Oman’s Khazaen Economic City has signed a deal with China’s Spruce Group to establish a vehicle assembly facility, targeting electric and hybrid production. Initial investment stands at OMR 5m, with plans to scale to OMR 20m.
The plant will produce over 3,200 vehicles annually, aimed at export markets across the Middle East and Africa, while also manufacturing spare parts and accessories. AI and robotics will be integrated into production to support industrial modernisation.
The move aligns with Oman Vision 2040 as the sultanate pushes to diversify its economy beyond oil. Foreign direct investment reached $81bn by the end of 2025, up 8% year-on-year.
Gulf Economist Staff Writer