Oman has signed a major agreement to expand its clean manufacturing sector through a new Duqm electric vehicle project valued at nearly $250 million. The project will establish electric vehicle and battery cell production facilities inside the Special Economic Zone at Duqm as the country pushes ahead with its green industry ambitions.
The Public Authority for Special Economic Zones and Free Zones signed the agreement with South-Korean company EL B&T in Duqm. Officials said the development supports Oman’s wider efforts to diversify its economy and strengthen sustainable industries under Oman Vision 2040.
The project will move forward in two phases. Once completed, the facility aims to produce up to 60,000 electric vehicles annually alongside nearly 1.6 million battery cells. Authorities expect the investment to strengthen the local manufacturing sector and attract additional companies linked to electric mobility and renewable energy.
Officials at the Special Economic Zone at Duqm said the project supports Oman’s advanced industrial development goals. They added that the zone already hosts several green manufacturing projects, including wind turbine and renewable energy initiatives.
The first phase of the project will cover more than 467,000 square metres inside the economic zone. Meanwhile, the company plans to reserve additional land for future expansion during the second phase. The wider development strategy focuses on creating an integrated industrial ecosystem connected to batteries, vehicle components, and supporting technologies.
EL B&T expects commercial operations to begin by March 2028. Company officials also confirmed plans to increase reliance on green energy during manufacturing operations. The project includes a dedicated green power station that will supply energy to the industrial facility in Duqm.
Officials highlighted Duqm’s strategic location, modern infrastructure, and investment incentives as major factors behind the agreement. They noted that the zone continues to attract regional and international investors looking for opportunities in clean technology and sustainable manufacturing.
The company develops and manufactures several electric mobility products, including electric cars, buses, trucks, motorcycles, and powertrain systems. EL B&T currently operates projects and partnerships across multiple countries, including India and Türkiye.
During the first phase, production will mainly target Oman’s domestic market. However, the company plans to gradually expand exports to Gulf, Middle Eastern, and North African markets in later stages.
Authorities believe the Duqm electric vehicle project will strengthen Oman’s position as a regional hub for green industries while creating new opportunities for local talent and future technologies.
