GCC Electric Vehicle Market Report and Forecast 2032

GCC Electric Vehicle Market Insights & Analysis

The GCC Electric Vehicle Market is expected to register a CAGR of around 35.5% during the forecast period (2024-2032), and the market is valued at around USD 1.9 billion in 2024. A rise in the sales of electric vehicles, governmental initiatives & support, and a surging level of consumer awareness are some of the prominent aspects infusing market growth. Electric vehicles (EVs) illustrate an eco-friendly mode of transportation that operates on electricity rather than traditional fossil fuels like gasoline or diesel, thus helping in minimizing or reducing the pollution level. These vehicles stand as a pivotal advancement within the automotive industry, aimed at mitigating the environmental issues associated with conventional vehicles & lowering reliance on finite fossil fuel resources.

Therefore, various initiatives & visions supported by GCC region governments to secure a sustainable future are encouraging the adoption of these vehicles across the region, thereby infusing the overall market size. For instance, in 2022, the Saudi Arabian government expressed its ambition for electric-powered cars to constitute at least 30% of its automotive fleet by 2030. Further, it aligns with its pledge to attain net zero carbon emissions by 2060.

Moreover, the GCC region's automotive sector heavily depends on traditional internal combustion engines. This region stands out as a substantial producer of crude oil, playing a fundamental role in its economy. Nevertheless, rising environmental apprehensions and the global technological shift towards electric vehicles are predicted to stimulate the acceptance of electric automobiles, primarily hybrid and plug-in hybrid electric vehicles, within the regional nations.

GCC Electric Vehicle Market FY32

• Study Period: 2024- 2032


• Base Year: 2022


• CAGR(2024-2032): 35.5%


• Market Value 2024: 1.9 Billion


• Fastest Growing Market: UAE


• Major Players: Tesla, Inc., Mercedes-Benz, Porsche, Nissan Motor Company Ltd., General Motors Company, Bayerische Motoren Werke (BMW) AG, Others.

GCC Electric Vehicle Market Dynamics

Favorable Government Initiatives & Policies to Promote a Sustainable Environment

The rising focus on environmentally friendly transportation solutions is one of the prominent factors affecting the increased demand for electric vehicles in the GCC region. Governments in the GCC are enforcing regulations to encourage the usage of electric vehicles, as a way to reduce carbon emissions. The UAE, Saudi Arabia, Bahrain, and Oman have made vows to reach net-zero emissions goals & are targeting to achieve it by 2030. For instance, Dubai Municipality has employed Green Building Regulations and Specifications for new constructions in the Emirate of Dubai, mandating that a 5% allocation of parking spaces must be reserved for eco-friendly or low-emission vehicles.

Thus, these government programs involve educating customers about the benefits of EVs & supporting the creation of local manufacturing facilities by newcomers to the market, all of which would support enhancing the GCC Electric Vehicle Industry growth.

• Lack of EV Model Variety to Restrict the Industry Expansion

In the GCC Electric Vehicle Market, the range of available EV models remains limited when compared to conventional vehicles. This limitation is becoming a prominent barrier to the market's growth. Consumers often have preferences for specific vehicle categories, like sedans or SUVs, for which the options of EVs are generally inadequate. As a result, the lack of a wide grounds of models and the restricted choices available may discourage potential EV buyers, further limiting the demand & hindering the industry growth across regional countries.

GCC Electric Vehicle Market Segment-wise Analysis

By Propulsion Type:

• Battery Electric Vehicle (BEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)

Battery Electric Vehicle (BEV) is predicted to account for the majority of the share in the GCC Electric Vehicle Market as the sales of these propulsion types of vehicles are seen to be higher in comparison to others. Due to improvements in technology and the cost-effectiveness of Battery Electric Vehicles (BEVs), substantial strides have been made in battery technology. This has led to enrichments in the range & overall performance of BEVs.  

Furthermore, BEVs incur lower maintenance and operational expenses due to their streamlined drivetrain architecture, which contains fewer mechanical components compared to traditional internal combustion engine vehicles. Thus, BEVs have become one of the most preferred choices across the automotive market.

By Battery Type:

• Lithium-Ion Battery
• Lithium Titanate Oxide

A significant percentage of the share available in the GCC Electric Vehicle Market relies on Lithium-Ion Battery, making it the dominant battery type among all the others. These batteries are in high demand due to their superior energy density, enabling them to store a considerable amount of energy in compact packages, resulting in an extended driving range. This heightened range addresses consumer concerns about range anxiety, making electric vehicles more attractive for everyday consumption and long-distance trips.

Besides, there is a noticeable trend of establishing numerous EV manufacturing facilities in the region, which is predicted to augment the availability of electric vehicles, specifically those equipped with lithium-ion batteries. Hence, this advancement is poised to have a positive impact on the GCC Electric Vehicle Market size in the projected years.     

The UAE is poised to dominate the GCC Electric Vehicle Market during 2024-32. The adoption of electric cars is expected to accelerate, particularly in tech-savvy urban centers like Dubai. While the country is still in the early stages of accepting electric vehicles and has not yet introduced incentives such as free charging stations or Greenbank loans, there are initiatives in place that are likely to enhance EV demand as deployment scales up. Notably, the UAE government has demonstrated a strong commitment to promoting EV usage as part of its goal to achieve zero carbon emissions by 2050.

The demand for EVs in the UAE market has steadily increased in recent years, and the Global Electric Mobility Readiness Index published in 2022 by international consultancy firm Arthur D. Little predicts a compound annual growth rate (CAGR) of 30% between 2022 & 2028. Therefore, due to the growing focus on sustainable transportation solutions nationwide, the future of the UAE Electric Vehicle Market appears to be extremely promising.

Regional Projection of the GCC Electric Vehicle Industry

The GCC Electric Vehicle Market is geographically diversified, covering:

• The UAE
• Saudi Arabia
• Qatar
• Oman
• Bahrain
• Kuwait

Additionally, as awareness of and demand for EVs continue to escalate, numerous automakers are actively engaged in the development & advancements of cutting-edge & innovative electric vehicles that align with the contemporary needs & preferences of consumers.

Also, the government & private entities of countries, like the UAE, Saudi Arabia, Qatar, etc., are making easy accessibility for EV charging stations for individuals who tend to travel longer distances but are hesitant to buy an electric vehicle due to the lack of charging stations. For instance, in May 2023, DEWA announced that the Green Charging initiatives had lured over 11,000 users, and this number is foreseen to double in the near future. Furthermore, Dubai has set a target to have more than 42,000 electric cars on its streets by 2030.

In addition, top electric vehicle companies are also investing in R&D to provide high-speed EV chargers at public charging stations, which would enhance demand for EVs. Hence, the easy availability of charging stations & amplified battery life of the EVs would support elevating the adoption rate, further infusing the GCC Electric Vehicle Market growth in the forthcoming years.

What Does Our GCC Electric Vehicle Market Research Study Entail?

• The GCC Electric Vehicle Market Research Report highlights the forecast growth rate or CAGR by anticipating the market size & share.
• The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
• The GCC Electric Vehicle Market Research Report entails details about the most critical shifts in market share in the prominent regions.
• Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.