Muscat – The Public Authority for Special Economic Zones and Free Zones (OPAZ) signed an investment usufruct agreement on Sunday with South Korean company EL B&T to establish an electric vehicle and battery cell manufacturing project in Special Economic Zone at Duqm (SEZAD).

The agreement was signed by H E Qais bin Mohammed Al Yousef, Chairman of OPAZ, and Young-il Kim, Founder and Chairman of EL B&T.

Valued at around RO96.2mn, the project will be developed in two phases with annual production capacity of 60,000 EVs and 1.6mn battery cells upon completion of the second phase.

According to Ahmed bin Ali Akaak, CEO of SEZAD, the project reflects Oman’s efforts to localise advanced industries and attract major investments in the automotive sector. He noted that the venture is the second automotive project in Duqm after Karwa Motors.

Akaak said the project will consolidate Duqm’s growing green industries sector, following agreements signed in wind turbine manufacturing and other clean energy industries. He added that it supports Vision 2040 and the sultanate’s net zero carbon neutrality goals by promoting investment in sustainable manufacturing and clean technologies.

He said the green industries projects being developed in Duqm aim to position Oman as a regional hub for future industries while creating opportunities for Omani youth in EVs, renewable energy and green hydrogen sectors.

The project’s first phase will cover an area of 467,000sqm, while an additional 429,000sqm is expected to be allocated for the second phase.

Akaak informed that the investment is expected to contribute to the development of an integrated industrial ecosystem for EVs in Duqm by strengthening local value chains related to batteries and vehicle components, while attracting complementary industries in the future.

Kim stated that the company is targeting commercial operations by March 2028 and plans to establish a green energy plant to power the facility’s production processes.

He added that EL B&T is also studying, in partnership with an Omani entity, the development of electric motors for speedboats and fishing vessels as part of efforts to reduce carbon emissions in Omani waters.