Automotive Market Research UAE & KSA: Industry Trends, Insights & Entry Strategy

Last Updated: 24 September 2025

The automotive industry in the GCC — with the United Arab Emirates (UAE) and Saudi Arabia (KSA) at the center — is in the middle of a major transformation. Rising populations, ambitious infrastructure projects, sustainability initiatives, and shifts in customer lifestyles are all fueling new demand for vehicles, spare parts, and mobility services.

For businesses, this momentum brings opportunity but also complexity. Automotive market research in the UAE & KSA is not optional — it is essential. A solid study helps companies move beyond assumptions and see the market as it truly is: what customers expect, how regulations affect entry, and where competitors are strong or weak.

Whether you are launching vehicles, supplying parts, expanding a dealership network, or offering aftermarket services, a customized research approach provides clarity. It increases decision-makers understanding of the situation, reduces risks, and helps build a strong, lasting presence in two of the most dynamic automotive markets in the world.

Why UAE & KSA Are the Hotspots for Automotive Market Research

At Accurate Middle East, based in Dubai with a presence in Riyadh, we help global and regional businesses navigate these markets through professional automotive industry market research, feasibility studies, and market entry strategy development.

In this article, we explore:

• The current state and future trends of the automotive industry in the UAE & KSA
• What’s included in a professional automotive market research
• Why companies should order this service before entering the GCC automotive market
• Our methodology and examples of past client cases
• Average costs and what deliverables you can expect

Automotive Market Size and Trends in UAE & KSA

Recent figures [2025] show the GCC automotive market is growing steadily. The Middle East automotive market is expected to climb from USD 112.5 billion in 2024 to about USD 140.05 billion by 2033, reflecting a CAGR of ~3.2%.

In the UAE, vehicle sales rose by 10.9% in the first half of 2025 over H1 2024, driven by surging demand for SUVs and EVs. Meanwhile in Saudi Arabia, the overall vehicle market grew by 11.6% in H1 2025, with EVs expanding even faster—up ~33.5%—though still forming a small share of total sales.

Market Size & Growth

• UAE Automotive Market Size: Estimated at over USD 9 billion in 2023, with strong growth in luxury vehicles, SUVs, and EVs.
• KSA Automotive Market Size: The largest in the GCC, valued at USD 13 billion, supported by Vision 2030 policies to localize manufacturing and reduce import dependence.
• Both markets are expected to grow with a CAGR of 4-5% through 2028, fueled by:
  • Urbanization and the rising middle class
  • Government incentives for green mobility and electric vehicles
  • Expansion of infrastructure projects in KSA

Key Trends

• Surge in Electric Vehicle (EV) adoption, especially in the UAE
• Saudi Arabia’s push for local production — example: Lucid Motors plant in KSA
• Growth in the automotive aftermarket, including maintenance, spare parts, and accessories
• Rising demand for connected and intelligent vehicles
• Increase in used car sales, particularly in Dubai and Riyadh

If you are considering entering these markets, an up-to-date automotive market research in the UAE & KSA will help you understand these trends in-depth.

Market Segments and Opportunities

By Vehicle Type

• Passenger Vehicles: Sedans, SUVs, luxury cars
• Commercial Vehicles: Trucks, buses, vans (significant for KSA’s industrial and logistics sectors)
• Electric & Hybrid Vehicles

By Industry and Consumer Segments

• Fleet Operators: Taxis, ride-hailing (e.g., Careem, Uber fleets)
• Government & Infrastructure Projects: Large buyers in KSA Vision 2030 megaprojects
• Retail Consumers: Young urban professionals, affluent families, expats

Automotive Aftermarket

• Spare Parts and Accessories
• Maintenance and Repair Services
• Car customization trends

Import vs. Production

UAE & KSA The UAE automotive market mainly relies on imports, with vehicles coming from Japan, Germany, the USA, and more recently, China. KSA is putting significant resources into local production, offering incentives to draw in global manufacturers. Knowing the import and export rules, tariffs, and localization incentives is essential for our market research in the UAE and KSA.

Regulatory Environment and Compliance

Entering the GCC automotive market requires navigating a complex regulatory landscape:

• UAE: Compliance with Emirates Authority for Standardization and Metrology (ESMA) for vehicle standards
• KSA: Regulations from the Saudi Standards, Metrology and Quality Organization (SASO) and incentives under the National Industrial Development Center (NIDC)
• EV-specific regulations, charging infrastructure standards, and government incentives
• Import licensing and dealership laws

Our studies include a regulatory compliance section outlining:

• What certifications are needed
• Approval processes and estimated timelines
• Legal structures for foreign manufacturers and dealerships

B2B Automotive Procurement and Business Models

Understanding how automotive products are purchased in the UAE and KSA is critical:

• Dealership Models: Exclusive distributorships vs. multi-brand retailers
• Fleet Sales: Direct contracts with ride-hailing services or logistics companies
• Government Tenders: Especially relevant in KSA for infrastructure projects
• Aftermarket Distribution: Partnerships with parts retailers, garages, service chains

We provide insights into business models that succeed, how buyers make decisions, and what sales channels are most effective.

