Duqm: The Public Authority for Special Economic Zones and Free Zones (OPAZ) signed an investment usufruct agreement with EL B and T, a Korean electric vehicle (EV) technology company, to establish a project for the production of electric vehicles and battery cells in the Special Economic Zone at Duqm (SEZAD). The project has an investment value of approximately RO 96.2 million ($250 million).
According to Oman News Agency, the agreement was signed on behalf of OPAZ by Qais Mohammed Al Yousef, Chairman of OPAZ, while Dr. Young Ill Kim signed on behalf of the company. The project will be implemented in two phases, with a production capacity of up to 60,000 vehicles annually and 1.6 million battery cells upon completion of Phase II. Eng. Ahmed Ali Akaak, CEO of the SEZAD, said the new project comes as part of joint government efforts to localise industries in Oman and attract further investments in the vehicle sector.
The CEO of SEZAD explained that the project represents a new addition to the vehicle sector in the zone and marks the second project in this field after the launch of production at Karwa Motors several years ago. Eng. Akaak highlighted the success achieved by the green industries sector in Duqm following agreements in wind turbine manufacturing. He noted that the zone's management aims to localize advanced industries in the EV sector and strengthen investment in green manufacturing industries in line with Oman Vision 2040 and the Sultanate's strategy for carbon neutrality.
He added that the green industrial projects being implemented in the zone aim to position the Sultanate of Oman as a regional hub for green industries, establish sustainability-driven industries, and develop the expertise of Oman's youth in future industries, including electric vehicle technologies and renewable energy projects.
Phase I of the project will cover an area of 467,000 square metres, with an additional 429,000 square metres reserved for the second phase. The project is expected to support the development of an integrated industrial ecosystem for the EV sector in the zone by strengthening value chains linked to batteries and other components.
Dr. Young Ill Kim, Founder and Chairman of EL B and T, said the company expects to reach commercial operation by March 2028. He affirmed the company's commitment to increasing the use of green energy in its production processes, including plans to establish a green power station at the industrial facility in Duqm.
He also mentioned that the company is studying, in cooperation with an Omani entity, the development of an external electric engine for boats to reduce carbon emissions in Oman's waters. In addition, the company is exploring a joint project to develop fishing boat concepts for export to international markets.
Eng. Ahmed Al Rajhi, Acting Head of the Green Industries Department at SEZAD, stated that the selection of Duqm for the project reflects the zone's competitive advantages, including advanced infrastructure and strategic location. He said the project represents a strategic direction towards building a sustainable economy based on innovation and clean technologies.
EL B and T specializes in the development, manufacturing, and sale of electric vehicles and components. The company is headquartered in Seoul and has projects and partnerships in India, Trkiye, and other regions.
During Phase I, the project will focus on meeting local market demand in Oman, with plans for gradual expansion towards the GCC, Middle East, and North African markets. The project aligns with the SEZAD's 2025 to 2030 strategy, focusing on positioning Duqm as a hub for renewable energy and sustainable industries while creating business opportunities.