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Tuesday, 13 September 2022

A robust EV market would certainly help the UAE reach its new climate goals

Management consulting firm Arthur D. Little has put the UAE at #8 in its latest Global Electric Mobility Readiness Index (pdf), which selects 15 countries at different stages of development and ranks them by “readiness” for EVs.

An emerging market: The UAE — the only MENA country to feature in the index — was classified as an “emerging EV market,” which the index defines as markets still dominated by the combustion engine, but where heavy investment is beginning to cause the tide to turn.

Points for infrastructure: Thanks to programs like the Dubai EV green charger initiative, the UAE currently has 325 charging stations, giving it one of the most favourable charging-station-to-vehicle ratios in the world, the consultancy says.

It’s just that there aren’t many cars to charge… Battery EVs and plug-in hybrids account for just 7% of cars currently on the road in the UAE, according to data in the report.

…though that’s changing fast: Arthur D. Little expects the UAE EV market to grow at a CAGR of 30% between now and 2028, with 44% of road users saying that they’re likely to buy an EV as their next vehicle. The government wants to see 42k EVs on the streets by the end of the decade.

Authorities are nudging people in that direction: The Dubai Electricity and Water Authority and the Road Transport Authority are working on incentives, including gratis parking, toll exemptions, and lower registration fees to make EVs more attractive to car owners.

The UAE is also starting to build up an EV assembly industry: Dubai’s Jebel Ali Freezone is home to the region’s first EV and battery logistics hub operated by DHL. Dubai-based investment firm M Glory Holding Group is planning to open a AED 1.5 bn EV manufacturing plant — the largest in the region — and last week Nwtn Motors signed an agreement for an EV assembly facility that would produce 50k vehicles a year.

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