A first-of-its-kind car manufacturing facility with a capital expenditure of $200 million is planned in Duqm through the establishment of an Iranian-Omani joint venture, targeting Oman and neighbouring regional markets.
A memorandum of understanding (MoU) was signed by Oman Investment Fund (OIF), Iran’s leading car manufacturer Iran Khodro and an Omani investor for the creation of the joint venture during Iran’s second solo exhibition on Wednesday.
Khalid Al Yahmadi, investment director at OIF, said that a preliminary study had been conducted before the signing of the MoU and a detailed study will be carried out within the next three months about the requirements of Oman and other target markets as well as the brand and types of the cars required.
As per the initial plan, it will be a new brand that will be created with the support of Iran Khodro, he told reporters. The project will start with an assembly unit but the objective is to have a full manufacturing facility, Al Yahmadi explained.