The Public Authority for Special Economic Zones and Free Zones (OPAZ), Oman signed an investment usufruct agreement with EL B&T, a Korean electric vehicle (EV) technology company, to establish a project for the production of electric vehicles and battery cells in the Special Economic Zone at Duqm (SEZAD).
The project has an investment value of approximately RO 96.2 million ($250 million).
The agreement was signed on behalf of OPAZ by Qais Mohammed Al Yousef, Chairman of OPAZ while Dr. Young Ill Kim signed on behalf of the company.
The project will be implemented in two phases, with a production capacity of up to 60,000 vehicles annually and 1.6 million battery cells upon completion of Phase II.
Eng. Ahmed Ali Akaak, CEO of the SEZAD, said the new project comes as part of joint government efforts to localise various industries in the Sultanate of Oman and attract further investments in the vehicle sector.
The CEO of SEZAD explained that the project represents a new addition to the vehicle sector in the zone and marks the second project in this field after the launch of production at Karwa Motors several years ago.
Phase I of the electric vehicle and battery cell production project in the Special Economic Zone at Duqm will cover an area of 467,000 square metres, while the company is expected to reserve an additional 429,000 square metres for the second phase. The project is expected to support the development of an integrated industrial ecosystem for the electric vehicle sector in the zone by strengthening value chains linked to batteries and other components, helping attract complementary industries in the future.
EL B&T works in the development, manufacturing, and sale of electric vehicles and their components, including smart electric vehicles, electric motorcycles, electric three wheelers, electric buses, electric trucks, electric powertrain systems, and spare parts. The company is headquartered in Seoul and has several projects and partnerships in India, Türkiye, and countries across the region.
During Phase I, the project will focus on meeting demand in the local market in Oman, with gradual expansion planned towards the GCC, Middle East, and North African markets.
The electric vehicle and battery manufacturing project in the Special Economic Zone at Duqm reflects the Sultanate of Oman’s direction towards future industries and investments linked to clean energy and advanced technologies. The project also aligns with the SEZAD’s 2025 to 2030 strategy, which focuses on positioning Duqm as a preferred strategic hub for renewable energy and sustainable industries while creating broad business opportunities. In addition, the project strengthens Duqm’s leadership in green industries alongside several other industrial projects currently being implemented in the zone.
