Inayat-ur-Rahman, Business Editor

The UAE’s transformation into an electric vehicle hub is a testament to its commitment to sustainability and reducing carbon emissions. Through government initiatives, infrastructure development, and attractive incentives, the country is successfully encouraging the adoption of electric vehicles.

According to a market research report, the UAE EV market is expected to grow at a CAGR of around 28.5 per cent during 2023-28 period.

The rise of electric cars in the UAE is driven by a combination of government incentives, environmental awareness, and the increasing availability of charging infrastructure. With the development of a robust charging network, the UAE is overcoming range anxiety and encouraging EV adoption.

Dubai is setting its sights on a bold and ambitious goal: to have a whopping 42,000 electric cars humming along its roads by 2030. The region is revving up efforts to steer everyone towards a greener and more environmentally friendly option - electric vehicles, or EVs for short.

Mohammed Aasim Rajik, the Chairman of Masari Atlantis Investments held an investment agreement ceremony in Dubai on Thursday. He announced plans to establish a CEVO Mobility electric vehicle factory in the UAE in 2024 with a €100 million investment.

In order to lead the future electric vehicle market, Masari Atlantis Investments LLC signed an investment contract with the South Korean electric vehicle company CEVO Mobility to establish EV development plant for 4-seater which can be converted into multipurpose vehicle like trucks, commercial vehicle for urban logistics and delivery markets and high profile electric handmade custom order sports car and production in Dubai.

The Middle Eastern countries can provide stable energy supply, reducing the energy costs necessary for electric vehicle production. The Middle East region is strategically located for convenient logistics and transportation connections to the global market. With increasing interest in environmental protection and eco-friendly mobility, the demand for electric vehicles is expected to rise, driving growth in the electric vehicle market. The annual car sales volume in the Middle East, including the UAE, reaches 3 to 4 million units, and the UAE government is implementing strong policies to foster this.

As a result, Masari Atlantis Investments has made the strategic decision to produce electric vehicles in the Middle East.

South Korean micro electric vehicle company CEVO Mobility launched the two-seater micro electric vehicle ‘CEVO-C’ in 2019 and is a company with high growth potential in the electric vehicle sector. With extensive support from the UAE, they will establish a development plant and electric vehicle manufacturing factory in Dubai. This factory aims to produce 20,000 electric vehicles annually on a 200,000-square-meter site, targeting the first production in 2025.

Currently, Tesla and Hyundai lead the electric vehicle market, but CEVO Mobility holds high growth potential in the electric vehicle market. CEVO Mobility leads the South Korean micro electric vehicle market with its small electric vehicle “CEVO-C” and enjoys high demand in Africa and Indonesia.

United Arab Emirates, affordable labor, and tax benefits, CEVO Mobility can secure competitive pricing. Additionally, by developing various models including four-seater electric cars, five-seater hatchbacks, and electric school buses, in addition to existing models, they aim to meet demand in various countries and easily expand globally to regions such as the Middle East, Africa, India, ASEAN, Europe, and Central Asia, leveraging the geographic advantage of the UAE as a hub for electric vehicles in the Middle East utilizing economic advantages and extensive support from the United Arab Emirates.

Manoj Edakkadavath, the MD of Masari Investments Limited, stated, “The excellent technological capabilities of South Korea combined with the financial strength and strategic location of UAE will lead to rapid growth in the electric vehicle industry in the UAE and the Middle East region. It is expected to contribute to elevating the national image by making the UAE a hub for electric vehicle production in the Middle East.”

Mohammed Aasim Rajik is the President & Chairman of Masari Investments Ltd, based in British Columbia, Canada and is the investment company, while Atlantis Wide and Petro Trading LLC, based in Dubai, UAE, is a company trading oil and gas, serving as a cooperative partner for oil refineries in the GCC. These two companies jointly established Masari Atlantis Investments LLC to invest in energy, gas, and electric vehicle industries in the UAE.

Meanwhile, the BMI-Fitch report holds a bullish outlook on the power sector, with analysts anticipating that the UAE will reach its 2030 target for 14GW of clean generation capacity. “Currently, we forecast nuclear capacity to rise from 4,143MW in 2023, to 5,524MW in 2030. Non-hydropower renewables will rise from 2,659MW to 7,962MW over the same period, totalling 13.5GW overall.”