Oman Daily Observer: Muscat: The Public Authority for Special Economic Zones and Free Zones (OPAZ) has signed an investment usufruct agreement with South Korean company EL B&T to establish an electric vehicle and battery cell manufacturing project in the Special Economic Zone at Duqm (SEZAD), with a total investment of around RO 96.2 million ($250 million).

The agreement was signed by Qais bin Mohammed al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ); and Dr Young Ill Kim, Founder and Chairman of EL B&T.

The project will be developed in two phases and is expected to produce up to 60,000 electric vehicles annually, in addition to 1.6 million battery cells, once the second phase is completed.

Eng Ahmed bin Ali Akaak, Chief Executive Officer of SEZAD, said the project forms part of wider government efforts to localise advanced industries and attract major investments into Oman’s automotive sector. He described the venture as a significant addition to Al Duqm’s industrial base and noted that it is the second automotive manufacturing project in the zone after Karwa Motors, which began operations several years ago.

He added that the agreement further strengthens Al Duqm’s growing green industries sector, particularly following the signing of several wind turbine manufacturing projects in recent years. According to him, the zone aims to attract advanced manufacturing industries linked to electric vehicles, renewable energy and clean technologies, in line with Oman Vision 2040 and the Sultanate of Oman’s net-zero carbon neutrality goals.

Akaak said the strategy also seeks to position Oman as a regional hub for green industries by developing sustainable and innovation-driven projects while creating opportunities for Omani talent in future-focused sectors such as electric mobility, renewable energy and green hydrogen.

The first phase of the project will occupy an area of around 467,000 square metres in Al Duqm, while an additional 429,000 square metres is expected to be allocated for the second phase.

Officials said the project is expected to support the development of an integrated electric vehicle ecosystem in Al Duqm by strengthening supply chains for batteries and related components, potentially attracting complementary industries in the future.

Dr Young Kim said the company aims to begin commercial operations by March 2028. He added that EL B&T plans to rely heavily on green energy in its production processes, including the establishment of a dedicated renewable energy facility to power the plant in Duqm.

He also revealed that the company is studying, together with an Omani partner, the development of electric outboard motors for speedboats and fishing vessels as part of efforts to reduce carbon emissions in Omani waters. In addition, EL B&T is exploring a joint venture to develop electric fishing boats for export to markets including Indonesia, India and South Korea.

Eng Ahmed al Rajhi, Acting Head of the Green Industries Department at SEZAD, said Al Duqm was selected for the project due to its strategic location, advanced infrastructure, investor-friendly regulations and integrated incentives framework.

He said the project reflects growing international confidence in Al Duqm as a regional investment destination and supports Oman’s long-term strategy of building a sustainable economy based on clean technologies and innovation.

Headquartered in Seoul, EL B&T specialises in the development and manufacturing of electric mobility solutions, including electric cars, buses, trucks, bicycles and vehicle powertrain systems. The company also has projects and partnerships in India, Türkiye and other regional markets.

The initial phase of the Duqm project will focus on serving demand within Oman before expanding gradually into GCC, Middle East and North African markets. The project also aligns with SEZAD’s 2025–2030 strategy, which seeks to position Al Duqm as a preferred destination for renewable energy and sustainable industrial investments.