The Arab Investment and Export Credit Guarantee Corporation (Dhaman) is thrilled to reveal that the automotive sector in Arab countries has become a booming hub for international investment, attracting a total of 184 foreign projects. These ventures have funneled in more than $25 billion in investments and provided jobs for over 102,000 individuals from 2003 to October 2024.
Where’s the Investment Flowing?
According to Dhaman's latest 2024 sector report, five countries stand out in driving this growth: Saudi Arabia, Morocco, UAE, Algeria, and Egypt. Together, these nations account for a remarkable 79% of all automotive sector projects, with investments totaling over $22 billion, or 89% of the overall sector funds. The result? A significant 91,000 new jobs, making up nearly 90% of the employment boost across the industry.
Key Highlights:
- 2024 Automotive Outlook: What’s next for vehicle sales? The industry is poised for a steady rise, with projections showing a 5% growth in vehicle sales across the region by the end of 2024. By 2028, this figure is set to surpass 3 million units sold.
- Booming Foreign Trade: In 2023, trade in vehicles and their parts jumped 23%, reaching $126 billion—an exciting testament to the growing global interest in the region.
- Top Players: China has emerged as the leading investment source in the Arab world, contributing $8 billion across 27 projects. Meanwhile, Japan’s Nissan leads the pack in the number of projects, with 18 ventures across the region.
Big Names, Big Investments
China’s Human Horizon Group has also made waves, investing a staggering $5.6 billion, while Renault from France has played a major role in job creation, generating over 15,000 positions.
Which Countries Are Attracting the Most Attention?
The UAE has been ranked as the most attractive destination for automotive business investments in 2024, followed closely by Saudi Arabia, Qatar, and other GCC nations. The region continues to solidify its position as a key player in the global automotive industry, with the GCC leading in both investment incentives and business opportunities.
A Growing Market
The future looks bright, with vehicle sales in the Arab region expected to exceed 2.3 million units by the end of 2024, capturing 2.4% of global sales. This is just the beginning, as experts predict a steady climb toward 3 million vehicles sold by 2028. Saudi Arabia, the UAE, Algeria, Morocco, and Kuwait are leading the charge, contributing 75% of regional sales.
A Strong Global Presence
The Arab region continues to make its mark on the global stage. In 2023 alone, Arab exports of road vehicles and components grew by 29%, with the UAE, Saudi Arabia, Morocco, Iraq, and Kuwait driving this upward trend.
