BEIJING, July 21 (TiPost)— The United Arab Emirates (UAE)’s ambitious target may encourage Chinese electric vehicle (EV) companies to ramp up their expansion in the Middle East, paving the way to a gold rush.

Credit：Visual China

The UAE aims to have 50% of all vehicles on its roads are electric ones by 2050, as part of the National Electric Vehicles Policy recently approved by the UAE Cabinet, Suhail Al Mazrouei, the Minister of Energy and Infrastructure, said last week. The official elaborated the new policy would support growth of the EV industry and help the country achieve its goal of reducing energy consumption by 40% and carbon emissions by 10 million tons. He said the cabinet plans to establish a nationwide network of EV charging stations.

Earlier this month, Dubai, one of UAE’s emirates unveiled its new effort to boost eco-friendly infrastructure. Dubai planned to increase EV charging station in the emirate from 370 to more than 1,000 stations in less than three years, expanding a network of public charging stations by 170% by 2025.

UAE was ranked the eighth in EV adoption in the world during 2022, according to the Global Electric Mobility Readiness Index 2022 compiled by Arthur D Little. The international consultant firm projected demand for EVs in UAE to grow at a compound annual rate of 30% from 2022 to 2028.

Emerging EV market is expected to change landscape of UAE’s auto industry in the coming two years, and new policies to bolster EV market also create opportunities for Chinese companies, commented the Global Times. The Chinese the state-backed newspaper cited achievements of domestic automakers made these years: Hongqi E-HS9 became the first full electric SUV model that the supercar fleet of Dubai Police adopted in last October ; Geely’s electric commercial unit Farizon received in late 2022 an order of 1,000 electric SuperVANs from Admiral Mobility, a leader of eMobility based in UAE; BYD launched ATTO 3, the first A-class SUV built on its brand new e-Platform 3.0, in UAE last month. ATTO 3, also known as Yuan PLUS launched in China, has been passed a series of high-temperature tests that BYD conducted to ensure optimal performance in the typical climate of UAE market.?

UAE capital also sought to find Chinese partners to explore huge opportunities for development of EV sector.? Nio Inc announced last month that it secured a new funding of US$1.1 billion from Abu Dhabi. CYVN Holdings L.L.C., an investment vehicle majority owned by the Abu Dhabi Government, agreed to subscribe 84,695,543 newly issued Class A ordinary shares for US$8.72 per share, suggesting an investment of US$738.5 million. CYVN also signed an agreement to purchase 40,137,614 Class A ordinary shares owned by an affiliate of Tencent, one of Nio’s existing shareholders. In addition, CYNV, focusing on advanced and smart mobility, agreed to jointly pursue opportunities in NIo’s international business.

The investment will further strengthen Nio’s balance sheet to power its continuous endeavors in accelerating business growth, driving technological innovations and building long-term competitiveness, William Li said. CYVN’s strategic investments in NIO are driven by its appreciation of its leading brand, innovative and premium products, and proven technological capabilities in the smart electric vehicle market, CYVN Chairman and Managing Director Jassem Al Zaabi said. He said his company is fully committed to providing strategic value that will support NIO’s international business growth.