Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) has entered into an investment usufruct agreement with South Korean electric vehicle technology firm EL B&T to establish a production facility for electric vehicles and battery cells in the Special Economic Zone at Duqm (SEZAD). The project, valued at approximately RO96.2 million ($250 million), will be rolled out in two distinct phases.
Under the agreement, signed by Qais Mohammed Al Yousef on behalf of OPAZ and Dr. Young Ill Kim representing EL B&T, the initial phase will occupy 467,000 square meters, while an additional 429,000 square meters has been reserved for phase two. Upon completion of the second stage, the facility is expected to reach an annual production capacity of 60,000 electric vehicles and 1.6 million battery cells.
Phase I production will prioritize meeting domestic demand within Oman. As manufacturing operations mature, the company plans to expand into regional markets, including Gulf Cooperation Council countries, the broader Middle East, and North Africa. This phased approach aims to build local supply chains and gradually scale output to serve export markets.
OPAZ anticipates that the project will strengthen Duqm’s position as an integrated industrial hub for the electric vehicle sector. By localizing key stages of the value chain, including battery cell assembly and vehicle integration, the initiative is expected to attract ancillary industries and support services. Components such as battery management systems, powertrain assemblies, and related logistics operations are likely to benefit from proximity to the production site.
In addition to fostering economic diversification, the partnership aligns with Oman’s strategy to develop advanced manufacturing capabilities and reduce reliance on imported technologies. The joint venture is positioned to generate employment opportunities, facilitate technology transfer, and stimulate investment in research and development for next-generation mobility solutions.
As global demand for electric vehicles and energy storage components continues to grow, the Duqm project represents a strategic collaboration between public authorities and private industry to build a robust, regionally competitive EV ecosystem.
Source: Fast Company Middle East
