Sunday 03 / May / 2026
Khazaen: Khazaen Economic City today signed an agreement with Chinese firm Spruce Group to establish an advanced centre for assembling and producing vehicles in Oman.
The step reflects Khazaen City’s appeal to foreign investments and puts in shape the objectives of Oman Vision 2040 in terms of economic diversification and consolidation of the automotive technology sector.
The project seeks to enhance the industrial sector, namely the automotive sector, in the Sultanate of Oman by introducing the latest technologies, including artificial intelligence and robots in the production process.
In addition, the project adopts environmental sustainability standards by producing electric and hybrid vehicles that support clean energy trends. It targets the markets of the Middle East and Africa and enhances the presence of Omani products in regional and international markets.
The project will also provide on-the-job training opportunities, and it targets a first set of 20 Omani professionals in a bid to localize modern knowledge and technologies.
In addition, the project will support the establishment of an integrated industrial system for automotive supply industries, including the production of spare parts and vehicle accessories like spark plugs, oil filters and others items. With the prime objective of promoting Oman as a vehicle production and export hub, the project takes the theme “Made in Oman”.
The centre is expected to have a production capacity of 2,899 to 3,218 vehicles per year.
Khazaen Economic City boasts an advanced infrastructure and strategic location and it emerges as an ideal location for the establishment of such a unique project. This enables the city to serve as a logistics platform for exporting cars to regional and international markets.
