The UAE maintained a relatively stable political status among Middle Eastern countries. The local economy was driven by overseas investment and tourism. The population continues growing and has strong purchasing power. The local market is expected to have growth potential in the long run.
However, the UAE air conditioner market came to 840,000 units in 2015, indicating a 5.6% year-on-year decrease. Window-type units comprised approximately 30% of the RAC market.
In 2015, Manufacturers discounted RACs to reduce inventory prior to the enforcement of energy saving standards. This led to higher sales in 2015 as compared to the previous year. The UAE has a high percentage of foreign resident workers, and income disparity in the country is extreme. Therefore, the air conditioner market dichotomized to high-end and low-end segments. Air conditioner sales channels in the UAE include traders, importers, re-exporters, distributors, dealers, and general retailers.