Analysis: Middle East and Africa recovery will depend on better trade relations, logistics and investment

Jafza

The wider Middle East and North Africa region is set for vehicle sales and production declines of 25% year-on-year in 2020, but there are prospects for recovery in automotive markets and in trade, if OEMs and suppliers can overcome supply chain barriers. Download our latest analysis.

Automotive markets and supply chains across the Middle East and North Africa have been severely disrupted by the Covid-19 crisis, including vehicle sales and imports in major Gulf markets like Saudi Arabia and the United Arab Emirates, as well as production and export in North Africa, especially Morocco. But while most markets will continue to feel the impacts of the second wave well into 2021, the wider region’s recovery will depend on more than vaccines and the end of the pandemic to reach its potential. Automotive manufacturers, distributors and suppliers will have to navigate the economic disruption from oil price shocks, complicated and inconsistent trade and customs terms, as well as high costs and service issues in logistics and shipping networks. In many cases, external, geopolitical issues will play major roles, whether sanctions on Iran or internal relations between Gulf Cooperation Council (GCC) counties. 

For 10-year forecasts of the wider region and country profiles of three key markets – Saudi Arabia, Morocco and Egypt –  register or sign-in to download the presentation.

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