1.2 billion dollars in Bahrain’s total road vehicles trade in 2023

Zahra Habib

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An economic report revealed the volume of investment in the vehicle and cars sector in the Arab countries, including Bahrain, where the number of foreign direct investment projects in the sector in 22 years reached about 6 projects, at an investment cost of 382 million dollars, while Bahrain achieved about 335 million dollars For the year 2023 of the car re -export activity, indicating that Bahrain’s imports of cars recorded $ 898 million for the same period, while the total Bahrain trade in road vehicles amounted to about $ 1.2 billion for 2023.

He explained that the estimates of the Vehicle Fleet Index in Bahrain indicated that there are about 471 vehicles per thousand residents until October 2024, while expectations for 2028 indicate that they reach 472 thousand vehicles per thousand residents.

The report issued by the Arab Investment Establishment and Export Credit Credit for the Vehicle and Car Sector in the Arab countries expected that Bahrain, Libya, Qatar, the Sultanate of Oman, and Saudi Arabia, the global and Arab Mediterranean, in the Vehicle Fleet Index per thousand residents in 2024.

According to the report, foreign direct investment projects in the car sector at the level of Bahrain in the period from January 2003 to October 2024 reached about 6 projects for about 5 companies, at an investment cost of $ 382 million, and contributed to the creation of 756 jobs, as Saudi Arabia was exported as the largest future for foreign projects The start in the sector is a value of more than $ 9 billion, and the UAE is at the best future for the number of companies and projects with 58 projects, and 40 companies.

While China, as the largest investor in the car sector in the region in 22 years, has exported an investment cost of 8 billion dollars, while Germany exported the number of projects with 33 projects at a cost of $ 1.4 billion, and the second France as the largest investor of 3.8 billion dollars, distributed to 18 projects.

The report stated that the value of Arab trade in road vehicles and its components amounted to 126 billion dollars in 2023, and that it attracted 184 foreign projects in the auto sector at an investment cost of more than $ 25 billion in 22 years. The value of Arab exports of road vehicles increased by 29% to reach 29 billion dollars in 2023, as the UAE exported the Arab offer with a share of 58%.

The imports of Arab countries from road vehicles witnessed an increase of about 21% to exceed the ceiling of 79 billion dollars in 2023, due to the rapid development witnessed by the vehicle industry globally, offset by the increase in the number of consumers, and the transport vehicles offered to the individuals submitted at the level of Arab countries at the value of 63 billion dollars in 2023.

The report pointed to the increase in vehicle sales in the Arab region at a rate of 5% to 2.3 million vehicles in 2024, with expectations of vehicle sales in the Arab region to reach about 3 million vehicles in 2028, while the volume of car re -export activity and their components in the countries of the Cooperation Council in 2023 reached about 2023 14 billion dollars. The report suggested that 7 Arab countries are exporting the volume of electric car sales to transport passengers by a total of 80,000 cars by the end of 2024, with expectations to rise to exceed 136 thousand cars in 2028.

The report emphasized that the number of foreign investment projects in the Arab countries in the auto sector amounted to 184 projects implemented by 96 companies, with a total investment cost exceeding 25 billion dollars, and provided 102 thousand jobs, during the period from January 2003 to October 2024 last.

While the number of foreign direct investment projects in the sector reached 12 projects, at an estimated investment cost of $ 767 million, and provided 4.2 thousand new jobs.

The report emphasized that the countries of the Gulf Cooperation Council are the best Arab and the most attractive to investment and business in car sales activity for the year 2024.

The estimates of the BMI Group database of the Fitch Agency indicated that the total vehicle sales in 16 Arab countries together increased at a rate of 5.2%, at about 2.3 million vehicles by the end of 2024, which represents 2.4% of the total vehicle sales globally during the same year.

At the level of Bahrain, the development of vehicle sales according to the estimates of 2024 amounted to 32.3 thousand vehicles after it was 30.2 thousand vehicles in 2023, and it is expected to reach 36.4 thousand vehicles in 2028.

With regard to the level of commercial vehicles in the Kingdom, it reached 3.4 thousand vehicles in 2024, where expectations indicate the registration of 3.8 thousand commercial vehicles by 2028, and the vehicles of individuals transport vehicles in Bahrain develop to 32.6 thousand vehicles, after estimates in 2024 came about 28.9 thousand vehicle.

The report expected bus sales in 6 Arab countries, to exceed 67 thousand buses in 2028, and in Bahrain, estimates indicate about 0.5 thousand buses.

He also expected that sales of electric cars in the region would exceed the barrier of 136 thousand cars in 2028, so that the UAE comes in the lead by 56.7 thousand cars, and Jordan followed by 30.4 thousand cars, and Saudi Arabia with 35.2 thousand cars, especially with the global trend of this type of car Environment friendly.

With regard to motorcycles, the report suggested an increase in motorcycle sales in 4 Gulf countries at a rate of more than 4.5% for exceeding 165 thousand bikes, by about 6.5 thousand bikes for Bahrain, the Sultanate of Oman and Qatar for the year 2024.

The report expects a total bike sales in 4 Gulf countries, Bahrain, Saudi Arabia, Qatar and Sultanate of Oman, by 37% in Bahrain and 8% in the Sultanate of Oman for the year 2028.

The report referred to the vehicle fleet index per 1,000 residents, expecting the Arab average in the index to rise to 353 vehicles per thousand residents in 2028, and at the level of Bahrain until October 2024 amounted to 471 vehicles per 1,000 residents.