Usually, when world oil prices would go up car sales fell. In economic theory, the increase is fueling inflation and lead to increased costs of living. However, the condition does not apply in the Middle East, except for Bahrain and Syria are more "hot". Just when the world oil prices rise, people are vying to buy a new car.
Especially in Saudi Arabia and United Arab Emirates, car sales rose! As is known, throughout 2011, world oil prices rose an average 6.7 per cent almost reaching 100 dollars per barrel. The result, more state revenue pockets thick as oil exports worldwide.
Well, the Saudi Arabian government has the policy to distribute profits directly to the people of this country to increase the welfare and avoid rebellion. One citizen Abdullah Saeed, who works in public investment company in Saudi Arabia for example, found in the Audi dealer in Riyadh to replace the previous vehicle Q7. "Usually, if the addition of salaries by the government, people would buy a new car," said Abdullah, as reported by Bloomberg News (02/08/2012).
In addition to providing a direct bonus to the whole community, the Government of Saudi Arabia also plans to spend 130 billion dollars (Rp1.168, 7 trillion) in education, health, thus moving the economics of the country and create 66 000 new jobs. The allocation of government spending is certainly fueled the growth of transport and end the increase of new car purchases.
Something similar UAE government is planning to pour investment funds 1.9 billion (Rp17, 081 billion) for infrastructure development in Dubai residence. The goal, again to maintain social stability in society that remain obedient to the government. In fact, civil servants get a salary increase to 60 percent and the authorities such as police and military to increase its revenues more than doubled (120 percent).
Inverted
Situation in the Middle East automotive market is unique, because it is inversely proportional to the oil importing countries. This characteristic is seen for most of the principal potential automotive world. China is known as a country with only the world's largest automotive market, auto sales growth this year is predicted to fall. Moreover, Europe is again struggling from the economic crisis, many brands began to shut down the factory and are turning to Southeast Asia. While in the Middle East car market is predicted to reach 1.28 million units this year.
Well, this opportunity is not ogled by exotic brands like Porsche or Rolls-Royce, even aggressiveness comes from bulk products, such as Ford. U.S. brands that rushed into the Middle Eastern market and targeting the middle class that sustain economic activity. "Since the middle class would be victorious now," said Ford Sales Director Middle East, Hussein Murad.
