MUSCAT: Karwa Motors, Oman’s leading vehicle manufacturer, has signed an agreement with Daimler Truck, one of the world’s largest commercial vehicle manufacturers, to build Mercedes-Benz bus chassis at its facility in the Special Economic Zone at Duqm (SEZAD).

A strategic partnership agreement to this effect was signed by Dr Ibrahim al Balushi, CEO of Karwa Motors and Michael Dietz, President and CEO of Daimler Truck Middle East & Africa. The signing took place on the sidelines of Busworld Europe 2025, billed as the world’s largest bus and coach expo, which concluded recently in Brussels.

The agreement designates Karwa Motors as an official Daimler Buses Approved Builder, formalising a direct supply arrangement for Mercedes-Benz bus chassis for both domestic operations in Oman and exports to international markets.

The latest agreement underscores the ambitions of Karwa Motors — a joint venture between Mowasalat Qatar, the state-owned transport company of Qatar; and the Oman Investment Authority (OIA), the Sultanate of Oman’s sovereign wealth fund — to forge strategic global partnerships.

Just last month, the JV signed a deal with Empl Fahrzeugwerk GmbH of Austria for the manufacture of a range of specialised vehicles, including firefighting and civil rescue trucks, as well as military vehicles designed for security and defence applications in Oman. Similar arrangements are also in place with The Armored Group (US), Amkodor (Belarus) and MAZ (Belarus).

The deal with Daimler Truck, however, is the most significant to date. Headquartered in Leinfelden-Echterdingen, Germany, Daimler Truck focuses exclusively on the design, production and servicing of trucks and buses. The company operates globally through major brands such as Mercedes-Benz Trucks, Freightliner, Western Star, FUSO, BharatBenz, Thomas Built Buses and Setra; and reported revenues exceeding €55 billion in 2024.

“This agreement represents an important milestone in the development of our collaboration with Karwa Motors”, said Marcus Watts, Vice President, Daimler Buses, Daimler Truck Middle East & Africa. “It demonstrates the strength of industrial partnerships in the region and lays the foundation for a robust, export-oriented manufacturing base in Oman”.

The partnership between Daimler Truck and Karwa Motors reflects a shared commitment to industrial growth, technology exchange and sustainable development across the region. It strengthens Oman’s position as an emerging manufacturing hub while expanding Daimler Truck’s footprint and customer offering throughout the Middle East and Africa, the European company added in a statement.

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