UAE Electric Vehicle Market Projected 8.56% CAGR Growth from 2022 Onwards

According to TechSci Research report, “UAE Electric Vehicle Market – Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the UAE Electric Vehicle Market stood at USD 726.82 Million in 2022 and is anticipated to grow with a CAGR of 8.56% in the forecast period, 2023-2028.

The UAE government has been a driving force in promoting electric mobility. It has introduced a range of incentives, such as reduced registration fees and free charging, to encourage EV adoption. The “Green Charger” initiative has also focused on establishing an extensive network of EV charging stations, making EVs more practical and convenient for residents and visitors.

The UAE’s reputation for luxury and high-end vehicles extends to the electric vehicle segment. This has led to the introduction of premium electric models from renowned automakers, catering to the local market’s preference for opulence. Luxury EVs have gained popularity, emphasizing the synergy between luxury and sustainability.

The UAE’s investment in expanding its charging infrastructure network is a critical element of the EV market’s success. The country has focused on the installation of fast-charging stations in urban centers and along highways, reducing range anxiety and making EV ownership more convenient. This infrastructure development supports both urban and long-distance travel needs. As part of its broader economic diversification and sustainability goals, the UAE is promoting electric vehicles and sustainable transportation solutions. By transitioning to electric mobility, the UAE aims to reduce its carbon footprint and contribute to a more sustainable future while lessening its dependence on fossil fuels.

The UAE has invested in electric public transportation systems as part of its smart city initiatives. This includes the deployment of electric buses and trams, offering eco-friendly and energy-efficient options for urban commuters. These initiatives underscore the nation’s commitment to environmentally conscious urban development.

The introduction of innovative charging technologies, including high-capacity chargers and fast-charging stations, is enhancing the EV ownership experience. These advancements reduce charging times, making electric vehicles more convenient for daily use. The UAE is actively fostering local innovation and manufacturing in the EV sector. Collaborations with international EV manufacturers and investment in research and development activities aim to promote the local production of electric vehicles and their components, contributing to the growth of the domestic automotive industry.

The UAE Electric Vehicle Market has transformed into a thriving ecosystem supported by government initiatives, infrastructure development, luxury EV options, and a strong focus on sustainability. As the nation works towards reducing its environmental impact and diversifying its economy, the EV market plays a central role in shaping a more sustainable and innovative automotive landscape.

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Dubai serves as the epicenter of electric mobility in the UAE. The emirate is characterized by its high-income residents who favor luxury and high-performance vehicles. Dubai’s market for premium electric models caters to consumers seeking opulence and advanced technology. Government incentives such as reduced registration fees and free charging have boosted the adoption of electric cars, and an extensive network of fast-charging stations ensures convenient access for residents and tourists. Dubai’s commitment to sustainability is evident through electric public transportation, smart city projects, and eco-friendly taxis.

Abu Dhabi: As the capital of the UAE, Abu Dhabi plays a pivotal role in driving the adoption of electric vehicles. The emirate’s government has implemented numerous initiatives to promote sustainability and environmental consciousness. Electric vehicles, including buses and trams, are integrated into the public transportation system, enhancing the quality of urban mobility. Electric commercial vehicles are also emphasized, making Abu Dhabi a hub for sustainable logistics and industrial operations. The city’s expansive infrastructure projects, including new sustainable communities and smart city developments, further contribute to the growth of the EV market.

Northern Emirates (Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain, Fujairah): While not as prominent as Dubai or Abu Dhabi, the Northern Emirates are gradually embracing electric mobility. These regions have seen an increase in the adoption of electric vehicles, particularly for urban commuting and industrial applications. Electric two-wheelers and micro-mobility solutions are gaining traction, catering to the needs of residents and tourists.

As the charging infrastructure continues to expand, these areas are expected to contribute to the broader adoption of EVs. Industrial areas and commercial zones in the UAE have shown interest in electric commercial vehicles. Logistics companies are exploring the benefits of electric delivery vans and trucks, reducing emissions and operating costs in line with sustainability goals. Charging infrastructure in these zones is vital to supporting electric fleet operations, and initiatives are underway to ensure efficient charging solutions.

