Along a number of new contracts signed yesterday for transformation to eco-friendly vehicles in Qatar, Qatar Free Zones Authority (QFZA) also signed a multilateral framework agreement with Yutong (Chinese company) and Mowasalat for establishing electric bus (e-buses) manufacturing plant in Umm Al Houl Free Zone.
The deal will see electric-buses manufactured in the zone with the first e-buses produced for the FIFA World Cup Qatar 2022 and beyond.
The deal is part of a wider Qatari initiative to ensure 25 percent of the public bus network is powered by electricity in time for the tournament, with the entire public fleet system expected to be e-powered by 2030.
The multilateral framework agreement was signed in the presence of Prime Minister and Minister of Interior H E Sheikh Khalid bin Khalifa bin Abdulaziz Al Thani, and Minister of Transport and Communications H E Jassim bin Saif Al Sulaiti.
Under the agreement, Mowasalat and Yutong will partner to establish and operate the electric buses factory to deliver electric buses that will ferry World Cup visitors between stadiums, with the first cohort of these e-buses to be earmarked for export across the Middle East, Europe, South America and Africa. E-bus production for export to overseas markets will be a major focus once manufacturing output reaches full capacity.
The deal will also see technology and knowledge transfers so parts for the e-buses will be manufactured by Qatari firms as part of the government’s wider localisation drive. These firms are expected to form the foundations of the region’s leading e-vehicle industry, supplying e-vehicles and parts to markets across the globe.
Yutong’s arrival to the Umm AlHoul Free Zone will add to a growing cluster of companies within Qatar Free Zones that are addressing the growing demands for cleaner, more sustainable forms of transport. Qatar Free Zones operate in an extremely competitive market for FDI.
H E Ahmad Al Sayed, Minister of State and Chairman of QFZA, said in a statement: “The Qatar Free Zones have become a prominent destination for companies with a vision for the future. This agreement reflects QFZA’s commitment to tap on the nexus between emerging technologies and sustainable development which provide huge opportunities for the long-term economic development of Qatar.”
“Besides helping to anchor an electric vehicle auto cluster, this project will provide opportunities to local businesses through the localization of contractors, service providers and suppliers. The production of E-buses for the national market showcases the attractive economic climate for international investors who can deliver what our market requires. The plans to export the E-buses underlines QFZ’s world-class logistics operations that connect us to key markets across the globe,” he added.
Talking to The Peninsula on the sidelines of agreement signing ceremony, Lim Meng Hui, CEO of QFZA said: “The agreement is part of Qatar’s move to electrify public transport. Under the partnership between QFZA, Yutong and Kahramaa, an electric bus production plant will be established at Qatar Free Zones. It is very important agreement that will provide ‘Made in Qatar’ electric buses for Qatari market as well as export them to regional countries.”
He said that the work on the manufacturing plant will start next year and by Qatar 2022, it will be in a position to manufacture electric buses, adding that it was a long term plan divided into three phases. “We can export electric buses to Europe, Africa and other regional countries.”
