The GCC electric vehicle (EV) market is set for a major leap, with its value projected to grow from $1.62 billion in 2024 to $10.44 billion by 2034. This surge—driven by the region’s growing focus on sustainability and clean mobility—reflects a strong compound annual growth rate (CAGR) of 22.3%, according to a new report.

The “GCC Electric Vehicle Market Report” highlights a growing shift toward EVs, driven by environmental goals and supportive policies.

“The GCC electric vehicle market is set for significant expansion in the coming years, fuelled by strategic government initiatives, the growing availability of EV models, and the rapid development of essential charging infrastructure,” the report states.

Amid growing global demand for cleaner energy, the GCC is emerging as a major force in electric mobility, advancing its shift toward a low-carbon future. Electric vehicles, powered by battery-stored energy, generate zero tailpipe emissions—helping cut air pollution and supporting the region’s ambitious climate goals.

Government incentives are proving pivotal in accelerating EV adoption across the GCC. Saudi Arabia, the region’s largest EV market, is leading the charge by developing a national EV manufacturing hub and incorporating electric vehicles into its public transport systems—moves expected to fuel substantial growth.

Rising availability and affordability are further boosting momentum. Global automakers like Tesla, Nissan, and BMW are expanding their footprint in the region, while local manufacturers are rolling out competitive models, making EVs increasingly accessible to consumers.

Infrastructure development remains a key factor. Investments in charging stations, particularly in urban centers and along major highways, are supporting the transition to electric mobility. Dubai, for example, aims to electrify 100% of its public transport fleet by 2030, backed by a robust fast-charging network.

Despite this progress, challenges remain. High upfront costs continue to be a barrier, even though EVs offer lower long-term operating expenses. However, as battery technology advances and production costs decline, the price gap between electric and conventional vehicles is expected to narrow, driving further adoption in the region.