RO 96 Million Korean EV and Battery Plant in SEZAD: What It Means for Oman’s Business and Investment Landscape
Muscat: The Public Authority for Special Economic Zones and Free Zones (OPAZ) has signed an investment usufruct agreement with the South Korean company EL B&T to establish an electric vehicle and battery cell manufacturing facility in the Special Economic Zone at Duqm (SEZAD). The total investment for this project is approximately RO 96.2 million (around $250 million).
The agreement was formalized by Qais bin Mohammed al Yousef, Chairman of OPAZ, and Dr. Young Ill Kim, Founder and Chairman of EL B&T.
The project will be executed in two phases and is expected to produce up to 60,000 electric vehicles and 1.6 million battery cells annually upon completion of the second phase.
Eng. Ahmed bin Ali Akaak, CEO of SEZAD, highlighted that this initiative is part of broader government efforts to localize advanced industries and attract significant investments to Oman’s automotive sector. He described the project as a major addition to Al Duqm’s industrial portfolio, marking it as the zone’s second automotive manufacturing venture, following Karwa Motors.
Akaak emphasized that the agreement enhances Al Duqm’s expanding green industry sector, especially after the introduction of multiple wind turbine manufacturing projects in recent years. The zone aims to attract advanced manufacturing industries linked to electric vehicles, renewable energy, and clean technologies, aligning with Oman Vision 2040 and the Sultanate’s net-zero carbon goals.
He further explained that the strategy seeks to position Oman as a regional hub for green industries by fostering sustainable, innovation-driven projects and 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 cover approximately 467,000 square meters in Al Duqm, with an additional 429,000 square meters planned for the second phase.
Officials noted that the project is expected to develop an integrated electric vehicle ecosystem in Al Duqm by reinforcing battery supply chains and related components, potentially attracting complementary industries in the future.
Dr. Young Kim stated that EL B&T aims to commence commercial operations by March 2028. He added that the company plans to utilize green energy extensively throughout the production process, including establishing a dedicated renewable energy facility to power the plant in Duqm.
He also revealed ongoing studies with an Omani partner to develop electric outboard motors for speedboats and fishing vessels, aiming to reduce carbon emissions in Omani waters. Furthermore, EL B&T is exploring a joint venture to produce electric fishing boats for export to markets such as Indonesia, India, and South Korea.
Eng. Ahmed al Rajhi, Acting Head of the Green Industries Department at SEZAD, explained that Al Duqm was chosen for its strategic location, advanced infrastructure, investor-friendly regulations, and integrated incentives framework.
He added that the project reflects increasing international confidence in Al Duqm as a regional investment hub and supports Oman’s long-term vision for a sustainable economy based on clean technologies and innovation.
Headquartered in Seoul, EL B&T specializes in electric mobility solutions, including electric cars, buses, trucks, bicycles, and vehicle powertrain systems. The company also operates projects and partnerships in India, Türkiye, and other regions.
The initial phase of the Duqm project will primarily serve demand within Oman before gradually expanding into the GCC, Middle East, and North African markets. This endeavor aligns with SEZAD’s 2025–2030 strategy to position Al Duqm as a premier destination for renewable energy and sustainable industrial investments.
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The establishment of EL B&T’s electric vehicle and battery manufacturing project in Duqm represents a strategic leap towards positioning Oman as a regional green industry hub, aligned with Oman Vision 2040 and net-zero goals. For businesses, this signals emerging opportunities in advanced manufacturing, clean technologies, and integrated supply chains, especially in electric mobility and renewable energy sectors. Smart investors and entrepreneurs should now consider leveraging Al Duqm’s investor-friendly ecosystem to tap into the growing demand for sustainable automotive and green tech solutions across the GCC and beyond.
