A slowdown in electric vehicle (EV) demand across China, Europe, and the United States is reshaping the global landscape. While mature markets lose momentum, the Gulf region is emerging as a powerful growth engine, supported by fresh model launches, expanding charging networks, and rising consumer confidence.
Why is EV supply shifting toward the Gulf?
Global manufacturing overcapacity has become an unexpected advantage for the Middle East. Automakers are redirecting excess supply to the United Arab Emirates (UAE) and Saudi Arabia, offering more models at competitive prices. According to commentators, this shift is unlocking latent demand and expanding consumer choice in both markets.
Roland Berger’s EV Charging Index 2025 names the UAE as the Gulf’s largest EV market in 2024, with nearly 24,000 electric and plug-in hybrid vehicles sold. Saudi Arabia followed with a tenfold sales increase to over 11,000 units. Across Qatar, the UAE, and Saudi Arabia, EV market share doubled from about 2% to around 4% in 2024.
Arvind CJ, Partner and Automotive Sector Lead at Roland Berger Middle East, noted that the slowdown elsewhere has “enabled automakers, especially Chinese brands, to make the Middle East a focal market” through sharper pricing and stronger product offerings.
Which brands are leading the charge?
Chinese manufacturers such as BYD, Geely, Chery, MG, and Deepal are accelerating regional expansion. They are opening new showrooms and partnering with distributors across Riyadh, Jeddah, Abu Dhabi, and Dubai.
Earlier barriers to adoption such as price, limited model range, and sparse charging infrastructure are now receding. Consumers in the Gulf, known for early tech adoption, are showing openness to new marques, reshaping the region’s dealership landscape.
How fast could adoption grow?
Analysts forecast EV penetration in the Gulf could reach 10–15% by 2030, led by the UAE and Saudi Arabia. This growth could accelerate with new government incentives such as tax breaks or rebates. Sovereign wealth funds are expected to play a wider role, not only through investment in EV makers but also in infrastructure companies, aligning with national mobility strategies.
How are infrastructure and regulation supporting growth?
Saudi Arabia’s rapid EV growth has been reinforced by regulatory improvements and streamlined certification processes. Demand is diversifying across government fleets, corporate buyers, and retail customers – an important sign of sustainable adoption.
Charging infrastructure is advancing quickly. Customer satisfaction rates are among the world’s highest, reaching 97% in Qatar, 95% in the UAE, and 94% in Saudi Arabia. Dubai alone has around 1,270 public chargers, while Abu Dhabi plans 500 by 2028. Saudi Arabia’s EVIQ, backed by the Public Investment Fund, targets 5,000 chargers across 1,000 sites by 2030.
What are Gulf drivers saying?
EVs are becoming part of daily mobility habits. Nearly half of Gulf drivers use their EVs every day or almost daily. Around one in three drives more than 20,000 kilometres a year, matching usage in mature European markets such as Norway and Germany.
Brand loyalty is strong. About 91% of Gulf EV owners intend for their next car to be electric, exceeding the global average of 87%. The UAE records the second-highest loyalty worldwide at 94%, just behind China’s 99%.
Purchase motivations differ by country. In Qatar and the UAE, lower running costs are the top driver. In Saudi Arabia, buyers are most attracted by advanced technology, followed by environmental benefits.
Where and how do Gulf drivers charge?
Charging habits show clear national patterns.
In Saudi Arabia, 62% of EV owners have home chargers. In the UAE, many rely on shared or semi-private facilities due to high-rise living. Qatar sits between the two.
Public charging also varies. UAE drivers favour retail centres, while Saudi drivers prefer highway and community parking chargers. In Qatar, highway and mall chargers dominate.
How do global headwinds affect Gulf momentum?
The Gulf surge contrasts with China’s first EV sales decline since 2020. BYD, the world’s largest EV maker, reported a 2.1% year-on-year fall in Q3 2025, selling 1.106 million vehicles between July and September. September sales alone dropped nearly 6%. The company has cut its 2025 target by up to 16% amid price pressure and market saturation.
Chinese manufacturers are now pivoting overseas. Between 2022 and 2024, outbound investment in the EV value chain by firms such as BYD, Geely, Chery, and Great Wall Motors averaged $30.4 billion per year, surpassing domestic levels for the first time.
However, new export controls from Beijing will require manufacturers to hold export permits from 2026. The rule aims to curb unregulated trade, improve quality oversight, and protect brand reputation abroad.
How is China’s export landscape changing?
China’s overall vehicle export growth is forecast to slow to 5.8% in 2025, compared with 19.3% in 2024, according to the China Association of Automobile Manufacturers. EV exports fell more than 10% last year, partly due to EU tariffs on Chinese models. Meanwhile, plug-in hybrid exports surged by 190%, as manufacturers redirected shipments to Europe to bypass tariffs.
What does this mean for the region?
The convergence of slowing global demand, new regulatory measures, and reallocated manufacturing capacity has created a window of opportunity for the Gulf.
For consumers in the UAE and Saudi Arabia, this shift translates into wider model availability, stronger pricing, and improved access to charging infrastructure. As regional policies and investments deepen, the Gulf is set to play a defining role in the global EV transition.
