Data Bridge Market Research analyses that the Middle East electric vehicle market will grow at a CAGR of 28.1% during the forecast period of 2023 to 2030.
The Middle East, historically anchored in oil-driven economies, is undergoing a significant transformation towards sustainable transportation with the proliferation of electric vehicles (EVs). This shift is strategically important as the region aims to reduce carbon emissions and diversify its economic base beyond oil revenues. Countries like the UAE and Saudi Arabia spearhead this change with ambitious national targets such as the UAE’s net-zero emissions by 2050 and Saudi Arabia’s Vision 2030. EV adoption in the region is increasingly seen as both an environmental imperative and an economic opportunity, positioning the Middle East as an emerging leader in sustainable mobility.
Several key drivers are catalyzing EV adoption in the Middle East:
Government Policies: Governments promote EV uptake through incentives including tax breaks, reduced registration fees, free parking, and toll exemptions. Strategic plans actively incorporate EVs into public and private transport fleets to boost adoption, with targets such as a 50% EV share in the UAE by 2050.
Economic Diversification: Moving away from oil dependency, the region invests heavily in clean energy and sustainable transport, integrating renewables and fostering new technological ecosystems.
Charging Infrastructure: Investments are expanding charging networks rapidly, notably in UAE and Saudi Arabia where urban centers have extensive public and private charging facilities. Dubai alone hosts over 380 stations, with plans for further expansion.
The Middle East EV market is segmented by propulsion type and vehicle class:
Battery Electric Vehicles (BEVs): Comprise about 65% of sales due to full zero-emission benefits and government prioritization.
Plug-in Hybrid Electric Vehicles (PHEVs): Serve as a transitional choice in areas with less robust charging infrastructure.
Hybrid Electric Vehicles (HEVs): Prevalent in commercial transport due to range flexibility and infrastructure challenges.
Passenger vehicles dominate the market, capturing approximately 70% of revenue, supported by luxury and affordable EV offerings.
UAE: Leads the regional market with extensive incentives, growing infrastructure, and consumer interest. Goals include 10% EV share of vehicles by 2030, supported by government and private sector adoption.
Saudi Arabia: Aggressively expanding with Vision 2030 strategies, major investments in domestic EV production, and incentives like free charging and reduced taxes. Hosts the largest network of charging stations in the region.
Qatar: Developing infrastructure and pilot programs aligned with sustainability targets.
Other Countries: Bahrain, Kuwait, Oman, and Egypt are gradually building EV infrastructure and policy frameworks.