Gulf EV Market Sees Rapid Growth and Adoption
A slowdown in China, Europe, and the US has left global EV makers with excess factory capacity, which is now being redirected to the Gulf. This shift brings a wider range of models at competitive prices, unlocking latent demand in the UAE and Saudi Arabia. In 2024, the UAE remained the GCC’s largest EV market, selling nearly 24,000 electric and plug-in hybrid vehicles, while Saudi Arabia’s sales jumped to more than 11,000. Across Qatar, the UAE, and Saudi Arabia, EV sales penetration doubled from roughly 2% to 4% during the same period.
EV Growth Drivers and Market Dynamics
Chinese EV brands have entered the UAE and Saudi markets over the past two years, expanding model choices and improving pricing through new showrooms and distributor partnerships. Earlier barriers, such as high price points and limited model availability, are easing, while charging access remains robust across the region. GCC consumers are increasingly open to trying new marques, particularly in Saudi Arabia and the UAE, reshaping local showrooms and driving competition.
Future Penetration and Charging Infrastructure
EV penetration in the Gulf is projected to reach 10-15% by 2030, with further growth possible if buyer incentives such as cash support or tax breaks are introduced. Charging infrastructure is already strong, with Qatar at 97% satisfaction, the UAE at 95%, and Saudi Arabia at 94%. Dubai has roughly 1,270 public charging points, and plans in Abu Dhabi aim for 500 by 2028. Saudi Arabia’s PIF-backed EVIQ targets 5,000 chargers across 1,000 locations by 2030.
Gulf drivers use EVs for daily commuting rather than as novelties, with nearly half driving daily or almost daily. One in three drivers covers over 20,000 kilometres annually, similar to mature European markets. Loyalty rates are high, with 91% of GCC EV owners considering a battery-electric vehicle for their next purchase.
Purchase motivations differ: lower running costs lead in Qatar and the UAE, while Saudi buyers prioritize advanced technology and environmental impact. Charging behaviour also varies, with Saudi drivers leading in home charger ownership and UAE drivers using shared chargers more frequently. Public charging preferences include retail centres in the UAE, highways and community parking in Saudi Arabia, and highways and malls in Qatar.
