For decades, Arab countries have been at it trying to
conceive a locally developed car, largely with little to no success, with a few
exceptions.
اضافة اعلان
The Arab automobile industry is still in the process of
formation, despite decades since its inception. It's considered to be an
attractive industry that provides an opportunity to employ hundreds of
thousands of workers, and to create export opportunities that generate
profitable revenues: easier said than done. The auto industry needs a careful
study that takes into account the complexities of the industry, which in order
to succeed in any country needs to meet many requirements.
Among the most prominent requirements for the success of a local
auto industry is the availability of local demand and volume to make production
feasible and allow factories to breakeven, as well as the presence of feeding
industries that supply components and spare parts that provide a reliable supply
chain with competitive prices and high quality parts.
Among the most important Arab experiences in the automotive
industry come from Egypt and Morocco. The first started in the 1950s with the
Nasr Automotive Company, which was part of a strategy to build a local car
industry.
The government-owned company used the expertise of Italy’s Fiat,
and the cars were produced locally with varying amounts of local components. However, the company’s production did not
develop much over the four decades it lived through, and it eventually
shuttered its doors.
The company closed due to low demand and the abolition of
customs protection that benefitted the local industry before the government changed
strategies. The change in laws was the result of a new openness to free
international trade. In Egypt, too,
other small factories were established to assemble European, Asian, and
American cars with modest local inputs.
Currently, the Egyptian government has seriously begun to
study the revival of the local auto industry and has used international advisers
to prepare a national strategy to manufacture electric cars and vehicles that
are able to survive and compete.
If this ambitious move bears fruit — and it seems that it
will — it would create a viable and prosperous car industry. Egypt is full of
advantages, such as a large local market, strategic geographical location, the
availability of a low-cost trained workforce and raw materials, and the
presence of a supply chain.
As for Morocco, the country is currently witnessing an auto
industry renaissance. It is truly an example of how to build a successful base
for the industry. It has become the largest car producer on the African
continent and a preferred option for global manufacturers investing in factories
for production in the Middle East and Africa.
This has all been due to the success of smart strategy that attracted
investors to the Kingdom of Morocco, which was able to provide a conducive
environment to localize the production of a number of car models from global
manufacturers, such as the French Renault. And people expect the industrial
base of cars in Morocco to expand exponentially in the coming years.
In Saudi Arabia, there is an effort to build an industrial
automotive base within the 2030 Vision, which appears promising and is based on
solid global and economic foundations. This is particularly promising because
the Kingdom and its market enjoy basic industrial requirements like a large domestic
market and the availability of raw materials, energy, infrastructure, and
strategic location.
Algeria also has modest experience with creating an automotive
industrial base, lead by government investment and with collaboration from global
manufacturers, the industry is still taking its first steps, and thus, it’s
still too early to judge.
Tunisia has some success in the automotive industry, mainly
in supplying components to global manufacturers, as well as a couple of locally
grown private sector companies that are trying their best to survive in their market:
a brave effort that requires more public support.
Realizing the dream of building an Arab car industry is not
impossible, but it requires careful implementation and a well-studied strategy to
lead to success and continuity.
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