Oman pushes for Iranian car plant

13 October 2015

Khodro eyes Middle Eastern and African markets

Oman has requested Iranian car manufacturer Khodro to open an assembly plant in Duqm, following a meeting between Yahya al-Jaberi, manager of Duqm Special Economic Zone (Sezad) and Iran Khodro Industrial Group.

The CEO of Khodro, Hashem Yekeezare, welcomed the plan as a way for Khodro to access east and north African markets.

The suggested $100m plant, with capacity to assemble 15,000 to 20,000 cars a year, may get support from an Omani public investment fund.

Khodro is aiming to produce 3 million cars a year, up from around 800,000 a year in 2011 before sanctions stifled Iran’s industrial sector.

Iran and Oman are reviving economic ties after Muscat was instrumental in negotiations towards a nuclear deal.

Both countries are looking to attract foreign direct investment to diversify their economies away from hydrocarbons.

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