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UAE ranked eighth in the world for electric vehicle readiness

Accelerated by the growing threat of climate change, interest in electric mobility has grown over the past four years, both within businesses and across societies, according to the findings of a new study by Arthur D .Little. The report analyzes the electric vehicle (EV) market drivers and assesses the overall readiness in the markets.

The Global Electric Mobility Readiness Index (Gemrix 2022) reveals that there has been a massive increase in the adoption of electric vehicles around the world. Governments in the Middle East region are accelerating the development of electric vehicle technology with Saudi Arabia’s commitment to become carbon neutral by 2060 and to have 30% of electric vehicles in Riyadh by 2030. The United Arab Emirates, aiming to become carbon neutral by 2050, ranks 8th in the world in terms of electric mobility readiness.

Joseph Salem, Partner and Head of Travel and Transportation Practices at Arthur D. Little Middle East, said: “Governments in the Middle East are increasingly receptive to electric vehicle technology on the roads, the Arab Emirates united ranks among the best in terms of preparation for electric mobility. Through the Global Electric Mobility Readiness Index, we aim to help the public better understand the full scope and potential of e-mobility and support automotive organizations with an overview of readiness. from markets to e-mobility.

The EV market in the UAE is currently in its infancy and is expected to grow at a CAGR of 30% between 2022 and 2028, according to the report. Passenger vehicles account for approximately 95% of the electric vehicle market in the UAE due to an increase in car rental services and the limited reach of commercial vehicles in transportation and logistics. As part of the UAE Vision 2021, the government has promoted the adoption of electric vehicles across the country. It has converted 20% of government agency cars to electric vehicles and further aims to reach 42,000 electric vehicles on the streets by 2030.

The United Arab Emirates has one of the highest ratios of charging stations per vehicle in the world. Dubai’s EV Green Charger initiative was launched in 2015 to increase the number of charging stations. Since then, the network has expanded and, to date, the country has 325 charging stations. To promote the use of electric vehicles, the Dubai Electricity & Water Authority and the Road Transport Authority are jointly working on incentives such as free parking, toll exemption and reduced registration fees with the aim of making emission-free public transport by 2050.

The region’s first electric vehicle and battery logistics center has been opened in Dubai’s Jebel Ali Free Zone, in line with the UAE’s transition to a circular economy by ensuring a reliable supply chain for sustainable mobility. About 30% of UAE residents would consider buying an electric vehicle to help with the green transition and believe they offer better value for money than traditional vehicles in the long run. People between the ages of 20 and 25 are more likely to be influenced by environmental factors and may be the youngest potential adopters. Significant investments have been made to reduce the charging time of electric vehicles, which further encourages consumers to adopt electric vehicles.