Sustainable Insights
May 2025
The UAE Accelerates Toward an Electric Vehicle Future
Have you witnessed how many electric vehicles (EVs) are on the road today in Dubai only, let alone the rest of the country? This is because EVs are gaining traction among UAE car buyers, with affordable models priced at or below Dh100,000 hitting the market. Some options start as low as Dh85,000, making EVs more accessible than ever. These budget friendly models combine attractive designs with impressive performance, capturing significant attention. As promised, the UAE is charging full speed ahead in its mission to achieve carbon neutrality by 2050, with a bold and accelerating push into electric mobility. A recent PwC Middle East report highlights the UAE’s substantial progress in decarbonizing the transport sector, supported by a national strategy centered around the widespread adoption of electric vehicles (EVs).
Notably, in May 2023, the UAE Ministry of Energy and Infrastructure (MoEI) launched the Global EV Market Project in line with the 2023 National Electric Vehicle Policy that was launched shortly thereafter, with an aim to transform the UAE into a global market for electric vehicles. The objective of the policy is to increase the share of electric vehicles to 50 percent of total vehicles on the country’s roads by 2050.
The Economic and Environmental Imperative
The Electric Vehicles market in the UAE is poised for significant growth. Revenue is projected to reach $1.8 billion by 2025 and continue rising at an annual growth rate of 4.35%, reaching $2.1 billion by 2029. Unit sales are expected to hit 34,750 by that year, with the average EV price hovering around $65,800 in 2025.
Globally, China remains the largest EV market, with projected revenues of $377 billion in 2025, but the UAE is making substantial strides. With EVs becoming mainstream, projections indicate they will account for over 65% of global new car sales by 2035, pushing the market’s value to $2.3 trillion. Regionally, the UAE led the Middle East in 2024 with the highest share of electric and hybrid vehicle sales, making up nearly 26% of all new vehicle sales. This momentum is expected to reduce over 400 kilotons of carbon emissions from the transport sector by 2050.
Policy, Incentives, and Targets
The government has already converted 20% of federal agency vehicles to electric. At COP28, an updated national target was set to ensure that by 2050, 50% of all vehicles on UAE roads will be electric or hybrid. Consumer demand is also rising, with 30% of UAE residents considering EVs due to green transportation aspirations.
Urban Growth Hubs: Dubai and Abu Dhabi
Dubai is at the forefront, increasing its EV count from 15,100 in 2022 to nearly 26,000 by the end of 2023. Dubai Electricity and Water Authority (DEWA) aims to boost the number of Green Charging Stations from 370 in 2023 to 1,000 by 2025. This aligns with the city’s Clean Energy Strategy 2050 and Green Mobility Strategy 2030. Meanwhile, EV ownership in Abu Dhabi is already accelerating, with over 15,000 EVs registered in Q1 2025 alone — a 60 percent jump from 2024. In a major push for sustainable transport, Abu Dhabi Mobility (Integrated Transport Centre), this month, announced a large-scale rollout of electric vehicle charging stations across the UAE capital. The move supports the emirate’s broader goal of carbon neutrality by 2050.
The first phase includes 1,000 new EV chargers at 400 key locations, from Abu Dhabi Island to Al Ain and Al Dhafra. These stations, operating under the brand name ‘Charge AD,’ will offer standardized rates – 70 fils per kilowatt-hour for AC chargers and AED 1.20 for fast DC chargers. The project is being delivered through public-private partnerships (PPP) and aims to expand charging access even further, including in hotels and shopping centers.
Dr. Abdulla Hamed Al Ghfeli, Acting Director General of the Integrated Transport Centre, called the investment a key step in building a cleaner, smarter, and more energy-efficient future. The joint venture E2GO, formed by ADNOC Distribution and TAQA, plans to deploy 70,000 charging points by 2030 — up from just 250 today.
Demographics and Market Trends
A study in Sustainability revealed that interest in EVs spans all income levels. While lower-income drivers focus on fuel savings; high-income buyers are drawn to reduced maintenance costs. Adoption is highest in Dubai and Abu Dhabi, but limited infrastructure in emirates like Ras Al Khaimah and Umm Al Quwain may hinder broader adoption without targeted policies.
