Electrification of mobility is a key priority for the UAE

Under its Energy Strategy 2050, the UAE is pursuing a combination of renewable and nuclear energy sources to achieve carbon neutrality by 2050, highlighted PwC’s 2024 edition of eMobility Outlook report. Electrification of mobility has been identified by the UAE as a strategic priority, and therein the adoption of electric vehicles (EVs) is a critical element in the transition to a low carbon economy.

The EV uptake in the UAE seems to be promising. By the end of April 2024, the number of EVs in Dubai stood at 30,000, going up from 15,100 at the end of 2022. While in Abu Dhabi, 6,500 battery electric vehicles (BEVs) were registered by the end of 2023. However, to accelerate the uptake, EVs have to be made accessible to the mass market, the total cost of ownership (TCO) must be made more attractive and a robust charging infrastructure must be developed to enable the transition from Internal Combustion Engines (ICE) vehicles.

Interestingly, within the Middle East region Jordan has emerged as a leader in EV adoption, with nearly 120,000 EVs, comprising 5-7% of the total cars in the country.

EVs must be made more accessible to the mass market

In this context, during an exclusive interview with IMAGES RetailME, Kevin Chalhoub, Founder and Chief Executive Officer of EV LAB stated, “Currently, the focus is on making EVs more accessible to the mass market, driven by a rise in availability. While Tesla continues to lead in market share, a plethora of new EV brands are entering the market, intensifying competition.”

Chalhoub referred to a survey conducted by researchers from UAE University and the National High School of Engineering in Tunisia that found cost to be the primary driver of EV purchase decisions for UAE consumers. “While the potential for fuel cost savings attracts consumers across all income levels, higher-income consumers are more influenced by car maintenance and initial purchase costs. Increasing availability of various EV models and brands will encourage uptake as consumers benefit from greater choice.”

Preferences for EVs are stronger in urban areas such as Dubai and Abu Dhabi, but weaker in less populated regions including Ras Al Khaimah and Umm al Quwain, which perhaps highlights the need for policy support to promote EV adoption in rural areas.

“While past EV incentives have been beneficial, additional monetary incentives such as free parking, free registration and ‘green loans’ are always welcomed by EV users. As battery technology improves, future EV models will offer more range, making leasing an EV an attractive option for customers who wish to consistently upgrade to newer models with longer range,” Chalhoub observed.

EVs can only be as sustainable as the grid powering them

Agreeing with TCO being a crucial factor in the uptake of EVs, he said that the general realisation that the TCO of EVs is more attractive than ICE vehicles – due to lower cost per kilometre driven and significantly reduced after-sale needs – further supports the shift. Additionally, increasing the share of renewables in the energy mix will aid in meeting clean energy targets.

“However, despite zero tailpipe emissions, EVs can only be as sustainable as the grid powering them,” he pointed out. “Plans are in place to triple renewable sources to 14 gigawatts (GW), increase clean energy capacity from 14.2 GW to 19.8 GW and raise the share of clean energy generation to 32% by 2030.”

Meanwhile, the clean energy transition in the UAE is being led by Dubai Electricity & Water Authority (DEWA), which aims to increase the city’s network of public green charging stations by 170%, from 370 in 2023 to 1,000 by 2025. As of 2023, there were only around 2,000 public charging points in the UAE, with demand forecasted to reach 45,000 charging points by 2035, Chalhoub shared.

EV LAB’s pioneering role in the future of eMobility

Turning focus towards Chalhoub’s electric mobility Retail as a Service (RaaS) start-up EV LAB and how it is playing a pioneering role in the future of e-Mobility.

For starters, EV LAB was founded to make EVs more accessible to customers through its seamless, omnichannel approach. For example, the EVLAB app allows for renting, leasing and buying/selling used EVs. What’s more, it recently held the soft launch of its Electric Mobility Experience Center at One Central, Dubai World Trade Centre (DWTC). Alongside a diverse range of EVs on display under the same roof, the Electric Mobility Experience Center showcases micro-mobility options, charging station solutions, solar yachts and electric boats, offering customers access to the latest innovation in sustainable transportation.

“Our initiative allows customers to take a tactile, experiential approach to exploring eMobility, mitigating misconceptions and educating them on the benefits of EVs. By providing several test drives from various brands under one roof, customers can thoroughly experience the differences in performance and acceleration compared to ICE vehicles. Customers can also engage hands-on with the different types of EV chargers to become comfortable with all aspects of the electric mobility ecosystem. In addition, we are committed to community engagement, spreading awareness of EVs through events, workshops, seminars and more on eMobility and sustainability,” Chalhoub elaborated.

“Around 20% of world emissions come from the transportation industry, of which about 75% come from road transportation and 11% from marine transport. We aim to expose the already existing climate tech solutions to reduce our carbon emissions here in the UAE, km by km. In alignment with our mission to drive sustainable development, EV LAB commits to reinvesting all profits, if any, into eMobility, cleantech and renewable energy projects. This initiative ensures that our growth contributes to the advancement of the sustainable technologies and practices in the UAE and globally,” he concluded.