The first ‘made-in-Oman’ buses will begin rolling out from Karwa Motors, an Omani-Qatari joint venture under development at the Special Economic Zone (SEZ) in Duqm, from the second quarter of 2020, a high-level official said here yesterday. Khalid al Hail, Chairman of Karwa Motors, said production is initially envisioned at 1,000 units per annum, rising to 3,000 units at full capacity in line with market demand.
“This project represents the future vision of the leaders of Oman and Qatar in realising the socioeconomic ambitions of the two nations, as well as aspirations for growth of the their peoples,” said Al Hail. “It marks the culmination of two years of efforts by the joint venture partners leading to today’s foundation-stone laying ceremony.”
High level officials representing all of the stakeholders were in attendance at the ceremony, which was held at the project site in Duqm. Present were Yahya bin Saeed al Jabri, Chairman of the SEZ at Duqm (SEZAD); Salim bin Mohammed al Nuaimi, Transport Affairs Under-Secretary of the Ministry of Transport and Communications; and leading figures from the Wilayat of Duqm. Also in attendance were Khalid al Hail, Chairman of Karwa Motors; Nasser bin Mohammed al Malki, Chairman of Mowasalat Qatar, and Khalid al Yahmadi, Chief Executive Officer of Oman Investment Fund (OIF) who is also Vice Chairman of Karwa Motors.
Karwa Motors is a joint venture partnership between Mowasalat Qatar — the national transport company of Qatar (with a 70 per cent equity stake) and Oman Investment Fund (OIF), a sovereign wealth fund of the Sultanate of Oman (with the remaining 30 per cent stake). Together, the partners will invest around $90 million in the initial phase of the project.
The project is being built on a 220,000 sq m site that will be suitably designed to manufacture coach buses, city buses and school buses tailored for the local and regional markets. Phase 1 however will be equipped primarily for welding, painting and assembly of buses and coaches. But over time, the project is expected to attract investors setting up workshops and ancillary plants that will supply components and parts to Karwa Motors – a move that will spark the growth of an automotive manufacturing hub in Duqm.
“Karwa Motors will leverage Oman’s existing automotive supply chain network to gain a foothold in the Oman and Qatar markets, which is tipped to become the region’s largest by 2022,” said Al Hail.
“This plant will enable Karwa Motors to sell buses in the largest market of the MENA region while providing greater flexibility for Oman and Qatar. Worldwide demand for buses is growing and this is the first step towards becoming a leading regional bus manufacturer,” the Chairman added.
Conrad Prabhu
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