GCC electric vehicle market set to surge, projected to reach $10.4bn by 2034
Muscat – The GCC electric vehicle (EV) market was valued at nearly $1.62bn in 2024. Driven by the region's growing focus on sustainability and cleaner transportation solutions, the GCC electric vehicle market is projected to expand at a compound annual growth rate (CAGR) of 22.3% between 2025 and 2034, reaching approximately $10.44bn by 2034, according to a new research report.
The GCC region, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, has witnessed a steady increase in electric vehicle adoption, driven by both environmental and economic factors, according to the GCC Electric Vehicle Market Report and Forecast 2025-2034 , recently published by ResearchAndMarkets.com.
'The GCC electric vehicle market is set for significant expansion in the coming years, fuelled by strategic government initiatives, the growing availability of EV models, and the rapid development of essential charging infrastructure,' the report stated.
As the world transitions towards cleaner energy and sustainable mobility, the GCC is positioning itself as a leader in the shift to electric transportation, supporting the growth of the regional EV market, the report noted.
Electric vehicles, powered by electricity stored in batteries, offer a more sustainable alternative to traditional internal combustion engine (ICE) vehicles. EVs produce no direct emissions, thereby reducing air pollution and greenhouse gas emissions. This aligns with the increasing emphasis on sustainability, as governments and organisations in the GCC focus on reducing their carbon footprint and achieving ambitious climate targets.
Furthermore, the rising demand for energy-efficient and cost-effective transport solutions is accelerating the growth of the GCC electric vehicle market.
The report highlighted several factors driving the rapid expansion of the EV market in the GCC. Governments in the region are introducing major initiatives and incentives to encourage EV adoption. Saudi Arabia, the largest EV market in the GCC, has set ambitious targets for electric vehicle adoption, including plans to establish a national EV manufacturing facility and integrate EVs into public transport. The kingdom is expected to account for a significant share of the GCC's EV market.
In addition to government support, the increasing availability and affordability of electric vehicles are boosting market growth. Leading global automakers, including Tesla, Nissan, and BMW, have expanded their EV portfolios to meet growing demand in the region.
Meanwhile, several local manufacturers are entering the market, intensifying competition and driving down EV costs. The introduction of affordable EV models is crucial to making electric vehicles accessible to a broader consumer base in the GCC, the report acknowledged.
Another key driver of market growth is the expansion of EV charging infrastructure across the region. A well-developed network of public and private charging stations is essential for widespread EV adoption.
In recent years, substantial investments have been made in building a robust charging infrastructure, particularly in urban centres and along major highways. For example, Dubai aims to have 100% of its public transport fleet electrified by 2030, supported by an extensive network of fast-charging stations. This is creating a favourable market outlook for EVs in the GCC.
Despite the promising outlook, the report highlighted several challenges facing the GCC EV market. One of the main concerns is the high initial cost of electric vehicles compared to petrol or diesel-powered cars. While EVs offer lower long-term operating costs, the upfront price remains a barrier for many consumers.
However, as technology advances and manufacturing processes become more efficient, the price gap between electric and traditional vehicles is expected to narrow, positively influencing the region's EV market dynamics.
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