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.