The UAE’s electric vehicle market is experiencing significant growth, marked by the entry of new international car manufacturers and substantial advancements in charging infrastructure. This expansion is driven by strong government support and increasing consumer interest, positioning the UAE as a key player in the global shift towards sustainable transportation.
Key Takeaways
- The UAE’s EV market is projected to reach $1.95 billion by 2025.
- 73% of UAE residents are interested in purchasing an EV.
- Dubai saw a 23.6% increase in EV charging usage by early 2025.
- VinFast, a Vietnamese EV manufacturer, has officially launched in the Middle East.
- Tellus Power MENA, a new joint venture, will manufacture EV charging equipment locally.
VinFast Drives into the UAE Market
Vietnamese electric vehicle manufacturer VinFast has officially launched its operations in the Middle East, including the UAE, in October 2024. This move aligns with the UAE’s ambitious goals for an electric future and caters to evolving consumer preferences. VinFast’s entry is timely, as market projections indicate the UAE’s EV market revenue will reach $1.95 billion by 2025. A 2024 survey revealed that 73% of UAE residents are keen on buying electric cars, with many drawn to advanced technology, improved fuel efficiency, and enhanced safety features.
VinFast’s VF 8 model, featuring premium design and smart technology, is set to appeal to the UAE’s discerning consumers. The company offers a competitive warranty of 10-year/200,000 km for the vehicle and 10-year/unlimited mileage for the battery, alongside comprehensive after-sales support. VinFast’s success in its home market, where it has built an EV supply chain with a 60% localization rate, provides a strong foundation for its international expansion.
Boosting Charging Infrastructure with Local Manufacturing
In a significant development for EV infrastructure, Irvine-based Tellus Power has partnered with BinHendi Holding and SFE Group to form Tellus Power MENA. This joint venture, supported by the UAE Ministry of Investment, marks the establishment of one of the first EV charging equipment manufacturing companies in the Middle East. The new entity will facilitate the local production of advanced EV charging solutions and accelerate the adoption of bidirectional vehicle-to-grid technologies across the GCC.
The UAE Ministry of Investment played a crucial role in facilitating this partnership, providing strategic investment guidance and connecting the involved parties with relevant government entities. This initiative underscores the UAE’s commitment to fostering a robust ecosystem for electric vehicles, including local manufacturing capabilities for essential components like charging stations.
Government Support and Consumer Enthusiasm Fuel Growth
The UAE government is actively supporting the transition to electric vehicles through various incentives and infrastructure development. Dubai, for instance, offers free parking for EV owners and complimentary Salik tags. There has also been a notable increase in EV charging usage, with Dubai’s Electricity and Water Authority reporting a 23.6% rise by early 2025. The long-term vision includes potentially dedicating EV-only lanes to achieve the goal of having half of the cars on UAE roads be electric by 2050.
This combination of strong government backing, increasing consumer enthusiasm, and the continuous development of charging infrastructure creates an ideal environment for both established and emerging EV brands to thrive in the UAE market.
Sources
- VinFast joins global push into UAE’s expanding EV market | National Business News, Voice of Alexandria.
- Irvine-Based Tellus Signs EV Charger Agreement in UAE, Orange County Business Journal.
- EV charging: New UAE company – Tellus Power MENA, Gulf News.
