The electric vehicle market in the Middle East and North Africa is forecast to reach $14.5 billion by 2029, propelled by government incentives, expanding charging networks, and growing consumer demand, with the UAE and Saudi Arabia leading regional growth.
The electric vehicle (EV) market in the Middle East and North Africa (MENA) region is projected to experience significant growth over the next several years, with market valuations potentially doubling by the end of the decade. According to a recent report by BCC Research, the MENA EV market is expected to reach approximately $14.5 billion by 2029, reflecting a compound annual growth rate (CAGR) of just over 11% from 2024. The company said the forecast growth is underpinned by various factors including government policies, expanding infrastructure, and rising consumer interest in electric mobility.
Government incentives feature prominently as a driving force behind this expansion. Authorities across the region, notably in the UAE and Saudi Arabia, have introduced tax exemptions, subsidies, and tariff reductions aimed at making EVs more financially accessible. These measures are complemented by investments in local manufacturing and the development of charging networks, with Saudi Arabia highlighted for its commitment to establishing EV production facilities and growing the associated infrastructure. Corporate fleet electrification and the rise of EV adoption within ride-hailing services also contribute to this market momentum, reflecting broader sustainability efforts and operational cost savings.
This projected growth aligns broadly with other studies, although there are some variances in scale and pace. For example, another analysis foresees the wider MENA EV market climbing to nearly $19 billion by 2029 but at a more modest growth rate of around 6.7% annually. Battery electric vehicles (BEVs) specifically are also set to see rising revenue, with one estimate placing their market value at over $15 billion by 2029, supported by increasing unit sales approaching 240,000 vehicles. Within the Gulf Cooperation Council (GCC) countries, the BEV segment is forecasted to grow at a rate closer to 8.4%, reaching a market size of around $1.7 billion by 2029.
While these reports underscore a positive trajectory for the MENA EV market, some external insights suggest even more rapid expansion in the broader Middle East and Africa (MEA) region, where the market is expected to exceed $52 billion by 2030, driven by particularly vigorous growth in the UAE. This divergence illustrates the dynamic, evolving nature of the market landscape, influenced by factors such as regional policy differences, economic conditions, and infrastructural readiness.
Notably, the report excludes Turkiye from its MENA analysis due to its stronger economic and regulatory ties with Europe, showcasing how geographic classifications reflect distinct automotive industry environments. Turkiye’s alignment with European standards and its own domestic EV initiatives, featuring brands like Togg, differentiates it from the MENA region’s evolving market.
Overall, the anticipated expansion in MENA’s EV market suggests increasing opportunities for manufacturers, investors, and infrastructure developers, representing a shift towards lower-emission transportation options. However, the pace of adoption and market scale will likely vary across countries depending on local policies, market maturity, and consumer attitudes.
