Car retailers expect a Dh250 million purpose-built area in Sharjah, which could become Asia’s largest vehicle market, will boost sales and visitor numbers.
The emirate’s Souq Al Haraj was officially opened on Thursday by Dr Sheikh Sultan bin Mohammed, the Ruler of Sharjah. The new facility – its first phase – is in excess of 5 million square feet, housing 415 different dealerships spanning new, used, commercial, classic and recreational vehicles. Current capacity is for 20,000 vehicles and customer parking for 5,000 cars. There is also a huge auction space.
Sheikh Mohammed bin Saud Al Qasimi, chairman of the department of central finance and chairman of the souq’s operator Sharjah Asset Management, said the new facility would provide an “investor friendly climate to boost the competitiveness of the emirate’s local economy”.
Two more phases are planned, doubling the size of the market, which will make it the biggest car souq in Asia. No schedule was given for the delivery of the second and third phases. The new area is 85 per cent occupied after car dealers in the residential Abu Shagara neighbourhood were ordered to leave and offered free rent from August to the end of last year. That largesse has now ended, with a significant rise in rents.
“My accountant tells me that you could rent [space] in Abu Shagara for between Dh80,000 and Dh150,000 per year – we are now paying Dh300,000 per annum,” said Haidar Al Saadi, sales manager for Al Qassem Motors in Souq Al Haraj. “We will not be passing the new costs on to our customers, as we think more customers will come here and our business will benefit. The new facilities here are far better because there are places for us to park our cars outside the showrooms and there is customer parking also. Trade in Abu Shagara was hindered because there was no space for retailer or buyer.”
Sharjah Asset Management – which has stakes in Dana Gas and Air Arabia – has had to turn dealers away, an indication of the demand for space. About 300 to 350 car dealers and ancillary businesses, such as spare parts and tyres, were moved from Abu Shagara to the new facility. Such is the planning and regulation of the area that 15 per cent of the spaces have been left for the largest car dealers and businesses to enter the souq.
“We want the new cars to be in front of the customer as they drive in so the Grand Boulevard has the big names of [Mercedes dealer] Gargash and [Toyota dealer] Al Futtaim, among others, on it,” said Gregg Downer, chief real estate officer for Sharjah Asset Management. “This will be a one-stop-shop for anyone interested in buying a car with registration and other facilities on site.
“We are already very busy of an evening. The rents we charge are market- compatible for the facilities, the space, the security and the hub that we have created.”
ascott@thenational.ae
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