UAE Attracts Major Automotive Investments in 2024



The UAE has emerged as the leading destination for foreign automotive investments in the Arab world, attracting 145 projects worth over $22 billion in 2024. This achievement highlights the UAE's strong position in the automotive sector and its appeal to international investors. According to a report by the Arab Investment and Export Credit Guarantee Corporation (Dhaman), the UAE is setting a benchmark for investment opportunities in the region.


The five Arab nations leading in automotive investments include Saudi Arabia, Morocco, Algeria, and Egypt, alongside the UAE. Together, these countries accounted for 79 percent of the total foreign projects in the automotive sector. This significant investment not only boosts the economy but also creates numerous job opportunities for local residents, further strengthening the region's industrial landscape.


From 2003 to 2024, the automotive sector in Arab countries has attracted a total of 184 foreign projects valued at over $25 billion. These projects have generated more than 102,000 jobs, showcasing the economic benefits of investing in this industry. The UAE's share of these projects is particularly noteworthy, reflecting its status as a prime location for automotive businesses.


China has emerged as the most significant investor in the Arab automotive sector, contributing 27 projects worth around $8 billion. These investments have led to the creation of approximately 20,000 jobs. The increasing interest from Chinese companies highlights the growing global recognition of the UAE as a key hub for automotive innovation and production.


The successful attraction of foreign investment is supported by the UAE's strong infrastructure, favorable business policies, and strategic location. The country's commitment to enhancing its automotive sector includes initiatives to improve manufacturing capabilities and expand the range of services available to investors. This proactive approach is essential for maintaining the UAE's competitive edge in the global market.


Overall, the UAE's leadership in attracting automotive investments signals a bright future for the region's economy. As the automotive industry continues to grow, it promises to bring new job opportunities and economic development, benefiting not just the UAE but the entire Arab world. The ongoing investments in this sector will undoubtedly play a crucial role in shaping the future of the automotive landscape in the region.

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