Sunday 10 / May / 2026
Muscat: The Public Authority for Special Economic Zones and Free Zones (OPAZ) signed an investment usufruct agreement with EL B&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).
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 SEZAD, said the new project comes as part of joint government efforts to localise various industries in the Sultanate of 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 shed light on the success achieved by the green industries sector in the Special Economic Zone at Duqm following the signing of several agreements in the field of wind turbine manufacturing. He noted that the zone’s management seeks through these projects to localise advanced industries in the EV sector and strengthen investment in green manufacturing industries in line with the goals of Oman Vision 2040 and the Sultanate of Oman’s strategy for carbon neutrality and the transition towards clean energy.
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 and innovation driven industries, and develop the expertise of Oman’s youth in future industries, including electric vehicle technologies, renewable energy projects, green hydrogen, and other green industries.
Phase I of the electric vehicle and battery cell production project in the Special Economic Zone at Duqm will cover an area of 467,000 square metres, while the company is expected to reserve an additional 429,000 square metres for the second phase. The project is expected to support the development of an integrated industrial ecosystem for the electric vehicle sector in the zone by strengthening value chains linked to batteries and other components, helping attract complementary industries in the future.
Dr. Young Ill Kim, Founder and Chairman of EL B&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, noting that plans include establishing a green power station at the industrial facility in Duqm to serve as the primary source of energy for operations.
Meanwhile, Eng. Ahmed Al Rajhi, Acting Head of the Green Industries Department at the Special Economic Zone at Duqm, said the selection of Duqm to host the project reflects the zone’s competitive advantages, including advanced infrastructure, a strategic location, flexible legislation, and an integrated package of investment incentives that support business growth and sustainability.
He stated that the electric vehicle and battery cell production project reflects the growing confidence in Duqm as a promising investment destination at both the regional and international levels, and represents a strategic direction towards building a sustainable economy based on innovation and clean technologies in line with Oman’s carbon neutrality goals.
EL B&T works in the development, manufacturing, and sale of electric vehicles and their components, including smart electric vehicles, electric motorcycles, electric three wheelers, electric buses, electric trucks, electric powertrain systems, and spare parts. The company is headquartered in Seoul and has several projects and partnerships in India, Türkiye, and countries across the region.
During Phase I, the project will focus on meeting demand in the local market in Oman, with gradual expansion planned towards the GCC, Middle East, and North African markets.
The electric vehicle and battery manufacturing project in the Special Economic Zone at Duqm reflects the Sultanate of Oman’s direction towards future industries and investments linked to clean energy and advanced technologies. The project also aligns with SEZAD’s 2025 to 2030 strategy, which focuses on positioning Duqm as a preferred strategic hub for renewable energy and sustainable industries while creating broad business opportunities. In addition, the project strengthens Duqm’s leadership in green industries alongside several other industrial projects currently being implemented in the zone.
