The open-cathode polymer electrolyte membrane (PEM) fuel cell stack has been a promising candidate as a sustainable energy conversion system for replacing fossil fuel-based energy conversion devices in portable and automotive applications. As the ambient air is directly used to provide both oxidant and cooling, the complex cooling loop can be avoided which reduces the complexity and cost. However, the stack performance is highly affected by ambient conditions, i.e., ambient temperature and humidity. In this study, the effect of monthly ambient air conditions (temperature and humidity) is evaluated with respect to the stack’s power production performance as well as thermal, water and gas management by employing a validated three-dimensional open-cathode PEM fuel cell stack model. The annual climate data from the hot and arid environment of Abu Dhabi, United Arab Emirates (UAE) are used as a case study. The objective is to develop a better fundamental understanding of the interactions of physical phenomena in a fuel cell stack, which can assist in improving the performance and operation of an open-cathode PEM fuel cell-powered vehicle. The results indicate that the stack performance can vary significantly (up to 40%) from winter to summer, especially at high operating currents, with significant changes in the stack temperature and the water content at the membrane. Moreover, the anode humidification results in a significant improvement in the stack performance (up to 40%) in hot and dry conditions. However, a careful balance has to be struck between the humidifier parasitic load and the stack power.