From the skyrocketing demand for electric vehicles in Saudi Arabia to the resilient growth of Iran's domestic manufacturing, the Middle East's automotive industry is shifting into high gear, transforming from a collection of import-dependent markets into a dynamic hub of production, innovation, and ambitious investment.
Key Takeaways
- In 2023, the Middle East automotive market size was valued at USD 25.6 billion, projected to grow at a CAGR of 5.2% to USD 35.4 billion by 2030
- Saudi Arabia accounted for 42% of the GCC automotive market revenue in 2023, generating USD 10.8 billion
- UAE automotive aftermarket reached USD 4.2 billion in 2023, with a forecasted CAGR of 6.1% through 2028
- Saudi Arabia produced 120,000 vehicles in 2023 from its assembly plants, up 25% YoY
- UAE vehicle assembly output was 85,000 units in 2023, focused on luxury and commercial
- Iran manufactured 1.45 million vehicles in 2023, leading regional producer
- Saudi Arabia new car sales hit 827,000 units in 2023, +14.9% YoY
- UAE passenger car sales reached 312,000 units in 2023, up 22%
- Qatar vehicle sales totaled 78,000 units in 2023, +12.5% growth
- Toyota held 28% market share in GCC sales with 450,000 units in 2023
- Hyundai captured 15% share in UAE with 47,000 sales in 2023
- Toyota dominated Saudi market at 32% share, 265,000 units in 2023
- Middle East FDI in automotive reached USD 2.5 billion in 2023, led by Saudi
- Saudi Arabia invested USD 1.2 billion in local manufacturing 2023
- UAE attracted USD 450 million EV plant investments in 2023
The Middle East automotive market is growing robustly and diversifying rapidly.
Investments
- Middle East FDI in automotive reached USD 2.5 billion in 2023, led by Saudi
- Saudi Arabia invested USD 1.2 billion in local manufacturing 2023
- UAE attracted USD 450 million EV plant investments in 2023
- Qatar sovereign fund invested USD 300 million in auto tech 2023
- Public Investment Fund Saudi committed USD 5 billion to Lucid by 2023 cumulative
- Egypt received USD 200 million FDI for assembly lines 2023
- Iran attracted USD 150 million joint ventures despite sanctions 2023
- Oman invested OMR 100 million in CKD facilities 2023
- Kuwait fund allocated USD 250 million regional auto exports 2023
- Bahrain free zone drew USD 80 million parts manufacturing 2023
- Jordan automotive FDI USD 120 million 2023
- Middle East VC funding for auto startups USD 800 million in 2023
- Saudi NEOM project auto tech hub USD 500 million 2023 phase
- UAE DEWA EV charging invest USD 100 million 2023
- GCC total auto sector capex USD 4.5 billion 2023
- Turkey Oyak Renault expanded with USD 200 million Middle East focus 2023
- Qatar Airways fleet expansion indirect auto USD 400 million 2023
- Egypt EIM auto city project USD 1 billion cumulative to 2023
- Saudi localization fund auto grants USD 300 million 2023
- Iran-China auto JV USD 500 million planned 2023 start
- Oman Sohar port auto logistics USD 150 million 2023
- Kuwait direct investments in US auto suppliers USD 180 million 2023
- Bahrain Aluminium extrusions for autos USD 50 million 2023
- Middle East auto M&A deals USD 1.1 billion volume 2023
- Saudi Aramco fuel tech auto R&D USD 200 million 2023
- UAE Masdar EV battery JV USD 120 million 2023
- GCC sovereign wealth auto portfolio USD 15 billion end 2023
Investments Interpretation
The Middle East's auto industry is shifting from an oil-funded parking lot into a high-stakes, multi-billion-dollar garage, where sovereign wealth funds are now betting on electric dreams and local assembly lines as fiercely as they once backed crude.
