In 2025 ECG-the Association of European Vehicle Logistics visited the Middle East markets of the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA). This visit was based on the data received for growth in new car sales in this region, as well as ambitious plans to develop a local vehicle production base.
Today, ECG presents the latest Business Intelligence report on this region, following on from the visit and meetings in the region with key stakeholders.
Market Power:
The Gulf Corporation Council (GCC) region, which comprises of UAE, KSA, Bahrain, Oman, Kuwait and Qatar is a group of countries with significantly high disposable income levels, coupled with strong GDP growth forecasts.
Data from forecast provider S&P Global Mobility was upgraded in the mid-year update with increases in growth rates for both UAE and KSA—the two largest markets in the region. UAE volume was raised by 5.5% while KSA was raised by 6.8%. Overall the numbers point towards annual sales of over 1.5 million units in 2025. While this number seems relatively low it is the ambitious plans in the region coupled by the low cars per 1,000 people that has piqued our attention.
Data from the IMF highlights GDP growth rates of over 4% in Saudi Arabia and the UAE. Meanwhile GDP per capita data is USD79,500 on average for KSA and UAE. This number is higher than Germany (USD73,550) and the UK (USD 63,760) as per latest data from the IMF.
Meanwhile the number of cars per 1,000 people in the EU is on average close to 600 while in Saudi Arabia this is estimated at just under 200 while in UAE the number has risen post Covid to 540. But the population size of Saudi Arabia is over 34.5 million inhabitants, which highlights the vast potential for growth in new car sales. (....)