversion, Electrogenic, aims to 'save the world one car at a time'.
  • The car's interior retains its old-school feel, with red carpeting, scarlet leather upholstery and period instrumentation.
    The car's interior retains its old-school feel, with red carpeting, scarlet leather upholstery and period instrumentation.
  • Other cars that are awaiting electric conversion include Austin Healey. Photo: London Electric Cars
    Other cars that are awaiting electric conversion include Austin Healey. Photo: London Electric Cars
  • The company is also working on this Bentley T-Series. Photo: London Electric Cars
    The company is also working on this Bentley T-Series. Photo: London Electric Cars
  • London Electric Cars has also electrified this Series II Land Rover, but retained its transmission and 4WD.
    London Electric Cars has also electrified this Series II Land Rover, but retained its transmission and 4WD.
  • This 1966 Lincoln Continental four-door convertible is set for a Tesla transplant before it is exported to the UAE. Photo: London Electric Cars
    This 1966 Lincoln Continental four-door convertible is set for a Tesla transplant before it is exported to the UAE. Photo: London Electric Cars
  • Matthew Quitter, founder, London Electric Cars, says one reason to convert a classic to an EV is the most tranquil drive experience.
    Matthew Quitter, founder, London Electric Cars, says one reason to convert a classic to an EV is the most tranquil drive experience.
  • In the UAE, Salman Hussain of FUSE, Dubai, converted his classic-shape Beetle to run off Tesla batteries and a Netgain motor.
    In the UAE, Salman Hussain of FUSE, Dubai, converted his classic-shape Beetle to run off Tesla batteries and a Netgain motor.
  • Mohamed Al Musleh, an assistant professor at Heriot-Watt University in Dubai, converted his 1970s Sebring Turbo to an EV.
    Mohamed Al Musleh, an assistant professor at Heriot-Watt University in Dubai, converted his 1970s Sebring Turbo to an EV.
  • Al Musleh also went down the electric route for his old Volkswagen Beetle.
    Al Musleh also went down the electric route for his old Volkswagen Beetle.

A 2017 Jeep Wrangler short wheelbase typically cost about Dh75,000 ($20,500) two years ago. Now it is priced closer to Dh90,000.

Other second-hand vehicles on the forecourts retaining value include the Audi S3 and Volkswagen Golf R.

Neither vehicle has depreciated in value since 2020, with models from 2016 still selling for up to Dh80,000 today. A new high performance sporty VW Golf R costs about Dh160,000.

Talib Alrubai, chief executive of Alba Cars in Dubai, said shortages had forced a change in the buying habits of dealerships.

“The main dealers have nothing to sell, so they are going out into older car markets with more kilometres on the clock,” he said.

“It is becoming very competitive, and used cars are increasing in price.

“We are buying back the same cars we sold a year ago for the same price.”

Alba Cars deals in mid-luxury vehicles, with demand for European brands on the rise, Mr Alrubai said.

“Maserati are also in demand in the used market for their reliability, as is Alfa Romeo,” he said.

“It is a similar story for Mercedes, Porsche, BMW and Audi.

“The new shape Range Rover has a two-year waiting list, where usually the wait would be three to six months.

“An online car sales site recently sold a new model for more than Dh1.5 million, when the list price would usually be just Dh800,000.”

As Dubai has no controls on the number of vehicles that can be exported, cars that are in demand are also being shipped out to other markets, adding to shortages.

Strong collectors market for rare cars

Porsche 911 models have also appreciated in value, while others such as a 2013 911 Carrera S bought two years ago will sell today for the same price, about Dh200,000.

It has created a booming market for collectors like Dave McCay, a passionate British car fanatic living in Damac Hills, who has recently bought and sold cars including a Porsche, McLaren, Jaguar and Aston Martin.

“There is still more value in cars here in terms of bang for buck than you can get in almost any other country,” he said.

“But the mid to high-end car market has suffered in terms of value or good deals as more and more dealers have entered the market.”

He said the transition towards electric vehicles was is also likely to have a big impact on the second-hand car market in the years ahead.

“The drive to electric has pushed the market forward and not only for Tesla but all the other up-and-coming brands like Polestar and Lucid,” said Mr McCay.

Gertrude Bell's life in focus

A feature film

At one point, two feature films were in the works, but only German director Werner Herzog’s project starring Nicole Kidman would be made. While there were high hopes he would do a worthy job of directing the biopic, when Queen of the Desert arrived in 2015 it was a disappointment. Critics panned the film, in which Herzog largely glossed over Bell’s political work in favour of her ill-fated romances.

