Gulf States Embrace EVs to Slash Emissions and Transform Transportation by 2050
March 28, 2025
Gulf Arab states, particularly the UAE and Saudi Arabia, are increasingly adopting electric vehicles (EVs) to reduce greenhouse gas emissions and transition away from internal combustion engine cars.
The UAE has set an ambitious goal for electric vehicles to comprise 50% of total car sales by 2050 and is developing a national policy to enhance EV infrastructure and reduce energy consumption.
Saudi Arabia's Public Investment Fund has made significant investments in Lucid Group, with EV production commencing in 2023, and plans to support lithium production for battery manufacturing by 2027.
A report estimates that Saudi Arabia could see between 14.8 million and 20.7 million EVs on the road by 2050, potentially reducing oil consumption by up to 20.2% if conditions are favorable.
Ahead of the COP28 climate conference in Dubai, a United Nations report emphasizes the need for enhanced energy efficiency initiatives, as cities contribute to 70% of global greenhouse gas emissions.
Urbanization in the Gulf Cooperation Council (GCC) has reached high levels, with countries like Qatar and Kuwait prompting a pressing need for sustainable transportation policies.
Despite the push for EVs, challenges remain, including extreme temperatures, insufficient charging stations, high EV costs, and the lingering effects of fuel subsidies on consumption patterns.
Saudi Arabia ranks high in global gasoline consumption and is projected to see significant future oil demand in transportation, potentially reaching 67 million tons by 2050 without increased EV adoption.
A report from the King Abdullah Petroleum Studies and Research Center indicates that while oil demand in Saudi Arabia peaked in 2015, it has since declined due to fuel price reforms and increased efficiency, but is expected to rise again with urban expansion.
China's successful EV market serves as a model for the Gulf states, highlighting the importance of lower electricity costs and extensive charging infrastructure in driving EV adoption.
Oman has launched the 'Net Zero 3' initiative, which aims for a significant reduction in transportation emissions while incentivizing electric vehicle adoption through subsidies and infrastructure development.
The UAE and Saudi Arabia are investing in initiatives to reduce transportation emissions, including the development of metro systems and electric vehicle infrastructure.
Summary based on 1 source
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Source

Arab Gulf States Institute in Washington • Mar 28, 2025
Gulf Countries Drive Forward With Electric Vehicles