Market Trends of Middle-East and North Africa Taxi Industry
This section covers the major market trends shaping the Middle-East & North Africa Taxi Market according to our research experts:
Increasing Taxi Services Businesses in Middle East
Middle East countries have piqued the interest of the global taxi service industry due to their reputation as economic development hotspots. The tourism industry is the Middle East's fastest-growing industry.
Moreover, with the advancement of technology in mobiles and internet connectivity, most businesses are trying to shift their operations through online mode. The taxi market is also inclining toward online services due to the ease of operation for the user and the operator.
Furthermore, technical centers, businesses, and entertainment hubs created enormous opportunities for the Middle East's ride-hailing industry. As a result, the country's population is growing. The Middle East's rapid population growth resulted in traffic congestion. The Middle-East government is also working to improve regulations for taxi-hailing operators to deal with traffic congestion and rising tourism demand.
In the past few years, customers were also attracted to the online booking taxi segment, as it is easy to use, and one can book a taxi from wherever they want. As a result, taxi companies' revenue drastically increased. For instance,
- March 2022: Vehicle-for-hire company Uber's Careem was looking to raise as much as USD 500 million from investors, including regional sovereign wealth funds. The Uber-owned firm is making this move to help bankroll an expansion into services beyond ride-hailing.
- November 2022: Careem, a Dubai-based ride-hailing app, now offers inter-country taxi rides for the 2022 World Cup in Qatar. Millions of soccer fans from around the world descend on the tiny Gulf country for the Middle East's first-ever attempt to host the massive tournament.
Saudi Arabia poised to be a Major Market
Saudi Arabia is set to remain a significant taxi market in the Middle East and North Africa. It is because the country includes numerous technological centers, entertainment venues, and industries. Furthermore, Riyadh is the most populous city in the country. So significant players are investing heavily in the country to meet the growing demand for individual and corporate business visitors.
So far, over 18 million tourists have visited Saudi Arabia in 2022, according to the World Tourism Organization (WTO), with the United Arab Emirates (UAE) coming in second with 14.8 million tourists.
The central region is famous for tourism as it includes significant airports connecting the capital. Tourists book taxis from the province and travel throughout the country. The western part is the most popular tourist destination due to cities such as Mecca & Medina. These places are the primary pilgrimage attractions in Saudi Arabia.
Considering the demand from the corporate and tourism industry, the government is also working on improving the taxi services in the country and creating new opportunities. For example, the Saudi government lifted the ban on women driving taxis. As a result, Saudi Arabia's ride-hailing industry is seeing a significant increase in the workforce, with women increasingly participating. Many women are part-time taxi drivers to help support their families or studies. Including women in the taxi-hailing business indicates a shift in Saudi citizens' social attitudes.
Additionally, Saudi Arabia's government recently announced restrictions on foreign nationals entering the taxi business. The government took this action to reduce unemployment in their country. Moreover, the Saudi Arabian government is also taking initiatives to improve the quality of taxi services in the country. For instance,
- July 2022: The Saudi Transport General Authority unveiled a uniform for drivers of public transportation, airport taxis, private hire taxis, and passenger transport applications. Uniforms will help to strengthen development efforts and improve service quality in transportation activities.
