The Middle East and North Africa (MENA) region is on the brink of a transformative shift towards electric vehicles (EVs) and enhanced charging infrastructure, driven by government policies aimed at promoting sustainable transportation. Countries like the UAE and Saudi Arabia are forging public-private partnerships to boost the availability of electric vehicles and expand charging networks.
To accelerate EV adoption, various MENA governments are implementing subsidies and reduced tariffs. This push towards electric mobility signifies a move away from the region's oil-dependent past, recognising the urgent need to address climate change. Major automakers from the US and China are eyeing the MENA market, with GM set to introduce models like the Cadillac Lyriq and GMC Hummer EV this year, and Ford planning launches for 2024.
INITIATIVES AND DEVELOPMENTS
UAE
The UAE is rapidly advancing its EV market, where passenger vehicles dominate, making up 95% of the sector. The government, along with various organisations, is developing a comprehensive network of charging stations, boasting one of the highest charging-station-to-vehicle ratios globally. The EV Green Charger initiative, launched by DEWA in 2015, has expanded from 100 to over 334 stations, with plans for more than 1,000 by 2025. Additionally, a new partnership aims to deploy 10,000 charging networks by 2030.
SAUDI ARABIA
Saudi Arabia is setting ambitious goals to become a leading supplier of electric vehicles in the Gulf and Northern Africa. Through the Public Investment Fund (PIF), the government is collaborating with global companies to establish EV manufacturing facilities. Notably, Lucid Group has secured agreements for up to $3.4 billion in financing, alongside a commitment to purchase 100,000 vehicles over ten years. Strategic partnerships, like that of Tawal and Electromin for EV charging infrastructure, are also underway.
JORDAN
In Jordan, the appeal of electric vehicles is growing due to their cost-effectiveness compared to traditional cars. The country currently has around 60,000 EVs, with numbers expected to rise swiftly. The Greater Amman Municipality has added 100 electric vehicles to its fleet, while the government is expanding charging infrastructure as part of its 2030 energy strategy.
EGYPT
Egypt is actively developing its e-mobility sector through collaborations between the government and private companies. A notable partnership with Abou Ghaly Motors aims to integrate 250 electric vehicles into taxi services. Alongside this, initiatives are underway to introduce electric buses and establish charging stations across multiple governorates. The government plans to manufacture local electric cars in collaboration with Chinese firms.
QATAR
Qatar is pursuing a sustainable future with ambitious goals for electric mobility, including 10% EV sales and 15,000 chargers by 2030. The national transportation company has partnered with Yutong for electric vehicle development, bolstering the country's commitment to electrification.
REGULATIONS, POLICIES, AND INCENTIVES
To support these initiatives, MENA governments are introducing various regulations and incentives:
UAE: The Dubai Green Building Regulations mandate that 5% of parking spaces be allocated for low-emission vehicles. Developers must seek approval from DEWA for EV charging stations, which are regulated under specific tariffs.
Saudi Arabia: Installation of EV chargers requires certification from the Saudi Standards, Metrology, and Quality Organisation (SASO). Recent frameworks set clear regulatory requirements for charging infrastructure.
Jordan: A 2019 economic stimulus package reduced taxes on electric vehicles and abolished weight taxes, significantly boosting EV sales.
Egypt: Electric vehicles enjoy a 100% customs duty exemption, a key incentive fostering market growth.
Qatar: The government is facilitating EV adoption through regulations, research, and funding, with significant investments in infrastructure from both public and private sectors.
LOOKING AHEAD
The MENA region is embracing electric mobility as a response to environmental challenges and a strategic move for economic diversification. The rapid growth of electrification and infrastructure development presents numerous business opportunities. With strong governmental support and collaboration among key stakeholders, the MENA region is well-positioned to lead the global transition towards cleaner, more sustainable transportation over the next decade.