Khazaen Economic City signed an agreement with China’s Spruce Group to establish an advanced vehicle assembly and production centre. The step reflects the city’s attractiveness to foreign investment and supports the objectives of Oman Vision 2040 to diversify the economy and strengthen the automotive and advanced technology sectors.

The project represents a significant addition to the industrial sector, particularly the automotive sector in the Sultanate of Oman. It will use the latest manufacturing technologies, including artificial intelligence systems and robotics on production lines. It will also adopt environmental sustainability standards through the production of electric and hybrid vehicles that support clean energy goals. The project targets markets in the Middle East and Africa, strengthening the presence of Omani products in regional and international markets.

The project will help provide training linked to employment by training 20 Omani citizens during the first phase of operation, with the aim of building local capacity and transferring knowledge and modern technologies.

It will also support the development of an integrated industrial ecosystem for feeder industries linked to the automotive sector, including the production of spare parts and vehicle components such as spark plugs, oil filters and other products. This will strengthen Oman’s position as a producing and exporting country under the slogan “Made in Oman”.

The centre is expected to have an annual production capacity of between 2,899 and 3,218 vehicles, reflecting the scale of the project’s industrial ambition and its role in supporting gross domestic product.

Khazaen Economic City is an ideal location for this important project, given its advanced infrastructure and strategic location. It is well placed to serve as a logistics platform for exporting vehicles to regional and international markets.