Oman has signed a $250 million agreement with South Korean electric vehicle technology company EL B&T to establish an electric vehicle and battery cell manufacturing complex in the Special Economic Zone at Duqm, marking a major step in the Sultanate’s industrial diversification and clean mobility ambitions.
The agreement was signed between Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) and EL B&T, with OPAZ Chairman Qais Mohammed Al Yousef and EL B&T Founder Dr. Young Ill Kim representing the two sides. The project carries an estimated investment value of RO96.2 million ($250 million).
According to officials from the Special Economic Zone at Duqm (SEZAD), the project will be implemented in two phases under Oman Vision 2040, which aims to expand advanced manufacturing, renewable energy integration, and non-oil industrial sectors. Upon completion, annual production capacity is expected to reach approximately 60,000 electric vehicles alongside nearly 1.6 million battery cells.
Implementation plans indicate that the first phase will primarily target the domestic Omani market before gradually expanding exports across GCC, Middle Eastern, and North African markets. The initial development stage will occupy approximately 467,000 square metres inside Duqm, while an additional 429,000 square metres have been allocated for future expansion during the second phase.
SEZAD Chief Executive Eng. Ahmed Ali Akaak stated that the investment aligns with broader government efforts to localise advanced industries and strengthen Oman’s emerging electric mobility ecosystem. Officials added that the project is expected to stimulate supporting industries linked to battery technologies, automotive components, logistics, and industrial supply chains, potentially attracting additional foreign manufacturers into Duqm over the coming years.
The development further reinforces Duqm’s strategic positioning as a major industrial and logistics gateway connecting Gulf, African, and Asian markets through Oman’s direct Arabian Sea access outside the Strait of Hormuz — a factor increasingly attracting manufacturing and export-oriented investments seeking diversified trade routes.
EL B&T, headquartered in Seoul, operates across multiple electric mobility segments including electric buses, trucks, motorcycles, powertrain systems, and battery technologies, with partnerships extending across Asia and emerging markets.
The company also revealed plans to integrate renewable energy into the project through a dedicated green power station designed to support the Duqm industrial facility, reinforcing Oman’s ambitions to position itself as a regional hub for sustainable manufacturing and future industries. Commercial operations are currently targeted to begin by March 2028.
As The Middle East Observer notes, the Duqm project reflects a broader Gulf trend toward leveraging energy-transition investments to build long-term industrial capacity beyond hydrocarbons, with electric vehicle manufacturing increasingly emerging as a strategic pillar within regional economic diversification agendas.
