Key findings, messages, and recommendations
Key finding
Cities are growing exponentially
By 2050, an estimated half of the countries in the Middle East and North Africa are projected to see their populations rise by 50 per cent or more from 2015 levels. Most of the growth will take place in cities. Traffic congestion caused by the very large numbers of cars in these large cities has material and measurable negative economic and health effects
Key message
Innovative technological transport solutions are needed
Accelerating adoption of electric-powered public transportation, electric micro-mobility and mobilityas-a-service (MaaS) will diminish the harmful effects on Arab region cities from the increased traffic, congestion and CO2 emissions that will otherwise accompany rising urban populations.
Recommendation
Adopt green urban mobility policies
Develop a national sustainable urban mobility policy in each country of the Arab region, with capacity-building support as needed, to shift car drivers to more efficient and noncarbon producing forms of transportation.
Key stakeholders
National policymakers, state and municipal government officials, private sector, civil society organizations, academia
Key finding
Some Arab countries are successfully deploying electric buses
Electric buses are in use or being piloted for fleetlevel deployments in Egypt, Morocco, Qatar, Tunisia and the United Arab Emirates. Jordan is developing plans to electrify its entire public vehicle fleet.
Key message
Interest is growing and should be incentivized
There is already wellestablished and growing interest that must be encouraged and incentivized in the Arab region in public transport fleets, especially buses, that are powered by electricity or other clean fuels.
Recommendation
Every country should set deadlines and define policies and legislation
Set national targets in every
Arab country for procuring
electric buses by 2025
and 2030.
Establish policies or
legislation that enable
transport systems at state
and municipal levels to use
innovative procurement
models for e-buses and rail.
Key stakeholders
National policymakers. State and municipal government officials, private sector.
Key finding
Banning internal combustion engine vehicles is effective
National bans on the production and sale of internal combustion engine (ICE) vehicles are highly effective in changing the direction of future stocks of cars and buses by influencing automotive manufacturers’ capital investment planning cycles and encouraging others to invest in alternative fuel infrastructure. To date no Arab country has joined the 25 countries that have set ICE vehicle phase-out targets.
Key message
Non-fiscal incentives mean resources can be redirected towards e-mobility
As subsidies become less necessary to promote consumer EV adoption, Arab Governments can prioritize effective non-fiscal incentives like banning ICE cars and buses. Resources can be redirected to investing in and promoting the complementary development of e-public transit, e-micro-mobility and MaaS ecosystems.
Recommendation
Phase out all ICE vehicles
Set ICE vehicle phaseout deadline mandates in all Arab region countries that include all buses and other vehicles in the public transportation sector.
Key stakeholders
National policymakers. State and municipal government officials, private sector.
Key finding
Electric micro-mobility is on the rise
Electric micro-mobility is emerging and growing in parts of the Arab region including large-scale government-funded e-scooter trials, investments in fleet deployments by major non-regional providers and launches of local start-ups.
Key message
GCC countries are at the forefront of the trend
To date in the Arab region, e-micro-mobility is taking off most and most quickly in the GCC, and especially the United Arab Emirates. Tax-based and other policy actions can enable expansion in some of the larger, denser and more congested cities in a number of other countries.
Recommendation
Restructure taxation to promote electric micro-mobility
Implement vehicle tax and vehicle insurance rationalization to promote electric two- and threewheel vehicle sales and usage.
Key stakeholders
National policymakers, state and municipal government officials.
Key finding
Government agencies are not effectively coordinating on mobility
Lack of clarity about responsibilities and jurisdictions among government agencies within cities, and differences in oversight approaches between different cities in the same country, are impeding the advancement of MaaS and putting at risk the ability to meet objectives of improving mobility, accessibility, equity and sustainability.
Key message
Public-private sector partnerships will allow for site-specific solutions
Public-private co-creation of high-level governance and regulatory frameworks for MaaS will enable customization of business models to local markets within broad requirements for assuring social good alongside private sector stakeholder objectives.
Recommendation
Institutionalize strong frameworks to ensure standardization
Develop national governance and policy frameworks for MaaS that regulators at state and municipal levels can align with for uniformity
Key stakeholders
National policymakers, state and municipal government officials, private sector
Key finding
The Arab region is behind in electric vehicle adoption
While growth projections are encouraging, currently the EV take-up in the Arab region lags well behind much of the rest of the world. In several countries in the region, there is growing interest and effort to begin developing automotive manufacturing and supply chain industrial capacity. However, there is concern that these efforts will be risky until e-mobility adoption advances in the Arab region.
