Driving the future of electric vehicles in the UAE

Khaleej Times

3 days ago

Electric vehicle adoption in the UAE is growing rapidly and it's backed by government strategies, businesses electrifying their fleets and consumers seeing the advantages of technology-first vehicles. But while momentum builds around electric vehicle purchasing and leasing, underneath the surface are some major challenges for the UAE's policies, infrastructure and investments.
Right now, is a pivotal point for the success of EV adoption and the push towards Net Zero. The infrastructure for future success is not currently available; how this infrastructure is built and who pays for it are key questions.
A surge in demand
Currently, there are more than 25,000 EVs on the road in the UAE and the signs are that this will continue to grow rapidly. Around 3% of total car sales in the UAE are EVs, but with global vehicle manufacturers switching to 'all electric' models, it is expected that 30% of the country's vehicles will be electric by 2030, in line with governmental targets towards a Net Zero future.
New leasing models will also attract EV ownership across private and commercial sectors – by 2030 electric leasing is expected to grow in popularity from 27% to 46%, as drivers address technology obsolescence concerns and reduce their upfront capital expenditure. The opportunity is even more compelling for businesses operating set or predictable trips - such as logistics, transport fleets and delivery vehicles, where journeys can easily be plotted from charger to charger.
Electrification of fleet vehicles is also rapidly evolving; for example, Dubai's RTA aims to convert 100% of its taxis and limousines to either electric or hydrogen vehicles by 2040 and public buses will be entirely electric or hydrogen-powered by 2050. Meanwhile, Dubai taxi has eyed 2027 as the year when all its fleet will be either electric or hybrid.
However, despite the public and private increase in EV popularity, there's a problem.
Fast charger shortfall
At the moment, in the region of 2,000 public charging points are in operation across the UAE – but driven by future demand, it is estimated the Emirates will need 45,000 by 2035, which is far more than the predicted 10,000 at the current pace of installation. A lack of charging infrastructure potentially threatens the government's electrification ambitions, causes consumers to question whether to adopt an EV, or worse, cause severe bottlenecks at public charging points.
One of the key aspects to address is in ensuring EVs owned by residents and private commercial vehicles do not operate across the same infrastructure. Delivery vehicles, logistics trucks, taxis and ride hailing services, currently occupy much of the same infrastructure used by the general public. At Positive Zero, we are attempting to address this challenge by building private on-site charging hubs for businesses that are highly efficient and specifically designed for rapid, high-volume needs. We complement this private infrastructure with renewable energy (distributed solar generation), a key enabler for promoting 'clean' EV charging.
Adapting models for charging
Decentralised charging points and battery-swapping stations are also gaining traction. For example, we rolled out a decentralised charging station for the RTA at COP28 to meet their major event needs – this is something we see becoming more mainstream, especially as the Emirates continues to welcome major conferences and global music and sports events.
Ensuring satisfaction for EV users
EV users need fast, easy-to-use and available infrastructure. By providing private commercial users with on-site infrastructure, residents can benefit too. This approach complements the government's ambitions and the right decentralised policy frameworks are already in place – now it's up to private enterprises to adopt the infrastructure that supports their businesses.
The road ahead – private commercial infrastructure that makes sense
We see this commercial adoption occurring through a 'no upfront cost' model, where companies adopt private EV infrastructure on their premises and sites to effectively and profitably electrify their fleets and equipment. By addressing the initial cap-ex concerns, Positive Zero accelerates private commercial viability of electrification and with it, the ability to improve how commercial EVs operate and consume energy. The message outlining decarbonization through EVs was already well-established and known amongst the UAE's corporate leaders, but now the economic case can be proven and infrastructure challenges addressed, there is no reason to stop the rapid growth of private EV fleets. With tailormade charging infrastructure that supports businesses, we predict a serious uplift in EV experiences across the UAE.