Led by national strategies, Middle Eastern countries provide comprehensive policy support for the cross-border development of new energy vehicles (NEVs) through four major areas: purchase subsidies, tax reductions, infrastructure support, and industrial investment, making the region a key growth market for Chinese automakers expanding overseas.
1. Direct Purchase Subsidies
- UAE: Offers a 6%–10% subsidy on the vehicle price, plus an extra 5% for first-time buyers; fuel car replacement subsidies can reach up to 15,000 AED.
- Saudi Arabia: Provides cash subsidies for NEV purchases; license plate fees are 50% lower than for gasoline cars.
2. Full-Chain Tax Exemptions & Reductions
- The UAE exempts EVs from purchase tax, registration fees, tolls, and charging service fees.
- Many countries impose zero import tariffs on electric vehicles and core components such as batteries and motors.
- Local manufacturers enjoy corporate income tax incentives.
3. Strong Support for Charging Infrastructure
- Saudi Arabia subsidizes 50% of home charging station installation costs.
- Dubai subsidizes 30% of equipment costs for public charging points, with an extra 15,000 USD for fast chargers; it plans to build 10,000 charging stations by 2030.
4. Industrial Investment & Government Procurement
- Saudi Arabia plans to invest $50 billion over 10 years to build local production capacity and cooperate with Chinese automakers on manufacturing projects.
- The UAE and Qatar are electrifying government fleets. During the World Cup, Qatar purchased over 1,000 Chinese electric buses for public transport.
- These policies have significantly reduced the cost of buying and operating electric vehicles, improved the supporting ecosystem, and driven the Middle East to become a high-growth export market for Chinese new energy vehicles.
Ontask Express focuses on the Saudi special line, providing customers with efficient and reliable Saudi cargo, with a focus on the Middle East region. With overseas warehouses in Jeddah and Riyadh, along with a self-managed Chinese delivery team, we empower Chinese products to go global and benefit all humanity!