The landscape of transportation in the Middle East is on the brink of a revolution, with electric vehicles (EVs) at the forefront, particularly in Saudi Arabia. The Kingdom is actively engaging in the transition to more sustainable solutions, leading to speculation about when EVs will become commonplace in our everyday lives.
With the introduction of Ceer, Saudi Arabia’s first automotive brand dedicated to EVs, in 2022, Crown Prince Mohammed bin Salman signaled a broader goal than just launching a new product line. The venture is set to spark a new industrial sector within the Kingdom, aimed at drawing both international and domestic investments, generating employment for Saudis, bolstering the private sector, and contributing to the country’s GDP over the coming decade. This aligns with the Kingdom’s Vision 2030, facilitated by the Public Investment Fund (PIF).
The EV industry saw an uptick in interest following Ceer’s launch, attracting big names like Lucid and Aston Martin, alongside various emerging companies. Despite market competition, Goldman Sachs projects that EVs might account for half of global car sales by 2035.
Analysts forecast that within five years of reaching that milestone, a similar share of vehicle sales will likely include advanced autonomous or semi-autonomous cars. Saudi Arabia’s grand plan for electrification is evident, which includes establishing a robust public charging network, as voiced by Mohammad Gazzaz, CEO of the Electric Vehicle Infrastructure Co.
Research from this joint venture between PIF and the Saudi Electricity Co. has shown that while there is significant interest in EVs among the Saudi population, the lack of infrastructure presents a major hurdle for prospective owners. Investors remain cautious about funding infrastructure due to the substantial upfront costs and the currently low number of EVs on the roads.
Saudi Arabia aims to convert 30 percent of Riyadh’s vehicles to electric by 2030, a target that falls under the broader strategy to slash the capital’s emissions by half, consistent with the national goal of achieving carbon neutrality by 2060.
Alexander Lemzakov, CEO and co-founder of Wize, an eco-friendly mobility startup in the UAE, observed the rapid expansion of the EV market in Saudi Arabia and the wider Middle East. He attributes this to government support, environmental concerns, economic diversification, technological progress, and urbanization trends.
Lemzakov elaborated on the factors fueling the popularity of EVs, including governmental incentives for green transport, the vehicles’ extended lifespans, reduced maintenance costs, and reliability, especially in the B2B sector.
Goldman Sachs predicted a surge in EV sales to 73 million units by 2040 from about 2 million in 2020, with EVs’ share in global car sales expected to leap from 2 percent to 61 percent. Developed countries might even see EV sales exceeding 80 percent, indicating a broad acceptance and dominance in the auto market.
Mordor Intelligence foresees the Middle East and Africa automotive EV market growing from $3.33 billion in 2024 to $9.42 billion by 2029, with a CAGR of 23.2 percent from 2024 to 2029. Regional governments are advocating for eco-friendly vehicles and awareness on energy storage within the renewable sector, which should boost the EV market.
Wize is enhancing its presence in the Saudi market through strategic partnerships focused on logistics and last-mile delivery. The question of whether EVs will integrate seamlessly into daily life seems to be affirmatively answered by Lemzakov, highlighting technological innovation, environmental consciousness, and investment in charging stations as key growth drivers.
Lemzakov also noted the burgeoning last-mile delivery market in MENA, stating that converting even one company to electric motorcycles would significantly impact the region’s EV share. This change is pertinent given the expected growth in e-commerce and the environmental and economic advantages of EVs in this rapidly evolving sector.
Faisal Sultan from Lucid Middle East anticipates a substantial future expansion in the industry, driven by customer demand for top-quality eco-friendly cars. He insists that EVs are becoming a part of our daily lives, with Lucid addressing common ownership barriers such as cost, performance, and range.
With EVs’ futuristic appeal, the need for more supporting infrastructure is a concern. Gazzaz highlights Saudi Arabia’s youthful, tech-savvy population’s keen interest in EVs and the push to address infrastructure needs directly.
Canalys expects the global EV market to grow by 27.1 percent in 2024, reaching 17.5 million units. These projections underscore a shift from ambitious concepts to practical realities, with EVs becoming integral to a sustainable and environmentally responsible future.