Automotive industry in MENA
Almost two million commercial and passenger vehicles were sold in the Middle East and North Africa (MENA) region in 2019. During 2021, Saudi Arabia led the region in terms of passenger and commercial car sales. Automotive production in the MENA region is dominated by Turkey and Iran. Most automotive-producing countries In the Middle East and North Africa focused on passenger cars, followed by light commercial vehicles.Outlook
Global technical breakthroughs have led to recent trends in the automotive sector, including electrification and autonomous vehicles. Sales of electric vehicles (EV) in the greater MEA region were estimated to reach 45 thousand by 2025. The outlook for the automotive industry in the MENA region bears potential for growth regarding both sales and production. Highlighting the United Arab Emirates (UAE) as an example, the oil-rich country is not only keen on importing high-end and sports vehicles, but also wants to establish itself as a production hub for luxury sports cars in the near future. Currently, UAE luxury car sales are expected to exceed three thousand units by 2026. Investing in the establishment and promotion of manufacturing, new technologies, and R&D is a significant step towards diversifying the economy of the Gulf Cooperation Council sub-region. This would connect the region further with the global economy, where the automotive industry is an important indicator of a country's economic performance.The MENA region's automotive industry was impacted by the coronavirus pandemic of 2020 as much as the rest of the world. To find out more about the potential consequences of coronavirus on the global automotive industry, please check out our latest dossier on the topic.
