The United Arab Emirates (UAE) has ambitious plans to have half of the cars on its roads be electric by 2050. However, estimates from researchers at PwC suggest that by 2030, only 15% of vehicles in the country are expected to be electric. Heiko Seitz, the Global and Middle East eMobility leader at PwC Middle East, stated that achieving the 2050 target without regulatory changes would be “basically impossible.”

With only 15% of cars projected to be electric by 2030, the UAE would need to more than triple that number in two decades. This means increasing electric vehicle (EV) adoption by 1.75 percentage points each year to meet the 50% target by 2050. In 2024, EVs represented just 6% of new car sales in the UAE, a doubling from 3% the previous year. The UAE’s EV market is projected to reach $16.3 million by 2030, but the current pace of adoption may not align with its long-term goals.

To accelerate EV adoption, the UAE has implemented several incentives. In Dubai, the Roads and Transport Authority (RTA) has introduced free parking spaces for EVs in various lots for two-year periods and offers a free Salik tag upon vehicle registration. Previously, EV drivers who registered with the Dubai Electricity and Water Authority (DEWA) EV Green Charger Initiative could charge their cars for free. While these incentives are a positive step, Seitz pointed out that they are insufficient to create a full-scale EV revolution. He attributed the slow adoption to three main factors: a lack of consumer education, insufficient charging infrastructure, and limited availability of electric models.

Kevin Chalhoub, founder and CEO of EV Lab, suggested that creating designated EV lanes on major roads could significantly boost demand for electric vehicles. The UAE’s approach to EV adoption has been market-driven, relying on natural demand growth rather than strict policies. Seitz noted that the UAE favors organically grown markets, believing they tend to be stronger.

In contrast, Saudi Arabia is taking a more aggressive approach by investing heavily in EV infrastructure and establishing clear policies with firm quotas for electric vehicle fleets. The Saudi government aims for electric cars to comprise over 30% of new light-duty vehicle sales by 2030 and over 60% by 2035.

Many drivers in the UAE still lack sufficient knowledge about EVs, including their long-term costs and road trip capabilities. Chalhoub emphasized the need for the government to not only set goals but also push automakers to increase consumer education and make the transition to EVs feel like a secure choice. The EV Lab in Dubai provides a hands-on experience for customers, allowing them to explore various EV models and take test drives. Rental prices for these cars range from Dh2,000 to Dh18,000 per month.

A study published in Sustainability highlighted that drivers across all income levels are attracted to EVs primarily for their fuel savings, while higher-income buyers are more concerned about maintenance costs compared to the initial purchase price. Interest in EVs is particularly strong in urban areas like Dubai and Abu Dhabi, where charging stations are more accessible, but drops in less populated emirates such as Ras Al Khaimah and Umm Al Quwain.

Chalhoub pointed out that while the upfront cost of an electric car may be higher, the total cost of ownership is significantly lower due to fewer spare parts and lower service fees. He noted that electric vehicles offer substantial savings, costing between one-third and one-sixth of the price per kilometer compared to petrol cars.

Other countries have implemented aggressive measures to make EVs more affordable. In the Netherlands, fully electric cars are exempt from registration taxes until 2025, and road taxes for plug-in hybrids are waived or reduced. Private buyers can also receive subsidies for purchasing EVs.

Seitz mentioned that alleviating range anxiety, defined as the fear of running out of battery during a drive, is crucial for increasing EV adoption. This concern is less prevalent for petrol cars due to the abundance of gas stations. As of now, the UAE has approximately 2,000 public charging stations, with the majority located in Dubai, and PwC estimates that by 2035, there will only be around 10,000 charging points.

Chalhoub reassured that charging an EV is often more convenient than perceived, as many owners charge their vehicles at home, in their apartments, or at work, averaging one to two charges per week. The DEWA EV Green Charger Initiative analyzes data to determine optimal locations for new charging stations, with CEO Saeed Mohammed Al Tayer stating that the initiative has seen a 50% annual increase in usage, indicating its success in promoting green mobility in Dubai.

To further enhance infrastructure, it may be beneficial to require new construction projects to include EV charging stations. Seitz highlighted that living in apartment buildings often limits access to public chargers, which are currently insufficient in number.

Chalhoub argued that charging is more accessible than many believe and suggested that most EVs can manage round-trip commutes between major cities like Dubai and Abu Dhabi without needing a charge. Tesla has also established its own charging stations across the UAE, solidifying its position in the market with a 55% share of EV sales, though competition from Chinese automakers like BYD is increasing.

The UAE’s electric vehicle ambitions face a significant challenge: the country currently does not manufacture its own electric cars. While the UAE government has invested in brands like Nio, the market heavily relies on imports. Establishing local EV production could incentivize adoption by lowering costs, creating jobs, and enhancing sustainability efforts.

Ultimately, the UAE’s push for electric vehicles is not solely an economic initiative but also a commitment to sustainability. Chalhoub expressed hope that the current generation can contribute to solving climate change issues as they continue to develop the EV market.