The UAE is first in the Arab world in terms of investment and business attractiveness with car sales activity in 2024

The Arab Corporation for Investment and Export Credit Guarantee (Daman) revealed that the UAE ranked first in the Arab world in terms of investment and business attractiveness with car sales activity for the year 2024..

The Corporation stated, in its fourth sectoral report for the year 2024 on the vehicle and automobile sector in the Arab countries, which the Corporation issued today from its headquarters in the State of Kuwait, that the UAE topped the Arab countries in imports of road vehicles and their components by 38%, followed by Saudi Arabia by 23% and Morocco by 7%. Iraq 6%, Kuwait 5%, and 17% distributed among the rest of the Arab countries.

The Foundation indicated, in its report, that the automotive sector in the Arab countries attracted 184 foreign projects, with an investment cost exceeding 25 billion dollars and providing more than 102 thousand jobs during the period from January 2003 to October 2024..

The report pointed out that 5 Arab countries, including the UAE, Saudi Arabia, Morocco, Algeria, and Egypt, attracted 145 foreign projects, with a share of 79% of the total, with an investment cost exceeding $22 billion, with a share of 89%, and these projects provided more than 91 thousand jobs, with a share of 89% of the total..

The report, which focuses on 4 main axes: “The development and future of vehicle sales until 2028, foreign trade in vehicles and their components in 2023, foreign projects in the automotive sector, and assessment of investment and business risks related to car sales activity in 2024,” added that China topped the list as the most important country. Invested in the Arab region, as it implemented 27 projects in the region during the period “2003-2024”, with an investment cost approaching 8 billion dollars. It created about 20,000 new jobs.

The report indicated that the top ten companies accounted for about 41% of the number of new projects implemented, 67% of the capital cost, and 58% of the total new jobs. The Japanese company Nissan topped the list according to the number of projects with 18 projects, representing 10% of the total, while the Japanese company Nissan topped the list according to the number of projects with 18 projects, representing 10% of the total. China’s Human Horizon was presented as the largest investor in terms of estimated investment cost of $5.6 billion and a 22% share of the total, while the French company Renault came first according to The number of jobs created is about 15 thousand jobs, representing 15% of the total.

In terms of risks and incentives for investment and business related to car sales activity in 16 Arab countries, according to Fitch Agency, which were monitored through two indicators of risks and incentives for the year 2024, the Gulf countries topped the list in the Arab world, led by the UAE, which is the most attractive for investment and business in car sales activity for the year 2024, followed by all From Saudi Arabia, Qatar, Kuwait, Oman and Bahrain, respectively.

The report expected an increase of more than 5% in vehicle sales in the Arab region (16 countries), to exceed 2.3 million vehicles by the end of 2024, representing 2.4% of the global total, with expectations that it will continue to rise to about 3 million vehicles in 2028..

The report indicated the large geographical concentration of sales in a limited number of countries, as 5 countries – the UAE, Saudi Arabia, Algeria, Morocco and Kuwait – accounted for about 75% of all car sales in the region by the end of 2024..

Regarding individual car sales in the region (12 Arab countries), the report suggested that they would exceed 1.8 million cars by the end of 2024, an increase of 4.5% compared to 2023, with an expected increase in sales in the region to exceed 2.2 million cars in 2028, according to Fitch Agency..

Regarding the vehicle fleet index per thousand population, the report indicated that the Arab average rose by 9 points to reach 307 vehicles per thousand population by the end of 2024, despite Libya and 5 Gulf countries exceeding this average, with expectations that it will continue to rise to reach 353 vehicles per thousand population in the year 2020. 2028.

The report explained that the value of foreign trade of Arab countries in road vehicles and their components increased by about 23% to more than 126 billion dollars in 2023, as a result of an increase in the value of exports by about 29% to 29 billion dollars, “supported by the growth of the activity of re-exporting vehicles, cars and their components, which captured 14 billion dollars.” dollars in the GCC countries alone in 2023, and imports by about 21% to $97 billion, with about 82% of Total trade in 5 Arab countries: the UAE, Saudi Arabia, Morocco, Iraq and Kuwait, amounting to $103 billion..

The report added that the 9 most important countries exporting to the region during the year 2023 accounted for about 75% of the Arab countries’ total imports of road vehicles and their components, with a value of approximately 73 billion dollars, and Japan topped the list as the largest exporter to the region, with a value amounting to 17 billion dollars, with a share exceeding 17 billion dollars.%.

The list of the top 10 countries importing from the region accounted for 80% of the total Arab exports of vehicles and their components, with a value exceeding $23 billion, with Iraq topping the list as the largest importer from the region, acquiring 34% of the total, with a value of $10 billion..

The report indicated that personal transportation vehicles topped the Arab countries’ imports of vehicles and their components during the year 2023, with a value exceeding $63 billion, with a share exceeding 65% of total imports, while vehicle parts and accessories came in second place, with a value of $14 billion, and a share of 14%. Of the total.