The Public Authority for Special Economic Zones and Free Zones signed an investment agreement with the Korean electric vehicle technology company EL B&T establishing a project to produce electric vehicles and battery cells in the Duqm Special Economic Zone. The project has an investment cost of OMR 96 million, equivalent to USD 250 million.

The agreement was signed by Qais bin Mohammed Al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones, and by Dr Young-il (John) Kim, Chairman and CEO of EL B&T, on behalf of the company.

The project will be implemented in two phases, with production capacity reaching 60,000 vehicles annually and 1.6 million battery cells upon completion of the second phase.

The area allocated for the electric vehicle and battery cell production project in the Special Economic Zone at Duqm in the first phase is 467,000 square metres. The company is expected to reserve an additional area of about 429,000 square metres for the second phase.

The project represents an entry point for developing an integrated industrial ecosystem for the electric vehicle sector in the Special Economic Zone at Duqm. It will strengthen value chains related to batteries and other components, helping attract complementary industries in the future.

Engineer Ahmed bin Ali Akaak, CEO of the Special Economic Zone at Duqm, said this project comes within the framework of joint government efforts to localise various industries in the Sultanate of Oman and attract a range of investments in the vehicles sector. Earlier this month, an agreement was signed with the Chinese Spruce Group to establish an advanced centre for vehicle assembly and production in Khazaen Economic City.

Eng. Ali Akaak said that this project is a new addition to the vehicles sector in the Special Economic Zone at Duqm. He noted that it is the second project in this sector, following the Karwa Motors factory, which began production several years ago.

He highlighted the growth being achieved by the electric vehicles sector in Oman following the signing of agreements to establish two projects in this sector in the Salalah Free Zone. He said the Authority is seeking, through these projects, to localise advanced industries in the electric vehicles sector and promote investment in green manufacturing industries. This aligns with the objectives of Oman Vision 2040, Oman’s net zero strategy and the transition towards clean energy.

For his part, Engineer Ahmed bin Nasser Al Rajhi, Acting Head of the Green Industries Department at the Special Economic Zone at Duqm, said that the choice of Duqm to host the project reflects the region’s competitive advantages. These include advanced infrastructure, a strategic location, flexible legislation and an integrated system of investment incentives that support business growth and sustainability.

He said the electric vehicle and battery cell production project reflects the growing confidence in Duqm as a promising investment destination at the regional and international levels.

He added that, through this project, the Authority looks forward to establishing an integrated industrial ecosystem for the electric vehicles sector, including the manufacture of vehicles and battery cells and the strengthening of related value chains.

The Korean company operates in the development, manufacture and sale of electric vehicles and their components. These include smart electric vehicles, electric bicycles, electric tricycles, electric buses, electric trucks, electric vehicle powertrain systems and spare parts.

In its first phase, the project will focus on meeting demand in the local market in Oman, with plans for gradual expansion into the markets of the countries of Gulf Cooperation Council (GCC) states, the Middle East and North Africa.

Dr Young-il (John) Kim, Chairman and CEO of EL B&T, the Korean electric vehicle technology group, said the company expects to reach the commercial operation stage in March 2028. He added that the company is interested in increasing the use of green energy in its production operations.

He added that his company is currently studying, with an entity in Oman, the development of an electric motor for speedboats or fishing boats, supporting efforts to reduce carbon emissions in Omani waters.