The Brillance V5 at Al Yousuf Motors in the Mussafah area of Abu Dhabi. Christopher Pike / The National
The Brillance V5 at Al Yousuf Motors in the Mussafah area of Abu Dhabi. Christopher Pike / The National

Chinese BMW lookalike goes on sale in the UAE as cheaper cars gain popularity



You could easily mistake it for a BMW X1.

The V5, which retails for Dh55,000 at Abu Dhabi’s Al Yousuf motors, and is manufactured by Brilliance Auto, a Chinese company, looks a lot like a cheaper version of BMW’s sport utility vehicle.

And as the UAE’s consumers look for more affordable cars, it’s clear that Chinese manufacturers see a healthy opportunity in the lower end of the market.

“We receive this comment a lot from the customers: that it looks a lot like the BMW X3. And you have to agree. Because it does look a lot like the X3,” said Aziz Haroun, the Abu Dhabi area manager at Al Yousuf motors, which is the sole importer for Brillance cars in the UAE.

But while the BMW X3 will set you back about Dh250,000, the V5 can be had for about a fifth of this.

Al Yousuf also sells Brilliance Auto’s H530, which closely resembles the BMW 5 Series saloon.

Enterprising Chinese mechanics can replace the grille, badges, and logos on an H530, so that the resulting car is almost indistinguishable from the premium model.

On the Chinese eBay-style site Taobao, converted H530s posing for sale as BMW 5 Series cars are ubiquitous.

Brilliance Auto launched a joint-venture with BMW in 2003.

In a statement, BMW said that “the development of these cars has no link with any BMW products or R&D activity, though BMW Group and Brilliance have maintained a very good partnership for the successful development of the joint-venture.”

Brilliance Auto did not reply to a request for comment.

Al Yousuf’s Chinese product line, which it has stocked for a year and a half, is an example of a growing market for cheaper cars in the UAE.

“Chinese cars are an extreme case of cheaper car sales,” said Pierluigi Bellini, an analyst who covers the car industry for the research firm IHS.

Some Chinese makers are trying to get into the GCC,” but they might have a hard time in the UAE’s “sophisticated” car market, he said. “Production in China is increasing, but China is not really an export market for cars.

“Chinese manufacturers are getting better, especially in Africa, and South East Asia and the rest of Asia – but Chinese brands have not yet successfully entered the Middle East, Europe or the rest of the world.”

Rising incomes among those previously unable to afford cars have also led to higher sales for cheaper models.

In July, Toyota introduced its Avanza, a four door SUV manufactured in Indonesia, to the UAE. At Dh54,900, it is the cheapest car the company sells domestically.

Car-buying expatriates on lower incomes typically went for used cars, Mr Bellini said, but now “the more affordable cars are sold in greater volumes, because more people switch from the used market to the new car market.”

“The Chinese are very interested in selling cars to low-income consumers,” he said.

Mr Haroun of Al Yousuf motors admits that Chinese cars can be a hard sell.

“For the time being, Chinese vehicles don’t have a good reputation,” he said.

But the V5, he points out, “doesn’t look like a Chinese car”.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Category B: Existing legacy virtual asset service providers prior to February 7, 2023, which are required to come under Vara supervision. All operating service proviers in Dubai (excluding the DIFC) fall under Vara’s supervision.

Category C: New applicants seeking a Vara licence or existing applicants adding new activities. All applicants that do not fall under Category A or B can begin the application process through their current or prospective commercial licensor — the DET or Free Zone Authority — or directly through Vara in the instance that they have yet to determine the commercial operating zone in Dubai. 

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1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention

2) There are about 11,000 patients in the country in need of organ transplants

3) People must be over 21. Emiratis and residents can register. 

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