Salalah – A cooperation agreement was signed on Monday in Salalah Free Zone for a technical and economic feasibility study for establishment of Oman’s first car manufacturing plant in Dhofar.

Signed between Salalah Global City Company, which operates in the zone, and China’s Jiangsu Changhong Intelligent Equipment, a leading manufacturer of automotive production and assembly lines, the agreement reflects the growing confidence of international investors in Salalah’s business environment.

The zone’s advanced infrastructure, strategic location with access to regional ports and markets, and incentives offered to investors across various industrial sectors have made it an increasingly appealing destination for global partnerships.

Jiangsu Changhong is among China’s most prominent companies in the field of smart industrial systems and automotive production lines. It has more than 30 years of global experience and a proven record of collaboration with major international brands, including BMW, Volkswagen, Jaguar Land Rover, Ford and BYD.

Ahmed Alawi Ba Aqeel, Chairman of Salalah Global City, said the signing marks the first stage of the feasibility study. “The results will be evaluated to determine the next phases of the project,” he stated. “Our cooperation with Jiangsu Changhong builds on their extensive global experience in designing and constructing state-of-the-art automobile manufacturing and assembling facilities.”

Representatives of Jiangsu Changhong expressed strong interest in Oman’s growing market potential, noting that Salalah’s geographic position and advanced infrastructure provide an ideal base for developing a regional hub for automobile manufacturing and exports to the Middle East and African markets.

The proposed project aligns with Oman’s national strategy to establish an integrated automotive manufacturing ecosystem – particularly for electric vehicles – while strengthening Salalah’s role as a leading industrial and logistics hub. It also supports Oman Vision 2040 and the sultanate’s efforts to cut carbon emissions and achieve net-zero emissions by 2050.

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