New Green Vehicle Discounts and Incentives by the UAE Government

Abu Dhabi: There is no better time than today to seriously think of owning an electric vehicle in the UAE. The market is not just flooded with a variety of EVs across segments, price points, and greater bargains. It doesn’t end there; not only is the EV infrastructure growing rapidly, but the government is actively encouraging them by offering actual financial benefits. 

The reason is simple: like the rest of the world, the UAE government has set ambitious goals to electrify transportation. It aims to have half of all vehicles electric by 2050 across the country, which is a lot higher than where we are today. And to accomplish this rather tall order, the government has come up with several benefits, like full registration fee waivers and annual renewals for EVs, and a lot that help save significantly for owners over the years. 

Besides, EV owners get several benefits like toll fee exemptions, discounted charging at DEWA stations, and designated free parking zones. Similarly, banks offer lower-interest green loans, and utilities give a rebate for home charger installations. While no direct purchase rebates exist yet, the ongoing savings clearly make EV ownership in the UAE a smart choice financially and environmentally. 

Change in policy 

Here in the UAE, the push for higher adoption of EVs was gradual. As the government analyses the market trends and its objectives over a period of time, and then decides to come up with a structured policy. Once an ambitious target of 50% of all cars on the UAE roads should be electric by 2025 is set, the government got into action. That certainly is not something of an overnight step but rather a well-planned policy goal, and to achieve it, there was a need to address some structural initiatives, making them a priority. That means incentives. Real ones.

Saving On Registration Fees

EV owners get registration fee waivers, and this is huge for any prospective buyer, directly encouraging buyers to seriously consider an EV.  This is a full waiver in most cases. If you're buying a petrol car, registration is a huge cost to your entire budget. However, for an EV, you skip it entirely. Furthermore, when you renew your registration annually, you get the same break. Year after year. It's not a one-time thing.

The government has introduced a complete toll exemption for EV owners from Salik tolls in Dubai. If you drive into central Dubai or use toll roads, this adds up fast. This ran for a considerable time, but has now been withdrawn. However, EV owners continue to enjoy the Salik tag fee waiver. 

Green Charger Program

In Dubai city, the government agency, the Dubai Electricity and Water Authority (DEWA), has incentives like free charging at select stations under the EV Green Charger drive, which has been in practice since 2017 and continues to be extended by the government. The numbers reveal the real expansion and its impact. In 2022, Dubai's DEWA's network reached 400+ stations/740+ connectors by mid-2025, targeting 1,000 by year-end.

You can charge your car at designated stations without paying. It's not everywhere, specific locations, but if you work or live near one, it's a huge advantage. You're essentially getting free fuel. But there is a catch, which is to say that the charging speed is typically standard AC charging, not DC fast charging. Yet, it makes a lot of difference for daily top-ups. For quick road trips, you'd use paid fast chargers. But for regular use, free DEWA charging cuts your running costs dramatically.

Parking Benefits

Another benefit is that special parking spaces are reserved for EVs across key locations, which means a lot of convenience for users. Not just that, but in select Dubai zones, this parking is absolutely free. Remember, it is not necessarily free everywhere; some areas have limited-time free parking. But if you work in an area with free EV parking, you could save on parking fees daily. In Dubai, regular parking fees add up considerably to your expenses. Like, for example, if it's just AED 20-30 per day, that's AED 500-700 per month.

Ease of Finance

Since this is a government-driven initiative, all key institutions follow it with spirit. Like banks are competing for EV buyers, and a lot of them identify the trend and are offering special rates. The Abu Dhabi Commercial Bank offers loans with a discounted interest rate of 1.94%, a 50% reduction in the processing fee and money off financing of chargers and other accessories. 

