UAE Ranks Eighth Globally For Its Readiness Of Markets For E...| MENAFN.COM

Saturday, 01 October 2022 03:44 GMT

UAE Ranks Eighth Globally For Its Readiness Of Markets For Electric Mobility


(MENAFN- Khaleej Times)

The UAE ranks eighth globally, for its readiness of markets for electric mobility.

The electric vehicle (EV) market is estimated to grow at a Compound Annual Growth Rate (CAGR) of 30 per cent between 2022 and 2028 in the country.

Accelerated by the increasing threat of climate change, interest in electric mobility has escalated over the last four years.

According to a new study conducted by Arthur D. Little (ADL), a management consultancy firm with the longest-standing presence in the Middle East region,“this has happened both within companies and across societies”.

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

'Through the Global Electric Mobility Readiness Index, we aim to help the public better understand the full scope and potential of e-mobility and support automotive organisations through an insight into the readiness of markets for e-mobility.”

The report analyses market drivers for electric vehicles (EVs) and evaluates overall readiness across markets.

The Global Electric Mobility Readiness Index – Gemrix 2022 finds that there has been a massive jump in Electric Vehicle (EV) adoption worldwide.

Governments across the Middle East region are accelerating development of EV technology with the UAE, aiming to become carbon neutral by 2050 and ranking in the top 10 globally in terms of readiness for electric mobility.

Saudi Arabia's has pledged to become carbon neutral by 2060 and have 30 per cent of vehicles in Riyadh electric by 2030.

UAE EV Market

According to the report, the UAE EV market is currently in the early stages and forecast to grow at a CAGR of 30 per cent between 2022 and 2028.

Passenger vehicles constitute around 95 per cent of the EV market in the UAE due to an increase in rental car services and the limited scope for commercial vehicles in transport and logistics.

Under UAE Vision 2021, the government has promoted EV adoption across the nation.

It has converted 20 per cent of government agency cars to EVs and further intends to reach 42,000 EVs on the streets by 2030.

The UAE has one of the biggest charging-station-to-vehicle-ratios in the world.

Dubai's EV Green Charger initiative was launched in 2015 to increase the number of charging stations. The country is said to have 325 charging stations.

Country promotes potential adopters

To promote the use of EVs, Dubai Electricity & Water Authority and Road Transport Authority are working jointly on incentives like free parking, exemption from toll, and reduced registration fees with an aim to make public transport emission-free by 2050.

The region's first EV and battery logistics hub has been opened in Dubai's Jebel Ali Free Zone, in line with the UAE's transition to a circular economy by ensuring a reliable supply chain for sustainable mobility solutions.

Around 30 per cent of UAE residents would consider buying an EV to contribute to the green transition and believe that they offer better value for money than traditional vehicles in the long run.

People in the age group of 20-25 are more likely to be influenced by environmental factors and can be the youngest potential adopters.

There have been hefty investments to reduce the charging time of EVs, providing further incentives for consumers to adopt EVs.

MENAFN22092022000049011007ID1104910489


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.