Why the UAE is the Hub for Foreign Automotive Investments in 2024

A recent report by the Arab Investment and Export Credit Guarantee Corporation (Dhaman) revealed that the UAE is the top choice for foreign investment in the automotive sector in 2024. The country attracted 145 projects worth over $22 billion.

The five nations of the Arab World Saudi Arabia, Morocco, the UAE, Algeria, and Egypt together attracted nearly 80% of the foreign investments and created over 91,000 jobs.

Growth in the Arab Automotive Sector

From year of 2003 to 2024 the Arab world attracted 184 foreign automotive projects of over $25 billion. These projects have created over 102,000 jobs. The sales of vehicles are also increasing. According to the report, 1.8 million cars sold by the end of 2024 .

The UAE as a Global Investment Hub

Apart from automotive sector, the UAE continues to lead as a global investment destination. In 2023 foreign direct investments (FDIs) amounted to AED 248.3 billion.

The ability of the UAE to attract greenfield projects and its rapid economic growth is commendable. In the last 18 months, this nation has attracted 275,000 new companies. This reflects its commitment to innovation and providing opportunities for foreign investors.

The success of the UAE in attracting business, trade, and FID is because of its favorable environment, flexible regulations, and strategic Gulf location.