The second-hand EV market is booming. A 2024 report from dubizzle revealed a 53% surge in demand for used EVs and a 47% rise in listings, reflecting greater consumer awareness and trust in sustainable transport.
Challenges on the Road to Electrification
Despite momentum, several obstacles remain. Cost parity between EVs and traditional combustion engines is yet to be achieved. Expanding charging infrastructure and diversifying EV models are also critical needs.
The UAE’s energy grid is capable of supporting EV growth but still depends heavily on fossil fuels. Increasing the share of
renewables is key to realizing the full environmental benefits of electric mobility. By 2030, PwC projects EVs will make up 15% of new passenger and light commercial vehicle sales in the UAE, increasing to 25% by 2035. However, unless charging infrastructure development accelerates, the country risks falling short—only 10,000 of the required 45,000 charging points are likely to be in place by 2035 at the current pace.
Luxury Leads the Way
Unlike many markets where cost savings drive EV adoption, the UAE’s journey is shaped by luxury. High-end electric sedans, sports cars, and SUVs are leading the transition, appealing to the nation’s affluent buyers.
With over 70,000 EVs already on UAE roads, projections suggest this number will hit 100,000 by 2027. By 2029, EVs are expected to capture 22.32% of the market, potentially surpassing 50% by 2050.
Strategic Actions and Innovations
Key recommendations include:
- Offering tax breaks, fee reductions, and purchase subsidies
- Establishing local EV manufacturing and assembly plants
- Promoting public-private partnerships to speed up infrastructure
- Using AI to identify strategic charger locations based on demographic and traffic data
H.E. Sharif Al Olama, Under-Secretary for Energy and Petroleum Affairs at the UAE Ministry of Energy and Infrastructure, emphasized the UAE’s commitment to smart, clean mobility, saying that EVIS 2025 offers a platform for innovation and global partnerships.
Improving the Consumer Experience
Consumer education remains vital. Sales and service teams need to be trained to handle questions about EV maintenance and charging. OEMs should utilize digital campaigns, especially in underserved regions, to combat misconceptions.
The UAE’s EV infrastructure is poised for a significant upgrade with the launch of a state-of-the-art charging hub later this year, promising a premium experience that transcends conventional charging stations. Spearheaded by UAEV, the nation’s dedicated EV charging company, this pioneering facility will be the first of its kind in the UAE. It will blend sustainability and sophistication, featuring eco-friendly landscaping, elegant fountains, and an innovative automatic queuing system for seamless user convenience.
Designed to charge up to 20 EVs simultaneously, the hub sets a new standard for EV infrastructure with as certain its launch date before the end of 2025. This cutting-edge hub reinforces the UAE’s commitment to sustainable mobility and enhances the EV ownership experience. The hub is part of UAEV’s broader goal to install 1,000 public charging stations able to cater to varying numbers of vehicles across all seven emirates by 2030. More than 95 percent of these are planned to be high-speed units, with next-generation ultra-fast chargers capable of delivering a full top-up in as little as 10 minutes in newer electric vehicle models.
Expanding Nationwide Access
UAEV, a joint venture between the Ministry of Energy and Infrastructure and Etihad Water and Electricity partnered with AW Rostamani Group to provide charging credits for Zeekr and smart EV buyers. The credits are redeemable via the UAEV app at any charging station across the country.
“Strategic collaborations like this enhance ownership and accelerate the nation’s transition to clean mobility,” said UAEV CEO Hicham Ezzahid. AWR Group’s Sanaa Ouahmane echoed this sentiment, noting that accessibility and customer education are key to long-term adoption.
The agreement is expected to cut more than 100,000 tons of CO₂ by 2030 and reinforces the UAE’s leadership in sustainable transport.
E-Mobility Drives Nation’s Net Zero Vision
With strong policy support, private sector innovation, and growing consumer enthusiasm, the UAE is set to become a global leader in electric mobility. The next decade will be pivotal as the country scales up infrastructure, expands local production, and makes EV ownership accessible for all. As the UAE paves the road to net zero, e-mobility is no longer an option—it’s the future in motion.
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