Sunday, May 03, 2026

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Khazaen Economic City signs deal to establish high-tech car manufacturing hub in Oman

Khazaen Economic City has signed an agreement with China’s Spruce Group to establish an advanced automotive assembly and production center.

TAS News Service

info@thearabianstories.com

Sunday, May 3, 2026

MUSCAT : The new project marks a major milestone for Oman’s automotive and advanced technology sectors, highlighting the country’s growing appeal to foreign investors. The facility will incorporate cutting-edge manufacturing technologies, including artificial intelligence systems and robotics across production lines, positioning Oman at the forefront of modern industrial practices.

Aligned with global sustainability trends, the center will focus on producing electric and hybrid vehicles, supporting clean energy initiatives while targeting markets across the Middle East and Africa. This strategic focus is expected to strengthen the presence of “Made in Oman” products in regional and international markets.

Beyond production, the initiative is set to contribute to human capital development. In its first phase, the project will provide training and employment opportunities for 20 Omani nationals, fostering local expertise and enabling the transfer of advanced technological knowledge.

The development will also pave the way for a broader automotive ecosystem in the Sultanate, supporting supply industries such as spare parts and vehicle accessories manufacturing, including components like spark plugs and oil filters. This integrated approach aims to position Oman as a competitive hub for automotive production and exports.

With an anticipated production capacity ranging between 2,899 and 3,218 vehicles annually, the facility reflects the scale of Oman’s industrial ambitions and its potential contribution to the national economy.

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