New report explores five gaps in the EV financing architecture and highlights the potential for Gulf sovereign capital to catalyze investment across emerging markets
Dubai, UAE, October 6, 2026 – The Future Investment Initiative (FII) Institute and Arthur D. Little (ADL) have launched “E-Mobility Transition: Global EV Financing,” a report examining how better financing mechanisms can support the next phase of electric vehicle (EV) adoption.
The report identifies five interlocking gaps preventing available capital from translating into EV deployment at the required pace: consumer finance, charging infrastructure, risk sharing, supply-chain concentration, and sovereign capital deployment.
The report builds on FII Institute’s broader work exploring sustainable growth, emerging market development, and the future of investment systems, with a focus on how capital can be mobilized more effectively to address global challenges and accelerate economic transformation.
HRH Princess Dr. Maha bint Mishari bin Abdulaziz Al Saud, Chief Executive Officer of FII Institute, said: “The global EV transition has reached a point where access to appropriate financing is becoming as important as access to technology. The opportunity now is to use capital more effectively – bringing together sovereign investors, development institutions and private capital to create structures capable of supporting investment at scale, particularly across emerging markets.”
Joseph Salem, Partner and Travel, Transportation & Hospitality Practice Lead, Arthur D. Little Middle East, said: “Our analysis suggests that the EV transition does not primarily require new pools of capital; it requires better mechanisms for deploying the capital that already exists. The Gulf has several of the ingredients needed to help bridge that gap – patient capital, industrial investment and logistics capabilities. Connecting those strengths with appropriate risk-sharing and financing structures could help make EV investment across emerging markets more scalable and commercially investable.”
Key takeaways from the report:
- EV sales are growing as costs fall. More than 20 million electric cars were sold globally in 2025, accounting for one in four new cars. Battery pack prices fell 8% to approximately USD 108 per kilowatt-hour, while nearly 70% of battery electric cars sold in China were cheaper than the average conventional car.
- Emerging markets are advancing, but investment remains uneven. EVs accounted for roughly 40% of new car sales in Vietnam and 25% in Thailand in 2025, compared with around 10% in the United States. Emerging market and developing economies excluding China represent around two-thirds of the world’s population but receive less than 30% of global energy investment across the wider energy system.
- Access to finance remains a barrier. Around 1.3 billion adults worldwide lack a financial account. Scaling asset-based lending and addressing refinancing constraints could help households and fleet operators access EV credit.
- Charging infrastructure requires substantial capital. More than USD 524 billion in cumulative charging investment may be needed through 2035. Underwriting early charging demand could help attract investors.
- Targeted guarantees can support deployment at scale. India’s approximately USD 412 million Payment Security Mechanism protects electric bus operators against payment default by state transport authorities, supporting a program targeting more than 38,000 electric buses.
- Coordinated financing could unlock commercial funding. The report proposes combining guarantees, first-loss capital, local-currency protection and industrial partnerships through an integrated platform focused on vehicle and charging credit.