Key message
Increased demand will promote business development
Greater demand in the Arab region for electric cars and other EVs could motivate local companies to start up or grow existing businesses across the automotive and broader mobility value chains. This will increase their confidence that otherwise potentially risky investments will produce growing returns. Governments can help stimulate that demand through a variety of policies, advancing the trend of e-mobility overall and growing local e-mobility industries.
Recommendation
Coherent policy frameworks will stimulate the market
Establish a coherent and consistent policy framework with clear strategic goals, incorporating economic, fiscal and other types of policy levers, to stimulate Arab markets for e-mobility and reduce investment risk for current and aspiring manufacturers and suppliers in the region.
Key stakeholders
National policymakers.
Key finding
Many Arab Governments are channeling support to the sector
Several Governments in the Arab region are supporting the development of local companies in the increasingly electric-powered automotive and broader mobility industries and their supply chains. Examples include the United Arab Emirates declaring the automotive industry an ideal long-term option for its industrialization strategy; Saudi Arabia through its National Industrial Development and Logistics; and Oman through its support of a local EV manufacturing start-up.
Key message
Incentives will boost the market
More Arab Governments incentivizing and supporting mobility sector industry development, through investment as well as taxation and other regulatory powers, will help accelerate and scale the region’s own adoption of EVs as well as serve economic diversification aims.
Recommendation
Support Arab e-mobility companies through strong policies and financing
Create and implement
systems of policy,
institutional, fiscal
and financial support
and incentives to Arab
companies in e-mobility
industrial supply
chain ecosystems.
Use vehicle import duties
and other automotive
trade regulations to
incentivize mobility
system manufacturers to
incorporate Arab suppliers in
their supply chain.
Key stakeholders
National policymakers, private sector.
Key finding
Modernization requires liberalized energy trading policies
Unidirectional smart charging (V1G) and the bidirectional V2G/V2X infrastructure and utilization that would enable e-mobility and facilitate Arab region renewable energy transition both require a power market structure and liberalized energy trading policy between EV owners and utilities that financially incentivizes owners to charge EVs during non-peakdemand hours.
Key message
Current power market structures are an obstacle
For all Arab countries, current power market structures slow progress on the transition to renewable energy and the advancement of e-mobility in the region. A path toward an e-mobility future that incorporates V2G when the technology is available at scale is even more challenging unless and until current power market structures change.
Recommendation
Reform energy market regulations
Revise legal, policy and regulatory frameworks to restructure power markets, increase private participation and develop multi-producer and multibuyer models.
Key stakeholders
National policymakers, state and municipal government officials, private sector.
Key finding
Tariffs and subsidies are holding back the power sector in the Arab region
The tariff structure that characterizes the Arab region power sector model, along with energy subsidies that constitute upward of 10 per cent of the region’s collective GDP, impede large-scale transition to variable renewable energy and a vehicle-to-grid (V2G) and vehicle-to-everything (V2X) e-mobility future.
Key message
Reform is needed to enable energy transition
Only when power sector reforms affecting tariffs and subsidies are implemented will Arab countries be able to operate the grids that they and other countries need for e-mobility to scale and to help enable the region’s energy transition.
Recommendation
Energy subsidies should be removed in due time
Eliminate the subsidies and implement time-of-use tariffs for electricity
Key stakeholders
National policymakers, state and municipal government officials, private sector.
Key finding
Increasing renewable energy generation capacity is key
Scaling the number of EVs of all types to fully gain all the climate change mitigation and other public benefits of e-mobility relies on actions outside the transport sector. This includes enabling significant increases in renewable electricity generation capacity and improvements in the reliable, dynamic distribution of electric power through the grids.
Key message
The lack of cohesive planning is an obstacle
If approached as a deliberate, integrated and mutually supportive objective of the transport, energy and environment sectors and ministries of Arab countries, the advancement and scaling of e-mobility can help facilitate the transition to renewable energy, smart grid modernization and the realization of numerous social and public health benefits.
Recommendation
Cooperate with financing bodies for comprehensive development
In each Arab country, form an e-mobility working group with a designated “national champion” to coordinate and integrate transportrelated, environment, energy, telecommunications and infrastructure policies for mutual benefit and promotion of mutually supportive renewable energy transition and e-mobility objectives.
Key stakeholders
National policymakers, state and municipal government officials, civil society organizations, academia.
Key finding
Interoperability in charging infrastructure is key
Interoperable charging infrastructure for EVs has demonstrated benefits in increasing user confidence and motivation to purchase EVs, promoting efficient capital investment, stimulating market competition, protecting infrastructure investments against obsolescence and enabling more optimal EVgrid integration.
