Middle East EVs move from niche to mainstream as falling battery costs and chargers accelerate

The idea that electric vehicles (EVs) are prohibitively expensive, short‑lived and unsupported by charging networks is steadily losing traction across the Middle East. El Balad paints a picture of a region where policy commitments, falling battery costs, and fast‑expanding infrastructure are turning what once looked like a futuristic option into a financially sensible and increasingly mainstream one.

The shifting economics
Contrary to the common belief that EVs are an unaffordable luxury, a growing body of evidence shows the total cost of ownership narrowing—and often beating—that of internal‑combustion cars. The El Balad piece notes lower maintenance needs and cheaper energy costs for electricity versus petrol; global analyses back up that trend. The International Energy Agency’s Global EV Outlook 2024 documents steep reductions in battery prices and shows how policy tools—subsidies, tax breaks and incentives for manufacturers—have been central to making EVs more affordable. The IEA does, however, caution that coherent national policies will remain essential to sustain momentum and ensure the transition is both equitable and resilient.

Demand is real — and rising
Regional market research points to a strong willingness to consider EVs. A survey commissioned by General Motors and conducted by Morning Consult in 2023 found that around seven in ten respondents in the UAE and roughly six in ten in Saudi Arabia would consider an EV. El Balad cited similar figures, reflecting a broader rise in consumer awareness about savings and environmental benefits. Industry statements frame those numbers as justification for both expanded charging networks and supportive regulation.

Charging infrastructure: progress — and tasks ahead
One of the most persistent myths is that public charging simply doesn’t exist in the region. In reality, governments and utilities are rapidly building networks. The El Balad report notes the UAE has more than 1,500 charging points nationally and plans to add another 500 by 2025; the UAE’s Ministry of Energy and Infrastructure has similarly outlined an acceleration of deployments. Dubai Electricity and Water Authority (DEWA) says it now operates over 740 Green Charger points in Dubai alone, spanning ultra‑fast, fast and wall‑box units and linked to customer apps. In Saudi Arabia, the original report gives a current figure of 2,803 chargers and notes an ambitious target of 30,000 points by 2030. Reuters’ coverage of Tesla’s official Saudi launch this year described the kingdom’s infrastructure as nascent but backed by state‑led initiatives—notably EVIQ, a joint venture intended to roll out fast chargers across the country.

These developments matter because charging architecture—who builds it, where and at what speed—shapes the user experience and vehicle choice. Policy announcements and public–private partnerships are now emphasizing high‑power corridor chargers for intercity travel, as well as urban wall‑boxes for daily use.

Performance, batteries and longevity
Many of the early myths about EVs rested on battery anxiety. Real‑world diagnostics tell a more reassuring story. A whitepaper by P3 Group, produced with battery diagnostics firm Aviloo, analyzed more than 7,000 vehicles and found most battery capacity loss occurs in the first 30,000 kilometres and then slows. On average, batteries retained roughly 90% state of health at 100,000 km and stabilized around 85–87% between 200,000 and 300,000 km—figures that support long vehicle lives, second‑life applications and circularity strategies. El Balad’s summary that modern batteries can last a decade or more and retain substantial capacity after hundreds of thousands of kilometres is broadly in line with these empirical findings, though actual longevity depends on usage patterns, temperature and charging behavior.

That last point matters in the Middle East. Reuters and other reporting have highlighted operational challenges such as high ambient temperatures and long desert distances, which can affect range and battery thermal management. Vehicle and charging‑system design, together with smart charging practices and shade‑cooled infrastructure, are being used to mitigate those impacts.

Environmental and grid considerations
EVs produce zero tailpipe emissions, a key argument for governments positioning them as central to net‑zero and climate strategies. The IEA, however, stresses that lifecycle emissions depend heavily on the electricity mix and manufacturing practices. As grids decarbonize—part of policy priorities in the UAE’s Clean Energy Strategy 2050 and in Saudi climate pledges—the climate calculus for EVs improves considerably. The IEA also flags the need for closer coordination between mobility and power system planners: higher EV uptake raises electricity demand but can also provide flexibility if vehicle charging is managed and integrated into grids.

What this means for consumers and policymakers
Taken together, the reporting and data point to a pragmatic conclusion. For many buyers in the UAE, Saudi Arabia and elsewhere in the region, EVs are already a sensible long‑term investment: lower running costs, comparable or superior performance, and improving resale and second‑life prospects. Governments and utilities are speeding up charger deployments and shaping regulation to encourage uptake. At the same time, challenges remain—affordability in absolute terms for some buyers, the geographic coverage of fast chargers, and the technical issues posed by extreme heat.

The International Energy Agency recommends strong incentives, manufacturing investment and charging networks to accelerate uptake; industry players argue that consumer demand, once supported by policy and infrastructure, will sustain further investment. In that light, the El Balad assessment that EVs are a “smart, sustainable choice” reads less like an aspiration and more like a description of a transition already underway—one whose ultimate success will hinge on policy coherence, grid decarbonisation and the continued scaling of charging infrastructure. It’s pretty clear, isn’t it, that we’re looking at a shift that’s already well in motion.

Source: Noah Wire Services