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UAE leads Gulf in EV readiness as ecosystem race accelerates, says Arthur D. Little

(L-R) Alexander Krug, Partner, Automotive & Manufacturing Goods Practice, Arthur D. Little | Dr. Philipp Seidel, Principal, Automotive & Manufacturing Goods Practice, Arthur D. Little | Joseph Salem, Partner and Middle East lead for the Travel, Transportation, and Hospitality practice, Arthur D. Little.
(L-R) Alexander Krug, Partner, Automotive & Manufacturing Goods Practice, Arthur D. Little | Dr. Philipp Seidel, Principal, Automotive & Manufacturing Goods Practice, Arthur D. Little | Joseph Salem, Partner and Middle East lead for the Travel, Transportation, and Hospitality practice, Arthur D. Little.

The 2026 Global Electric Mobility Readiness Index (GEMRIX) by Arthur D. Little highlights the UAE as the leading GCC market for electric vehicle adoption. The report shifts focus from vehicle technology to the importance of integrated ecosystems, including infrastructure and policy. While China and Norway have surpassed internal combustion engine parity, the UAE is progressing rapidly with expanded charging networks and a target of 50 per cent electric or hybrid vehicles by 2050.

The most comprehensive study of its kind, the third edition of GEMRIX assesses 31 markets across five dimensions: macro factors, EV market/competition, customer readiness, public charging infrastructure, total cost of ownership and regulation. A score of 100 indicates broad market-readiness parity between EVs and ICE vehicles.

The study highlights three global conclusions:

  • A small group has pulled ahead. China (106) and Norway (103) are the only markets above 100; Singapore (96) and the Netherlands (90) follow closely. Sustained adoption comes from aligned market conditions, not one silver bullet.
  • The transition is now multi-speed and multi-pathway. Growth has picked up in Europe, while Türkiye, Thailand, Vietnam, Indonesia and Brazil are gaining momentum through different combinations of affordability, infrastructure, industrial policy and local champions. Battery EVs will not scale at the same pace everywhere, and Plug-in Hybrid or Range extended EVs remain a bridge in several markets.
  • Competitiveness is shifting beyond the vehicle. China sets the benchmark by combining vehicle technology, manufacturing scale, battery/component supply chains, software-defined vehicle capabilities, charging rollout, energy economics, incentives and regulation. Chinese OEM expansion in emerging markets shows how ecosystem fit, affordability and speed can outweigh incumbent brand strength.

In the UAE, EVs reached around 9% of new vehicle sales in 2025, with BEVs accounting for around 6%-8% and PHEVs 2.5%. Charging infrastructure has expanded to approximately 2,800 charging points, including around 1,250 DC points and 350 high-power charging (HPC) units. The UAE is also pursuing ambitious long-term mobility goals, targeting 50% of vehicles on the road to be electric or hybrid by 2050, while Dubai targets more than 15% EV share in its vehicle fleet by 2030.

Alexander Krug, Partner, Automotive & Manufacturing Goods Practice, Arthur D. Little, comments: “The world will not become 100% electric at one speed or through one pathway; winners will read each ecosystem and act before the market opportunity is obvious.”

Joseph Salem, Partner and Middle East lead for the Travel, Transportation, and Hospitality practice, Arthur D. Little, comments:“The UAE’s position in GEMRIX 2026 reflects an EV market with growing visibility and a clear ecosystem direction. EV adoption is gaining momentum alongside continued investment in charging infrastructure and strong long-term mobility ambitions. The opportunity now is to keep aligning infrastructure, vehicle availability and customer needs to translate this momentum into broader market scale.”

Dr. Philipp Seidel, Principal, Automotive & Manufacturing Goods Practice, Arthur D. Little, adds: “The EV race is no longer just about vehicle technology. Chinese success shows what happens when product, manufacturing and supply chains, infrastructure, energy and policy are orchestrated as one system. Thanks to this, Chinese OEMs now increasingly dominate the global market through targeted export of not only vehicles but of full EV ecosystems.”

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