The importation of cars from other regions to the United Arab Emirates (UAE) has gained traction over the years. Essentially, there has been an increasing trend of importing from the US to the UAE, particularly American-spec vehicles, in recent years. Many Emiratis and the Emirate’s expatriate population now opt for U.S. spec cars for leisure drives or daily commutes. Others take them to car events and shows where they showcase their cars’ performance and power to car enthusiasts. The increased usage of these vehicles has greatly impacted the UAE’s car market.
Despite their appeal in terms of availability and prices, importing American spec cars comes with several challenges and associated risks, including legal implications. Owning one of these cars in the United Arab Emirates also comes with a set of challenges, one of which is the limited availability of spare/replacement parts. While the global car market is now accessible online with the help of e-commerce sites, it is crucial to understand the implications of importing American spec cars into the UAE.
What Are American-Spec Cars?
American-spec cars are vehicles primarily produced for the United States market. They are cars manufactured to meet a broad range of weather conditions in America. Even though they come with advanced entertainment and safety features, American specs may not be as suitable for places in the Gulf region, like the United Arab Emirates, which has harsh climates. Popular features of American-spec cars include emission control systems, advanced safety standards, comfort features, and climate control features. The specifics of these features differ significantly from vehicles manufactured for other regions like the Gulf Cooperation Council (GCC) countries.
For example, American specs come with emission control systems that comply with the standards set by the United States Environmental Protection Agency (EPA). Most vehicles built for other markets largely adhere to local regulations. Similarly, the safety features in American-spec cars are designed for United States regulations. They may be different from vehicles manufactured for other regions due to differences in regulations. The safety features in U.S. specs are robust, and they include electronic stability control (ESC), airbags, and anti-locking braking systems (ABS). Although the comfort features built into American-spec vehicles provide premium options, they may not be as necessary or relevant in other regions.
People buy American-spec cars for several reasons. Generally, these specs are available in a wide range of car models from which buyers can choose. Save the cost of importation in regions outside the United States, for instance, the UAE, and additional costs for modifications, prices of American-spec cars are usually lower than many other vehicle types. However, buyers often consider luxury, power, high performance, and many other unique features and may overlook additional costs. Besides, there is a free trade agreement between the UAE and the United States. Common American spec cars in the United Arab Emirates include the Chevrolet Camaro, Ford Mustang, and Dodge Charger.
Risks of Buying American-Spec Cars for Use in the UAE
Buying pre-owned American spec cars for use in the UAE is risky, as some of them are purchased at auctions organized by insurance companies. Many of the vehicles bought at auctions have either been damaged by flood, involved in an accident, or considered totaled. While U.S. spec cars may look appealing, it is important to consider the potential risks of buying them for use in the United Arab Emirates. Common risks associated with using American spec cars in the UAE include the following:
Compliance With UAE Regulations
Generally, the United Arab Emirates has stringent regulations regarding vehicle safety standards and specifications. Regrettably, American-spec vehicles do not conform to GCC regional safety regulations observed in the UAE. Rather, cars made in the United States are based on U.S. safety standards, including the Environmental Protection Agency (EPA) standards. As a result, buying an American spec car for use in the Emirates may not be a good idea. For instance, American spec cars’ safety systems like the ESC and ABS may not meet the local standards or regulations in the UAE. Not meeting the Emirate’s standards on road safety increases the risk of accidents or degree of fatality in the event of a serious accident.
Furthermore, the emissions standards in the U.S. spec cars differ from those in the UAE. Due to the UAE’s strict regulations on car safety and specifications standards, anyone importing an American spec car for use in the Emirate may have to make some technical modifications so the vehicle can comply with set regulations. Depending on the car brand and model year, this may cost the owner a fortune.
Difficulty in Registering the Car in the UAE
Registering an American spec car in the United Arab Emirates is complex. Generally, vehicles manufactured less than 10 years from the date of import can be registered in the Emirate. However, a special permit from the UAE’s Roads and Transport Authority (RTA) is required to register a vehicle older than 10 years. An imported American spec car must pass clearance at one of the UAE’s entry points, where the Customs Authority will inspect it. After receiving clearance for the imported car, the vehicle owner will need to obtain a No-Objection Certificate (NOC) from the Emirate’s Ministry of Finance and Industry. Afterward, the vehicle must be taken to a government-approved center, where it will be inspected for safety and performance compliance.