In desert and off-road adventure tourism destinations, electric off-road vehicles have gained interest. Electric dune buggies and utility vehicles provide a quieter and more eco-friendly option for desert exploration. These regions highlight the adaptability of electric mobility solutions to various applications, including recreational and tourism purposes.

The regional dynamics underscore the UAE’s comprehensive approach to promoting electric vehicles and sustainable transportation solutions. Each emirate and area contributes to the broader adoption of electric mobility, aligning with diverse consumer needs and preferences. This multifaceted approach reflects the nation’s commitment to sustainability, innovation, and the transition to a more environmentally conscious transportation landscape.


Major companies operating in the UAE Electric Vehicle Market are:

  • Hyundai Motor Company
  • Tesla, Inc.
  • Volkswagen Motor Company LTM
  • General Motors Company
  • Groupe Renault
  • BMW AG
  • Ford Motor Company
  • One Moto Technologies LTD.
  • Rivian, LLC
  • Mitsubishi Fuso Truck and Bus Corporation


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“The UAE Electric Vehicle (EV) Market, experts emphasize that the nation’s commitment to sustainability and innovation provides a fertile ground for the growth of electric mobility. The combination of government-led incentives, expansion of charging infrastructure, and the availability of luxury EVs is propelling the market forward. These experts believe that the UAE’s dynamic approach aligns with global efforts to reduce carbon emissions and embrace sustainable transportation solutions, positioning it as a significant player in the electric vehicle landscape.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

UAE Electric Vehicle Market By Vehicle Type (Two-Wheeler, Passenger Car, LCV, M&HCV, OTR), By Propulsion (BEV, HEV, PHEV, FCEV), By Range (0-50 Miles, 51-150 Miles, 151-200 Miles, 201-400 Miles, Above 400 Miles), Regional, Competition, Forecast & Opportunities, 2018-2028”, has evaluated the future growth potential of UAE Electric Vehicle Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the UAE Electric Vehicle Market.



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Table of Content-UAE Electric Vehicle Market 

  1. Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

  1. Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

  1. Executive Summary

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

  1. Impact of COVID-19 on UAE Electric Vehicle Market
  2. Voice of Customer Analysis

5.1.  Brand Awareness

5.2.  Brand Satisfaction

5.3.  Factors Affecting Purchase Decision

  1. UAE Electric Vehicle Market Outlook

6.1.  Market Size & Forecast

6.1.1.    By Volume & Value

6.2.  Market Share & Forecast

6.2.1.    By Vehicle Type Market Share Analysis (Two-Wheeler, Passenger Car, LCV, M&HCV, OTR)

6.2.2.    By Propulsion Market Share Analysis (BEV, HEV, PHEV, FCEV)

6.2.3.    By Range Market Share Analysis (0-50 Miles, 51-150 Miles, 151-200 Miles, 201-400 Miles, above 400 Miles)

6.2.4.    By Regional Market Share Analysis        Dubai Market Share Analysis        Abu Dhabi Market Share Analysis        Sharjah Market Share Analysis        Rest of UAE Market Share Analysis

6.2.5.    By Company Market Share Analysis (Top 5 Companies, Others – By Value, 2022)

6.3.  UAE Electric Vehicle Market Mapping & Opportunity Assessment

6.3.1.    By Vehicle Type Market Mapping & Opportunity Assessment

6.3.2.    By Propulsion Market Mapping & Opportunity Assessment

6.3.3.    By Range Market Mapping & Opportunity Assessment

6.3.4.    By Regional Market Mapping & Opportunity Assessment

  1. UAE Two-Wheeler Electric Vehicle Market Outlook

7.1.  Market Size & Forecast

7.1.1.    By Volume & Value

7.2.  Market Share & Forecast

7.2.1.    By Propulsion Market Share Analysis

7.2.2.    By Range Market Share Analysis

  1. UAE Passenger Car Electric Vehicle Market Outlook  

8.1.  Market Size & Forecast

8.1.1.    By Volume & Value

8.2.  Market Share & Forecast

8.2.1.    By Propulsion Market Share Analysis

8.2.2.    By Range Market Share Analysis

  1. UAE LCV Electric Vehicle Market Outlook 

9.1.  Market Size & Forecast

9.1.1.    By Volume & Value

9.2.  Market Share & Forecast

9.2.1.    By Propulsion Market Share Analysis

9.2.2.    By Range Market Share Analysis

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