Key message
Interoperability should be integrated at this developmental stage
The Arab region’s current very early stage of buildout of EV charging infrastructure presents an opportunity to prioritize interoperability before significant investment has been made. This will optimize the investment of public funds in transitioning mass transit systems to electric vehicles.
Recommendation
Set regulations to ensure interoperability in charging infrastructure
Establish national and regional standards requiring interoperability in charging infrastructure, especially for charging points deployed for public transit systems.
Key stakeholders
National policymakers, civil society organizations, academia.
Key finding
Digital skill development is being implemented in planning
Digitalization is heralding a new era in the automotive and broader mobility industry. Many countries in the region are emphasizing digital skill development in their near- and longer-term economic diversification planning and working to implement programmes in support of that objective.
Key message
Investing in employee training will be impactful across sectors
Investment in developing employees with advanced digital and other skills relevant for the e-mobility sector will be transferable to, and from, green economy and other sectors that will also be part of Arab countries’ economic diversification strategies and objectives.
Recommendation
Focus on developing skills relevant to the mobility sector
Emphasize mobility sector-relevant skills development in national and other education and training initiatives supporting economic diversification visions.
Key stakeholders
National policymakers, state and municipal government officials, private sector, civil society organizations, academia
Key finding
Integrated mobility systems are emerging but are not yet optimally connected
Public transport operators and governing authorities, with providers in the e-micro-mobility and MaaS sectors, are recognizing and acting on shared interests in creating integrated mobility ecosystems. Transit-oriented development initiatives are underway in the United Arab Emirates and Saudi Arabia. However, in most Arab cities that have micro-mobility and MaaS, they are not yet optimally connected to public transit.
Key message
Urban development should support integrated transport systems
Accelerating urban development that proactively designs for interconnections between electric-powered micromobility, MaaS and public transit has the potential to increase the returns on investment in all these mobility modes beyond their individual returns. Benefits will include increased economic productivity, increased social equity, reduced carbon footprint and others.
Recommendation
Prioritize government support that integrates mobility
Provide grants, loans and/or subsidies from appropriate levels of government and aid agencies, and explore multilateral development bank funding, for urban redevelopment projects that purposefully integrate public transportation, electric micro-mobility and MaaS.
Key stakeholders
National policymakers, state and municipal government officials, intergovernmental organizations.
Key finding
Informal transport is widely used and hard to regulate or modernize
In many Arab region cities, informal transport is the most common and widely used form of urban transit. The vehicles generate very large C02 emissions and other pollutants and will be difficult to integrate into any e-mobility pathway as the business model does not benefit from economies of scale or generate sufficient revenue to invest in innovations like EVs.
Key message
Poorly-managed formalization might harm livelihoods
Attempts to reduce informal transport through stricter regulations or competition from subsidized clean-power modes could be harmful to those making a living in this sector. Innovative financial incentives and other measures will be important to integrate the current informal sector into an e-mobility future.
Recommendation
Incentives and support can transform the sector
Provide financial and other support to impel informal transport sector operators to adopt EVs and integrate with public transit MaaS systems.
Key stakeholders
National policymakers, state and municipal government officials, civil society organizations, private sector.
Key finding
New manufacturers are emerging in the market
Global growth of electric mobility is spurring the emergence of new electric vehicle OEMs, including in the Arab region. It is expected that they will operate differently to traditional automotive OEMs with respect to where they situate their manufacturing and assembly plants and their allegiance to well-established suppliers at all tiers of the automotive supply chain
Key message
There is space for the establishment and/or growth of supply companies in the Arab region
The ongoing transformation of global supply chains in the mobility industry ecosystem are creating opportunities for new Tier 1, Tier 2 and Tier 3 suppliers if such supplier companies emerge in the Arab region to meet the demand. New EV OEMs will want to operate and have supplier networks more local to the markets they serve, including the Arab region market as it grows.
Recommendation
Global partnerships should be established
Prioritize creation of partner relationships with new and emerging EV manufacturers outside the Arab region.
Key stakeholders
Private sector.
Key finding
Development will require modernization across multiple sectors
Scaling the number of EVs of all types in the Arab region will require significant increases in variable renewable electricity generation capacity and improvements in the reliable, dynamic distribution of that power through electrical grids. Some of this investment is underway and planned but projects are lagging behind the need and face much difficulty gaining financing.
Key message
Advancing e-mobility can ignite integrated development
The advancement of e-mobility, the transition to renewable energy and electric grid modernization in the Arab region are inextricably linked from a practical standpoint, but not yet in financing or in related policy or implementation. This poses risks to e-mobility advancement and to renewable energy transition in the absence of significant help that many of the region’s countries will need to secure from external sources.
