Despite the UAE’s ambitious plans to transition toward electric vehicles (EVs), a significant gap persists between its long term goals and current market realities. While the country aims for EVs to comprise 50 percent of its vehicle fleet by 2050, forecasts suggest that adoption may only reach 15 percent by 2030. With the local EV market expected to grow to $16.3 million in the next five years, the question remains: are current strategies enough to ignite a nationwide shift in electric mobility?
Incentives Are in Place, but Barriers Remain
Dubai has rolled out a range of initiatives to encourage EV ownership, including free parking, Salik tag exemptions, and periods of free charging under the Dubai Electricity and Water Authority’s “Green Charger” initiative. However, these measures have yet to produce the desired impact. EVs accounted for just 6 percent of all new car sales in the UAE last year, even though this figure doubled from the year prior.
Experts identify several key challenges slowing adoption, including limited public awareness, underdeveloped charging infrastructure, and a restricted selection of EV models in the local market. Some have proposed bold measures to accelerate uptake, such as reserving the leftmost lane on Sheikh Zayed Road exclusively for electric vehicles. Such a move could visibly incentivize change and push more drivers toward EVs.
Infrastructure and Awareness: Two Sides of the Same Coin
Unlike Saudi Arabia, which has implemented strict fleet quotas, heavily invested in EV infrastructure, and developed a comprehensive EV ecosystem, the UAE has taken a market-driven approach. While this allows for organic growth, it also slows momentum. As a result, Saudi Arabia is on track to see EVs account for over 30 percent of new vehicle sales by 2030.
In the UAE, many drivers still lack basic knowledge about EVs, such as their long-term cost savings or their ability to travel between emirates without frequent recharging. To address this, initiatives like Dubai’s “EV Lab” offer immersive experiences where users can test drive international models and explore leasing or purchasing options. Monthly rates range from AED 2,000 to AED 18,000, depending on the vehicle.
Charging Infrastructure Remains a Bottleneck
Although the number of public charging stations is growing, infrastructure development still lags behind future demands. The UAE currently has approximately 2,000 public charging points, most of them located in Dubai, with more than half offering only slow charging. PwC projects that this number will reach just 10,000 by 2035, well below what's needed to meet national targets.
On the other hand, DEWA’s Green Charger initiative has shown encouraging signs, with a 50 percent year-over-year increase in usage. However, environmental factors such as heat and dust continue to affect charger reliability. Meanwhile, ADNOC and TAQA have announced plans to install 70,000 charging stations by 2030, signaling a more aggressive push forward.
Still, many residents, particularly those living in apartment complexes, face a lack of nearby charging access. This highlights the urgent need for regulatory mandates requiring new residential and commercial developments to include EV charging infrastructure. Installing private chargers in villas or workplaces is seen as a practical solution, especially since most EV users only need to charge once or twice per week.
Global Players Rise, But Local Production Is Missing
Tesla currently dominates the UAE’s EV market with a 55 percent share, thanks to its high-performance vehicles and proprietary Supercharger network. However, competition is intensifying. Chinese manufacturers like BYD are making headway, particularly within ride-sharing and delivery sectors.
American newcomers such as Lucid Motors and Rivian are also entering the market, and interest in German luxury EVs remains strong. Yet one glaring gap remains: the lack of domestic EV manufacturing. As the UAE relies entirely on imports, analysts argue that establishing a local EV industry would significantly reduce costs, create jobs, and grant greater control over sustainability goals.
Sustainability Beyond the Auto Sector
The UAE’s electric vehicle ambitions are not solely about transforming the auto industry. They reflect a broader strategic commitment to environmental sustainability. As EV Lab’s founder notes, today’s generation has grown up in the shadow of the climate crisis. Now in their 30s, they are determined to lead real change in the way we move and in how we protect the planet.
Adrian is an Editor. Psychology graduate with over 4 years in the automotive industry, 3 in front of the camera. Occasionally seen at his family owned tyre shop. He will only buy cars that pass the big bottle test.