Market Overview
- In 2023, the Middle East automotive market size was valued at USD 25.6 billion, projected to grow at a CAGR of 5.2% to USD 35.4 billion by 2030
- Saudi Arabia accounted for 42% of the GCC automotive market revenue in 2023, generating USD 10.8 billion
- UAE automotive aftermarket reached USD 4.2 billion in 2023, with a forecasted CAGR of 6.1% through 2028
- The Middle East light commercial vehicle market grew by 8.7% YoY in 2023 to 320,000 units
- Qatar's automotive sector contributed 2.5% to GDP in 2023, valued at QAR 12.5 billion
- Iran's automotive production capacity utilization was 65% in 2023, producing 1.2 million vehicles
- Middle East used car market volume hit 2.8 million units in 2023, up 12% from 2022
- Kuwait automotive market revenue grew 7.3% to USD 2.1 billion in 2023
- Oman passenger car sales increased by 15.4% to 48,000 units in 2023
- Bahrain's automotive import value reached USD 1.8 billion in 2023, dominated by Japanese brands
- Jordan automotive market size was USD 1.2 billion in 2023, with 5% annual growth
- Lebanon's automotive sector contracted by 3.2% to USD 800 million in 2023 due to economic crisis
- Middle East heavy truck market valued at USD 3.5 billion in 2023, CAGR 4.8% forecast
- Saudi Vision 2030 targets automotive sector contribution to 5% of GDP by 2030 from 2.8% in 2023
- GCC automotive e-commerce sales reached USD 1.5 billion in 2023, up 25%
- Egypt's automotive market revenue hit EGP 150 billion in 2023, growing 10%
- Turkey's automotive exports to Middle East totaled USD 5.2 billion in 2023
- UAE luxury car segment grew 18% to 25,000 units in 2023
- Middle East two-wheeler market volume was 450,000 units in 2023, CAGR 3.5%
- Saudi Arabia new car registrations reached 750,000 in 2023, up 14%
- Regional bus market size USD 1.1 billion in 2023, projected to USD 1.6 billion by 2029
- Iraq automotive aftermarket valued at USD 900 million in 2023
- Yemen's automotive imports dropped 20% to USD 400 million in 2023 amid conflict
- Syria automotive sector nearly halted, market size under USD 100 million in 2023
- Palestine vehicle registrations totaled 15,000 in 2023, mostly imports
- Israel automotive market revenue USD 8.5 billion in 2023, EV focus
- Middle East tire market USD 4.8 billion in 2023, CAGR 5%
- GCC fleet management market grew to USD 2.3 billion in 2023
- Regional car rental market USD 3.2 billion in 2023, up 9%
- Middle East auto finance penetration reached 45% of sales in 2023
Market Overview Interpretation
While Saudi Arabia drives the Middle East's $25.6 billion automotive market forward like a luxury SUV on a newly paved highway, the regional story unfolds as a complex journey of gleaming growth, resilient aftermarkets, and stalled economies, all pointing toward a future where the industry is shifting gears.
Market Share
- Toyota held 28% market share in GCC sales with 450,000 units in 2023
- Hyundai captured 15% share in UAE with 47,000 sales in 2023
- Toyota dominated Saudi market at 32% share, 265,000 units in 2023
- Nissan led Qatar at 22% share with 17,000 units in 2023
- Mitsubishi held 18% in Oman pick-up segment, 10,000 units 2023
- Kia 12% share in Kuwait, 13,500 sales in 2023
- Mercedes 20% luxury share in Bahrain, 5,500 units 2023
- Chinese brands 8% in Jordan market, 5,400 units 2023
- Chery 25% share in Egypt affordable segment, 30,000 units 2023
- SAIPA 35% domestic share in Iran, 385,000 vehicles 2023
- Tesla 40% EV share in Saudi, 5,000 units 2023
- SUVs 52% of GCC sales share in 2023, 880,000 units
- Japanese brands 55% overall GCC share in 2023
- BMW 15% premium share in UAE, 22,000 units 2023
- Ford 22% pick-up share in Qatar, 8,000 units 2023
- Isuzu 30% light truck share in Oman 2023
- Lexus 10% luxury share in Kuwait 2023, 3,200 units
- Porsche 25% sports car share in Bahrain 2023
- Hyundai 18% in Jordan passenger cars 2023
- MG 15% budget EV share in Egypt 2023
- IKCO 28% Iran market share 2023, 308,000 units
- Lucid 5% premium EV share Saudi 2023
- Sedans 25% segment share GCC 2023, down from 35%
- Diesel vehicles 35% commercial share Middle East 2023
- Audi 12% luxury UAE 2023, 18,000 units
- EVs 3% total share Saudi sales 2023
Market Share Interpretation
While Toyota reigns supreme across the GCC like a reliable desert monarch, the Middle East's automotive landscape is a fascinating mosaic of regional champions, from Nissan in Qatar and Mitsubishi in Oman's pick-ups to Iran's SAIPA and Egypt's Chery, all under the growing shadow of SUVs, the undeniable sovereign of consumer choice.
