UAE plates a licence to make money for car enthusiasts

Buyers battling to acquire the most coveted number plates for their cars often see it as lucrative and attractive investment.

Abdullah Al Mahri walked away with the No 1 limited edition licence plate commemorating the Abu Dhabi Government’s Golden Jubilee for Dh31 million at the auction, which was held November 19, 2016, at Emirates Palace hotel in Abu Dhabi. Courtesy MisbarShow less

ABU DHABI // For many car enthusiasts, their special car registration plate is not just a piece of metal with a number on it.

Buyers battling to acquire the most coveted metal strips for their cars see it as lucrative and attractive investment.

“Winners of the plate auction are granted a certificate of ownership, which allows them to transfer ownership to others,” said Emirates Auction chairman Abdullah Al Mannai.

“Some investors and businessmen collect number plates of such kind, knowing that they could become more valuable for reselling, triggering a fierce competition during auctions, much like what we witnessed during the recent auction in Abu Dhabi.”

A No 1 limited edition licence plate commemorating Abu Dhabi Government's Golden Jubilee was sold to an Emirati for Dh31 million on November 19 at Emirates Palace hotel.

The winning bidder for the coveted plate, Abdullah Al Mahri, 32, said he bought it in honour of the country’s rulers, who worked tirelessly to make the UAE No 1 in the world.

The auction, which generated Dh99 million, was hosted by Emirates Auction in cooperation with Abu Dhabi Police.

“Like most exotic things, distinguished number plates can at times be lucrative for their owners and most of the time a long term financial return is achieved through the process of reselling the plates,” Mr Al Mannai said.

“With awareness, environment, or market for the number plate constantly on the rise, a huge segment of the UAE community is showing interest in owning one.”

Last month, an Indian businessman bought a licence plate for Dh33 million at an auction in Dubai.

Balvinder Sahni, who owns a property management company, bought the D5 plate during an auction organised by the Roads and Transport Authority, and another for Dh1m.

Saif Bin Adhed, 30, an Emirati motor sport enthusiast, sees special number plates as a reliable investment.

“I’ve been telling many of my friends who were older than me and had the capital to buy, but most of them said ‘why would we pay Dh35,000 for a three-digit plate for a piece of metal?’,” he said.

“Not seeing what I was seeing, a few years later these numbers were sold again for four times that price, sometimes six times the initial investment.”

Mr Bin Adhed has made fortune for others “based on predictions that were very clear to me, and probably clear to those who kept a sharp eye for market movements”.

“One trusted me after I pointed to him a number that was being sold for Dh1.4 million,” he said. “

After four months, the same person asked me to find the number again, and I tracked down the new owner who then said he bought it for Dh4 million, and was now asking for Dh5 million.”

Although plates are clearly a status symbol and show of wealth, others hold on to number plates that have meaning or some sentimental value.

“I bought my father’s inherited number plate above market price since it had more sentimental than monetary value,” Mr Bin Adhed said.

Kamui Mahtani, 28, a Dubai resident from Japan who owns a modified Honda S2000, said he was not too keen on collecting special number plates, but had nothing against people who splash out millions of dirhams for them.

“It’s basically showcasing one’s status and wealth,” he said.

“At the end of the day, I don’t care who you are as long as you drive safely and respect other road users. OK, you bought a Dh30 million number plate, but it doesn’t give you the right to drive irresponsibly.”