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UAE Tops The Region, Leading Arab Nations In Attracting Over $22 Billion In Automotive Investments For 2024

by THEFUTURE.TEAM
January 20, 2025

The UAE has firmly positioned itself as the leading destination for foreign automotive investments in the Arab world for 2024. In a remarkable display of growth and attractiveness, the UAE, alongside Saudi Arabia, Morocco, Algeria, and Egypt, collectively brought in 145 foreign projects worth an impressive $22 billion. These nations now account for 79 percent of the region’s total foreign automotive investments, according to the Arab Investment and Export Credit Guarantee Corporation (Dhaman).

This surge in investments is set to create more than 91,000 jobs, representing 89 percent of all employment generated by foreign automotive ventures in the Arab world. Of note, China emerges as the largest investor, contributing 27 projects valued at $8 billion, which will add around 20,000 jobs to the region’s economy.

UAE Solidifies Its Dominance In The Automotive Sector

The UAE’s leadership in the automotive industry is reinforced by its status as the most appealing hub for automotive business and investment in the region. The country’s progressive policies, competitive landscape, and strategic position in the global economy continue to attract investors and businesses, making it the preferred destination for automotive activity in the Middle East.

Investments And Job Creation Power The Growth

With significant foreign investments pouring into the sector, the UAE’s role as a central player in the automotive industry is only growing. These investments are bolstering the UAE’s economy while creating thousands of jobs, with the country’s share of the region’s foreign direct investments (FDIs) standing at 45.4 percent in 2023.

Surge In Automotive Sales Expected

By the end of 2024, total vehicle sales in the Arab world are projected to surpass 1.8 million cars, marking a 4.5 percent rise from the previous year. Saudi Arabia continues to dominate the region, holding a substantial 45 percent share of the market.

UAE’s Role As A Global Investment Magnet

The UAE remains a global magnet for foreign investments, not only in the automotive sector but across industries. In 2023, the UAE attracted AED248.3 billion in FDIs, accounting for a staggering 35 percent of all investments in the Arab region. This growth is largely due to the country’s investor-friendly policies, robust infrastructure, and attractive business environment.

The UAE’s success is also reflected in its FDI inflows, which grew by 35 percent in 2023, reaching AED112.6 billion. The country’s decision to amend its Commercial Companies Law—enabling full foreign ownership—has further enhanced its investment climate, with over 275,000 new companies launched in just over a year and a half.

Furthermore, the UAE ranks second globally in terms of greenfield FDI projects for 2023, following the United States, further cementing its position as a global business hub and a vital player in the automotive and other key sectors.

This influx of foreign investment in the UAE highlights not only the country’s economic strength but also its strategic importance in driving growth and innovation across the region.

European Central Bank Report Highlights Stable Inflation and Economic Outlook

by THEFUTURE.TEAM
October 29, 2025

Overview Of Inflation Trends

The latest European Central Bank survey shows a slight decline in median inflation expectations over the next 12 months, decreasing from 2.8% in August to 2.7% in September. Despite this minor adjustment, consumer perceptions of past 12-month inflation have held steady at 3.1% for the eighth consecutive month. Long-term projections for three- and five-year inflation remain stable at 2.5% and 2.2% respectively.

Consumer Expectations Drive Income And Spending Projections

Across the board, expectations for nominal income growth over the upcoming year have remained consistent at 1.1%. However, there is a noticeable shift in spending behavior: while perceived nominal spending growth for the past year slipped slightly to 4.9% from 5.0%, expectations for spending growth over the next 12 months rose to 3.5%. Notably, lower income groups continue to forecast marginally higher spending increases compared to their higher income counterparts.

Stability In Economic And Labour Market Outlook

Economic growth expectations are modestly pessimistic, with respondents forecasting a contraction of -1.2% over the next 12 months. Concurrently, anticipated unemployment levels remain unchanged at 10.7% a year ahead, though the outlook varies by income, with lower income households expecting unemployment rates as high as 12.7%, while higher income groups maintain expectations around 9.4%. Overall, the slight difference between current and future unemployment suggests a broadly stable labor market outlook.

Housing Market And Credit Conditions

The survey also reveals an upswing in expectations related to the housing market. Home price growth expectations have edged higher to 3.5%, and anticipated mortgage interest rates have risen modestly to 4.6%. Similar to other metrics, expectations vary by income, with lower income households expecting higher mortgage rates. In recent months, a marginal decline in reported credit tightening over the past 12 months contrasts with a renewed forecast of tighter credit conditions in the forthcoming year.

Conclusion

The ECB’s latest findings underscore the delicate balance between stable long-term economic forecasts and short-term adjustments in consumer expectations. The slight dips in inflation expectations, alongside stable perceptions of past inflation, delineate a marketplace that is both cautious and measured. As income, spending, and housing market metrics continue to evolve, these indicators provide critical insights for policymakers and investors navigating an increasingly complex economic landscape.

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