The GCC automotive landscape is entering a transformative phase as economic diversification, infrastructure investment, population growth, electrification, and changing consumer preferences reshape regional automotive demand. The analysis covers six Gulf Cooperation Council (GCC) segments—Saudi Arabia, the United Arab Emirates (UAE), Oman, Qatar, Kuwait, and Bahrain—with 2025 serving as the base year and 2026 as the forecast period.

The region recorded approximately 1.5 million light vehicle sales in 2025, representing a 5.9% increase from 2024. However, sales are expected to moderate to approximately 1.3 million units in 2026, primarily because of geopolitical instability, supply-chain disruptions, shipping constraints, inflationary pressures, and weaker consumer confidence.

Saudi Arabia remains the largest automotive segment and the primary regional growth engine, while the UAE maintains its position as the second-largest segment. Together, these two countries account for approximately 77% of GCC vehicle sales.

• How are economic diversification, infrastructure investment, and population growth creating new opportunities across the GCC automotive landscape?
• Is your automotive strategy equipped to leverage electrification, connected mobility, and changing consumer preferences to accelerate growth?
• What best practices can automotive companies leverage from Saudi Arabia's localization and automotive manufacturing initiatives?