Improvements to facilities scheduled for Abu Dhabi’s Motor World

Aldar set to improve facilities at Abu Dhabi's Motorworld, as used car dealers complain of poor sales.

Al Shamkha, UNITED ARAB EMIRATES, Aug. 5, 2014: Salesmen and owners walk around, waiting for customers, on Tuesday evening, Aug. 5, 2014, while they work in their shops at the Motorworld car dealerships on the outskirts of Al Shamkha, near the Abu Dhabi Airport. Salespeople and owners unanimously expressed their frustration over slow sales, citing the compound's long distance from Abu Dhabi and the lack of surrounding facilities.(Silvia Razgova / The National)Show less

ABU DHABI // The good news for depressed used-car dealers in Motor World is that a new Adnoc facility and access road will be built in the coming months.

All used-car dealerships moved from the capital to the purpose-built Motorworld in 2012 by mandate of the Department of Economic Development in Abu Dhabi, but have since complained of poor business.

Dealers have been calling for better advertising, vehicle inspection and registration centres, a currency exchange house and a permanent mosque since they moved, but have seen little improvement.

But now the Department of Transport is building a new access road from the main motorway – that will improve visibility and connectivity – and an Adnoc service station is set to open.

“The construction of this [Adnoc gas station] facility is well underway and the first phase is expected to open in the last quarter of this year,” said Talal Al Dhiyebi, executive director of asset management at Aldar Properties.

The connection to the main motorway was expected to be completed in the first quarter of next year, Mr Al Dhiyebi said.

“We are also in final negotiations with a foreign-exchange provider to open by Q4, 2014,” he said.

Aldar has claimed that it has been working very closely with the car dealers to support them, waiving their rental dues each year.

Aldar waived the rental dues in 2012 for six months of trading and offered 27.5 per cent rental discounts last year and this year, as well as a 20 per cent waiver to traders as part of an extended support package, Mr Al Dhiyebi said.

“Adnoc Distribution is constructing a large and integrated service station that will include petrol and diesel filling, car and tyre repair, car wash, oil change, convenience retail with food and beverages, a mosque, as well as a car testing and registration centre.”

The facility is expected to drive significant traffic to Motor World, as well as provide additional services to the tenants and visitors of the development, he said.

Despite the claims, many have been left unsatisfied.

“Business here is almost nothing if we compare with the city as the area is not well advertised. Many people don’t know about Motor World and they go to Sharjah,” said Emirati Abdul Majeed Al Hajeri.

“The kind of sales here is that it barely covers the rents, which are also very high,” said Mr Al Hajeri, who is public relations manager of a car showroom at Motor World.

Mr Al Hajeri said he paid full rents last year without discounts, which is Dh170,000 a year. “But this year we are in talks with Aldar to reduce 27 per cent of rents,” he said.

Motor World is situated in Shamkhah, nearly 40 minutes from the city.

Another dealer, Ashraf Ali, from Steer Well showroom, said: “Business is very poor here and a handful of people come because it’s very far from the city and many people don’t know about the place.”

But not everyone has complained of bad trading.

For Ahmed Babiker Alyas, who runs Motorworld Automobile Showroom, “business nowadays is good”.

Trade would pick up if more government offices and other vehicle services were opened there, said Mr Alyas, who sells about 20 cars a month. He said 60 per cent of his customers paid cash and 40 per cent through banks.

Aldar has also said that it had conducted several marketing activities and most recently entered into an agreement with Dubizzle to further promote and create awareness of Motor World.

Some residents may still prefer to buy online for better deals or to travel to Sharjah, however, which is considered a centre for used-car sales in the Emirates.

Kaleem Khan, a resident of Abu Dhabi, said: “I prefer online shopping, which is hassle free, and at home you can search all the details.”

He said he had heard about Motor World but had never visited it. “You can get a better deal with known persons or residents, but [you] always pay higher prices to professional dealers,” he said.

This year Aldar has added a National Bank of Abu Dhabi branch, car rental, a grocery, restaurant, a vehicle maintenance, accessories and spare parts outlet, car wash and polish facilities, a wheel balance and repair shop, male and female prayer rooms and a Motor World management office.