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The automotive, mobile-phone and modern-appliance industries rely on 10 intermediate industries, most notably semiconductors, batteries, rare metals, circuit boards, sensors and precision-manufacturing equipment. Because production and processing are concentrated in a small number of countries, supply disruptions or export restrictions can disrupt manufacturing and drive up prices. In 2025, China accounted for an average of 72% of refined-mineral supplies, excluding rare earth elements, while lithium prices more than doubled between January 2025 and April 2026. Arab countries have varying levels of capacity in the automotive and electronics sectors. Moroccan car exports reached 107.14 billion dirhams in the first seven months of 2026, while Egypt’s experience with phone assembly shows that local manufacturing remains vulnerable to shortages of chips and imported components. Experts say reducing dependence requires a gradual move from batteries, chip packaging and testing, and power electronics into higher-value activities. This will require investment in expertise, research and development, and local suppliers, as well as stronger regional cooperation through the proposed “Arab Electronics Corridor.”
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