Dubai's US$10 billion infrastructure spending key to the growth of the commercial vehicle market - Middle East Business News and Information

Mid East Info

02-06-2025

Captured by Lights In Motion
Ahead of the 2025 edition of Automechanika Dubai, experts from Frost and Sullivan shared the latest industry insights for the commercial vehicle market
Dubai's allocation of US$10 billion towards infrastructure spending and Saudi Arabia's US$267 billion in infrastructure investments have been highlighted as key contributors to industry growth
The latest automotive advancements and regional industry updates will be showcased at Automechanika Dubai from 9 to 11 December
Dubai, UAE: Automechanika Dubai returns from 9 to 11 December at the Dubai World Trade Centre and in the lead up to the event, industry experts have emphasised that significant investments in large-scale construction and infrastructure projects are key to ensuring the growth of the GCC commercial vehicle market.
In 2024, the global commercial vehicle market experienced a downturn, with the medium and heavy-duty truck segment particularly impacted. Light commercial vehicle volumes also declined in Asian markets such as China, India, and the ASEAN countries despite strong growth in recent years.
Amid these shifts, China's electric truck segment emerged as a standout, more than doubling sales from the previous year due to strong government support and a growing focus on sustainability.
However, according to industry experts, the GCC's commercial vehicle market is poised for growth, driven by substantial infrastructure investments and strategic economic initiatives in key member states.
Sunny Manjani, Mobility Consultant at Frost & Sullivan, said: 'Dubai has earmarked US$10 billion for infrastructure spending, focusing on scaling the Emirate's tourism economy. Meanwhile, Saudi Arabia has announced investments worth US$267 billion, and Qatar is focusing on tourism and hospitality under its Third National Development Strategy 2024-2030.'
According to Frost & Sullivan's research, Saudi Arabia is leading the commercial vehicles industry in the Middle East, leveraging its strategic location and substantial infrastructure investments.
Manjani continued: '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.'
He further noted that the Middle East is emerging as a prime destination for investment and emphasised that supportive policies and increasing trade ties with Asian partners are catalysing multisector growth across the region.
Looking at the year ahead, Frost & Sullivan's research predicts that the non-oil economy in the Middle East will remain a key driver of economic growth, with key industries identified as manufacturing (including automotive), renewables, infrastructure, construction, tourism, artificial intelligence, and fintech.
In the UAE, a resilient non-oil economy performance will push GDP growth to 5.8% in 2025, up from 4% in 2024, while investments in Saudi's non-oil segments including, tourism, technology, infrastructure, and renewables, will see real GDP growth reach 4.8% in 2025. Both scenarios have the potential to positively impact the commercial vehicle market due to increased demand.
Commenting on the upcoming edition of Automechanika Dubai, Tommy Le, Show Manager for Automechanika Dubai, said: '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 based 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 feature 10 product sections, which include 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.
About Automechanika Dubai:
Automechanika Dubai is the largest international automotive aftermarket trade exhibition in the wider Middle East taking place at the Dubai World Trade Centre between 9-11 December 2025. Automechanika Dubai acts as the central trading link for markets that are difficult to reach connecting the Middle East, Africa, Indian Subcontinent, Asia and key CIS countries.
About Messe Frankfurt:
The Messe Frankfurt Group is the world's largest trade fair, congress and event organiser with its own exhibition grounds. With a workforce of some 2,500* people at its headquarters in Frankfurt am Main and in 28 subsidiaries, it organises events around the world. Group sales in financial year 2024 were around € 780* million. We serve our customers' business interests efficiently within the framework of our Fairs & Events, Locations and Services business fields. One of Messe Frankfurt's key strengths is its powerful and closely knit global sales network, which covers around 180 countries in all regions of the world. Our comprehensive range of services – both onsite and online – ensures that customers worldwide enjoy consistently high quality and flexibility when planning, organising and running their events. We are using our digital expertise to develop new business models. The wide range of services includes renting exhibition grounds, trade fair construction and marketing, personnel and food services.
Sustainability is a central pillar of our corporate strategy. Here, we strike a healthy balance between ecological and economic interests, social responsibility and diversity.