UAE: 30% of residents will consider buying electric cars, research shows

The country's electric vehicle market is estimated to grow at a rate of 30 per cent between 2022 and 2028



by

A Staff Reporter

Published: Thu 22 Sep 2022, 4:10 PM

Public interest in electric vehicles (EV) has escalated over the last four years, new research has shown. And in the UAE, around 30 per cent of residents will consider buying one to contribute to the country's green agenda.

Residents have said that in the long run, electric cars could offer better value than fuel-powered vehicles. This sentiment is further supported by a robust EV market.

The UAE, in particular, ranks No. 8 in the world in terms of readiness for electric mobility.

“Governments in the Middle East are increasingly receptive to EV technology on the roads with the UAE ranking high in readiness for electric mobility," said Joseph Salem, partner and travel and transportation practice lead at Arthur D. Little (ADL) Middle East, a management consultancy firm.

"Through the Global Electric Mobility Readiness Index (Gemrix), we aim to help the public better understand the full scope and potential of e-mobility and support automotive organisations through an insight into the readiness of markets for e-mobility.”

The UAE's electric vehicle (EV) market is estimated to grow at a compound annual rate (CAGR) of 30 per cent between 2022 and 2028.

ADL's Gemrix 2022 finds that there has been a massive jump in electric vehicle (EV) adoption worldwide.

Governments across the Middle East region are accelerating the development of EV technology with the UAE ranking in the top 10 globally in terms of readiness for electric mobility.

UAE's EV Market

According to the report, the UAE EV market is currently in the early stages and forecast to grow at a CAGR of 30 per cent between 2022 and 2028.

Passenger vehicles constitute around 95 per cent of the EV market in the country due to an increase in rental car services and the limited scope for commercial vehicles in transport and logistics.

Under UAE Vision 2021, the government has promoted EV adoption across the nation.

It has converted 20 per cent of government agency cars to EVs and intends to reach 42,000 EVs on the streets by 2030.

The UAE also has one of the biggest charging-station-to-vehicle-ratios in the world.

Dubai’s EV Green Charger initiative was launched in 2015 to increase the number of charging stations. The country is said to have 325 charging stations.

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Promoting potential adopters

To promote the use of EVs, the Dubai Electricity and Water Authority and the Roads and Transport Authority are working together on incentives like free parking, exemption from toll, and reduced registration fees — with an aim to make public transport emission-free by 2050.

The region’s first EV and battery logistics hub has been opened in Dubai’s Jebel Ali Free Zone, in line with the UAE’s transition to a circular economy.

People in the age group of 20-25 are more likely to be influenced by environmental factors and can be the youngest potential adopters.

There have been hefty investments to reduce the charging time of EVs, providing further incentives for consumers to adopt EVs.

nandini@khaleejtimes.com


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