The Middle East is spearheading a transformative approach to 21st-century transportation, blending luxury, technology, and environmental impact. This collaborative effort among automakers, governments, businesses, and consumers aims to forge a sustainable future driven by electric vehicles (EVs).
Deloitte forecasts significant growth for the Middle-East EV market, projecting it to exceed USD 7 billion by 2028. This surge reflects a global trend towards cleaner mobility, bolstered by government incentives, stricter emissions standards, and heightened environmental consciousness.
Why Choose EVs?
According to the International Energy Agency (IEA), in the Middle East region, Jordan leads in electric car adoption, supported by favorable import duties, closely followed by the UAE. Arthur D. Little's 2023 Global Electric Mobility Readiness Index also ranked the UAE and Qatar among the top 10, demonstrating their dedication to e-mobility despite operational, financial and technological challenges.
Moreover, Middle-Eastern consumers favor EVs due to their futuristic designs, advanced mechanics, and cutting-edge digital features.
Acknowledging local preferences for sophistication in vehicles, manufacturers are innovating by integrating top-tier technology with artisanal craftsmanship. This approach ensures luxurious interiors, premium materials, and state-of-the-art infotainment systems, delivering an unparalleled driving and passenger experience.
Highlighting the environmental benefits is crucial to promoting EV adoption. With zero emissions, EVs contribute significantly to reducing air pollution and enhancing air quality. They also consume less energy than traditional vehicles, making strides in reducing greenhouse gas (GHG) emissions and combating climate change.
As global awareness of achieving Net Zero emissions by 2050 grows, the appeal and adoption of EVs continues to rise, marking a pivotal shift towards sustainable mobility in the Middle East and beyond.
A Key Component: EV Charging Infrastructure
In the Middle East, governments are actively developing a comprehensive network of charging stations to enhance the accessibility and convenience of EVs for drivers.
With this in mind, a robust charging infrastructure is indeed crucial for the widespread adoption of EVs.
For instance, by 2025, the Saudi Electric Vehicle Charging Infrastructure Development Initiative (SEVCIDI) and the Dubai Electricity and Water Authority (DEWA) will establish 50,000 and 1,000 charging stations in Saudi Arabia and Dubai, respectively.
Dubai has also implemented the Clean Energy Strategy 2050 and the Green Mobility Strategy 2030, which includes the EV Green Charger initiative, led by DEWA, which aims to expand the EV charging network and promote the use of electric and hybrid vehicles across the city.
To meet the rising demand for EV charging infrastructure and facilitate the shift to electric mobility, ADNOC and TAQA have also set an ambitious goal to install 70,000 EV charging points in Abu Dhabi by 2030.
Additionally, e& has launched the 'Charge&Go' network, anticipating an annual EV demand growth of 30% from 2022 to 2028.
On the other hand, Oman has mandated that all fuel stations across the sultanate must include EV charging stations as part of its green mobility initiative. The Gulf nation is actively advancing its green agenda in transportation, with plans to more than double the number of charging stations to 300 by 2025.
Similarly, Saudi Arabia’s Electric Vehicle Infrastructure Company (EVIQ) is set to install over 5,000 chargers across the country, operating more than 1,000 stations by 2030.
In July 2024, Jordan celebrated the inauguration of its first fully electric vehicle charging station. To further support the EV industry in Jordan, Huawei and Kawar Energy have announced a partnership to install Huawei's advanced superchargers at Manaseer gas stations across the kingdom over the next two years.
The GCC Community Embraces EVs
The momentum behind the EV landscape is expanding across the GCC. Since the COVID-19 era, there has been positive traction in terms of investments and initiatives within the electrification sector. This closely aligns with long-term sustainability targets.
- UAE
According to the Dubai Water and Electricity Authority (DEWA), there were around 26,000 electric vehicles in Dubai by the end of December 2023. PwC estimates that across the UAE, EVs will have a market share of 25% (~110,500 vehicles) by 2035.
