Muscat – Khazaen Economic City has signed a RO5mn agreement with China’s Spruce Group to establish a car assembly and production centre, marking a step forward in Oman’s plans to expand its industrial base and attract foreign investment. The signing on Sunday marked the first phase of the project of total value RO20mn.

To be built on a 6,000sqm site, the project will support the sultanate’s efforts to diversify its economy in line with Vision 2040, with focus on developing the automotive and advanced technology sectors.

The facility will deploy manufacturing technologies including artificial intelligence and robotics, and produce electric and hybrid vehicles in line with clean energy goals.

With a targeted annual output of over 3,000 vehicles, the hub is expected to serve markets in the Middle East and Africa, supporting the growth of Omani exports.

The project will also contribute to the development of an integrated automotive ecosystem, including the production of spare parts and accessories, reinforcing the ‘Made in Oman’ initiative.

In its first phase, the project will provide training to 20 Omani nationals, supporting skills development and the transfer of technical expertise.

Khazaen Economic City continues to position itself as a logistics and industrial hub, supported by its infrastructure and location, which facilitate access to regional and international markets.

Khazaen Food City

Separately, investments in the Food City at Khazaen have reached RO180mn, with 26 agreements signed, reflecting growth in sectors linked to food security.

On Sunday, H E Dr Saud bin Hamoud al Habsi, Minister of Agriculture, Fisheries and Water Resources, and H E Dr Khalfan bin Saeed al Shuaili, Minister of Housing and Urban Planning, visited the Food City to review key projects.

The ministers were briefed on developments in the Food City. They toured production facilities, the central market for fruits and vegetables, and logistics services supporting storage, transport and distribution, as part of efforts to strengthen the business environment and support sustainable development.