Expansion in the Arab Automotive Industry: $25 Billion in Investments and 102,000 New Jobs

Key Highlights

• The Arab automotive sector attracted $25 billion in investments and created over 102,000 jobs from 2003 to October 2024.

• 184 foreign projects have contributed to the sector’s growth, with Saudi Arabia, Morocco, UAE, Algeria, and Egypt accounting for 79% of the projects.

• These five countries received over $22 billion in investments, generating 91,000 new jobs, nearly 90% of the sector’s employment boost.

• China’s Human Horizon Group invested $5.6 billion, and Renault created over 15,000 jobs in the region.

• The UAE was ranked the most attractive destination for automotive investments in 2024, followed by Saudi Arabia, Qatar, and other GCC nations.

The Arab Investment and Export Credit Guarantee Corporation (Dhaman) is excited to announce that the automotive sector in Arab nations has become a thriving center for global investment. Since 2003, 184 foreign projects have brought in over $25 billion in investments, creating jobs for more than 102,000 people through October 2024.

Where’s the Investment Flowing?

Dhaman's latest 2024 sector report highlights five countries leading this growth: Saudi Arabia, Morocco, UAE, Algeria, and Egypt. These nations contribute to 79% of all automotive projects and attract over $22 billion in investments, representing 89% of the total sector funds. As a result, they’ve generated 91,000 new jobs, accounting for nearly 90% of the industry’s employment growth.

Big Names, Big Investments

China’s Human Horizon Group has made a significant impact with a $5.6 billion investment, while France's Renault has been a key player in job creation, providing over 15,000 new positions.

Which Countries Are Attracting the Most Attention?

In 2024, the UAE has been ranked the top destination for automotive business investments, followed by Saudi Arabia, Qatar, and other GCC countries. The region strengthens its role as a global automotive leader, offering top investment incentives and business opportunities.

A Growing Market

The outlook is promising, with vehicle sales in the Arab region set to surpass 2.3 million units by the end of 2024, making up 2.4% of global sales. Experts anticipate steady growth, aiming for 3 million vehicles sold by 2028. Saudi Arabia, the UAE, Algeria, Morocco, and Kuwait are driving this progress, accounting for 75% of regional sales.

A Strong Global Presence

The Arab region is making significant strides globally. In 2023, exports of road vehicles and components from Arab countries rose by 29%, with the UAE, Saudi Arabia, Morocco, Iraq, and Kuwait leading the growth.

Verdict

Arab automotive sector is experiencing impressive growth, driven by substantial foreign investments, job creation, and expanding exports. With key countries like the UAE, Saudi Arabia, and Morocco leading the charge, the region is becoming an increasingly important player in the global automotive market. As vehicle sales continue to rise and industry developments advance, the Arab world is poised for continued success and influence in the coming years.

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