The UAE has inked a deal with Shahin, an Abu Dhabi-based firm set up by GCC-based NEV Enterprise, to create, manage, and operate an electric vehicle charging station factory in the nation in order to meet the rising demand for EV infrastructure.
According to the Ministry of Industry and Advanced Technology, Shahin plans to fulfil 40% of the UAE's "direct current" charging needs by 2030, as the Arab world's second-largest economy strives to reach net zero by 2050. Through pre-negotiated offtake contracts, the plant will create EV charging infrastructure.
Tariq Al Hashimi, the ministry's director of technology adoption and development, stated, "this relationship will significantly advance our decarbonization and sustainability agendas by actively assisting in the creation of a strong EV ecosystem and fostering local and cutting-edge technology-driven economic growth."
From 2022 to 2028, the UAE's demand for EVs is expected to increase at a compound annual rate of 30%, according to the worldwide electric mobility readiness index released last year. In terms of preparation for electric mobility, the nation was placed eighth in the world by consulting firm Arthur D. Little.
According to the UAE's Minister of Energy and Infrastructure, sales of electric vehicles are rising quickly, accounting for over 1% of the nation's total automobile market.
"This is just the tip of the iceberg. "With aggressive competition from Europe, the US, and also from China, South Korea, Japan, and others, the options for those who want to own an EV have increased significantly," Suhail Al Mazrouei told participants at the Electric Vehicle Innovation Summit in Abu Dhabi.
In the last three years, the Emirates has expanded the number of charging stations in the nation by around 60% to 800, according to Mr Al Mazrouei.
According to MoIAT's original contract with Shahin, the business will also concentrate on R&D in collaboration with regional universities, which will help localise products and software and open doors for young Emirati talent by way of apprenticeships and employment.
According to Ramzi Kuhail, CEO of NEV Enterprise, "this partnership establishes the UAE as a regional leader in the development and manufacture of state-of-the-art EV charging infrastructure, marking a critical turning point in the nation's transition to a greener future."
The International Energy Agency predicts that government subsidies and the tightening of carbon dioxide emissions limits will contribute to a 35% global increase in sales of electric cars this year.
The Paris-based group predicted in its April Global Electric Vehicle Outlook that sales of electric cars will increase to 14 million this year from 10 million the previous year.