Automotive industry in MENA
The automotive industry in the Middle East and North Africa (MENA) region has experienced dynamic growth and transformation in recent years. As one of the world's emerging markets, the MENA region has become a focal point for global automotive manufacturers seeking to capitalize on the increasing demand for vehicles. During 2021, Saudi Arabia led the region in terms of passenger and commercial car sales. With a burgeoning population, rising income levels, and urbanization on the upswing, the demand for automobiles has surged across the region. International giants such as Toyota, Ford, Nissan, and Volkswagen have established a substantial presence, competing with local manufacturers. Automotive production in the MENA region is dominated by Turkey and Iran. Most automotive-producing countries in MENA focused on passenger cars, followed by light commercial vehicles.The evolving landscape of electric vehicles and luxury cars
Global technical breakthroughs have led to recent trends in the automotive sector, including electrification and autonomous vehicles. Governments in the area have also begun to address environmental concerns by implementing policies to promote the adoption of electric vehicles (EVs). Sales of electric vehicles in the greater MEA region were estimated to reach 45 thousand by 2025. This strategic shift aligns with global efforts to reduce carbon emissions and underscores the region's commitment to sustainable transportation solutions.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. Despite the promising growth, MENA's automotive industry faces its challenges. Economic uncertainties, geopolitical tensions, and fluctuations in oil prices can impact consumer spending and influence the industry's performance.
