Middle East EV Market Surges 40% as Saudi Arabia Takes the Lead

Electric vehicle sales in the Middle East jumped 40% in 2025, reaching around 75,000 units, according to a new report from the International Energy Agency. Saudi Arabia is emerging as the region’s driving force, fueled by Vision 2030 investments and local manufacturing.

The Kingdom and Qatar together accounted for roughly 45% of regional EV demand. While the UAE remains the largest single market (nearly 50% of sales), its share has dropped from over 60% in 2023 as neighboring markets gain momentum.

Saudi Arabia is aggressively building domestic EV production. Lucid Motors is expanding its AMP‑2 facility in King Abdullah Economic City to a target of 150,000 units annually. The homegrown Ceer brand, a joint venture between the Public Investment Fund and Foxconn, plans to produce up to 240,000 vehicles per year by late 2026.

Chinese automaker BYD has rapidly captured about 60% of regional EV sales, up from zero in 2022, while Tesla’s share has fallen to around 15%. Charging infrastructure is also expanding. In Saudi Arabia, the Eviq joint venture aims to install 5,000 fast chargers by 2030.

Globally, EV sales hit 20 million in 2025, with 2026 expected to reach 23 million — close to 30% of all cars sold worldwide. The IEA’s Fatih Birol noted that falling battery prices and policy responses to the current energy crisis will provide further momentum.

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