The Arab Investment and Export Credit Guarantee Corporation (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.
In its fourth report for the year 2024, on the vehicles and automobiles sector in the Arab countries, the Corporation stated that the UAE topped the Arab countries in imports of road vehicles and their components at a rate of 38%, followed by Saudi Arabia at 23%, Morocco at 7%, Iraq at 6%, and Kuwait at 5%. The remaining 17% was distributed among 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 and providing more than 102 thousand jobs, from January 2003 to October 2024.
The report pointed out that five Arab countries, including the UAE, Saudi Arabia, Morocco, Algeria and Egypt, attracted 145 foreign projects, with a share of 79% of the total, and an investment cost exceeding 22 billion dollars, with a share of 89%, while those projects provided more than 91 thousand jobs, with a share of 89% of the total.
The report, which focuses on four 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 investing country. In the Arab region, where 27 projects were implemented in the region during the period 2003-2024, with an investment cost approaching eight billion dollars, It created about 20,000 new jobs.
The report indicated that the top 10 companies accounted for about 41% of the number of new projects implemented, 67% of the capital cost, and 58% of the total new jobs, with the Japanese company “Nissan” topping the list, according to the number of projects, with 18 projects that represented 10% of the total. While the Chinese “Human Horizon” group topped the list as the largest investor in terms of the estimated investment cost with a value of $5.6 billion, with a share of 22% of the total, while The French company Renault came first in terms of the number of jobs created, with about 15,000 jobs and a share of 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 the Fitch Credit Rating Agency, which was monitored through two risk and incentive indicators for the year 2024, the Gulf Arab countries, led by the UAE, topped the most attractive countries for investment and business in sales activity. cars for the year 2024, followed by 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 and to represent 2.4% of the global total, with expectations that it will continue to rise to about three million vehicles in 2028. The report indicated the large geographical concentration of sales in A limited number of countries, as five 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.
. The UAE and 4 countries: Saudi Arabia, Algeria, Morocco, and Kuwait, accounted for 75% of car sales in the region by the end of 2024.
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