UAE Car Market: Experts Say Rain Impact 'Less Severe' But Caution Advised

After the UAE experienced heavy rainfall last week, recording almost two years' worth of rains in a single day, car dealers say the impact remains far less severe than previous floods due to improved preparedness.

At the same time, industry executives say it is still too early to assess the full scale of the damage, saying it would require a few more weeks for the picture to be clearer.

“We are still in the early stages of understanding the overall impact,” said Rahul Singh, managing director of mobility division at A.A. Al Moosa Enterprises.“However, from what we've seen so far, the situation appears far less severe than the heavy rains we experienced two years ago.”

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He attributed this to proactive measures by authorities, including real-time updates and safety guidance, which helped limit potential damage.

Similar sentiments were echoed across the industry, with executives pointing to stronger preparedness among both businesses and motorists compared to previous extreme weather events.

Market participants say that one of the most notable shifts following last year's floods is a rise in consumer awareness, particularly in the used car segment.

“There is definitely a noticeable shift in awareness. Buyers today are more cautious, especially after repeated rain events in the region,” Harshvardhan Singh, head of business at Cariva, a pre-owned car dealer, said.

While immediate damage levels may appear limited, the used car market often sees a delayed impact, he added. Flood-affected vehicles can re-enter circulation weeks later, particularly through informal sales channels.

“The real impact is often less about the immediate numbers and more about how many of these vehicles resurface in the market,” he said.

Abhinav Gupta, CEO of Cars24 Arabia, added that buyers are now asking more detailed questions and placing greater emphasis on inspections and transparency.

“They are checking vehicle history more carefully and paying closer attention to where the car has been used or parked, especially in areas more prone to waterlogging,” he said.

In certain areas in Sharjah and Ajman vulnerable to waterlogging, Gupta said the impact has been relatively higher, though still more contained compared to the 2024 floods.“What we are seeing within our network is that fewer dealers have been impacted this time, largely because they were better prepared after (the 2024) experience and took preventive steps early,” he noted.

Despite the relatively contained impact, dealers highlighted that certain types of damage remain common after heavy rains. According to R. Singh, the most frequent issues include engine seizure or hydrolock, transmission damage, and electrical system failures, often caused by driving through flooded roads.

From a resale perspective, (H) Singh said hidden damage remains a key concern.“What makes flood damage particularly tricky is that it's not always visible upfront. It often reveals itself over time,” he said, pointing to risks such as electrical faults, moisture retention leading to mould, and corrosion in critical components.

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