What Does Automotive Market Research UAE & KSA Include?

When you order automotive market research from Accurate Middle East, your study will include:

1. Market Size & Growth Forecast
2. Segmentation by Product, Consumer Type, and Industry
3. Competitive Analysis: Key players, pricing, market share
4. Import vs. Production Dynamics
5. Regulatory & Compliance Requirements
6. Buyer Behavior & Procurement Models
7. Market Entry Strategy Recommendations
8. Financial Feasibility Model: Revenue projections, cost analysis, break-even point
9. SWOT Analysis
10. Customized Recommendations

You will receive:

• A comprehensive PDF report with visual summaries
• A detailed, editable financial model in Excel
• Optional investor-ready presentation deck

We are happy to provide a sample report or example of previous automotive studies upon request.

Project Scope	Key Components	Timeline
Small Market Research	Market size, trends, key players, forecast, segmentation	2–3 weeks
Medium Project	Includes small project scope + 1–2 expert interviews, opportunity identification, demand & challenges projections, planning	4–6 weeks
Big Project	Surveys, multiple expert interviews, extensive primary data collection, automated and customized dashboards in automotive	2–3 months

Our Research Methodology

When you work with us, the steps are:

• Briefing and Needs Assessment: We will understand your goals, product, and target markets.
• Proposal and Scope Definition: We will outline clear deliverables, timeline, and budget. Data Collection: Primary Research: This includes expert interviews, buyer consultations, and surveys when needed. c.Secondary Research: We will use market databases, government sources, and industry reports.
• Data Collection and Financial Modeling
• Development of Final Report & Recommendations
• Presentation & Optional Advisory Session

Our process ensures every client receives a bespoke, actionable market study.

Example Case Study

A European EV parts manufacturer approached us to look into the UAE and Saudi markets. They were uncertain about demand levels, buyer preferences, and regulatory approvals.

Our market research showed:

A significant increase in EV sales in Dubai and Abu Dhabi. Clear opportunities in KSA because of government-supported EV initiatives. Key partnerships needed with fleet operators for bulk sales. We provided them with: A market entry plan. A financial feasibility study. A regulatory compliance checklist. They are now finalizing partnerships with a regional distributor based on insights from our research.

Why Companies Need Automotive Market Analysis in UAE & KSA

Without proper market research, companies risk:

• Misjudging demand
• Pricing incorrectly
• Failing regulatory compliance
• Missing key sales channels or partners

A tailored automotive market research in the UAE and KSA:

• Minimizes risks
• Supports investor pitches
• Accelerates market entry
• Increases your chances of success

Cost of Market Analysis in Automotive Industry in UAE & KSA

The cost of market research depends on:

• Depth of research: secondary only vs. primary + secondary
• Complexity of the product/market
• Number of markets (UAE, KSA, or both)

Typical price range:

• From AED 18,000 for focused secondary research
• Up to AED 45,000+ for complete feasibility study with primary interviews, financial modeling, and regulatory mapping

We provide a custom quote after an initial consultation to align with your needs.

Why Choose Accurate Middle East

✅ 20+ years of combined experience in market research and business consulting

✅ Strong presence in UAE, KSA, and GCC markets

✅ Expertise across automotive, manufacturing, tech, green tech, and healthcare

✅ Transparent pricing and customized approach

✅ Proven track record with global clients entering the region

We don’t just deliver reports — we provide market intelligence that drives strategy

Ready to Explore the Automotive Market in the GCC? If you are planning to launch, expand, or invest in the automotive industry in the UAE, Saudi Arabia, or the GCC, we can help you with market research tailored to your needs. Contact us today to order your customized study, request an example report, or discuss your business goals with our consultants.

Automotive Industry Market Research

Automotive industry market research is not just about collecting numbers — it is about uncovering the real story behind customer choices, market shifts, and competitive strategies. In the UAE and Saudi Arabia, a buyer’s decision to purchase a vehicle can depend on a mix of cultural factors, fuel prices, financing options, and even government regulations on emissions. For example, an expat family in Dubai may prioritize safety and luxury features, while a logistics company in Riyadh may focus on durability and cost efficiency. By combining hard data with local insights, automotive market research in the UAE and KSA helps businesses answer critical questions: Who is your customer? What motivates them? How are competitors positioning their products? And most importantly — how can your business adapt and win in such a dynamic environment? Ask for samples of our market research reports and make your decision.

Let data and expert insights drive your success in the Gulf automotive market

For inquiries, consultations, or tailored proposals, contact us directly via WhatsApp at or call us in the UAE at +971 50 599 5603. You can request a callback or free consultation by clicking the button below. If you’re interested in market research services, simply fill in our brief form here — and receive a customized proposal within 24 hours. We’re here to support your business ambitions across the UAE, Saudi Arabia, and the GCC.