The UAE has solidified its position as the leading destination for automotive investment and business in the Arab world for 2024, according to the latest report by the Arab Investment and Export Credit Guarantee Corporation (Dhaman). This marks a significant milestone for the UAE, showcasing its dominance in the regional automotive sector.

In its fourth sectoral report on the automotive industry in Arab countries, Dhaman revealed that the UAE is at the forefront, attracting a substantial share of foreign investment in the automotive sector. The report covers a period from January 2003 to October 2024, and highlights key trends, including a strong performance in foreign automotive projects and an expected rise in vehicle sales.

Foreign Investment in the Arab Automotive Sector

The report outlines that five Arab countries—Saudi Arabia, Morocco, the UAE, Algeria, and Egypt—accounted for 145 foreign projects, representing 79% of the total automotive sector investments in the region. These projects, valued at over $22 billion, made up 89% of the region’s overall automotive investment and created more than 91,000 jobs.

Notably, China led the charge in foreign investment with 27 projects worth $8 billion, creating approximately 20,000 jobs. This demonstrates the growing importance of the Middle East and North Africa (MENA) region as a key player in the global automotive industry, with the UAE at the heart of this transformation.

UAE’s Competitive Edge

Within the Gulf Cooperation Council (GCC) region, the UAE stands out as the number one destination for automotive investment. It is followed by Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain in terms of market attractiveness for automotive businesses. The UAE’s strategic location, robust infrastructure, and investor-friendly policies continue to make it a preferred choice for companies looking to tap into the growing automotive market.

From 2003 to October 2024, the automotive sector in Arab countries has attracted 184 foreign projects valued at over $25 billion. These projects have led to the creation of more than 102,000 jobs, with Saudi Arabia, the UAE, Algeria, Morocco, and Kuwait accounting for a significant 75% of total vehicle sales across the region.

Rising Vehicle Sales in 2024

Looking ahead, Dhaman projects that vehicle sales in the Arab region will exceed 1.8 million by the end of 2024, marking a 4.5% increase from 2023. Saudi Arabia is expected to lead the charge, capturing 45% of the total market share. However, the UAE’s automotive sector is expected to continue its strong performance, bolstered by increasing consumer demand and continued foreign investment.

UAE’s Strategic Position in the Automotive Industry

The UAE’s dominance in the automotive industry isn’t just about investment figures—it’s also about its strategic positioning as a hub for automotive business and innovation. The country’s infrastructure, logistical capabilities, and access to both regional and international markets have made it an attractive destination for automotive giants and suppliers alike.

The UAE’s leadership in the automotive sector underscores its growing role as a key economic powerhouse in the Arab world, further cementing its reputation as the region’s business and investment leader.