Rakbank offers an interest rate of 2.79% plus a discount on insurance and flexible repayment plans. Dubai Islamic Bank gives a specific EVolve product, with rates from as low as 1.89%. Emirates NBD offers green auto loans up to AED 80,000. The first payment is also deferred 90 days, which helps with cash flow. If you compare that to regular car loans, typically 4-6% for petrol cars. You're looking at 1-4% lower rates for EVs. On an AED 60,000 loan over five years, that's a real difference. We're talking AED 1,000-2,000 in savings just on interest.

Yet, we recommend you check with each bank as these announcements are subject to changes. 

Home Charger

Another major aspect of EV ownership is installing a charger at home or the office. This is something key for buyers, and consists of costs. To ease this burden, some utility providers even offer rebates when you install an EV charger at home or in the office. This depends on the Emirate and utility provider, so you need to check with your local authority. But if you install a home charger, there's a chance you'll get some money back. Home charging is convenient. Not needing to go to a public station saves time and money. And if someone's offering rebates, you should take advantage of it.

Insurance Advantages

You also have a chance to save on your EV insurance, as companies are increasingly offering eco-discounts and custom packages for EV owners. These aren't always advertised as heavily as other incentives, but they're there. When you're shopping for insurance, ask specifically about EV discounts. Some insurers give you a percentage off just for owning an electric car.

What's Not Available

Looking at the above list, there is a lot that is covered under the incentives by the government, including free parking and registration fee waivers, but there are currently no direct subsidies or tax rebates on EV purchases, unlike some Western and Asian countries. You don't get money handed to you in the form of a check when you buy an EV. Also, there is no special deal where money is off at the sticker price. Other countries do this, like say Germany, Norway, France, but the UAE hasn't gone there yet. But maybe that is the next level of government program. What you get instead is savings over time, like registration waivers, toll exemptions, and cheaper charging. This makes a difference, but certainly not a discount on day one.

Incentives Help Save You?

Here is an informative table based on your example of buying a Tesla Model Y for AED 180,000 and keeping it for five years:

Incentive Component	Value Saved (AED)	Impact
Registration Fees Waived	7,500 - 10,000	AED 1,500-2,000/year waived
Free DEWA Charging	5,000 - 7,000	Charging 3 times/week at free stations
Parking Discounts	6,000 - 12,000	Free parking 20 days/month
Lower Loan Interest	2,000 - 3,000	Financing at 1.94% vs 4.5%
Total Incentive Value	20,500 - 23,500
Fuel Savings	Significant ( upto70% less fuel cost)	Not included in total, hugely impactful

How Cities Score

When it comes to the overall benefits of owning an EV, Dubai leads the way, and it is not a surprise at all. The government wants to make the city an example in higher adoption of greener vehicles by 2030. The Roads and Transport Authority (RTA), DEWA, and the Emirate government are the main players pushing incentives.

Likewise, Abu Dhabi is following suit with similar policies. Abu Dhabi and Sharjah are following suit with similar policies to accelerate zero-emission transport adoption. Some incentives are region-specific. Parking discounts in Dubai might not apply in Abu Dhabi. Toll exemptions in Dubai don't apply elsewhere. So check what's available in your emirate.

It is also worth noting that some incentives have been reduced or removed over time. Early free parking programs have been limited to certain periods. You need to check current eligibility when you buy. The government is also constantly adding new incentives. These governmental incentives are designed to encourage the use of green vehicles and include reduced registration fees, exemptions from toll fees, and parking discounts for electric and hybrid vehicles.

Conclusions

If you're someone on the fence or already booked or thinking about buying an EV, the financial case is stronger now than ever, no doubt about it. The way the government is backing EVs is serious, with a whole host of benefits to make a difference to the buyers. Simply put, make it attractive enough for the buyers so that they can consider it by reducing some key pain points and adding up to real savings.

As a clear intention in Emirates policies, as a buyer, you’re not getting a direct rebate on the purchase. But over time, your ownership cost is eased a lot. Along with this, if you consider the savings of up to 70% on fuel cost, it becomes an absolute no-brainer in owning an EV. The incentives make it even clearer.