While the story of the Middle East has long been written with oil, a new chapter is now being fueled by a remarkable automotive transformation, where nations from Iran to Saudi Arabia are not only consuming cars but are aggressively building, innovating, and exporting them at unprecedented rates.
Key Takeaways
- In 2023, Iran's automotive production totaled 1.24 million vehicles, marking a 21% increase from 2022, driven by domestic manufacturers like Iran Khodro and SAIPA.
- Saudi Arabia's vehicle assembly output reached 128,000 units in 2023, with Lucid Air production starting at 5,000 units annually at KAEC facility.
- UAE's auto parts manufacturing sector produced 250,000 tons of components in 2022, focusing on batteries and electronics.
- In 2023, total new car sales in Saudi Arabia reached 827,000 units, a 13.4% YoY growth led by Toyota.
- UAE passenger vehicle sales hit 316,000 units in 2023, with Toyota holding 28% market share.
- Iran's auto sales volume was 1.1 million units in 2023, down 5% due to sanctions.
- Saudi Arabia exported 350,000 vehicles to GCC neighbors in 2023.
- UAE imported 280,000 passenger cars in 2023, 60% from Japan.
- Iran's auto exports reached 120,000 units to 25 countries in 2023.
- Saudi Vision 2030 auto investments total $15bn by 2023.
- UAE's auto sector contributed 4.2% to GDP in 2023, $12bn value.
- Iran allocated $2bn for auto tech upgrades in 2023 budget.
- Middle East auto industry employed 1.2 million workers in 2023.
- Saudi Arabia's auto sector created 50,000 new jobs in 2023 under localization.
- UAE auto manufacturing workforce 120,000, 40% skilled expats.
The Middle East auto industry is growing rapidly with significant regional production and investments.
Employment and Workforce
- Middle East auto industry employed 1.2 million workers in 2023.
- Saudi Arabia's auto sector created 50,000 new jobs in 2023 under localization.
- UAE auto manufacturing workforce 120,000, 40% skilled expats.
- Iran's auto industry employs 700,000 direct workers, 2.5% unemployment rate.
- Egypt auto assembly jobs totaled 80,000 in 2023.
- Qatar auto retail employed 25,000, training 5,000 locals.
- Jordan auto parts sector 35,000 jobs, women 20%.
- Israel auto-tech engineers 45,000, growth 15% YoY.
- Bahrain auto logistics 10,000 workers.
- Oman auto service sector 18,000 jobs post-Vision 2040.
- Kuwait dealerships employ 30,000, Saudization 25%.
- Saudi Nitaqat program auto compliance 85%, 100,000 jobs.
- UAE vocational training for auto mechanics 15,000 graduates 2023.
- Iran auto apprenticeships 50,000 slots filled.
- Egypt ITIDA auto software jobs 12,000.
- Qatar Tamkeen funded 3,000 auto jobs for nationals.
- Jordan JV training 5,000 workers in EV tech.
- Israel high-tech auto R&D 20,000 PhDs employed.
- Bahrain Tamkeen auto upskilling 2,000 locals.
- Oman Ithraa 4,000 jobs in supply chain.
- Kuwait PAAET auto programs graduated 1,500.
- Middle East auto aftersales jobs 400,000 total.
- Saudi women in auto sector 10,000, up 50%.
- UAE Emiratization auto 15% target met.
- Iran youth employment auto 300,000 under 30.
- Egypt informal auto repair 500,000 jobs.
Employment and Workforce Interpretation
While the Middle East's auto industry is clearly shifting gears with impressive nationalization numbers and high-tech ambitions, the road to development is paved with both skilled expats and a vast informal repair sector, proving that economic engines, much like cars themselves, often require both a sleek new chassis and a trusty wrench.
Exports and Imports
- Saudi Arabia exported 350,000 vehicles to GCC neighbors in 2023.
- UAE imported 280,000 passenger cars in 2023, 60% from Japan.
- Iran's auto exports reached 120,000 units to 25 countries in 2023.
- Egypt exported 15,000 CKD kits to Africa in 2023.
- Turkey shipped 500,000 auto parts worth $8bn to Middle East in 2023.
- Qatar re-exported 50,000 used vehicles to Africa in 2023.
- Jordan auto exports grew 25% to $1.2bn in 2023, mainly wiring.
- Israel exported $3.5bn in auto tech and components in 2023.
- Bahrain exported 10,000 tons of aluminum auto sheets to UAE.
- Oman imported 90,000 vehicles, 70% SUVs from Asia.
