Oman focuses on electric vehicle infrastructure

MUSCAT: Oman government’s push for cleaner energy options has put the focus on the development of electric vehicle (EV) infrastructure.

On Monday, the EV infrastructure got a boost when Oman Oil Marketing Company (OOMCO), a subsidiary of OQ Group, announced a collaboration pact with Synergy Investments LLC to establish Electric Vehicles One (EVO). EVO will be a new entity focused on developing electric vehicle infrastructure, OOMCO said in a disclosure submitted to the Muscat Stock Exchange. The formal agreement, inked on July 3, 2023, marks a significant milestone in the advancement of electric mobility.

EVO’s core business activities will revolve around trading, installation, operation, and maintenance of cutting-edge electric vehicle charging stations. In addition, EVO will offer various ancillary services and products, designed to complement growing EV ecosystem. The joint venture is propelled by a shared vision to expand the EV market in Oman and drive the adoption of green energy solutions.

“The contribution of capital will be in kind and not cash, by way of asset transfer in accordance with an asset valuation report for both parties,” OOMCO said.

“We aim to expand in the electric vehicle market and encourage the use of green energy,” OOMCO added.

Earlier this year, the Ministry of Transport, Communications and Information Technology during its annual media briefing said that Oman is committed to achieve net zero emissions by 2050 and the Sultanate plans to phase out fuel-operated vehicles and ensure that 79 percent of vehicles in the country by 2035 are electric.

As per the ministry’s estimates, Oman will have at least 22,000 new electric vehicles (EV) on roads by 2040 and phase out all fossil fuel powered vehicles by 2050.

Also the government is considering ways to give incentives for electric vehicle owners. The Tax Authority had recently announced that electric vehicles and EV parts will be exempt from value-added tax (VAT), customs tax and registration fee in the Sultanate of Oman.

The Ministry of Transport, Communications and Information Technology has already installed more than 90 charging stations across the country in an effort to encourage adoption of electric vehicles (EVs) and reduce carbon emissions.

The ministry has developed a plan to install more than 140 charging stations by the end of 2023, and more than 350 EV charging stations by the end of 2026. Automobile sector promises to be one of the key areas where carbon emissions need to be reduced and in this regard, Oman had already announced the manufacturing of the first electric vehicle in the Sultanate in February 2022 with the launch of its debut model - the Mays iE1.