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30% of UAE residents might switch to electric cars

According to a report, residents feel electric vehicles may end up being more cost-effective in the long run

30% of UAE residents might switch to electric cars
[Source photo: Venkat Reddy/Fast Company Middle East]

From having the highest ratios of EV charging stations to converting around 20% of the nation’s fleet of vehicles to electric cars, the UAE is transitioning rapidly toward EV adoption. 

The government estimates having more than 40,000 EVs on the road by 2030, while Khalifa Industrial Zone Abu Dhabi is planning to construct a 25,000-square-meter facility, which NWTN will operate for the manufacturing, research and development, and vehicle testing of electric vehicles.

UAE’s EV ambition is not limited to the government, the public’s interest in electric cars has grown over the past four years. A recent study found that about 30% of residents are seriously considering buying EV to support the nation’s green strategy.

Residents feel EV may be more cost-effective than gasoline-powered ones in the long run. 

Between 2022 and 2028, the EV industry in the UAE is anticipated to expand at a 30% compound annual growth rate (CAGR). Due to a surge in rental car services and the constrained use of commercial vehicles in logistics and transportation, passenger vehicles make up around 95% of the EV market in the country.

According to ADL’s GEMRIX 2022, the adoption of electric vehicles (EVs) has also increased dramatically globally.

“Governments in the Middle East are increasingly receptive to EV technology on the roads, with the UAE ranking high in readiness for electric mobility,” said Joseph Salem, partner and travel and transportation practice lead at Arthur D Little Middle East.

There are reportedly 325 charging stations in the country.

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