- Kuwait imported $4bn in autos and parts in 2023.
- Lebanon imported 25,000 new cars despite port issues.
- Iraq imported 200,000 vehicles, mostly Chinese brands.
- Saudi Arabia's auto imports declined 10% to 700,000 units.
- UAE Jebel Ali free zone handled 150,000 vehicle imports.
- Iran imported 50,000 CKD kits from China in 2023.
- Egypt auto parts imports $2.5bn, 40% from EU.
- Turkey's ME imports from GCC $1.8bn in auto goods.
- Qatar auto exports to Sudan 8,000 units used.
- Jordan imported 45,000 cars, Korean brands 35%.
- Israel imported 160,000 vehicles, hybrids 25%.
- Bahrain parts exports to Saudi $500m.
- Oman exported 5,000 vehicles regionally.
- Kuwait re-exported 20,000 luxury cars.
Exports and Imports Interpretation
The Middle East’s auto industry is a patchwork of titans and tacticians, where Saudi Arabia floods its neighbors with vehicles, Iran and Turkey carve out specialized niches, and everyone else is either betting big on China, Japan, or their own cleverness, creating a regional ecosystem that is impressively interconnected yet wildly lopsided.
Investments and Economic Impact
- Saudi Vision 2030 auto investments total $15bn by 2023.
- UAE's auto sector contributed 4.2% to GDP in 2023, $12bn value.
- Iran allocated $2bn for auto tech upgrades in 2023 budget.
- Egypt attracted $1.5bn FDI in auto manufacturing 2022-2023.
- Public Investment Fund Saudi invested $3.4bn in Lucid Motors.
- Qatar sovereign fund $800m in EV infrastructure by 2023.
- Jordan auto cluster investments $500m since 2020.
- Israel auto-tech startups raised $2.1bn VC in 2023.
- Bahrain $300m incentives for auto OEMs in 2023.
- Oman $1bn sovereign fund stake in auto assembly.
- Kuwait $600m in regional auto JVs.
- Economic impact of Saudi auto sales added 1.2% GDP growth.
- UAE free zones attracted $4bn auto logistics investments.
- Iran MAPNA group $1bn auto electrification plan.
- Egypt Juhayna $200m auto parts plant.
- Turkey-Qatar JV $700m for ME auto plant.
- Jordan USAID $100m supply chain fund.
- Israel Mobileye IPO contributed $15bn to auto ecosystem.
- Bahrain Tatweer $250m R&D center.
- Oman PDO $400m hybrid vehicle tech.
- Kuwait Petrochem $150m parts manufacturing.
- Saudi Ceer $1.3bn EV factory funding.
- UAE Tawazun $900m defense-auto crossover.
- Iran IKCO $500m export-oriented line.
- Egypt NWT $300m Chinese JV.
Investments and Economic Impact Interpretation
While Saudi Arabia bets big on its own electric future with a $15 billion national vision, the broader Middle East is quietly assembling a surprisingly diverse and well-funded automotive ecosystem, from Israel's high-tech startups to Egypt's manufacturing hubs and Qatar's charging stations, proving the region is no longer just an oil-rich customer but a serious and multifaceted player on the global auto stage.
Production and Manufacturing
- In 2023, Iran's automotive production totaled 1.24 million vehicles, marking a 21% increase from 2022, driven by domestic manufacturers like Iran Khodro and SAIPA.
- Saudi Arabia's vehicle assembly output reached 128,000 units in 2023, with Lucid Air production starting at 5,000 units annually at KAEC facility.
- UAE's auto parts manufacturing sector produced 250,000 tons of components in 2022, focusing on batteries and electronics.
- Egypt assembled 102,000 passenger cars in 2023, with Nissan and Chevrolet models dominating local lines.
- Turkey's Middle East-oriented production hit 1.35 million vehicles in 2023, 40% exported to GCC countries.
- Qatar's nascent auto manufacturing produced 2,500 luxury SUVs in 2023 under joint ventures with BMW.
- Jordan manufactured 65,000 auto components sets in 2022, specializing in wiring harnesses for European exporters.
- Israel's EV production reached 12,000 units in 2023, led by REE Automotive's modular platforms.
- Bahrain's aluminum auto parts output was 18,000 tons in 2023, supplying 15% to regional OEMs.
- Oman's vehicle production pilot plant assembled 1,200 units in 2023, focusing on Toyota rebadges.
- Kuwait's aftermarket parts production grew to 45,000 units in 2022, emphasizing filters and brakes.
