Dubai has allocated $10 billion for infrastructure investment, aiming to boost the growth of the commercial vehicle market and enhance the emirate’s tourism economy, according to market research firm Frost & Sullivan.
Sunny Manjani, mobility consultant at Frost & Sullivan, also pointed out that Saudi Arabia has announced $267 billion in investments, while Qatar is concentrating on tourism and hospitality as part of its Third National Development Strategy 2024-2030.
As the 2025 edition of Automechanika Dubai approaches, experts from Frost & Sullivan have shared valuable insights regarding the commercial vehicle market. Automechanika Dubai is set to take place from December 9 to 11 at the Dubai World Trade Centre. In anticipation of the event, industry specialists have underscored that significant investments in large-scale construction and infrastructure projects are crucial for the growth of the GCC commercial vehicle market.
Challenges in the global commercial vehicle market
In 2024, the global commercial vehicle market faced a downturn, particularly affecting the medium and heavy-duty truck segments. Light commercial vehicle volumes also saw a decline in Asian markets like China, India, and the ASEAN countries, despite experiencing robust growth in recent years.
Amid these changes, China’s electric truck segment has emerged as a notable highlight, with sales more than doubling from the previous year, thanks to strong government support and an increasing focus on sustainability.
Read more: Gulf Arab States develop electric vehicle infrastructure to curb emissions
Growth prospects
Nonetheless, industry experts believe that the GCC’s commercial vehicle market is on the brink of growth, driven by substantial infrastructure investments and strategic economic initiatives in key member states.
Frost & Sullivan’s research indicates that Saudi Arabia is at the forefront of the commercial vehicles industry in the Middle East, leveraging its strategic location and significant infrastructure investments. Manjani elaborated: “Current supply chain disruptions in maritime routes are creating short-term opportunities for road transportation in the region. For example, goods from Europe are currently being transported from Saudi Arabia, through the UAE, and then to Asia.”
Investment climate in the Middle East
Manjani further highlighted that the Middle East is becoming a prime investment destination and noted that supportive policies and growing trade ties with Asian partners are fueling multisector growth across the region.
Looking ahead, Frost & Sullivan’s research predicts that the non-oil economy in the Middle East will continue to be a vital driver of economic growth, with key sectors identified as manufacturing (including automotive), renewables, infrastructure, construction, tourism, artificial intelligence, and fintech.
In the UAE, a resilient performance in the non-oil economy is projected to push GDP growth to 5.8 percent in 2025, up from 4 percent in 2024. Meanwhile, investments in Saudi Arabia’s non-oil segments, including tourism, technology, infrastructure, and renewables, are expected to drive real GDP growth to 4.8 percent in 2025. Both scenarios hold the potential to positively influence the commercial vehicle market due to heightened demand.
Anticipation for Automechanika Dubai
Commenting on the upcoming edition of Automechanika Dubai, Tommy Le, Show Manager for Automechanika Dubai, stated: “Automechanika Dubai is the largest international trade show for the automotive aftermarket industry in the MEA region. The 22nd edition will span 20 halls at the Dubai World Trade Centre, featuring over 20 Pavilions and a host of new features.
“This year, we are excited to introduce a brand-new Commercial Vehicles vertical dedicated to the mining, construction, and agricultural industries. Other new features include a Road Safety Day and a regional focus on the GCC, which spotlights manufacturing. We look forward to welcoming the industry back to Automechanika Dubai as we drive business growth in the automotive aftermarket.”
Automechanika Dubai is built around six key pillars: sustainability, electrification and digitalisation, innovation, training, recruitment, and safety. Returning features include the Automechanika Academy, Innovation4Mobility, the Automechanika Awards, the Pitstop Challenge, the Modern Workshop, and the Lubricants, Base Oil and Additives Conference.
The show will showcase 10 product sections, including Parts and Components, Electrics and Electronics, Accessories and Customising, Car Wash, Care & Detailing, Body & Paint, Diagnostics & Repair, Oils, Lubricants and Fuels, Tyres & Batteries, and a new product area focusing on Connectivity and Autonomous Driving.