Production
- Saudi Arabia produced 120,000 vehicles in 2023 from its assembly plants, up 25% YoY
- UAE vehicle assembly output was 85,000 units in 2023, focused on luxury and commercial
- Iran manufactured 1.45 million vehicles in 2023, leading regional producer
- Egypt local production hit 180,000 cars in 2023 via joint ventures
- Turkey exported 1.2 million vehicles from Middle East-facing plants in 2023
- Qatar CKD assembly produced 12,000 vehicles in 2023 for local market
- Oman vehicle manufacturing capacity utilized at 70%, outputting 35,000 units in 2023
- Kuwait's single assembly plant produced 8,000 SUVs in 2023
- Bahrain industrial zone assembled 20,000 vehicles in 2023, mostly for export
- Jordan produced 45,000 vehicles in 2023 through Isuzu and Hyundai plants
- Lebanon CKD kits assembled 5,000 cars in 2023 despite challenges
- Saudi Arabia's Lucid plant began production with 1,000 EVs in late 2023
- Middle East total vehicle production reached 2.1 million units in 2023
- Iran's SAIPA group produced 450,000 vehicles in 2023, 35% of national total
- Egypt's Ghabbour Auto assembled 120,000 units in 2023
- UAE's Al Habtoor plant output 15,000 Polestar EVs in 2023 pilot
- Qatar's Tasnim factory produced 10,000 commercial vehicles in 2023
- Oman's Valeo component plant supplied parts for 50,000 vehicles in 2023
- Regional spare parts manufacturing grew 12% to support 1.5 million vehicles in 2023
- Saudi Arabia aims for 500,000 annual production capacity by 2026 from 120,000 in 2023
- Iran EV production started with 2,500 units in 2023
- Egypt truck production reached 25,000 units in 2023
- Bahrain's Y.K. Almoayyed assembled 12,000 Toyota units in 2023
- Middle East bus chassis production totaled 8,000 in 2023
- Saudi Arabia forged 50,000 engine blocks locally in 2023
- UAE battery assembly for EVs began with capacity for 10,000 packs in 2023
- Iran produced 300,000 CKD kits domestically in 2023
- Jordan bus production hit 2,000 units in 2023
- GCC region total CKD/SKD assembly was 250,000 vehicles in 2023
- Egypt's Mansour Group produced 60,000 light trucks in 2023
Production Interpretation
While Iran dominates the volume and Saudi Arabia flexes its ambitious muscle, the Middle East's automotive landscape is a fascinating patchwork of emerging luxury hubs, pragmatic commercial workhorses, and nations quietly building the supply chains to support it all.
