Oman has taken a major step toward expanding its electric vehicle and advanced manufacturing sector after signing a strategic investment agreement with Korean EV technology company EL B&T to establish a large-scale electric vehicle and battery manufacturing facility in Duqm.
The Public Authority for Special Economic Zones and Free Zones (OPAZ) formalized the agreement with the South Korean firm for a project valued at OMR96.2 million ($250.2 million).
The facility will be developed within the Special Economic Zone at Duqm and is expected to become a key regional hub for electric vehicle production and battery manufacturing across the GCC and Middle East.
Oman Accelerates Electric Vehicle Industry Development
The investment agreement was signed during an official ceremony attended by Qais Mohammed Al Yousef, Chairman of OPAZ, and Dr. Young Ill Kim, representing EL B&T.
The project aligns with Oman’s broader economic diversification strategy focused on industrial development, clean energy technologies, and attracting foreign direct investment into high-growth sectors.
The initiative also supports the Sultanate’s ambitions to establish Duqm as a major industrial and logistics hub serving regional and international markets.
Two-Phase Development Strategy
According to reports from the Oman News Agency, the EV manufacturing project will be developed in two stages.
Once the second phase is completed, the facility is projected to achieve:
- Annual production capacity of 60,000 electric vehicles
- Production of 1.6 million battery cells annually
The first phase of the project will occupy approximately 467,000 square meters within the Special Economic Zone at Duqm.
The company also plans to reserve an additional 429,000 square meters for future expansion during the second development phase.
Building an Integrated EV Ecosystem in Duqm
The project is designed to create a fully integrated industrial ecosystem for electric vehicles and battery technologies in Oman.
Beyond vehicle production, the initiative aims to strengthen:
- Battery manufacturing supply chains
- Automotive component industries
- Advanced industrial capabilities
- Clean mobility infrastructure
Officials expect the project to attract complementary industries and suppliers to Duqm over the coming years, supporting the long-term growth of Oman’s industrial economy.
Initial Focus on Omani Market Before Regional Expansion
The company initially plans to focus on serving domestic demand within Oman’s growing automotive market.
However, the long-term strategy includes gradual expansion into:
- GCC markets
- Middle East countries
- North African markets
This regional expansion plan positions Oman to become an emerging player in the rapidly growing electric mobility sector across the wider region.
Duqm Strengthens Position as Strategic Industrial Hub
The Special Economic Zone at Duqm continues to attract major industrial and infrastructure investments across energy, logistics, manufacturing, and technology sectors.
Its strategic geographic location along global trade routes, combined with modern infrastructure and industrial incentives, has made Duqm increasingly attractive for international investors seeking regional manufacturing bases.
The EV manufacturing agreement with EL B&T further strengthens Duqm’s position as a future-focused industrial destination supporting advanced technologies and sustainable industries.
Oman Expands Sustainable and Technology-Driven Industries
The project reflects Oman’s growing commitment to sustainable industrial transformation and advanced manufacturing technologies.
As global demand for electric vehicles continues rising, governments across the GCC and Middle East are accelerating investments in:
- Clean mobility
- Battery production
- Renewable energy integration
- Smart industrial infrastructure
Oman’s latest EV manufacturing initiative places the country within this broader regional transition toward sustainable transportation and industrial modernization.
Conclusion
Oman’s $250.2 million EV manufacturing agreement with Korean company EL B&T marks a major milestone in the country’s industrial diversification and clean technology ambitions.
With plans to produce 60,000 electric vehicles and 1.6 million battery cells annually, the Duqm-based project is expected to strengthen Oman’s role in the regional electric mobility sector while supporting economic growth, industrial localization, and advanced manufacturing development.
As Duqm continues attracting strategic investments, the project highlights Oman’s increasing focus on building future-ready industries that can serve both local and international markets.
