United arab emirates Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in united arab emirates, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Smart and Sustainable Mobility
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Overview

The UAE has been making significant progress in promoting smart and sustainable mobility as part of the country’s Net Zero by 2050 strategic initiative aiming to reach zero carbon emissions by 2050. One of the major initiatives taken by the UAE government is the promotion of electric vehicles (EVs). The country has set a target to have at least 10% of all vehicles on the road to be electric by 2030. To achieve this, the government has offered incentives such as free registration, free parking and reduced charging and toll fees for EVs. In addition to EVs, the UAE has also invested in other sustainable transportation modes such as buses and the Dubai Metro system that have significantly reduced the number of cars on the road.

The Dubai 2040 Urban Master Plan maps out a comprehensive plan for a sustainable urban development in Dubai. One of the key areas of focus in the Master Plan is sustainable mobility, as Dubai aspires to be a global sustainable transportation hub. The Dubai Future Foundation (DFF), a think tank and research organization that focuses on shaping the future of Dubai and the UAE, has a transportation and mobility program that focuses on developing innovative solutions and technologies to enhance transportation and mobility. The program includes various initiatives such as:

  • Dubai Autonomous Transportation Strategy: This strategy aims to have 25% of all transportation in Dubai be autonomous by 2030. This strategy aims to introduce autonomous vehicles across different modes of transportation including taxis and buses.
  • Smart Mobility: DFF is also developing smart transportation platform that integrates various modes of transportation and provide real-time information to passengers.

Abu Dhabi has also developed a comprehensive mobility strategy, known as the Abu Dhabi Surface Transport Master Plan (STMP), which aims to enhance the transportation system and improve the mobility experience. The STMP includes plans to expand the bus and metro network and introduce new modes of transportation such as water taxis and autonomous vehicles. In addition to EVs, Abu Dhabi is considering hydrogen-powered vehicles. 

Leading Sub-Sectors

There are many opportunities across segments of smart and sustainable mobility.

Electric Vehicles, Alternative Fuel Vehicles 

Dubai Roads and Transport Authority (RTA) successfully converted 50% of the Dubai taxi fleet into hybrid vehicles. It intends to convert the entire taxi fleet to hybrid and electric vehicles by 2027. By the end of Q1 2025, Dubai had approximately 39,000 EVs on the road, showing a growth of over 5% year-on-year. This supports Dubai’s Green Mobility Strategy 2030, mandating 30% of public sector vehicles and 10% of all vehicle sales to be electric and hybrid by 2030.

Abu Dhabi has made significant increases to the EV fleet. There are 10,013 EVs, 11,139 hybrid vehicles and 9,412 Condensate Natural Gas and natural gas vehicles by end of March 2024. However, with a total vehicle population of more than 1.2 million vehicles, EVs represent less than 1.3% of total vehicles, and hence there is significant room for additional growth. Abu Dhabi’s strong push targets 50% EV penetration by 2040 and a network of 70,000 chargers by 2030.

Hydrogen-Powered Vehicles

The UAE is exploring other transportation systems running on alternative fuels. The UAE cabinet approved a nationwide system for hydrogen vehicles, as the country is looking to increase production of blue and green variants of the fuel. In December 2019, it launched the trial run of the first hydrogen taxi in the Middle East.

The Integrated Transport Center of Abu Dhabi (ITC Abu Dhabi), Abu Dhabi transportation authority, is exploring and investigating opportunities of hydrogen fuel technology as part of a wider investigation into sustainable mobility. Hydrogen vehicle opportunities include government and non-government bus, truck, and taxi fleets.

EV Charging / Fueling Infrastructure

UAE has been developing EV charging infrastructure to support the growing use of EVs. The UAE is transitioning to environmentally friendly transport systems, with EVs, plug-in hybrid vehicles, and hybrids to account for 50%of total commercial vehicles, 70% electric buses and 40% trucks (plug in & hybrid) by 2050.

There are currently more than 620 charging stations in the UAE. Dubai Electricity and Water Authority has installed 382 green charging stations in Dubai and aims for 1,000 by 2025.  ADNOC Distribution, the UAE’s largest fuel distributor, has agreed with Abu Dhabi National Energy Company, one of UAE’s largest integrated utility companies, to build and operate 70,000 charging points in the Emirate of Abu Dhabi through their mobility joint venture, E2GO, by 2030.  