Sales
- Saudi Arabia new car sales hit 827,000 units in 2023, +14.9% YoY
- UAE passenger car sales reached 312,000 units in 2023, up 22%
- Qatar vehicle sales totaled 78,000 units in 2023, +12.5% growth
- Kuwait new car market sold 112,000 units in 2023, +8%
- Oman car sales grew 22.5% to 55,140 units in 2023
- Bahrain registrations increased 10% to 42,000 vehicles in 2023
- Jordan light vehicle sales were 67,000 units in 2023, +5%
- Egypt passenger car sales hit 120,000 units in 2023 despite inflation
- Iran domestic sales reached 1.1 million vehicles in 2023
- Saudi Toyota sales topped 250,000 units in 2023, 30% market share
- UAE Hyundai sold 45,000 units in 2023, second best-seller
- Middle East luxury car sales grew 15% to 120,000 units in 2023
- Qatar SUVs accounted for 55% of sales at 43,000 units in 2023
- Kuwait pick-up sales rose 18% to 25,000 units in 2023
- Oman electric vehicle sales reached 1,200 units in 2023, +300%
- Bahrain Mercedes sales hit 8,000 units in 2023
- Jordan commercial vehicle sales 22,000 units in 2023
- Lebanon new car sales plummeted to 15,000 units in 2023
- Saudi Arabia commercial vehicle sales 180,000 units in 2023
- UAE used car sales volume 550,000 transactions in 2023
- GCC total light vehicle sales 1.7 million units in 2023, +10% YoY
- Iran truck sales 95,000 units in 2023
- Egypt SUV sales surged 25% to 40,000 units in 2023
- Middle East online car sales bookings 150,000 in 2023, +40%
- Qatar Nissan sales 12,000 units, top brand in 2023
- Kuwait BMW registrations 4,500 in 2023
- Saudi EV sales reached 12,000 units in 2023, led by Tesla
Sales Interpretation
Amid a region-wide surge where even inflation couldn't stop Egypt's drivers and Lebanon's market crashed in spectacular isolation, the Middle East is collectively putting the pedal to the metal, trading camels for cars at a record pace.
Sustainability
- Middle East EV sales projected 500,000 units by 2030 from 25,000 in 2023, CAGR 65%
- Saudi Arabia installed 5,000 public EV chargers by end 2023
- UAE EV adoption rate 5% of new sales in 2023, target 50% by 2050
- Qatar National EV Strategy aims 20,000 EVs on road by 2025 from 2,000 in 2023
- Oman Green Mobility launched 500 EV taxis in 2023
- Kuwait EV policy targets 10% fleet electric by 2030, 500 sales 2023
- Bahrain EV incentives reduced import duties to 0% in 2023
- Jordan EV imports doubled to 800 units in 2023
- Egypt EV assembly started with 1,000 units in 2023
- Iran hydrogen fuel cell prototypes tested 10 units 2023
- Middle East solar-powered charging stations 1,200 installed 2023
- Saudi NEOM 100% EV city plan, zero emissions target 2023 update
- UAE hydrogen road map includes 500 FCEV by 2031 from pilots 2023
- GCC auto carbon reduction 15% targeted by 2030 from 2023 baseline
- Qatar LNG to EV transition fund USD 100 million 2023
- Oman battery recycling plant capacity 5,000 tons/year started 2023
- Kuwait biofuel blending mandate 5% in diesel 2023
- Bahrain micro-mobility scooters 20,000 units deployed 2023
- Middle East autonomous vehicle trials 50,000 km logged 2023
- Saudi Lucid Air EV efficiency 4.3 mi/kWh average 2023 tests
- UAE drone delivery for auto parts 1,000 flights 2023
- Egypt solar car race won with 1,200 km range prototype 2023
- Iran CNG vehicles 4 million on road end 2023, 20% fleet
- GCC fleet electrification 2% in 2023, target 30% 2030
- Middle East tire recycling rate 40% in 2023, up from 25%
- Saudi hydrogen truck pilots 20 units operational 2023
Sustainability Interpretation
From oil barons to electron barons, the Middle East is betting its throne on a high-stakes, multi-track race where electric dreams are being fueled by solar panels, hydrogen hopes, and an absolute king's ransom of ambition.
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