Skip to content Skip to Search
Skip navigation

Gulf’s cheap petrol slows take-up of electric bikes

  • Middle East adoption slow
  • UAE wants 50% electric by 2050
  • 10,000 electric bikes sought

Almost 20 percent of the new cars sold this year are electric, according to the International Energy Agency, while e-bikes are becoming a familiar sight in cities around the world.

The Middle East is behind China, the US and Europe on mass adoption, despite the lower operating costs and lower emissions of electric vehicles (EVs).

Husam Zammar, founder of the Terra e-mobility startup in Dubai, points to one core reason: the Gulf’s cheap petrol.

“In our region, petrol prices are quite low compared to Europe,” he told AGBI. So, potential buyers don’t have the same impetus to go electric.

“When we meet new clients, we have to cut costs – and then talk about the environmental impacts,” he added.

Terra’s clients include restaurants, pharmacies and third-party logistics companies – and it is aiming to have 10,000 electric bikes on UAE roads next year.

There are around 92,000 delivery bikes in the Emirates right now, according to Zammar, and each petrol model emits approximately 10,203kg of CO2 per year. 

Government incentive programmes for buyers and users – as already seen in the UAE and Saudi Arabia – will get more EVs on roads across the region, he added.

Industry skills are also a challenge for Terra. “If we go to find EV engineers, the maximum we can find are ones with three or five years of experience because the industry is new,” Zammar said. 

Building the charging infrastructure is vital, too. A 2023 report by the US International Trade Administration has highlighted the UAE government’s “strong commitment” to promoting EVs and its “plan to develop a national ultra-fast EV charging corridor”.

This is aiming for a huge increase in the number of charging stations across the UAE by 2030 – from the 250 in Abu Dhabi and 350 in Dubai in 2022. 

“We need to have more,” Zammar said, in order to achieve the UAE’s target of 50 percent of all cars being electric by 2050. 

Ali Abdo, a world-record-breaking long-distance motorcyclist, used Terra’s electric bike to travel across the UAE’s seven emirates without stopping to charge. Watch the video to find out more

Latest articles

UAE’s RedBird IMI acquires UK TV producer for $1.5bn

RedBird IMI, A US investment management company partly owned by Abu Dhabi’s International Media Investments, has acquired All3Media, the UK’s largest independent TV production company behind hits such as Fleabag, The Traitors and Gogglebox. The for £1.15 billion ($1.5 billion) deal is the largest for RedBird IMI to date, the company said in a statement. […]

PIF's Starbucks shareholdings were cut almost by half from 6.3 million shares to 3.8 million

PIF slashes Starbucks stake as it cuts US stocks by $15bn

Saudi Arabia’s Public Investment Fund (PIF) has slashed its US equity holdings by 42 percent to $20.6 billion, including its stake in Starbucks, the global coffee chain that has suffered calls for a boycott as a result of the Gaza conflict. The latest US government data highlights funding challenges facing the Saudi giga-projects.  The filing […]

Tunisia olives

Soaring olive oil exports help Tunisia balance books

Tunisia’s soaring olive oil exports have almost doubled to close to $1 billion in just five months, helping it claw back its current account deficit.   However the increased revenues merely “paint over the cracks” and the country is still probably heading towards a sovereign default, according to an economic expert. Tunisia’s current account deficit narrowed […]

Iraqi prime minister Mohammed Shia Al-Sudani attends licensing rounds for 29 oil and gas exploration blocks at the oil ministry's headquarters in Baghdad

Falling oil prices deepen Iraq’s fiscal imbalances, says IMF

Iraq’s fiscal imbalances have worsened due to significant fiscal expansion and lower oil prices, according to the International Monetary Fund (IMF). “The ongoing fiscal expansion is expected to boost growth in 2024 at the expense of a further deterioration of fiscal and external accounts and Iraq’s vulnerability to oil price fluctuations,” the Washington-based fund said in […]