A huge majority of automotive dealers in the Middle East are now focusing on adapting data and digitisation to reinforce operational, sales and service offering efficiencies and to stay ahead of an increasingly competitive automotive retail market.
According to Keyloop, a provider of automotive retail solutions, growing vehicle sales volume targets and rising customer expectations are putting pressure on traditional automotive retail models. For this reason, 94% of automotive dealers in the region are now turning to data and digitisation for solutions.
“Fragmented systems, manual processes and limited data visibility are affecting dealer performance in the region. As sales volumes, brand portfolios and customer touchpoints increase, dealers across the region are facing growing pressure to modernise internal operations to maintain efficiency and service standards,” said Monzer Tohme, Managing Director, MEA & APAC, Keyloop. “Despite dealer operations becoming more complex, many organisations are still relying on outdated systems that limit visibility and hinder decision‑making.”
Tohme added that these dealerships operate across multiple disconnected platforms spanning sales, finance and aftersales, with manual processes and data silos that hinder efficiency. These challenges have a measurable business impact, with industry data showing that dealers lose up to 37 percent of online leads due to missed or delayed follow‑up, while only 1 percent of consumers describe the car‑buying experience as ideal. Additionally, 45 percent of customers are willing to switch car brands due to poor aftersales service. As such, addressing operational inefficiencies has become a priority for maintaining performance and customer confidence in an increasingly competitive market.
The UAE and Saudi Arabia registered sales growth rates of 19.1 percent and 6.6 percent respectively in 2024, making them among the fastest growing automotive markets in the world. That year, the two markets also sold a combined 1.16 million new vehicles and are worth over USD 80 billion. This growth is supported by rising consumer demand and long‑term government investment in mobility and electrification.
“There is a growing consensus among dealers that improved use of data and digital tools is crucial for strengthening operational efficiency,” Tohme explained. “As such, there is a need for clearer, real‑time visibility across sales, finance and aftersales workflows, as well as more consistent use of customer and vehicle data to support faster decisions and reduce manual intervention.”
Keyloop has noted that many dealers across the region are reassessing how data flows through their businesses as volumes rise, brand portfolios expand and regulatory requirements become more demanding.
Furthermore, there are several wider industry dynamics that are contributing to the operational pressures facing automotive retailers. These include rapid entry of new brands and business models, accelerating penetration of electric vehicles, with the UAE leading the GCC at 6 percent, and increasing policy and regulatory expectations around data governance, reporting and customer transparency. These reinforce the need for more resilient and adaptable internal processes for dealers as the regional automotive landscape continues to evolve.
“What we’re seeing across the region is a clear shift in priorities, as dealers recognise that improving operational efficiency is no longer about incremental gains, but about building the foundations needed to operate at scale,” Tohme said. “In a rapidly evolving industry, the ability to access and act on reliable data across the entire vehicle ownership cycle has become central to the business performance of dealers.”
As the region experiences strong sales growth, rapid electrification and changing government policies, effective use of data and digitisation will play an increasingly important role in how dealers can meet the market’s needs, he concluded.
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