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The Ministry of Transport, Communications and Information Technology signed a memorandum of understanding with Obar Smart Cities Company, Oman Taxi and Oman Arab Bank to support the transition of taxis to electric and hybrid models. The pact will enable eligible Omani taxi owners and drivers to access loans of up to RO15,000 per vehicle over repayment periods of as long as seven years. Oman Taxi will manage the programme, evaluate applicants and certify suitable vehicles while Oman Arab Bank will extend the financing and the ministry will supervise compliance with national sustainability plans, according to Muscat Daily.
The first phase of the initiative covers financing for up to 200 vehicles and could later expand to more than 5,000 as the scheme matures. The programme is restricted to licensed operators working under the Oman Taxi umbrella to ensure regulatory alignment and promote sustainable fleet renewal. Repayment conditions remain subject to standard credit assessments conducted by the bank.
Oman has set a target of net-zero emissions by 2050 with an interim goal of cutting greenhouse gases by 33 per cent by 2035, the Ministry of Energy and Minerals has stated. Emissions reached 93.6 million tonnes of carbon dioxide equivalent in 2024 with the oil, gas, transport and power sectors accounting for the majority of the total, ministry figures show. The transport decarbonisation roadmap aims to make 25 per cent of new vehicle registrations electric by 2030 rising to 66 per cent by 2040 before achieving full electrification of light vehicles by mid-century.
Registered electric vehicles in Oman exceeded 5,900 in the first half of 2026, more than doubling from the 2,182 recorded in late 2025, National Centre for Statistics and Information data indicates. Public charging infrastructure has expanded to more than 160 points with plans to reach 350 stations by 2027 to support wider adoption, a Muscat Daily assessment found. The taxi financing programme forms one element of these broader measures to lower urban emissions and improve air quality.
Oman Arab Bank will apply its established credit policies to determine applicant eligibility under the scheme while ensuring the financing supports only approved electric and hybrid models. Obar Smart Cities Company is expected to contribute expertise in smart mobility solutions to the partnership. The collaboration reflects ongoing coordination between government, private operators and financial institutions to accelerate the shift away from conventional internal combustion engines in the passenger transport segment.
The initiative aligns with Oman Vision 2040 priorities on environmental sustainability by fostering local demand for cleaner technologies. Eligible participants must meet Oman Taxi operational standards in addition to bank credit requirements before receiving approval for vehicle replacement funding. Future phases may incorporate additional incentives or expanded eligibility as the programme demonstrates results in emissions reductions.
