ABU DHABI // Electric and hybrid vehicles would be adopted faster if there were government subsidies, the right charging infrastructure and a well-developed battery technology, experts have said.
A desire to improve air quality and protect the environment by reducing greenhouse gas emissions is the motivation for governments in the region to adopt such vehicles, said Akin Adamson, the Middle East regional director at British consultancy Transport Research Laboratory.
“There are a number of challenges that need to be overcome before we see mainstream adoption of electric vehicles in the UAE,” he said.
“[Electric] vehicles are currently too expensive unless supported by government subsidies, so pricing needs to reduce significantly. This could, for example, be considered alongside discouraging the use of more polluting vehicles.”
Ultra-low emission vehicles provide an attractive option for reducing pollution and improving air quality, said Mr Adamson.
“For private vehicles, plug-in hybrids are a good alternative that deliver clean driving in cities over relatively short journeys, and are able to undertake longer journeys in hybrid mode,” he said. The UAE has launched a raft of initiatives to boost the use of electric and hybrid cars as part of its efforts to support a green economy and sustainable development.
Dubai Electric and Water Authority has installed 100 electric-vehicle charging stations so far, its chief Saeed Al Tayer told the World Government Summit last month.
“We need to ensure that we have the right type of charging infrastructure in the right locations and in the right quantities,” Mr Adamson said.
Dubai's Roads and Transport Authority had also announced that half the emirate's cabs would be hybrid cars by 2021.
Toyota's Camry hybrid vehicles are being used by Cars Taxi in Dubai and Abu Dhabi, and Taxi regulator TransAD, in partnership with Cars Taxi and Al Futtaim Motors, added 55 new hybrid to its fleet in 2014.
Last month, the Department of Transport in Abu Dhabi opened a high-tech car park that included recharging points for electric and hybrid vehicles.
Car makers BMW, Lexus and Nissan have hybrid models available here, and fully electric cars are being tested.
Mr Adamson, who is one of the speakers at the three-day Solar Middle East event in Dubai that begins on Tuesday, said these were “steps in the right direction”.
Regulations should be in place to ensure there are adequate measures to validate electric vehicles’ performance and emissions, crash worthiness and maintenance, he said.
An overriding concern is that the range — the distance covered by a fully charged battery — of an electric vehicle is not high enough.
A combination of a well-thought-out charging infrastructure and encouraging the use of vehicles with a longer range is needed.
“Battery technology is still not developed to compare favourably with conventionally powered vehicles,” Mr Adamson said.
“There is also the matter of air-conditioning that is an added drain on electric vehicle batteries, and battery performance in general, in very hot operating environments.”
However, Saif binAdhed, an Emirati who owns two Nissan Patrols, an Acura NSX, a Lexus SC300 and a BMW Z4, does not see himself buying an eco-friendly electric car anytime soon.
“Electric cars are overpriced and the electric car that I’m looking for is not available here,” he said.
“Why will I buy an overpriced car just because it’s electric? Fuel prices are dropping every month so why bother switching to an electric car? Also, many are concerned about the charging time.”
A charge can take between 2 to 4 or 6 to 8 hours. Fast charging stations that will take just 30 minutes to charge will be added at petrol stations in phase two of the project, according to Dewa.
rruiz@thenational.ae
How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
- The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
- The Cadbury Creme Egg contains 26g of sugar per 40g egg
Drivers’ championship standings after Singapore:
1. Lewis Hamilton, Mercedes - 263
2. Sebastian Vettel, Ferrari - 235
3. Valtteri Bottas, Mercedes - 212
4. Daniel Ricciardo, Red Bull - 162
5. Kimi Raikkonen, Ferrari - 138
6. Sergio Perez, Force India - 68
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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