By 2050, the UAE Ministry of Energy and Infrastructure (MoEI) plans to ensure that 50% of all cars are electric. This ambitious prospect is supported by Dubai’s own goal of having 42,000 EVs on its roads by 2030.
The adoption of electric vehicles (EVs) is pivotal to the UAE's transition to a low-carbon economy. As part of the UAE Energy Strategy 2050, the nation is combining renewable and nuclear energy sources to achieve carbon neutrality by mid-century.
At present, 20% of federal government vehicles have been converted to EVs, with targets set for at least 30% of public sector vehicles and 10% of all vehicles on the road to be electric or hybrid by 2030.
- Oman
By reducing pollution from the transport sector, which significantly accounts for greenhouse gas emissions, the country has been moving towards achieving carbon neutrality by 2050.
To achieve this, the Ministry of Transport, Communications and Information Technology (MTCIT) is incentivizing EV manufacturing in the Duqm Special Economic Zone and has installed charging points across Oman.
Included in this roadmap is the introduction of an estimated 22,000 electric vehicles by 2030, up from a few hundred currently. Oman’s first electric public bus will also hit the roads soon.
According to MTCIT Minister, Eng. Saeed bin Hamoud bin Saeed Al Mawali, a combination of technological advancements and efficient charging infrastructure will help drive the uptake of EVs in Oman going forward.
The first 'Made in Oman' electric SUV, May ALIVE 1, is set to roll out in late 2024 and is expected to attract strong interest, aligning with global EV demand.
- Qatar
Making progress in its plan to make all public transportation electric by 2030, Qatar’s Ministry of Transport (MoT) has ensured that over 70% of public buses in the country are now electric. MoT has now set its sights on curating a fully electric fleet by 2030. Qatar also aims to transform 35% of all traditional cars to electric-centricity in the same time frame.
Hamad Ali Al Marri, Director of the Land Transport Licensing Department at MoT, said that the electric buses are supported by an integrated infrastructure that achieves multiple benefits; the most important of which is saving energy and fuel consumption, thus, improving the quality of life.
The MoT has also chalked out plans to test services for electric air taxis and delivery planes in early 2025. Hence, experts forecast that EV sales could make up 20% of the total auto market in Qatar by 2032.
- Jordan
Jordan stands as a true pioneer in electric mobility within the region, witnessing a remarkable surge in EV adoption over the years. In this GCC country, EVs made up 66.5% of all car sales in Q1 2024.
As of August 2024, Jordan has over 120,000 electric vehicles on its roads, as announced by the Vice Chairman of the Free Zones Investors Authority. The Bus Rapid Transit (BRT) system will also add 15 e-buses by end of the year.
Tax exemptions on import and registration have fueled the growth, with 34,902 EVs cleared between January and November 2023, a 140% increase from the previous year.
The surge in EV sales in Jordan is a result of smart policies and forward-thinking incentives. These include the free customs tax for the first five years and the introduction of the Time of Use (TOU) electricity tariff. Since its launch in July 2024, this innovative scheme has made charging an EV at home more affordable during off-peak hours.
- Saudi
According to recent data by AlixPartners, seven out of 10 Saudi residents (71%) revealed that they are most likely to purchase a battery-electric vehicle (BEV). If the trajectory remains on track, by 2030, 30% of all cars in Riyadh will be electric.
Saudi Arabia's Public Investment Fund (PIF), with assets of USD 700 billion, aims to produce 500,000 electric vehicles annually by 2030. To achieve this, the Kingdom has established strategic partnerships with major international companies, solidifying its position as a key player in the global EV industry.
This commitment extends beyond production to fostering an environment that encourages innovation in the EV sector. A major step in these efforts is the launch of CEER, Saudi Arabia's first local EV brand and original equipment manufacturer (OEM), a joint venture between PIF and Foxconn.
Saudi Arabia’s concerted efforts to develop a thriving EV industry support two major Vision 2030 goals: promoting economic diversification and spurring global business expansion.
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