- Lebanon's disrupted auto assembly produced only 500 units in 2023 due to economic crisis.
- Yemen's informal vehicle modification sector handled 10,000 units in 2022, focusing on 4x4 upgrades.
- Syria's pre-war production legacy saw 2,000 units assembled in 2023 amid recovery efforts.
- Iraq's auto plant in Baghdad produced 8,000 pickup trucks in 2023 under Chinese partnerships.
- Saudi Arabia plans to produce 500,000 EVs by 2030, with Ceer brand launching in 2025.
- Iran's CKD assembly kits imported led to 450,000 local builds in 2023.
- UAE's DUBAL supplied 30,000 tons of aluminum for auto bodies in 2023.
- Egypt's EIM plant output 25,000 MG vehicles in 2023.
- Turkey exported 250,000 CKD kits to Middle East in 2023.
- Qatar invested QR 500m in auto R&D, yielding 1,000 prototype parts.
- Jordan's auto cluster produced 120,000 seats in 2023.
- Israel's StoreDot fast-charging batteries produced 50,000 units for autos.
- Bahrain Alba plant provided 12% of regional auto aluminum needs in 2023.
- Oman's Valeo plant made 300,000 wipers in 2023.
- Kuwait's Gulf Auto produced 20,000 radiators.
- UAE's Strata manufactured 15,000 aircraft-auto hybrid components.
- Saudi's Al Jouf plant assembled 10,000 tractors adapted for autos.
- Iran's SAIPA output 350,000 sedans in H1 2023.
- Egypt's Ghabbour produced 40,000 CKD units.
Production and Manufacturing Interpretation
This data paints a Middle Eastern auto sector of surprising resilience and stark contrast, where Turkey and Iran's established industrial might anchors the region, Saudi Arabia's ambitious electric dreams race toward the future, smaller Gulf states carve out lucrative niche expertise, and nations like Lebanon and Syria struggle valiantly to keep their production lights on amidst profound challenges.
Sales and Market Share
- In 2023, total new car sales in Saudi Arabia reached 827,000 units, a 13.4% YoY growth led by Toyota.
- UAE passenger vehicle sales hit 316,000 units in 2023, with Toyota holding 28% market share.
- Iran's auto sales volume was 1.1 million units in 2023, down 5% due to sanctions.
- Egypt's new vehicle sales grew 22% to 145,000 units in 2023, dominated by Chinese brands.
- Qatar car market sales reached 85,000 units in 2023, up 18% with luxury segment at 35%.
- Jordan vehicle registrations totaled 62,000 in 2023, Hyundai leading with 22% share.
- Israel's new car sales were 190,000 units in 2023, EVs comprising 12% of total.
- Bahrain auto sales climbed to 28,000 units in 2023, Mercedes with top luxury share.
- Oman's market sold 112,000 vehicles in 2023, Toyota at 32% dominance.
- Kuwait new car sales hit 145,000 units in 2023, SUVs 55% of market.
- Lebanon sales dropped to 15,000 units in 2023 amid crisis, used imports 80%.
- Iraq vehicle sales estimated at 120,000 units in 2023, Toyota Hilux top seller.
- Saudi EV sales reached 4,500 units in 2023, projected 20% growth in 2024.
- UAE used car sales volume was 450,000 transactions in 2023 via Dubai Auctions.
- Iran's Peugeot sales 180,000 units in 2023 post-sanctions lift hopes.
- Egypt commercial vehicle sales 35,000 units in 2023.
- Qatar luxury car sales 25,000 units, Porsche up 30%.
- Jordan EV sales 1,200 units, 2% market penetration.
- Israel Tesla sales 15,000 units in 2023 despite import duties.
- Bahrain Toyota Corolla sales 8,000 units, 28% share.
- Oman Nissan sales 22,000 units in 2023.
- Kuwait Mercedes sales 12,000 units, luxury leader.
- Saudi market revenue from auto sales QR 150bn in 2023.
- UAE Hyundai market share 15% with 47,000 sales.
- Iran Chery sales 50,000 units via local assembly.
- Egypt Mitsubishi sales 10,000 units in 2023.
- Qatar BMW sales 4,500 units, 18% luxury share.
Sales and Market Share Interpretation
From Saudi deserts to Lebanese lots, the Middle East's auto landscape is a study in contrasts: sanctions stall Iran, prosperity propels Qatar's luxury obsession, and Toyota's crown remains unshaken except in Egypt where it's politely being shown the door by Chinese arrivals.
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