Deal signed for development of Oman’s EV infrastructure

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Muscat – Oman Oil Marketing Company (OOMCO) on Sunday announced the execution of a binding Heads of Terms with Synergy Investment LLC to establish Electric Vehicles One (EVO).

EVO will be tasked with developing Oman’s electric vehicle infrastructure, OOMCO said in a disclosure submitted to the Muscat Stock Exchange.

‘The agreement was signed on July 3, 2023. A 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.

As per the company’s disclosure, the Heads of Terms establishes EVO’s business activities primarily in trading, installation, operation and maintenance of electric vehicle charging stations as well as other services and products that complement Oman’s electric vehicle ecosystem.

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

In line with Oman’s commitment to achieve net zero emissions by 2050, the sultanate plans to phase out fuel-operated vehicles and ensure that 79% of vehicles in the country by 2035 are electric. This was revealed during the Ministry of Transport, Communications and Information Technology’s annual media meeting held earlier this year (February) to unveil its plans for 2023.

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.

To support the large-scale adoption of EVs in Oman, the sultanate’s government is considering provision of incentives for electric vehicles with an objective to make them affordable for ordinary people while also decarbonising transport in the country.

In May this year, the Ministry of Transport, Communications and Information Technology (MTCIT) launched a special programme to reduce carbon emissions and reach net zero by 2050.

The programme includes a number of projects and initiatives in several sectors, one of these being the transport, communications and information technology sector, which accounts for nearly 20% of the total carbon emissions in Oman.

The Tax Authority recently announced that electric vehicles and EV parts will be exempt from value-added tax (VAT), customs tax and registration fee in the sultanate.

Simultaneously, the Authority for Public Services Regulation (APSR) has introduced a new regulation governing charging of electric vehicles.

As per its latest announcement, the Ministry of Transport, Communications and Information Technology (MTCIT) has already installed 90 charging stations across the sultanate in an effort to encourage adoption of electric vehicles (EVs) and reduce carbon emissions.