ABU DHABI: The United Arab Emirates has emerged as the top Arab destination for automotive investments in 2024, according to the Arab Investment and Export Credit Guarantee Corporation (Dhaman).
Dhaman’s fourth sectoral report highlighted the UAE’s leading role, supported by investments in auto sales and related activities. The report noted that Saudi Arabia, Morocco, Algeria, and Egypt joined the UAE in attracting 145 foreign projects worth over USD 22 billion, making up 89% of the total investment in the sector. These projects collectively created over 91,000 jobs, showcasing the region’s growing automotive potential.
China stood out as the largest investor, with 27 projects valued at USD 8 billion, generating approximately 20,000 jobs in Arab countries.
From 2003 to October 2024, the automotive sector in Arab nations attracted 184 foreign projects, amounting to over USD 25 billion and creating more than 102,000 jobs. The Gulf nations, particularly the UAE, led the way in investment appeal, followed by Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain.
By the end of 2024, five nations—Saudi Arabia, the UAE, Algeria, Morocco, and Kuwait—are expected to account for 75% of vehicle sales in the region. Individual car sales across the Arab world are projected to surpass 1.8 million units in 2024, marking a 4.5% increase compared to 2023. Saudi Arabia will dominate with a 45% market share.
The UAE’s robust infrastructure, strategic location, and investor-friendly policies continue to position it as a hub for the automotive industry, solidifying its leadership in Arab auto investments.