Manufacturing - Industry - MEA Market, Share and Trends 2023-2028

Summary of Manufacturing

The Middle East and Africa (MEA) region has seen significant growth in manufacturing activity in recent decades and continues to emerge as an important player globally. Countries across MEA have focused on industrialization to diversify their economies and create jobs. The Gulf nations especially have invested heavily in petrochemicals, aluminum, steel and machinery production to move beyond oil dependence.

Based on our estimates, we can say that Middle East and Africa’s regional manufacturing industry is forecasted to be a $750.73 billion industry in 2029 from $672 billion in 2023 with a CAGR of 3.80%. This region contributes for approximately 4% of the global market revenue of the ‘Manufacturing’ industry.           

The onset of the COVID-19 pandemic disrupted MEA manufacturing for some time due to lockdowns and supply issues. However– the sector has demonstrated resilience with output recovering in 2021. Going forward – the region faces opportunities in the renewable energy transition as well as serving growing domestic and regional demand. Ongoing development of transportation and power infrastructure also supports industrialization.

Challenges include developing a skilled workforce and improving ease of doing business to draw greater FDI into advanced manufacturing. Geopolitical risks and conflicts in some areas also impact business confidence at times. Overall– the MEA region shows promise as an emerging manufacturing hub if these issues can be addressed effectively.

Recent Trends and Insights

The MEA manufacturing industry is projected to grow at a slow but steady pace between 2023-2028, driven by economic diversification efforts. Countries are developing industrial zones and offering tax incentives to attract investment.

Saudi Arabia, UAE and Qatar are significantly expanding petrochemical production capacity. For example – Saudi Aramco is increasing its chemicals output as part of the kingdom’s 2030 vision.

Automotive production is growing across the region to serve both domestic and export markets. Morocco and Egypt have free trade agreements supporting this industry. Mega-projects around transportation, utilities and real estate provide opportunities for cement, steel and equipment manufacturers.

The region is an attractive market for solar panels, wind turbines and other green tech needed to meet rising energy demand in a sustainable way. Egypt has emerged as a hub for solar module assembly.

Product Insights

The Gulf is a global leader in oil, gas and petrochemicals production. Saudi Aramco and SABIC are investing in new facilities for plastics, fertilizers, etc. On the construction side of MEA – Egypt, Iran and Saudi Arabia have large cement industries to supply construction booms. New plants utilize more efficient dry process technology.

Within the Automotive manufacturing segment – Vehicle assembly plants are expanding capacity, with some local production of auto parts as well. Morocco builds for Renault while Egypt serves European brands. Home appliances are being manufactured in Turkish and Egyptian factories. Who are dealing with the manufacturing of– refrigerators, washing machines and other appliances for local and export markets.

Integrated mills in GCC nations and Egypt produce rebar, sheet metal and tubing for infrastructure and industrial projects. Solar panel and wind turbine component factories are growing to serve rising regional and international demand for clean energy.

North African countries like Egypt, Morocco and Tunisia have also developed automotive, aerospace, textiles and electronics sectors to attract foreign investment. Sub-Saharan Africa remains focused on basic industries but nations such as Ethiopia, Nigeria and Rwanda are establishing industrial zones and targeting labor-intensive manufacturing to participate in global supply chains.

Key Companies

Some major players within this vast domain of industry are

• Saudi Aramco
• Emirates Global Aluminum
• OCP Group
• Egypt Kuwait Holding
• TAQA
• Orascom Construction
• Dangote Cement

Regional Analysis

Saudi Arabia, UAE and Qatar have heavily industrialized based on oil/gas wealth. Petrochemicals are a major export industry. UAE also focuses on aluminum smelting. Egypt has a diverse manufacturing sector including steel, fertilizers, cement and automotive. Morocco produces aerospace/auto components and phosphates. Tunisia has textiles and electronics.

Ethiopia is developing industrial parks to assemble footwear/garments. Kenya manufactures breweries, tobacco and batteries. Nigeria has a large cement industry and is boosting auto assembly. Côte d’Ivoire and Senegal are attracting investment in food/beverage processing. Ghana produces aluminum, chemicals and machinery. Challenges include unreliable power and high logistics costs.

In Central Africa, the DRC has untapped mining and minerals potential but conflict and infrastructure gaps remain barriers. Other nations face governance and skills shortages hampering industrial growth.

North African countries have made more progress on industrialization while Sub-Saharan Africa shows potential but also greater difficulties to overcome. Ongoing investment in infrastructure, education and regional integration could help accelerate manufacturing across the entire MEA region.

Market Segmentation

By Production Processes:

• 3D printing
• Rapid prototyping
• Assembly Line manufacturing
• Continuous process manufacturing
• Build-to-order
• Engineer-to-order

By End User:

• Supply chain and industrial equipment
• Components for other industries
• Consumer goods production
• Personal electronics manufacturing

By Industry Verticals:

• Passenger Vehicles
• Commercial vehicles
• Electric vehicles
• Aircraft manufacturing
• Defense equipment
• Space exploration
• Consumer electronics
• Semiconductor manufacturing
• Industrial automation

By Country:

• Saudi Arabia
• Iran
• United Arab Emirates
• Israel
• Egypt
• Iraq
• Qatar

Our Methodology

We have offered a well-founded review of Middle East and Africa’s regional Manufacturing market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.