How Does the Middle East Automotive Industry Grow Rapidly Today?

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With the increased number of vehicle sales and ongoing development of numerous free trade zones, the Middle East regions have now become a new attraction from the automotive industry much more than the previous ones.

The Middle East automotive industry recently has become a center of the world for some factors.

Some Factors behind Middle East Automotive Industry Development

It is known that several factors transform the car industry in the Middle East regions nowadays and become one of the main attractions worldwide. Their philosophy to promote car trade is the main factor along with several factors below. 

Good Position that Supports the Growth

As the Middle East recently became one of the rapidly-growing markets worldwide in the automotive sector, Jebel Ali Free Trade Zone or popularly known as Jafza claims to dominate the trend.

It provides access to more than 2 billion people in the region using multimodal infrastructure in the UAE.

Jafza holds a huge proportion of the whole automotive trade in Dubai. For instance, in 2017, it managed more than 800.000 vehicles and exported them to over 175 countries worldwide.

It was known to produce up to $10.8 billion for the business’s worth.

It set up great aftermarket trade which recently estimates to develop by 7 percent each year in order to obtain revenues of $31 billion in 2022. 

New Car Terminal Established in Khalifa

There is another ongoing development in the south of the Jebel Ali zone, there is a new car terminal that now is still in the middle of establishment from the agreement between Abu Dhabi Ports and one member of the auto terminal. That’s why this public service is called Autoterminal Khalifa Port.

This joint venture will create a terminal that later provides different kinds of services such as pre-delivery inspection, car customization, and other types of auto technical services.

Abu Dhabi Ports is supposed to support the Khalifa Port by offering specialized infrastructure.

On the other hand, the Khalifa Port will be in charge of supplying both technical and IT support. It also makes sure to provide a safe workplace and environment as well as open access to the global commercial network.  

Chinese Involvement in Car Industry 

The access to the Kizad business network and increased demand for shipping are not the only benefits that the industry gets. Besides, it is supported by the Chinese companies and the following prospects in the car industry. 

Recently, the automotive hub of Jafza has opened a new facility which is managed by a well-known chemical company from China. Not just a Middle East car industry that receives support from China but this country is also involved in other EMEA automotive industries. 

The Expand of Free Trade Zone

The growing automotive business in the Middle East is also due to the expansion of the free trade zone. Located near the Khorfakkan Port, there is a Saif Zone that provides great connections across regions, even to Europe and Asia. This zone offers interesting benefits for many overseas investors.

The fast-growing Middle East automotive industry occurs due to several factors. Among them, the position and expansion of the free trade zone, the establishment of Khalifa’s new car terminal, and Chinese companies’ involvement contribute the most.  

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