Saudi Arabia has become one of the main engines for the growth of the Italian company Ferrari’s business in the Middle East, driven by the expansion of the base of high-net-worth individuals, the emergence of a new generation of customers, and increased interest in luxury sports cars, at a time when the company confirms its adherence to a strategy “based on limited production and preserving the uniqueness of the brand, despite the acceleration of demand in the region.”
Giorgio Torre, Regional Director of Ferrari Middle East, said that the Kingdom is no longer just a market witnessing growth in demand, but has become “a strategic market for Ferrari’s presence, future growth and innovations in the Middle East.”
He explained in an interview with Asharq Al-Awsat that the economic and social transformations associated with “Saudi Vision 2030” contributed to “a change in the composition of customers, with an increase in the number of young people interested in sports cars, customization experiences, and motor sports.”
Touré pointed out that “the opening of the company’s new showroom in Riyadh, which is the first in the Middle East and Asia to adopt the new corporate identity of Ferrari, reflects the growing importance of the Saudi market within the company’s regional strategy.”
He added that demand in the Kingdom is on an “upward path,” both from existing customers and new joiners, pointing out that the company seeks to expand its customer base by developing its models, similar to what was achieved by the “California,” “Roma,” and “Purusangui” cars, with its aspiration to launch “Lucci.” The first fully electric car and the first 5-seat model from Ferrari.
Despite the high demand, Toure stressed that the company does not aim to increase sales as an independent goal. He said: “We are not seeking to increase the volume of sales as a goal in itself,” explaining that “expansion requires a careful balance between responding to the market and maintaining limited production.”
He pointed out that Ferrari customers in the Middle East are among the youngest in the world, “a trend that is also appearing in Saudi Arabia, where interest in car customization programs and participation in driving and racing activities is increasing.”
He pointed out that the Kingdom includes one of the most active Ferrari owners clubs in the world, “while Saudi customers have detailed knowledge of technical specifications, technologies, and performance.”
Regarding the performance of regional markets, Touré said that economic transformations and wealth growth support long-term demand for luxury cars, noting that the pace of demand is accelerating more clearly in Saudi Arabia, the Emirates and Qatar compared to the rest of the region’s markets.
He revealed that more than 40 percent of the new Ferrari cars delivered annually in the Middle East “go to customers who buy from the brand for the first time, while the percentage exceeds 50 percent in the used car market.”
These indicators come in conjunction with the company’s plan to launch 4 new models annually on average during the period from 2026 to 2030.
Regarding the repercussions of the recent geopolitical turmoil, Toure explained that the effects focused on supply chains and logistics services, after the closure of the Strait of Hormuz prompted the company to modify shipping routes heading to the Gulf.
He added that the company dealt with the challenges last March, and returned to its usual pace of operations since the following April, by changing sea transport routes and using air freight when needed.
He stressed that showrooms and maintenance centers continued their operations, and that demand did not witness a fundamental change, with the continued economic and demographic factors supporting the Gulf market.
Regarding the company’s strategy in Saudi Arabia, Touré said that the next phase will focus on expanding activities related to car ownership, “including driving programs, racing, and events dedicated to customers.”
He explained that the “Jeddah Corniche Circuit” has become a station within the company’s programs since 2023, and that it is scheduled to host the “Ferrari Challenge” championship for the first time in February 2027, coinciding with the increased participation of Saudi amateur drivers.
He pointed out that the first tour for Ferrari customers will be organized in AlUla during the year 2025, along with other events during the holy month of Ramadan, adding that these activities have become part of the company’s strategy to enhance customers’ connection with its brand.
Touré stressed that Saudi Arabia represents “an opportunity for growth in the coming years, not only as a result of the increased demand for sports cars, but also due to the expanding customer base and growing interest in motor sports in the Kingdom.”
The escalating risks to energy supplies in the Middle East are keeping oil prices above $110 per barrel, with attacks on shipping in the Strait of Hormuz continuing and tanker traffic declining from pre-war levels, at a time when the International Energy Agency is preparing to coordinate the pumping of more emergency reserves if necessary. The scene reflects the difficulty of restoring stability in energy markets, despite the partial recovery of crude flows through the Gulf.
Brent crude oil recorded its highest level in 5 months during Tuesday's trading, exceeding $111 per barrel, while US crude contracts crossed the $100 barrier. According to Agence France-Presse, West Texas Intermediate crude rose by 5.7 percent to $109.60 per barrel, and Brent rose by 2 percent to $111.69.
The gains reflect the continued geopolitical risk premium in prices, despite the recovery of oil flows through the Gulf compared to the most turbulent period. According to data from Clipper Company, reported by the Wall Street Journal, average oil flows through the Strait of Hormuz reached about 82 percent of pre-war levels, while the number of tanker crossings declined to 14 tankers per day on Sunday, compared to about 50 tankers previously.
These developments come in light of the continuing attacks on shipping. While the Iranian First Vice President, Mohammad Reza Arif, reaffirmed his country’s right to exercise sovereignty over the Strait of Hormuz, saying that Iran “has no choice” but to do so to protect its security, according to what was reported by the semi-official Iranian “ISNA” agency.
These statements make it more difficult to bet on an imminent truce, as analysts at Deutsche Bank believe that reaching an agreement between the United States and Iran before the US midterm elections, scheduled in two weeks, has become more difficult, amid fears that Washington may escalate its pressure on Tehran after the elections.
Analysts at ING said that prices are still supported by a large geopolitical risk premium, despite the relatively strong crude flows from the Gulf. This premium may gradually decline if shipments continue without new disruptions, but the bank indicated that there are no signs of this happening yet.
Standard carrier freight rates are also putting pressure on transportation costs, while the impact of allowing sanctioned carriers to enter the regulated shipping market remains unclear in terms of the amount of additional capacity and the speed of its availability.
In an attempt to contain price pressures, the Executive Director of the International Energy Agency, Fatih Birol, said that the agency is ready to act if member states deem there is a need to pump additional amounts of emergency reserves.
Last week, the agency decided to accelerate the release of the remaining quantities of the record withdrawal announced in March, including more than 20 million barrels of diesel, as soon as possible. Birol said, during a conference organized by the Financial Times in London, that the timing and size of these quantities depend on the decisions of member states and winter market conditions, adding that the agency seeks to advance diesel deliveries to an earlier date.
Birol explained that member states have so far released about 80 percent of the 400 million barrels of crude oil and petroleum products that they pledged to release in March, when prices rose due to supply disruptions. He stressed that any additional action will depend on the member states' assessment of the market need.
The pressures are not limited to crude; European contracts for standard diesel rose to $1,482.25 per ton, an increase of about 4 percent since the agency’s decision last week, as supplies continue to be disrupted by the war in Iran and the conflict in Ukraine.
Diesel is of particular importance because of its connection to land transportation, agriculture, and industry, which makes its high prices a source of economic pressure that extends beyond the energy sector.
