Opportunity for Localizing the EV Charging Manufacturing Industry in the UAE and the MENA Region
With the demand for electric vehicles (EVs) on the rise, the need for efficient and accessible charging infrastructure is becoming more crucial. Localizing the EV charging manufacturing industry presents a unique opportunity for economic growth, job creation, and sustainability in the UAE and the MENA region.
The UAE is expected to witness a significant surge in its electric vehicle charging infrastructure market, with a projected CAGR of over 14.31% during 2021-2026. This indicates the enormous potential for localizing the manufacturing of EV charging stations in the UAE, as the increasing demand for electric vehicles and charging stations is expected to offer profitable opportunities for growth in this market.
Additionally, the UAE government's target of having 42,000 EVs on the roads by 2030 has created a conducive environment for the growth of the EV industry in the country. As a result, local manufacturing capacity is expected to increase, thereby strengthening the UAE's position in the global market.
The drivers of the EV market
The UAE has already taken significant steps towards electrifying its transportation sector, with the aim of having 42,000 electric vehicles on the road by 2030. The country has also set up several initiatives to promote the use of EVs and even aims to have 10% of its government vehicles as electric.
Here are some of the key drivers of the EV market in the UAE:
Government incentives and policies: The UAE government is actively promoting the implementation of EVs through various policies and incentives such as waiving road tolls for EVs, offering free charging stations, and providing subsidies and tax exemptions for EV buyers.
Environmental concerns: The adoption of EVs is considered a key solution to reduce carbon emissions and improve air quality. As a result, many consumers in the UAE are opting for EVs as a more sustainable mode of transportation.
Technological advancements: The technology behind EVs has been rapidly improving in recent years, with longer battery ranges, faster charging times, and improved performance. These advancements have made EVs more practical and appealing to a wider range of consumers and have helped to overcome some of the early barriers.
Consumer awareness: Many car manufacturers have launched aggressive marketing campaigns to promote their EV models, showcasing the vehicles' high performance, advanced technology, and environmental benefits. Additionally, many dealerships have launched EV education campaigns, providing information about the technology, the environmental benefits, and the availability of charging infrastructure.
Efforts by companies in the sector
The Al Masaood Power Division has been at the forefront of driving electric vehicles (EV) in the country, actively involved in promoting sustainable mobility solutions, and has made significant investments in EV infrastructure.
One of Al Masaood Power Division's flagship projects is the SHAMS PLUS charging station network with over 300 charging points installed across the country. SHAMS PLUS is a fully fledged battery-charging system powered by solar energy that can top up vehicles in 25 minutes and has an extensive network of stations.
GreenParking, which is based in Dubai and specializes in the design, manufacture, and installation of EV charging stations. GreenParking has installed over 200 EV charging stations in the UAE and is expanding its operations to other countries in the region.
Another major player in the UAE's EV charging manufacturing industry is ABB, which has installed over 50 EV charging stations in the country. The company also provides charging solutions for electric buses and other large vehicles.
ChargePoint is another company that has entered the UAE market, having partnered with the Dubai Electricity and Water Authority (DEWA) to deploy 100 EV charging stations across the emirate of Dubai. ChargePoint is a global leader in EV charging solutions, with a presence in over 70 countries.
The journey ahead
The EV charging market in the MENA region is poised to reach $3.5 billion by 2025, creating more than 50,000 jobs.
To localize EV manufacturing in the UAE, it is crucial to establish R&D centers that focus on developing advanced EV technologies, improving manufacturing processes, and developing the skills of the local workforce through training programs and apprenticeships. The UAE government can develop a comprehensive strategy, encourage local investment, partner with foreign companies, invest in infrastructure, develop a skilled workforce, and establish local supply chains for EV components to promote the development of the industry.
These measures can help establish the UAE as a leader in the EV manufacturing industry, create new jobs for its citizens, and contribute to the development of a more sustainable economy.
Conclusion
The region is well-positioned to take advantage of this trend despite the challenges it faces, and with the right policies and investments, it can become a global leader in this field. I am positive that if the government and private investors work together, we will realize the full potential of this opportunity.