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Saudi Arabian passenger vehicle segment is likely to post a more positive performance next year, after posting three consecutive years of double-digit declines, Fitch Solutions Macro Research said in a new report on Tuesday.
The recovery in the passenger vehicle market will be supported by rising economic growth and high levels of pent-up demand within the market.
Overall, the GCC markets will begin a gradual return to growth in 2019 following the implementation of value-added tax (VAT) in some countries this year.
The combined markets will average vehicle sales growth of 3.9 percent, but volumes will remain below their previous highs.
"A growing economy, boosted by rising oil prices and production, should prove supportive to both business and consumer confidence, leading to greater spending on 'big-ticket' items, such as a new car," the report noted.
Meanwhile, Fitch said the MENA region would have the second-strongest growth in vehicle sales next year behind only Latin America.
Algeria will be the best performing North African market and outperform the wider MENA region, it added.
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