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The rise of a sizable second-hand spare parts market has posed a further threat to UAE-based spare parts dealers. market has registered a substantial growth in the last five years mainly because of the rising demand from East African countries and CIS. Though not all second-hand spare parts sellers in Dubai or Sharjah can provide the full range of used parts for all car models, but these outlets are capable of providing nearly 90 per cent of such parts. In fact, some of the second-hand spare parts outlets in Sharjah are reportedly selling parts of even 2011 models at less than half the price of genuine parts. As a result, the business of second-hand spare parts has developed into a full-fledged multi-million dollar industry involving more than 100 small and medium-sized enterprises spread throughout the country.
Earlier Dubai was considered the main source for second-hand spare parts but over the last few years the market has shifted to Sharjah, mainly because of relatively lower overhead expenses. Many second-hand spare part outlets in Sharjah deal in used used engines which are imported from Japan and then re-exported to many Asian and African countries. There is a huge demand for such goods in East African countries of Uganda, Kenya and Tanzania as well as other countries like Russia, India, Egypt, Iran and Pakistan.
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