Key Developments in the UAE & GCC’s Automotive Sector in 2024

In 2024, the automotive industry in the UAE and the GCC countries experienced significant growth and transformation, driven by robust economic activity, technological advancements, and strategic investments.  

The UAE solidified its position as a premier automotive hub, achieving remarkable milestones. DP World reported handling a record 1.3 million vehicles across its Dubai terminals, marking a 53.6% increase from the previous year and the highest in the company’s history. Notably, Jebel Ali Port processed nearly 960,000 units, underscoring its pivotal role in vehicle imports and exports within the region. China emerged as the top trading partner, contributing nearly 25% of vehicle volumes, followed by Japan, Korea, and India.

DP World handled a record 1.3 million vehicles across its Dubai terminals.

Foreign investments played a crucial role in the sector’s expansion. The UAE led five Arab nations in attracting 145 foreign automotive projects valued at over $22 billion in 2024, according to the Kuwait News Agency. China was a significant contributor, with 27 projects worth $8 billion, generating approximately 20,000 jobs. This influx of investments reflects the UAE’s strategic initiatives to create a conducive environment for automotive businesses.

The UAE’s automotive retail market also witnessed substantial growth. According to Astute Analytica, projections indicate that the market is set to reach a valuation of $25.16 billion by 2032, up from $7.06 billion in 2023, at a compound annual growth rate (CAGR) of 15.29%. This surge is attributed to economic prosperity, consumer affluence, and technological innovation. Notably, electric vehicle (EV) sales reached 8,000 units, supported by government incentives that offer annual savings of up to $2,700 for EV owners. The luxury car segment also expanded, with sales exceeding 80,000 units, reflecting the high per capita income and consumer purchasing power in the UAE.

Abu Dhabi-based investment vehicle CYVN Holdings entered a non-binding agreement to buy 100% of carmaker McLaren’s automotive business in December 2024.

Technological advancements, particularly in automation and artificial intelligence (AI), have been pivotal in shaping the automotive landscape. The UAE’s National Strategy for Artificial Intelligence 2031 aims to position the country as a global leader in AI, enhancing various sectors, including transportation. Initiatives such as the Dubai Autonomous Transportation Strategy and the establishment of an AI Centre of Excellence in Abu Dhabi underscore the commitment to integrating AI and automation in developing the regional automotive industry.

Uber launched a robotaxi service with its partner WeRide in Abu Dhabi.

In the GCC region, the automotive aftermarket experienced notable trends in 2024. The digitalization of part trading and retailing emerged as a significant development, alongside a higher demand for aftermarket branded parts and private labels. Additionally, there was a rise in mobile on-demand aftermarket service providers. The GCC light vehicle aftermarket revenue reached $10.7 billion in 2024, with projections to grow to $12 billion by 2027, according to Frost & Sullivan. Factors such as aging vehicle parts, advancements in vehicle technology, and increasing demand for used cars contributed to this growth.

In summary, 2024 marked a year of robust growth and innovation for the automotive industry in the UAE and the broader GCC region. Strategic investments, technological advancements, and a favorable economic environment have collectively reinforced the region’s status as a burgeoning automotive hub. 2025 is also looking to be a strong year for the automotive industry in the region, as witnessed by many brands now choosing to do their global launches in this part of the world.