The Ripple Effect
The region’s automotive market is set to strongly outperform Western markets between 2012 and 2022. “The Middle East automotive market is forecast to grow twice as fast as those of Western European and North American markets from 2012 to 2022,” said Pierluigi Bellini, analyst at IHS Automotive.
“In 2022, IHS Automotive forecasts that light vehicle sales in the GCC will jump 25 percent to 1.74 million, and sales in the Middle East (the GCC, Iran and Israel) will jump 30 percent to 3.45 million.”
“In the region,” Bellini said, “Korean, European and American car companies are increasingly targeting Middle East markets and will drive up competition.”
According to IHS Automotive, in 2012, 1.38 million light vehicles were sold in the GCC and 2.66 million were sold in the Middle East
Initial estimates suggest that Dubai will make an $8 billion cargo infrastructure investment along with $10 billion in private sector contributions to help position the GCC as a global cargo leader, said Richard Clayton, chief maritime analyst at IHS.
“All eyes will be on Dubai in 2020 as it hosts the WorldExpo event,” Clayton said, “and it is promising to be the biggest yet. New roads, a peninsula-wide rail project, another airport, hotels, energy plants and event venues will generate project cargo on a grand scale.”
The region is home to the Jebel Ali mega-facility, and the world’s largest man-made port. IHS forecasts that by the end of 2014, the port will have an annual container capacity of 19 million teu (twenty-foot equivalents units) with output pushing toward 20 million by 2020.”
In partnership with the new Dubai airport, Jebel Ali will generate as much as 12 million tons of sea-air cargo, five times more than the current level. We are seeing multibillion-dollar investments in the UAE’s cargo infrastructure, as the country positions itself as the port for Africa, the Indian subcontinent and the Middle East.