Copart, a Nasdaq-listed company that runs online car auctions, has opened its new regional headquarters in Dubai.
The office in Dubai Industrial City’s Auto Zone is situated on the same site as its 10 hectare auction facility.
It houses the day-to-day operations and customer-service areas for its auction business, as well as the management offices for the region.
“We are pleased to officially open this new office in Dubai,” said Carlos Sabugueiro, chief executive for Copart Middle East and Africa. “This investment shows our confidence in, and commitment to, the region. Like many other companies, we have built our regional headquarters in Dubai because of its prime location and ease of doing business.”
According to Nielsen, the market research firm, the Middle East has the highest demand for buying cars in the world. About 75 per cent of respondents intended to buy a car in the next two years, with 45 per cent seeking to buy a new car and 30 per cent a used vehicle.
Nielsen’s research also showed online searches for cars jumping 24 per cent year on year in the UAE.
Besides, new car sales in the UAE have shown impressive growth rates reaching 16.7 per cent in 2013, according to the Business Monitor International. The outlook for new car sales this year remains upbeat. It is expected to reach the 425,000 mark or year-on-year growth of 5.1 per cent.
“With pre-owned cars being as young as one to two years, with lower mileages, service contracts still running, and with prices a great deal lower than brand new cars, most people are beginning to think twice before going for brand new models,” said Mohamed Noweir, the managing director of Carmudi UAE, an online car classifieds website. “There are people who would go for new cars no matter what, but a growing number of the population is beginning to see that the economical prices of certified pre-owned is the next best thing.”
Copart opened its first Middle Eastern operation in Dubai in 2012, holding its first auction there in August the same year.
Copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships and others as well as cars sourced from the general public.
“With the addition of this prime location in Dubai, we continue to develop our footprint in the Middle East,” said Vinnie Mitz, Copart’s president. “We are excited about the opportunity this expansion provides for our buyers and sellers across the globe.”
Copart was not available for comment when contacted by The National.
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