If an imported American spec car passes inspection, the owner must buy a mandatory car insurance policy, as is required for all registered vehicles in the United Arab Emirates. Once this is done, the car is ready for registration with the UAE Roads and Transport Authority (RTA). Documents required for registration include:
- Customs clearance certificate
- Vehicle inspection report
- Proof of purchase of the vehicle
- Proof of insurance coverage
Others are proof of residence, completed application forms, driver’s license, and passport/Emirates ID.
Once the car registration application is verified and approved, the RTA will issue a registration card for the imported American spec car and UAE-registered white license plates. One of the difficulties that may be experienced when registering an imported U.S. spec car in the UAE is the possibility of denial. Generally, the UAE does not register damaged vehicles. Hence, any imported car not thoroughly checked for wear and tear may be denied registration. In addition, any imported American spec vehicle that does not meet UAE safety standards could have problems with inspections and registration. This may sometimes be frustrating.
Warranty and Repair Issues
It is rare to find an American-spec car with warranty coverage in the United Arab Emirates. Generally, warranties are not common with imported vehicles in the Emirate. Where it is offered or available, warranty coverage is often limited. Another associated risk with using an American spec car in the UAE is repair issues. Maintaining the vehicle may be challenging and expensive due to limited expertise (qualified technicians and service centers) and the unavailability (or limited availability) of spare parts locally. As a result, repairs and maintenance of U.S. spec cars, particularly uncommon car brands and models, in the UAE may take an extended period.
Impact of American-Spec Cars on Resale Value
Compared to GCC-spec cars, American-spec cars in the United Arab Emirates generally have low resale value. Buyers often have concerns about potential maintenance challenges, spare parts unavailability, suitability of local conditions, lack of or limited warranty, and potential non-compliance with local standards. These factors greatly impact the resale value of American specs within the Emirate. On the other hand, because of their compliance with local regulations and suitability for the local climate, GCC-spec vehicles often retain better resale value in the UAE.
Climate Considerations
American-spec cars are primarily built for United States climate conditions and may not be as well-suited for the prevailing unique climate conditions in the United Arab Emirates. Generally, the climate control features in most American specs, such as the air conditioning system, are more focused on heating. Meanwhile, the high temperatures and humidity in UAE require enhanced air conditioning systems, which are not available in most U.S.-spec cars.
American spec cars’ cooling systems are not designed to handle extreme heat and harsh weather conditions in the UAE, which could lead to vehicle damage or failure over time. Due to the extreme heat, parts of the U.S. spec vehicles used in the Emirate, such as air conditioning systems, batteries, and cooling systems, are often replaced by their owners. Even though the radiator capacity in American spec cars varies, it is generally not as robust to work effectively in extremely hot climates like the United Arab Emirates.
Further, the high humidity levels and harsh climate conditions in the UAE can cause increased corrosion in American-spec cars. These vehicles are not built with added protection to combat humidity. Also, the standard filtration systems that come with American specs are not robust enough to handle the high levels of sand and dust associated with the United Arab Emirates.
Alternatives to Importing American-Spec Cars
Gulf Cooperation Council (GCC)-spec cars are better alternatives to importing American-spec vehicles for use in the United Arab Emirates. Generally, GCC-spec cars are manufactured to withstand the climate conditions in the Gulf region, which includes the UAE, Oman, Bahrain, Qatar, Saudi Arabia, and Kuwait. Their cooling systems are designed for desert environments, and air conditioning systems are enhanced to handle high levels of humidity and temperatures. In addition, they come with modified suspension systems to endure the uneven landscapes in the Emirate. Furthermore, GCC-spec cars generally comply with UAE local regulations, including emissions and safety standards. As a result, they can be easily registered, unlike American specs.
Maintaining GCC-spec vehicles in the UAE is cheaper because the local service centers in the region are familiar with the typical issues that come with them. These cars are designed to use readily available fuel types in the Gulf Cooperation Council region. Anyone who plans to live in the United Arab Emirates for an extended period may want to consider buying a GCC spec car for obvious reasons. However, conducting thorough research before buying one is highly recommended to avoid pitfalls. Working with a reputable and reliable car dealer in the UAE when planning to purchase a GCC-spec car cannot be overstated. It also helps to go for a test drive to confirm if the car drives smoothly and check for other important functions of the vehicle.
Also published on Medium.
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