Muscat: Khazaen Economic City today signed an agreement with Chinese firm Spruce Group to establish an advanced centre for assembling and producing vehicles in Oman.

According to Oman News Agency, the step reflects Khazaen City's appeal to foreign investments and aligns with the objectives of Oman Vision 2040, focusing on economic diversification and strengthening the automotive technology sector. The project aims to boost the industrial sector, particularly the automotive industry in Oman, by incorporating the latest technologies such as artificial intelligence and robotics in the production process.

Furthermore, the initiative emphasizes environmental sustainability by producing electric and hybrid vehicles, supporting clean energy trends. It targets markets in the Middle East and Africa, enhancing the presence of Omani products in regional and international arenas. The project is set to offer on-the-job training opportunities, initially targeting 20 Omani professionals to localize modern knowledge and technologies.

Additionally, the project will facilitate the development of an integrated industrial system for automotive supply industries, including the production of spare parts and vehicle accessories like spark plugs and oil filters. With the main objective of promoting Oman as a vehicle production and export hub, the project is themed 'Made in Oman'.

The centre is projected to achieve a production capacity of 2,899 to 3,218 vehicles annually. Khazaen Economic City's advanced infrastructure and strategic location make it an ideal site for such a project, enabling the city to function as a logistics platform for exporting cars to regional and international markets.