Muscat – The Public Authority for Special Economic Zones and Free Zones (OPAZ) signed an investment usufruct agreement on Sunday with the Korean electric vehicle technology company EL B&T to establish an electric vehicle (EV) and battery cell production project in the Duqm Special Economic Zone.
The agreement was signed on behalf of OPAZ by Qais bin Mohammed Al Yousef, Chairman of OPAZ, and on behalf of EL B&T by Dr. Young Ill Kim, Founder and Chairman of the Board of Directors of the Group.
The project's investment value is around RO96.2 million ($250 million) and 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 the second phase.
Engineer Ahmed bin Ali Akak, CEO of Duqm Special Economic Zone (SEZAD), stated that the new project comes within the framework of joint government efforts to localize various industries in the Sultanate of Oman and attract significant investments in the automotive sector.
In a press statement following the signing of the agreement, he explained that the new project represents a significant addition to the automotive sector in the Special Economic Zone at Duqm and is the second project in this sector after the Karwa Motors factory, which commenced production several years ago.
Engineer Ahmed Akak also highlighted the success achieved by the green industries sector in the Special Economic Zone at Duqm after the signing of several agreements in the field of wind turbine manufacturing.
The area allocated for the electric vehicle and battery cell production project in SEZAD in its first phase is 467,000 square meters, and the company is expected to reserve an additional area of approximately 429,000 square meters for the second phase. The project represents an entry point for developing an integrated industrial system for the electric vehicle sector in the Duqm Special Economic Zone by strengthening value chains related to batteries and other components, which will contribute to attracting complementary industries in the future.
Dr. Young Kim, founder and chairman of ELB&T, stated that the company expects to reach the commercial operation stage in March 2028.
He emphasized the company's commitment to promoting the use of green energy in its production processes, noting that the company's plan includes establishing a green energy plant at its industrial facility in Duqm to serve as the primary source for powering production operations. In a press statement, he explained that the company is currently studying, in collaboration with an entity in the Sultanate of Oman, the development of an outboard electric motor for speedboats (RIBs) and fishing boats. This initiative aims to support efforts to reduce carbon emissions in Omani waters.
The company is also exploring a joint venture to further develop the concept of fishing boats, with the goal of exporting these boats to Indonesia, India, Korea, and other international markets.For his part, Engineer Ahmed Al-Rajhi, Acting Head of the Green Industries Department at the Duqm Special Economic Zone, affirmed that choosing Duqm to host the project reflects the region's competitive advantages, including its advanced infrastructure, strategic location, flexible legislation, and a comprehensive system of investment incentives that support business growth and sustainability.
He added 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. It embodies a strategic direction towards building a sustainable economy based on innovation and clean technologies, in line with the Sultanate of Oman's objectives to achieve net-zero carbon neutrality.
ELB&T develops, manufactures, and sells electric vehicles and their components, including smart electric cars, electric bicycles, electric tricycles, electric buses, electric trucks, electric vehicle powertrains, and spare parts. Headquartered in Seoul, South Korea, the company has numerous projects and partnerships in India, Turkiye, and other countries in the region. The initial phase of the project focuses on meeting local market demand in the Sultanate of Oman, with plans for gradual expansion into the GCC, Middle East, and North Africa markets.
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