Where new cars are cheapest in the Gulf and where they cost the most

Dubai: New car prices across the Gulf have held broadly steady this year, although affordability still varies sharply between markets, with Saudi Arabia remaining the most cost-effective place to buy a mass-market vehicle and the UAE at the other end of the scale. A new comparative pricing study covering 68 models across 17 brands finds that while headline prices have not surged, the gap in what consumers pay between GCC countries remains material

Focal Point’s latest New Car Prices in GCC (Mass Market) study used November 2025 list prices from official dealer and brand platforms, converted into Saudi riyals using xe.com rates as of November 3 and stripped of VAT to ensure comparability. The snapshot confirms that, on average, new car prices in the GCC have remained stable compared to last year, defying the sharp inflationary pressures seen earlier.

According to the study’s price index, set at 100 for the GCC average, the UAE stands at 105.41, Qatar at 104.42 and Kuwait at 103.25, all above the regional benchmark. Bahrain at 96.84 and Oman at 99.02 sit just below or near the mean, while Saudi Arabia, at 91.05, is the region’s cheapest market for new mass‑market cars.

Saudi most competitive

The data confirms the UAE as the least affordable market for new mass‑market vehicles, even as the number of mid‑tier brands and competitive nameplates has grown. Focal Point’s breakdown shows that brands such as Mitsubishi and Nissan, traditionally positioned at the more affordable end of the spectrum, are now priced closer to the GCC average, hinting at a gradual convergence in regional pricing structures for these badges.

Saudi Arabia, by contrast, sets the regional floor for pricing across all key vehicle categories tracked in the study. The report highlights that models such as the Toyota RAV4, MG 5 and Changan UNI‑V are listed significantly lower in the Kingdom than in neighbouring markets, highlighting how retail competition is feeding directly into the sticker prices paid by consumers.

Segment trends across sedans, SUVs and pick‑ups

Price differentials by body type reinforce the broader country‑level pattern. For sedans, the UAE and Saudi Arabia have retained their positions as the least and most affordable markets respectively, with limited movement year on year in relative terms. The SUV segment shows a more notable shift, with Qatar overtaking the UAE as the market posting the least affordable average SUV prices in 2025. This move has been driven in part by higher listings for high‑demand models such as the Toyota Fortuner and Kia Sportage in Qatar, pushing its SUV index above that of the UAE.

In the pick‑up category, new models in Saudi Arabia remain the most affordable across the GCC, again reflecting the Kingdom’s aggressive pricing environment. Bahrain and the UAE track close to the regional average on pick‑ups, while Kuwait emerges as the least affordable market in this segment.

Intensifying competition in Saudi Arabia

A key structural factor behind Saudi Arabia’s lower prices is the widening mix of brands using aggressive pricing to build share in the region’s largest automotive market. The study points to a broader line‑up of Japanese and Chinese manufacturers in the Kingdom, including emerging Chinese players such as Haval, Great Wall and Jetour, that continue to undercut established rivals while expanding their showroom footprint in major cities.

This influx of value‑focused brands is amplifying competition at the entry and mid‑market levels, particularly in segments under about SAR 120,000 where volumes are concentrated. With fuel remaining comparatively cheap and buyers highly price‑sensitive, list prices have become a central battleground, placing a cap on how far manufacturers and dealers can push up stickers without sacrificing share.