Recommendation
Coordinate policy reform across sectors
Work with multilateral development banks and other international development and climate finance institutions to secure concessional and blended finance for grid expansion and modernization projects.
Key stakeholders
National policymakers, intergovernmental organizations, private sector (finance sector).
Key finding
International models can provide examples of modernized transport systems
Models exist in China, India, Spain, and elsewhere that Arab mass public transit systems can emulate and adapt to become more renewables-based in their operations. This can help them to lay a foundation for renewables to become a larger component of their countries’ and the region’s overall energy mix.
Key message
Electric transport can accelerate progress towards renewable energy consumption
If systems are equipped with future V2G charging models, Arab region electric public transportation and MaaS providers could become a significant factor in grid stabilization and management and accelerate the use of renewable energy to power not only their vehicles, but also other sectors.
Recommendation
Offer incentives to boost transition towards e-mobility
Provide financial support or policy incentives to encourage transport service providers including MaaS providers to adopt V2Gcapable EV fleets and charge on beneficial schedules.
Key stakeholders
National policymakers, state and municipal government officials, private sector.
Key finding
Misperceptions about e-mobility are rife
There are considerable social and personal emotional misperceptions about and barriers to EV adoption in any future e-mobility pathway. These relate to concerns regarding vehicle costs, driving ranges, charging times, uncertainty about charging infrastructure, and other issues.
Key message
Trusted sources can combat misinformation
Increased and accurate information from authoritative sources can reduce misperceptions and misinformation about e-mobility as well as inform policymakers and other decision makers about legitimate problems with EVs and related infrastructure that can be resolved through regulatory, investment, technology development or other actions.
Recommendation
Targeted information campaigns should be launched
Develop and deploy communications campaigns that incorporate Arab region success stories and other means to overcome social and other barriers to EV adoption and V2G charging models and inform strategies for overcoming these barriers.
Key stakeholders
National policymakers, state and municipal government officials, civil society organizations, private sector, academia.
Key finding
Bidirectional charging infrastructure brings multisectoral benefits
Pilots and studies show that bidirectional V2G and V2X charging is capable of generating billions of dollars of value in forms including reducing the risk of grid overloading; reducing the need for utility infrastructure investment; maximizing the proportion of renewables in the energy generation mix; and enabling EV owners to help power homes and businesses and save money on their own energy consumption.
Key message
Appropriate infrastructure will support development
With appropriate grid modernization and power market restructuring, bidirectional charging could make EVs pivotal to a dynamic management of supply and demand that will help Arab countries’ grids integrate much more variable renewable energy into the region’s energy mix.
Recommendation
Incorporate bidirectional charging capacity into development plans
Ensure that grid modernization and expansion efforts incorporate technologies and operational and other steps necessary to enable bidirectional charging of EVs.
Key stakeholders
National policymakers, state and municipal government officials, private sector, intergovernmental organizations.
Key finding
There will be a rise in need for batteries and charging facilities
The demand for EV batteries will rise by a factor of 15 by 2030 – in the Arab region alone, the market will be more than $125 billion. Demand for EV charging stations will rise in tandem – conservative projections are for nearly 300 million charging points needed globally by 2040, requiring nearly $600 billion in investment.
Key message
Investment in the needed infrastructure will generate jobs
Investments by Arab region companies to develop capability and capacity to serve the immense battery and charging infrastructure markets have the potential to create more jobs than any other investments in the e-mobility industrial ecosystem. Actions by Arab Governments should support the creation and scaling of these companies with financial and other forms of policy intervention.
Recommendation
Focus investment in this arena of development
Prioritize the battery and charging station elements of the e-mobility supply chain as areas of focus for industry capacity development in the region.
Key stakeholders
National policymakers, private sector.
Key finding
The electric vehicle market is capable of catering to site-specific needs
Competition in EV markets for all types of EVs focuses largely on cost and range, but also on other features. Niche manufacturers are emerging with vehicles designed with niche market conditions in mind.
Key message
There is a large potential market to be served in the Arab region
Current and aspiring technology companies in the Arab region could focus on innovations optimized for local conditions and would have a substantial market to serve as well as opportunities in other highheat geographies outside the Middle East. Policies by Arab region Governments to financially and otherwise support would help local companies to thrive in a lucrative new e-mobility sub-sector.
Recommendation
Local technology companies should be supported
Focus on developing EVs and related technologies that are tailored to distinctive needs and conditions of the Arab region as high-potential niche markets.
Key stakeholders
National policymakers, private sector.