A documentary

A project that did do justice to Bell arrived the next year: Sabine Krayenbuhl and Zeva Oelbaum’s Letters from Baghdad: The Extraordinary Life and Times of Gertrude Bell. Drawing on more than 1,000 pieces of archival footage, 1,700 documents and 1,600 letters, the filmmakers painstakingly pieced together a compelling narrative that managed to convey both the depth of Bell’s experience and her tortured love life.

Books, letters and archives

Two biographies have been written about Bell, and both are worth reading: Georgina Howell’s 2006 book Queen of the Desert and Janet Wallach’s 1996 effort Desert Queen. Bell published several books documenting her travels and there are also several volumes of her letters, although they are hard to find in print. Original documents are housed at the Gertrude Bell Archive at the University of Newcastle, which has an online catalogue.
 

The Greatest Royal Rumble card as it stands

50-man Royal Rumble

Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match

Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe

SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos

Casket match The Undertaker v Chris Jericho

John Cena v Triple H

Matches to be announced

WWE World Heavyweight Championship, Raw Tag Team Championship, United States Championship and the Cruiserweight Championship are all due to be defended

COMPANY PROFILE

Name: Rain Management

Year started: 2017

Based: Bahrain

Employees: 100-120

Amount raised: $2.5m from BitMex Ventures and Blockwater. Another $6m raised from MEVP, Coinbase, Vision Ventures, CMT, Jimco and DIFC Fintech Fund

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

More from Neighbourhood Watch
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

%20Ramez%20Gab%20Min%20El%20Akher
%3Cp%3E%3Cstrong%3ECreator%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Ramez%20Galal%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStreaming%20on%3A%20%3C%2Fstrong%3EMBC%20Shahid%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A
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The specs

Engine: 2.0-litre 4-cylturbo

Transmission: seven-speed DSG automatic

Power: 242bhp

Torque: 370Nm

Price: Dh136,814

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%206.5-litre%20V12%20and%20three%20electric%20motors%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E1%2C015hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E1%2C500Nm%20(estimate)%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20Eight-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Early%202024%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh2%20million%20(estimate)%3C%2Fp%3E%0A
The Vile

Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah

Director: Majid Al Ansari

Rating: 4/5

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
How to avoid crypto fraud
  • Use unique usernames and passwords while enabling multi-factor authentication.
  • Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
  • Avoid suspicious social media ads promoting fraudulent schemes.
  • Only invest in crypto projects that you fully understand.
  • Critically assess whether a project’s promises or returns seem too good to be true.
  • Only use reputable platforms that have a track record of strong regulatory compliance.
  • Store funds in hardware wallets as opposed to online exchanges.
German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)

Date started: August 2021

Founder: Nour Sabri

Based: Dubai, UAE

Sector: E-commerce / Marketplace

Size: Two employees

Funding stage: Seed investment

Initial investment: $200,000

Investors: Amr Manaa (director, PwC Middle East) 

Strait of Hormuz

Fujairah is a crucial hub for fuel storage and is just outside the Strait of Hormuz, a vital shipping route linking Middle East oil producers to markets in Asia, Europe, North America and beyond.

The strait is 33 km wide at its narrowest point, but the shipping lane is just three km wide in either direction. Almost a fifth of oil consumed across the world passes through the strait.

Iran has repeatedly threatened to close the strait, a move that would risk inviting geopolitical and economic turmoil.

Last month, Iran issued a new warning that it would block the strait, if it was prevented from using the waterway following a US decision to end exemptions from sanctions for major Iranian oil importers.

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Wicked: For Good

Director: Jon M Chu

Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater

Rating: 4/5

Uefa Nations League

League A:
Germany, Portugal, Belgium, Spain, France, England, Switzerland, Italy, Poland, Iceland, Croatia, Netherlands

League B:
Austria, Wales, Russia, Slovakia, Sweden, Ukraine, Republic of Ireland, Bosnia-Herzegovina, Northern Ireland, Denmark, Czech Republic, Turkey

League C:
Hungary, Romania, Scotland, Slovenia, Greece, Serbia, Albania, Norway, Montenegro, Israel, Bulgaria, Finland, Cyprus, Estonia, Lithuania

League D:
Azerbaijan, Macedonia, Belarus, Georgia, Armenia, Latvia, Faroe Islands, Luxembourg, Kazakhstan, Moldova, Liechtenstein, Malta, Andorra, Kosovo, San Marino, Gibraltar

Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20HyveGeo%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Abdulaziz%20bin%20Redha%2C%20Dr%20Samsurin%20Welch%2C%20Eva%20Morales%20and%20Dr%20Harjit%20Singh%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ECambridge%20and%20Dubai%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%208%3Cbr%3E%3Cstrong%3EIndustry%3A%20%3C%2Fstrong%3ESustainability%20%26amp%3B%20Environment%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3E%24200%2C000%20plus%20undisclosed%20grant%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EVenture%20capital%20and%20government%3C%2Fp%3E%0A
Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Company profile

Name: Infinite8

Based: Dubai

Launch year: 2017

Number of employees: 90

Sector: Online gaming industry

Funding: $1.2m from a UAE angel investor

THE DRAFT

The final phase of player recruitment for the T10 League has taken place, with UAE and Indian players being drafted to each of the eight teams.

