United Arab Emirates Automotive Investing in Electric Vehicle Charging Infrastructure
The United Arab Emirates (UAE) has been actively working on developing electric vehicle (EV) charging infrastructure to support the growing adoption of EVs in the country. The UAE is on route to transitioning to environmentally friendly transport systems, with EVs, plug in hybrid vehicles and hybrids to account for 50 percent of total commercial vehicles, 70 percent electric buses and 40 percent trucks (plug in & hybrid) by 2050.
There are currently more than 620 charging stations in the UAE. Dubai Electricity and Water Authority has installed 382 green charging stations in Dubai and aims for 1,000 by 2025.
ADNOC Distribution, the UAE’s largest fuel distributor, has agreed with Abu Dhabi National Energy Company, one of UAE’s largest integrated utility companies, to build and operate 70,000 charging points in the Emirate of Abu Dhabi through their mobility joint venture, E2GO, by 2030.
For example, the Sharjah Roads and Transport Authority is working with BEEAH, a Sharjah-based sustainable technology group, for the deployment and operation of hundreds of EV chargers across the Emirate of Sharjah. The Ministry of Energy and Infrastructure is also looking to establish fast charging stations on the borders between Saudi Arabia and Oman to facilitate cross-border movement of EVs.
To support this transition to sustainable mobility, the UAE government announced the National Electric Vehicles Policy in August 2023. The Policy aims to foster collaboration with federal and local partners as well as the private sector to establish a national network of EV chargers throughout the UAE.
The policy seeks to unify the EV charging infrastructure standards and determine the price of EV charging service at public charging stations. It also aims at developing the legislative and technical framework for recycling EV batteries. The policy will allow private companies to build charging stations and charge consumers for electricity.
The private sector is expected to play a pivotal role in developing the EV charging infrastructure by contributing technology, expertise, and capital. The UAE has issued a new decree to facilitate Public-Private Partnerships, aimed at boosting private sector investment in federal government projects as a way to accelerate infrastructure investment in a manner that has a clear return on investment.
At the 81st meeting of the Dubai Supreme Council of Energy (DSCE) in March 2024, the Council recommended supporting the private companies in building and installing new EV charging infrastructure based on the PPP model across the Emirate of Dubai.
PPPs would involve collaboration between governments, utility companies, EV manufacturers, charging network operators, and other relevant stakeholders. By leveraging their combined strengths, PPPs might drive the expansion of EV charging infrastructure and accelerate the adoption of EVs.
A number of companies have started local assembly of electric automobiles under the “Make it in the Emirates” industrial policy to support local manufacturing. At least one company is considering manufacturing at least part of its electric flying taxis in the UAE. This may create an export market for automotive parts and manufacturing robotics.
The United Arab Emirates is an opportunity not only for U.S. manufacturers of EVs to export their Made-in-UAE automobiles, but it is also a market with opportunity for infrastructure technology and construction companies to export their services for building EV charging infrastructure.
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