Dubai has committed $10 billion for infrastructure investments aimed at enhancing the commercial vehicle market and supporting the emirate’s tourism economy, as reported by market research firm Frost & Sullivan. This significant investment is expected to stimulate growth in the sector.

In addition to Dubai’s initiatives, Saudi Arabia has announced a substantial $267 billion in infrastructure investments, while Qatar is focusing on tourism and hospitality as part of its Third National Development Strategy for 2024-2030. The upcoming Automechanika Dubai, scheduled for December 9 to 11 at the Dubai World Trade Centre, has prompted industry experts to emphasize that large-scale construction and infrastructure projects are vital for the growth of the Gulf Cooperation Council (GCC) commercial vehicle market.

Despite a downturn in the global commercial vehicle market in 2024, particularly affecting medium and heavy-duty truck segments, some areas are experiencing growth. Light commercial vehicle volumes have declined in Asian markets such as China, India, and the ASEAN countries, despite previously robust growth. However, China’s electric truck segment has seen sales more than double from the previous year, driven by strong government support and a growing focus on sustainability.

Looking ahead, experts believe that the GCC’s commercial vehicle market is on the verge of growth, propelled by significant infrastructure investments and strategic economic initiatives in key member states. Frost & Sullivan’s research shows that Saudi Arabia is leading the commercial vehicle industry in the Middle East due to its strategic location and extensive infrastructure investments. Mobility consultant Sunny Manjani mentioned that current supply chain disruptions in maritime routes are creating short-term opportunities for road transportation in the region.

Manjani further noted that the Middle East is increasingly seen as an attractive investment destination. Supportive policies and growing trade ties with Asian partners are contributing to multisector growth across the region. According to Frost & Sullivan, the non-oil economy in the Middle East is expected to remain a key driver of economic growth, with sectors such as manufacturing, renewables, infrastructure, construction, tourism, artificial intelligence, and fintech identified as crucial.

In the UAE, a robust performance in the non-oil economy is forecasted to push GDP growth to 5.8 percent in 2025, up from 4 percent in 2024. Similarly, investments in Saudi Arabia’s non-oil sectors, including tourism and technology, are projected to drive real GDP growth to 4.8 percent in 2025, creating heightened demand that could positively impact the commercial vehicle market.

As for the upcoming Automechanika Dubai, Show Manager Tommy Le expressed excitement about the event, which he described as the largest international trade show for the automotive aftermarket industry in the MEA region. He highlighted that the 22nd edition will cover 20 halls at the Dubai World Trade Centre, featuring over 20 Pavilions and new elements, including a dedicated Commercial Vehicles vertical for the mining, construction, and agricultural industries.

Automechanika Dubai will focus on six key pillars: sustainability, electrification and digitalization, innovation, training, recruitment, and safety. The show will also include familiar features such as the Automechanika Academy, Innovation4Mobility, and various product sections, including parts and components, electrics, and a new area dedicated to connectivity and autonomous driving.