The Ministry of Industry and Advanced Technology (MoIAT) has signed a Letter of Intent (LoI) with Shahin, a new company in the process of setting up in Abu Dhabi by NEV Enterprise, a prominent GCC establishment, in a move towards sustainable industrial development and promoting electric mobility.

The LoI, signed at the Make it in the Emirates Forum, underlines the country’s commitment to decarbonisation and increasing the contribution of the industrial sector to climate action and economic growth.

The LoI represents a strategic partnership focused on the development, maintenance, and operation of a charging station factory in the UAE, the first-of-it-kind in the region, catering to the growing demand locally and regionally for electric vehicle (EV) charging infrastructure through pre-negotiated offtake contracts.

According to the Global Electric Mobility Readiness Index (2022), the demand for EVs in the UAE market has been rising over the past few years and is projected to expand at a compound annual growth rate of 30 per cent between 2022 and 2028.

The report shows the UAE, which has more than 300 charging stations, has one of the largest charging-station-to-vehicle-ratios in the world.

The LoI marks a major step towards the future of the UAE’s sustainable transport infrastructure in line with the country’s Net Zero by 2050 Strategic Initiative with Shahin aiming to meet 40 per cent of the UAE’s Direct Current (DC) charging demand by 2030. The signing ceremony was witnessed by Sarah Al Amiri, Minister of State for Public Education and Advanced Technology.

Tariq Al Hashimi, Director of Technology Adoption and Development, who signed the LoI on behalf of MoIAT, said, “This collaboration aligns with the UAE’s Net Zero by 2050 Strategic Initiative and the 2023 Year of Sustainability. By actively contributing to the development of a robust EV ecosystem, this partnership will have a meaningful impact on our sustainability and decarbonization agenda, while at the same time supporting local and advanced technology driven economic growth.

“This partnership will bolster our local industries and create quality opportunities for Emiratis by creating knowledge-intensive jobs, and empowering UAE nationals with employment prospects in one of the most promising sectors.”

Ramzi Kuhail, Chief Executive of NEV Enterprise, signed on behalf of the new company. He said, “We are delighted to collaborate with the Ministry of Industry and Advanced Technology (MoIAT) on this significant endeavour to bolster the manufacturing of EV charging stations in the UAE. This reflects our shared commitment to sustainable mobility and positions the UAE as a key player in the global transition to electric transportation.

We look forward to engaging with both the Government and Private sectors to support this initiative, which will act as a great catalyst for our future expansion to produce world-class charging stations locally and regionally.”

This collaboration represents a significant milestone in the UAE’s journey towards a greener future, firmly establishing the country as a regional leader in the development and production of cutting-edge EV charging infrastructure.

WAM