Qatar has embarked on its green transition journey and its strategic location and resources have been supporting its bid to become a manufacturing hub for electric vehicles (EVs) in the Mena region and beyond, according to an EV sectoral study by Investment Promotion Agency Qatar (IPA Qatar).
IPA Qatar noted that the global EVs market is witnessing a quantum leap led by the US, China, and Germany from an estimated 3.3mn units in 2020 to an expected 27.5mn units by 2027.
On the other hand, EVs are already transforming the Middle East auto industry, which is expected to reach a value of $18.5bn by 2023 and is set to reach mass adoption within the next couple of years.
Industry leaders in EV manufacturing, from Volkswagen to Gaussin and Yutong, have already partnered with government entities to transform Qatar’s and the region’s mobility, IPA Qatar stated.
“Similarly, international transportation company and IPA Qatar partner, Accord Pitch Doha (APD), has set several milestones in the local EV market, becoming the first company to deliver the Mercedes EQV Class and hybrid Mercedes S class in Qatar, whilst also planning to invest $10mn in 2023 to expand its fleet of electric vehicles,” stated IPA Qatar.
IPA Qatar’s EV sectoral study stated that extensive government support, ambitious e-mobility targets, private sector investment in EVs, Qatar’s attractive market for EV manufacturers, and ready infrastructure and incentives are the key foundations supporting the growth of the country’s EV industry.
“It comes as no surprise that foreign investors are highly motivated, Bloomberg has projected the EV market to be worth $53 trillion by 2050. For many, Qatar, with its ambitious e-mobility targets, future-ready infrastructure, and extensive government support, offers a valuable and competitive business climate to tap into the EV market. Next to consumer sentiment, commercial viability, and OEM vehicle strategy, government policies have emerged as a major driving force behind EV mass adoption.
“In Qatar, the country’s national vision provides a roadmap for its social, economic, environmental, and human development. By extension, initiatives to transition to green mobility received strong government backing in a country that has already set a target to achieve a 25% reduction in greenhouse gas emissions by 2030 and convert all public buses to EVs,” IPA Qatar stated.
Qatar’s relatively new ‘Electric Vehicle Strategy 2021’ aims to go a step further and create long-term opportunities for EV investors and businesses. By 2030, it foresees EV sales to reach 10% of total vehicle sales numbers in Qatar, stated IPA Qatar.
IPA Qatar stated: “In a region of 49mn vehicles, an innovative approach to the automotive industry will be imperative to drive us towards a sustainable future. One study found that emissions from EVs are up to 43% lower than diesel vehicles, effectively playing into the Paris Agreement’s CO2 reduction targets.
“The current investment flow into the EV market focuses on battery access, light-weighting, safety, and charging accessibility. However, the value pool increases significantly when looking at auxiliary sectors, from battery recycling businesses to the semiconductor market.”
It added: “For Qatar, the green transition has begun. EVs will add an important fiscal layer to the second most competitive economy in the Arab World and the fourth globally by GDP per capita. About 2bn people, worth $6tn in combined GDP, live within 3,000km of Qatar’s borders, yet, in the years and decades to come, the country’s unparalleled EV market access and connectivity will reach well beyond this mark.”
Electric vehicles are already transforming the Middle East auto industry, which is expected to reach a value of $18.5bn by 2023 and is set to reach mass adoption within the next couple of years.
