Karwa Motors to Manufacture Mercedes-Benz Bus Chassis in Oman: What This Means for the Local Automotive Industry and Investors
MUSCAT: Karwa Motors, Oman’s foremost vehicle manufacturer, has established a partnership with Daimler Truck, a leader in the global commercial vehicle sector, to produce Mercedes-Benz bus chassis at its facility located in the Special Economic Zone at Duqm (SEZAD).
The strategic partnership was formalized by Dr. Ibrahim Al Balushi, CEO of Karwa Motors, and Michael Dietz, President and CEO of Daimler Truck Middle East & Africa. The agreement was signed during Busworld Europe 2025, the largest bus and coach exhibition in the world, which recently concluded in Brussels.
This deal designates Karwa Motors as an official Daimler Buses Approved Builder, enabling direct supply of Mercedes-Benz bus chassis for both domestic use in Oman and for export to international markets.
This agreement highlights Karwa Motors’ ambitions as a joint venture between Mowasalat Qatar, the state-owned transportation company of Qatar, and the Oman Investment Authority (OIA), the Sultanate of Oman’s sovereign wealth fund. Recently, the joint venture also signed a contract with Empl Fahrzeugwerk GmbH from Austria to manufacture various specialized vehicles, including firefighting trucks and military vehicles for security and defense applications in Oman. Additional partnerships have been established with companies such as The Armored Group (USA), Amkodor (Belarus), and MAZ (Belarus).
The collaboration with Daimler Truck is notably the most significant thus far. Headquartered in Leinfelden-Echterdingen, Germany, Daimler Truck specializes in the design, production, and servicing of trucks and buses, with major brands including Mercedes-Benz Trucks, Freightliner, and Setra. The company reported revenues exceeding €55 billion in 2024.
Marcus Watts, Vice President of Daimler Buses, Daimler Truck Middle East & Africa, stated, “This agreement represents an important milestone in the development of our collaboration with Karwa Motors. It demonstrates the strength of industrial partnerships in the region and lays the foundation for a robust, export-oriented manufacturing base in Oman.”
The partnership between Daimler Truck and Karwa Motors signifies a mutual commitment to industrial growth, technological exchange, and sustainable development throughout the region. It enhances Oman’s status as an emerging manufacturing hub while also expanding Daimler Truck’s presence and offerings in the Middle East and Africa.
Special Analysis by Omanet | Navigate Oman’s Market
The partnership between Karwa Motors and Daimler Truck marks a significant advance for Oman’s manufacturing sector, transforming the country into an emerging regional hub for vehicle production. This collaboration not only opens new export opportunities for local businesses but also positions Oman strategically in the global supply chain. Investors and entrepreneurs should consider tapping into this growth by exploring complementary industries, such as logistics and aftermarket services, to capitalize on the expanding automotive landscape in Oman.
