Oman has secured a $250 million manufacturing commitment from South Korea’s EL B&T for an electric vehicle and battery cell project in the Special Economic Zone at Duqm, strengthening the Sultanate’s push to turn the Arabian Sea port city into a centre for clean-energy industries and advanced manufacturing.
The investment usufruct agreement was signed by Qais Mohammed Al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones, and Dr Young Ill Kim, Founder and Chairman of EL B&T. The project, valued at about RO96.2 million, is planned as a two-phase development that will combine vehicle assembly with battery cell production, giving Duqm a more integrated role in the mobility supply chain rather than limiting the zone to conventional industrial activity.
The facility is expected to reach annual capacity of up to 60,000 electric vehicles and 1.6 million battery cells after completion of its second phase. The first phase will occupy about 467,000 square metres, with a further 429,000 square metres expected to be reserved for the second phase. The scale of the land allocation underlines the project’s industrial ambition and the authorities’ effort to create room for future expansion, component suppliers and ancillary operations.
The development adds momentum to Oman’s strategy of attracting foreign investment into manufacturing segments linked to energy transition, logistics and technology. Duqm’s deep-water port, dry dock, airport access, fisheries hub, refinery complex and large land bank have been central to official plans to position the zone as a competitive industrial gateway between Gulf, Asian and African markets.
The project’s first phase will focus on serving demand within Oman, with gradual expansion planned into the GCC, wider Middle East and North African markets. That export direction is important for the project’s commercial viability, as the domestic market alone remains relatively small for large-scale electric vehicle manufacturing. Regional demand, fleet electrification, public transport procurement and logistics operators’ decarbonisation plans are likely to shape the plant’s growth prospects.
EL B&T works in the development, production and sale of electric vehicles and components, including smart electric vehicles, electric motorcycles, three-wheelers, buses, trucks, electric powertrain systems and spare parts. The Seoul-headquartered company has been linked with projects and partnerships in India, Türkiye and regional markets, giving the Duqm venture a broader platform for supply-chain and export planning.
Oman’s authorities expect the project to support the growth of a vehicle-manufacturing cluster in Duqm. Ahmed Ali Akaak, Chief Executive Officer of the Special Economic Zone at Duqm, has described the agreement as part of coordinated efforts to localise industries and draw further investment into the vehicle sector. The project follows earlier vehicle-sector activity in the zone, including Karwa Motors, which began bus production in Duqm after Omani-Qatari investment.
The battery-cell element could prove especially significant. Battery production sits at the centre of global competition over electric mobility, energy storage and mineral supply chains. While the Gulf region has abundant capital and expanding renewable-energy capacity, it remains a developing player in the battery-manufacturing ecosystem. A Duqm-based plant could help Oman move beyond assembly into higher-value parts of the clean-technology chain, provided it can secure technology transfer, skilled labour, competitive energy costs and reliable raw-material inputs.
The company’s plans also include a green-energy station at the industrial facility to serve as the primary power source for production operations. That component aligns with Duqm’s wider positioning as a base for renewable energy, green hydrogen and sustainable industry. Oman has been working to attract large-scale clean-energy investments as part of its economic diversification agenda and its target of reaching net-zero emissions by 2050.
The agreement also includes exploratory plans linked to electric motors for speedboats and fishing boats, with the aim of reducing emissions in Omani waters. A possible joint venture is being studied to develop the fishing-boat concept, with potential exports to Indonesia, India, South Korea and other markets. Such marine applications could connect the EV project with Duqm’s fisheries and maritime economy, creating a niche beyond road transport.
The investment usufruct agreement was signed by Qais Mohammed Al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones, and Dr Young Ill Kim, Founder and Chairman of EL B&T. The project, valued at about RO96.2 million, is planned as a two-phase development that will combine vehicle assembly with battery cell production, giving Duqm a more integrated role in the mobility supply chain rather than limiting the zone to conventional industrial activity.
The facility is expected to reach annual capacity of up to 60,000 electric vehicles and 1.6 million battery cells after completion of its second phase. The first phase will occupy about 467,000 square metres, with a further 429,000 square metres expected to be reserved for the second phase. The scale of the land allocation underlines the project’s industrial ambition and the authorities’ effort to create room for future expansion, component suppliers and ancillary operations.
The development adds momentum to Oman’s strategy of attracting foreign investment into manufacturing segments linked to energy transition, logistics and technology. Duqm’s deep-water port, dry dock, airport access, fisheries hub, refinery complex and large land bank have been central to official plans to position the zone as a competitive industrial gateway between Gulf, Asian and African markets.
The project’s first phase will focus on serving demand within Oman, with gradual expansion planned into the GCC, wider Middle East and North African markets. That export direction is important for the project’s commercial viability, as the domestic market alone remains relatively small for large-scale electric vehicle manufacturing. Regional demand, fleet electrification, public transport procurement and logistics operators’ decarbonisation plans are likely to shape the plant’s growth prospects.
EL B&T works in the development, production and sale of electric vehicles and components, including smart electric vehicles, electric motorcycles, three-wheelers, buses, trucks, electric powertrain systems and spare parts. The Seoul-headquartered company has been linked with projects and partnerships in India, Türkiye and regional markets, giving the Duqm venture a broader platform for supply-chain and export planning.
Oman’s authorities expect the project to support the growth of a vehicle-manufacturing cluster in Duqm. Ahmed Ali Akaak, Chief Executive Officer of the Special Economic Zone at Duqm, has described the agreement as part of coordinated efforts to localise industries and draw further investment into the vehicle sector. The project follows earlier vehicle-sector activity in the zone, including Karwa Motors, which began bus production in Duqm after Omani-Qatari investment.
The battery-cell element could prove especially significant. Battery production sits at the centre of global competition over electric mobility, energy storage and mineral supply chains. While the Gulf region has abundant capital and expanding renewable-energy capacity, it remains a developing player in the battery-manufacturing ecosystem. A Duqm-based plant could help Oman move beyond assembly into higher-value parts of the clean-technology chain, provided it can secure technology transfer, skilled labour, competitive energy costs and reliable raw-material inputs.
The company’s plans also include a green-energy station at the industrial facility to serve as the primary power source for production operations. That component aligns with Duqm’s wider positioning as a base for renewable energy, green hydrogen and sustainable industry. Oman has been working to attract large-scale clean-energy investments as part of its economic diversification agenda and its target of reaching net-zero emissions by 2050.
The agreement also includes exploratory plans linked to electric motors for speedboats and fishing boats, with the aim of reducing emissions in Omani waters. A possible joint venture is being studied to develop the fishing-boat concept, with potential exports to Indonesia, India, South Korea and other markets. Such marine applications could connect the EV project with Duqm’s fisheries and maritime economy, creating a niche beyond road transport.
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Oman