The Sharjah Roads and Transport Authority is working with BEEAH, a Sharjah-based sustainable technology group, for the deployment and operation of hundreds of EV chargers across the Emirate of Sharjah. The Ministry of Energy and Infrastructure is also looking to establish fast charging stations on the borders between Saudi Arabia and Oman to facilitate cross-border movement of EVs.

To support this transition to sustainable mobility, the UAE government announced the National Electric Vehicles Policy in August 2023. The Policy aims to foster collaboration with federal and local partners as well as the private sector to establish a national network of EV chargers throughout the UAE. The policy seeks to unify the EV charging infrastructure standards and determine the price of EV charging service at public charging stations. It also aims at developing the legislative and technical framework for recycling EV batteries. The policy will allow private companies to build charging stations and charge consumers for electricity.

Dubai has introduced its Green Building Regulations and Specifications for new buildings, through Dubai Municipality, which specifies that 5% of parking spaces should be dedicated to green or low emission vehicles. Additionally, the Dubai Building Code provides guidelines and requirements for electric vehicle charging points in Dubai.

ADNOC Distribution, the UAE’s largest fuel distributor, signed an agreement with Abu Dhabi National Energy Company (TAQA), one of the largest integrated utility companies in the EMEA region, to work together to establish a mobility joint venture, E2GO, to build and operate electric vehicle charging infrastructure in Abu Dhabi and the wider UAE.

Hydrogen Fueling Stations

Dubai’s DEWA and Emirates National Oil Company Group (ENOC), Dubai’s integrated oil and gas company, have teamed up to develop hydrogen fueling stations for vehicles in the UAE. DEWA and ENOC will conduct a joint feasibility study for the establishment, development, and operation of a pilot project for the use of hydrogen in mobility. The project will use DEWA’s existing green hydrogen production facility at the Mohammed bin Rashid Al Maktoum Solar Park and ENOC’s knowledge of the fuel market to build a hydrogen fueling station.

Abu Dhabi National Oil Company (ADNOC) and Masdar, the Abu Dhabi-based renewable energy giant, are also partnering to build hydrogen stations. Masdar aims to produce up to one million tons of green hydrogen per year by 2030.

Intelligent Transportation Systems (ITS)

The UAE is investing in ITS technologies, including intelligent traffic management systems and dynamic pricing for toll roads, to improve the efficiency of transportation networks and reduce congestion. The UAE has also invested in smart road infrastructure to improve transportation efficiency and safety. RTA has launched several initiatives such as the Smart Traffic System, which uses real-time data to manage traffic flow, and the Smart Signaling System, which adjusts traffic signals based on traffic conditions.

Autonomous Vehicles (AVs)

The UAE is also exploring the use of autonomous vehicles. Dubai has a Self-Driving Transport Strategy that aims at converting 25% of total trips in Dubai into self-driving transport trips across different modes of transport by 2030. RTA has plans to introduce 4,000 autonomous vehicles for taxi services by 2030. ITC Abu Dhabi is also developing its Autonomous Vehicle regulatory framework and a road map which incorporates all types of AVs into Abu Dhabi’s transport system. Obtaining permission to map the roads in the UAE can be a challenge because of requirements to store data locally and restrictions on taking photographs of government and military buildings.

Opportunities

  • Electric and hydrogen-fueled vehicles, including cars, trucks and buses.
  • Clean marine transport technologies, including for passengers and cargo.
  • Charging/fueling infrastructure for electric and hydrogen vehicles.
  • Alternative fuels including biofuels and hydrogen.
  • Intelligent transportation systems.
  • Safety technologies.

Resources

Trade Shows & Exhibitions
Please contact us for additional information regarding trade shows, U.S. pavilions, and export promotion services that may be available for U.S. companies.
Dubai World Congress for Self-Driving Transport
Date: September 24-25, 2025
Venue: Dubai World Trade Center, Dubai, UAE

Electric Vehicle Innovation Summit
Date: June 29-30, 2026
Venue: ADNEC, Abu Dhabi, UAE

Custom Show Emirates
Date: March 2026 TBC
Venue: Expo City, Dubai, UAE

Dubai International Boat Show
Date: April 8-12, 2026
Venue: Dubai Harbor, Dubai, UAE