FII Institute and Arthur D. Little Identify Five Gaps in Global Electric Vehicle Financing

The Future Investment Initiative (FII) Institute and Arthur D. Little have released a report titled "Transitioning to Electric Mobility: Global Electric Vehicle Financing," which examines the role of financing mechanisms in supporting the next phase of electric vehicle proliferation and the potential of Gulf sovereign capital to stimulate investment in emerging markets.
The report identifies five interconnected gaps hindering the deployment of available capital to accelerate the spread of electric vehicles, including consumer financing, charging infrastructure, risk-sharing, supply chain concentration, and the employment of sovereign capital.
This report is part of the FII Institute's efforts to explore sustainable growth, develop emerging markets, and envision the future of investment systems, with a focus on mobilizing capital more effectively to address global challenges and accelerate economic transformation.
Her Royal Highness Princess Dr. Maha bint Mishari bin Abdulaziz, CEO of the FII Institute, emphasized that the global shift to electric vehicles has reached a stage where access to appropriate financing is as crucial as access to technology. She highlighted the opportunity to deploy capital more effectively by bringing together sovereign investors, development institutions, and private capital to create structures capable of supporting large-scale investment, particularly in emerging markets.
Joseph Salem, Partner and Head of Travel, Transportation, and Hospitality Practice at Arthur D. Little in the Middle East, explained that the analysis indicates a need for better mechanisms to employ existing capital in the transition to electric vehicles. He noted that the Gulf region possesses elements that can help bridge this gap, including long-term capital, industrial investment, and logistical capabilities, and that linking these advantages with suitable financing and risk-sharing structures enhances the investment viability of electric vehicles in emerging markets for expansion and commercial feasibility.
According to the report, global electric vehicle sales surpassed 20 million vehicles in 2025, equivalent to one in four new cars, while battery pack prices dropped by 8% to around USD 108 per kilowatt-hour. Approximately 70% of battery-operated electric vehicles sold in China were priced below the average conventional car price.
The report noted that electric vehicles accounted for about 40% of new car sales in Vietnam and 25% in Thailand in 2025, compared to about 10% in the United States, highlighting that emerging and developing economies, excluding China, comprise about two-thirds of the world's population but attract less than 30% of global energy investments.
Regarding consumer financing, the report pointed out that approximately 1.3 billion adults worldwide lack a financial account, indicating that expanding asset-based lending and addressing refinancing constraints could help households and fleet operators access the necessary credit to purchase electric vehicles.
The report estimated that charging infrastructure might require cumulative investments exceeding USD 524 billion by 2035, noting that ensuring early demand for charging services could attract investors.
The report reviewed the role of targeted guarantees in supporting the spread of electric vehicles, including a USD 412 million repayment guarantee mechanism in India that protects electric bus operators from state transport authorities' payment defaults, supporting a program targeting over 38,000 electric buses.
The report proposed combining guarantees with dedicated capital to cover initial losses, protection against local currency fluctuations, and industrial partnerships within an integrated platform focused on vehicle and charging credit, opening the door to commercial financing and supporting expansion in emerging markets.