MUSCAT: Khazaen Economic City has signed an agreement with China’s Spruce Group to establish a modern car assembly and production centre, reinforcing its appeal as a destination for foreign investment. The initiative aligns with the objectives of Oman Vision 2040, particularly in advancing economic diversification and strengthening high-value industrial sectors.
The project is expected to add depth to Oman’s manufacturing base, especially within the automotive segment. It will incorporate advanced technologies, including artificial intelligence and robotics, while adhering to environmental standards through the production of electric and hybrid vehicles. The facility will target markets across the Middle East and Africa, supporting the expansion of Omani industrial exports.
In its initial phase, the project will provide training for 20 Omani nationals, contributing to workforce development and knowledge transfer. It is also expected to stimulate the creation of a broader automotive ecosystem, including spare parts and component manufacturing such as spark plugs and oil filters, thereby enhancing the “Made in Oman” value chain.
Annual production capacity is projected at between 2,899 and 3,218 vehicles, highlighting the scale of the investment and its contribution to economic output. Khazaen Economic City’s strategic location and infrastructure position it as a competitive logistics hub for regional and international vehicle exports. — ONA
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