Bengal Tigers
UAE players: Chirag Suri, Mohammed Usman
Indian: Zaheer Khan

Karachians
UAE players: Ahmed Raza, Ghulam Shabber
Indian: Pravin Tambe

Kerala Kings
UAE players: Mohammed Naveed, Abdul Shakoor
Indian: RS Sodhi

Maratha Arabians
UAE players: Zahoor Khan, Amir Hayat
Indian: S Badrinath

Northern Warriors
UAE players: Imran Haider, Rahul Bhatia
Indian: Amitoze Singh

Pakhtoons
UAE players: Hafiz Kaleem, Sheer Walli
Indian: RP Singh

Punjabi Legends
UAE players: Shaiman Anwar, Sandy Singh
Indian: Praveen Kumar

Rajputs
UAE players: Rohan Mustafa, Ashfaq Ahmed
Indian: Munaf Patel

What are the influencer academy modules?
  1. Mastery of audio-visual content creation. 
  2. Cinematography, shots and movement.
  3. All aspects of post-production.
  4. Emerging technologies and VFX with AI and CGI.
  5. Understanding of marketing objectives and audience engagement.
  6. Tourism industry knowledge.
  7. Professional ethics.
'Champions'

Director: Manuel Calvo
Stars: Yassir Al Saggaf and Fatima Al Banawi
Rating: 2/5
 

RESULTS

1.45pm: Maiden Dh75,000 1,200m
Winner: Lady Parma, Richard Mullen (jockey), Satish Seemar (trainer).
2.15pm: Maiden Dh75,000 1,200m
Winner: Tabernas, Connor Beasley, Ahmed bin Harmash.
2.45pm: Handicap Dh95,000 1,200m
Winner: Night Castle, Connor Beasley, Satish Seemar.
3.15pm: Handicap Dh120,000 1,400m
Winner: Mystique Moon, Sam Hitchcott, Doug Watson.
3.45pm: Handicap Dh80,000 1,400m
Winner: Mutawakked, Szczepan Mazur, Musabah Al Muhairi.
4.15pm: Handicap Dh90,000 1,800m
Winner: Tafaakhor, Sandro Paiva, Ali Rashid Al Raihe.
4.45pm: Handicap Dh80,000 1,950m
Winner: Cranesbill, Fabrice Veron, Erwan Charpy.

COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

Based: Abu Dhabi

Sector: EdTech

Funding to date: $15 million

UAE rugby in numbers

5 - Year sponsorship deal between Hesco and Jebel Ali Dragons

700 - Dubai Hurricanes had more than 700 playing members last season between their mini and youth, men's and women's teams

Dh600,000 - Dubai Exiles' budget for pitch and court hire next season, for their rugby, netball and cricket teams

Dh1.8m - Dubai Hurricanes' overall budget for next season

Dh2.8m - Dubai Exiles’ overall budget for next season

The specs: 2018 Chevrolet Trailblazer

Price, base / as tested Dh99,000 / Dh132,000

Engine 3.6L V6

Transmission: Six-speed automatic

Power 275hp @ 6,000rpm

Torque 350Nm @ 3,700rpm

Fuel economy combined 12.2L / 100km

While you're here
TOURNAMENT INFO

Women’s World Twenty20 Qualifier

Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November

UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi

The Settlers

Director: Louis Theroux

Starring: Daniella Weiss, Ari Abramowitz

Rating: 5/5

Fixtures

Friday Leganes v Alaves, 10.15pm; Valencia v Las Palmas, 12.15am

Saturday Celta Vigo v Real Sociedad, 8.15pm; Girona v Atletico Madrid, 10.15pm; Sevilla v Espanyol, 12.15am

Sunday Athletic Bilbao v Getafe, 8.15am; Barcelona v Real Betis, 10.15pm; Deportivo v Real Madrid, 12.15am

Monday Levante v Villarreal, 10.15pm; Malaga v Eibar, midnight

Updated: June 02, 2022, 10:29 AM
DubaiCarsUAE