Oman is accelerating its ambitions in clean technology and advanced manufacturing after signing a major investment agreement with South Korean electric vehicle technology company EL B&T to establish a large-scale EV and battery manufacturing facility in Duqm.

The project, valued at OMR96.2 million (around $250.2 million), will be developed inside the Special Economic Zone at Duqm (SEZAD) and is expected to play a significant role in shaping the future of electric mobility across Oman and the wider Middle East.

The agreement was signed by the Public Authority for Special Economic Zones and Free Zones (OPAZ) and EL B&T during an official ceremony attended by OPAZ Chairman Qais Mohammed Al Yousef and EL B&T representative Dr. Young Ill Kim.

Major Boost for Oman’s EV Ambitions

The new investment represents another important step in Oman’s strategy to diversify its economy and attract investments in high-growth industries.

Over the past few years, the Sultanate has increased its focus on sectors such as clean energy, advanced manufacturing, logistics, and technology. The EV project aligns closely with these goals and strengthens Oman’s efforts to position itself as a regional hub for sustainable industries.

Officials believe the project will not only create manufacturing capacity but also encourage the development of an entire electric mobility ecosystem in Duqm.

Factory to Be Built in Two Phases

According to the Oman News Agency, the project will be developed in two stages.

Once both phases are completed, the facility is expected to have the capacity to produce:

  • Up to 60,000 electric vehicles annually
  • Around 1.6 million battery cells every year

The first phase of development will cover approximately 467,000 square metres within the Special Economic Zone at Duqm.

An additional 429,000 square metres has been allocated for the second phase, allowing the company to expand production capacity and add supporting industrial activities in the future.

Building More Than Just Cars

The project is designed to be more than a vehicle assembly plant.

Officials say the investment aims to create an integrated industrial ecosystem that supports:

  • Electric vehicle manufacturing
  • Battery production and assembly
  • Automotive component manufacturing
  • Clean mobility technologies
  • Advanced industrial capabilities

By developing related industries and attracting suppliers to the area, Oman hopes to strengthen local supply chains and create new opportunities for businesses operating in the automotive and technology sectors.

Domestic Market First, Regional Expansion Next

EL B&T plans to initially focus on meeting demand within Oman's domestic market as the country gradually adopts electric mobility solutions.

However, the company has bigger ambitions.

Its long-term strategy includes expanding exports to:

  • GCC countries
  • Wider Middle East markets
  • North African nations

This regional approach could position Oman as an emerging manufacturing and export centre for electric vehicles and battery technologies.

Duqm Continues to Attract Strategic Investments

The Special Economic Zone at Duqm has become one of Oman’s most important economic development projects.

Located along major international shipping routes, Duqm offers modern infrastructure, industrial incentives, and access to regional and global markets. These advantages have helped attract investments across sectors including:

  • Energy and petrochemicals
  • Logistics and shipping
  • Manufacturing
  • Renewable energy
  • Technology and innovation

The new EV manufacturing facility adds another strategic industry to Duqm’s growing portfolio and reinforces its position as a future-focused industrial hub.

Oman Pushes Ahead With Sustainable Industries

The agreement comes at a time when countries across the GCC are investing heavily in sustainable transportation and green technologies.

Rising global demand for electric vehicles is encouraging governments to develop local industries focused on:

  • Clean mobility solutions
  • Battery manufacturing
  • Renewable energy integration
  • Smart industrial infrastructure
  • Sustainable manufacturing practices

Oman’s latest investment reflects this broader regional trend while helping the country build capabilities in industries expected to play a major role in the global economy over the coming decades.

Looking Ahead

The $250.2 million investment by EL B&T marks a significant milestone in Oman’s industrial transformation journey.

With plans to manufacture 60,000 electric vehicles and 1.6 million battery cells annually, the project is expected to create new jobs, attract supporting industries, and strengthen Oman’s position in the rapidly evolving electric mobility sector.

As Duqm continues to draw international investments and expand its industrial base, projects like this highlight Oman’s determination to build a diversified, technology-driven economy prepared for the industries of the future.