Oman’s Public Authority for Special Economic Zones (OPAZ) signed a RO96.2 million ($250 million) usufruct agreement with South Korea’s EL B&T for an EV and battery cell plant at Duqm SEZAD. Phase 1 occupies 467,000 sqm; Phase 2 reserves 429,000 sqm for 60,000 vehicles and 1.6 million cells annual capacity by completion.
Duqm’s strategic location — 1,000 km Indian Ocean shipping lanes — targets Oman domestic market then GCC, MENA export. Tax-free zones, deepwater port and renewable energy access cut logistics 30 percent versus rivals. EL B&T’s lithium-iron-phosphate tech suits hot climates, extending range 15 percent.
OPAZ Chairman Qais Al Yousef emphasised automotive ecosystem building around batteries, motors and chargers. Initial focus: commercial vans for logistics, government fleets. Plant creates 2,500 jobs, 70 percent Omani nationals through vocational linkage.
Oman Vision 2040 targets 10 percent EV penetration by 2030; $250 million plant anchors localisation. Duqm’s 1 GW solar farm supplies 40 percent clean power, positioning Oman green manufacturing hub.
For Middle East energy transition, Oman’s move diversifies from oil. UAE ADGM battery plants and Saudi Lucid production create GCC cluster; Oman undercuts on labour, energy costs. Export potential: Egypt, Jordan fleets; African mining.
EL B&T contributes Korean supply chain expertise; local JV ensures technology transfer. Phase 1 completes 2028 focusing domestic; Phase 2 exports 2029. Battery recycling loop planned, capturing 80 percent materials.
Challenges: raw material supply, skilled labour. Oman counters with FTA networks, Korean expat training programs. Competitive pricing targets $25,000 vehicles versus $35,000 imports.
Regional OEMs eye partnerships. Hyundai Oman assembly complements Duqm batteries. GCC charging standards unified under plant influence.
$250 million investment yields RO500 million annual exports by 2032. Duqm SEZAD’s 50 sqkm industrial land attracts 20 suppliers. Government incentives include 30-year usufruct, zero corporate tax. Oman emerges EV manufacturing contender, leveraging geography and diversification urgency. EL B&T-Duqm plant accelerates GCC clean mobility, proving post-oil economies build future industries through strategic FDI.
