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UAE: Electric vehicles' demand set to rise as charging rates unified

Increasing number of models, government incentives, and commitment to reducing carbon emissions are some reasons for EVs popularity, an expert said

The unification of charging rates for electric vehicles has made it slightly more expensive to own an EV in the country; yet, this has not significantly impacted consumer demand. In fact, according to experts, the demand for EVs is looking set to increase in the coming years.

“The UAE’s law on unification of charging rates has actually helped increase demand for EVs as a whole,” said Karim Maksoud, Managing Director at Al Habtoor Motors. “We have found that with no discrepancies within the country’s charging infrastructure, consumers are now open to considering all the different available brands and options available to them. Despite being charged by service providers for using public infrastructure, we see that consumers still recognise the value in shifting towards EVs since it is the future of the automotive industry, and an economical alternative overall.”

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In August this year, a UAE cabinet resolution specified a revised unified pricing structure for charging electric vehicles (EV) in the country. It stipulated that service providers should charge a minimum of Dh1.20 plus VAT per kWh for an ‘express’ charging service and a minimum of Dh0.70 plus VAT per kWh for a ‘slow’ one.

Roberto Colucci, Director of AW Rostamani Group Electric Mobility, which launched a new brand of EV called Zeekr, said that charging stations in malls and public places were adding to the reason why people preferred EVs. “People are opting for destination charging,” he said. “People are going to the gym, restaurant, cinema, or the opera and choosing to charge from there. I would say this is the most relevant charging segment. And this is where we will see probably the most influential changes in the coming years.”

The UAE government has been proactive in fostering a sustainable automotive landscape. With over 30,000 EVs registered in 2023, projections suggest that this number could reach 100,000 by 2025, aiming for electric and hybrid vehicles to comprise over 15 per cent of the total vehicle count by 2030. The government's ambitious plan includes expanding the EV charging infrastructure to 10,000 stations by 2030, with Dubai set to transition its entire taxi fleet to eco-friendly models by 2027.

According to Chintan Sareen, founder and CEO of electric vehicle charging company PlusX Electric, it is the UAE’s “forward-thinking approach to sustainability and innovation” that encouraged the firm to set up here.

“PlusX Electric was conceived, designed, and manufactured in the UAE to meet the unique needs of this market,” he said. “The UAE's fast-paced lifestyle and focus on convenience perfectly align with our offering of a portable charger delivered directly to customers' doorsteps, allowing them to charge their vehicles while continuing their day without interruption.”

According to him, the increasing number of EV models entering the market, government incentives, and the country’s commitment to reducing carbon emissions are some of the reasons why EVs are increasing in popularity in the UAE

However, Chintan said the exploding popularity has brought with it several challenges. “This surge in EV adoption has also highlighted a critical challenge; charging infrastructure is struggling to keep pace with the growing number of electric vehicles,” he said. “This infrastructure gap presents an opportunity for us at PlusX Electric to provide a solution.”

Other challenges include availability in remote areas. “In particular, those travelling longer distances may encounter difficulties with charging availability in more remote areas,” said Karim. “However, with UAE's continuous advancements in technology and infrastructure, these challenges are expected to be addressed, offering a more seamless experience for EV users in the near future.”

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