From Oil to Electricity: the GCC’s Path to Renewable Energy and Electric Mobility
The article authored by Zeeshan Sami Khan, Consultant at PTR Inc. and Abdullah Shakil, Analyst at PTR Inc. elucidates the transition of Gulf Cooperation Council (GCC) countries from fossil fuel-based economies to renewable energy and electric mobility. Economic diversification and climate change are key drivers of this transition, prompting the GCC to set renewable energy targets and introduce policies to reduce carbon emissions, particularly in the transportation sector. The article highlights initiatives and targets set by countries like the UAE, Saudi Arabia, and Kuwait, as well as economic diversification efforts outlined in Saudi Vision 2030 and Abu Dhabi Economic Vision 2030. Ambitious targets like the UAE’s 44% clean energy by 2050 and Saudi Arabia’s 50% renewable electricity by 2030 highlight their determination. New electric vehicle (EV) adoption policies have been introduced, leading to significant manufacturing efforts in Saudi Arabia, including initiatives by Ceer and Lucid Motors. These efforts have propelled the EV industry forward, with passenger EV sales growing by nearly 200% in 2022 and 46.5% in 2023. The bus segment notably leads in EV adoption, comprising 11.5% of total bus sales. Forecasts indicate substantial growth in the EV market, with passenger EVs expected to grow at a CAGR of 24.4% till 2030, and electric light commercial vehicles projected to grow at a CAGR of 89.0%. The progress made in Saudi Arabia, UAE, and the broader GCC region indicates well for the future of battery and plug-in electric vehicles, reflecting a positive outlook for more eco-friendly and efficient public transportation networks as sustainability becomes a priority for governments and cities.


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