UAE Leads Arab Region in Automotive Investment for 2024

The United Arab Emirates (UAE) has been ranked as the leading destination in the Arab world for investment and business opportunities in the automotive sales sector for 2024, according to the Arab Investment and Export Credit Guarantee Corporation (Dhaman).

In its fourth sectoral report for 2024, Dhaman highlighted that five Arab countries—Saudi Arabia, Morocco, the UAE, Algeria, and Egypt—accounted for the majority of foreign investment in the automotive industry. Together, these nations hosted 145 foreign projects, representing 79% of the region’s total, with investments surpassing $22 billion, or 89% of the overall figure, as reported by the Kuwait News Agency (KUNA).

These projects created over 91,000 jobs, equivalent to 89% of the sector’s total employment impact. The report also pointed to China as the leading foreign investor, having contributed 27 projects worth $8 billion, which generated approximately 20,000 jobs.

The Gulf Cooperation Council (GCC) countries, led by the UAE, emerged as the most favorable hubs for automotive business and investment in the region, followed by Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain, in that order.

Between January 2003 and October 2024, the Arab automotive sector attracted 184 foreign investment projects valued at more than $25 billion, resulting in the creation of over 102,000 jobs, Dhaman stated.

Additionally, five nations—Saudi Arabia, the UAE, Algeria, Morocco, and Kuwait—accounted for roughly 75% of total vehicle sales across the Arab region by the close of 2024. Individual car sales across the region are projected to reach 1.8 million units by the end of 2024, marking a 4.5% increase from 2023. Saudi Arabia is expected to maintain the largest market share at 45%.