Public Authority for Special Economic Zones and Oman Free Zones recently signed an investment agreement in Special Economic Zone Duqm. It featured a South Korean company who will establish an electric vehicle (EV) and battery cell manufacturing project.
Electric Vehicle Project To Be Developed Over Two Phases
The project will be developed in two phases with annual production capacity of 60,000 EVs targeted during the first phase. Phase two of the OMR 96.2 million (USD 249.97 million) project will see production of 1.6 million battery cells. Accordingly the project reflects Oman’s efforts to localise advanced industries and attract major investments in the automotive sector. Furthermore, the venture is the second automotive project in the Oman Free Zones Special Economic Zone Duqm.
In addition, the project consolidates Duqm’s growing green industries sector, following agreements in wind turbine manufacturing and clean energy industries. Importantly, it supports Oman Vision 2040 and net zero carbon neutrality goals by promoting investment in sustainable manufacturing and clean technologies. The agreement`s first phase covers 467,000 square metres, while an additional 429,000 square metres is allocated for the second phase. Accordingly, the investment is expected to develop an integrated industrial ecosystem by strengthening local battery and vehicle component value chains. In addition, it is hoping to attract additional complementary industries to set up in Oman Free Zones in the future.
Electric Vehicle Project Targeting Commercial Operations In 2028
The project is targeting commercial operations by March 2028 and plans on establishing green energy plant to power production processes. In partnership with an Omani entity, the development of electric motors for speedboats and fishing vessels is also being investigated.
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