Oman and Belarus to Collaborate on Automotive Manufacturing

Karwa Motors and MAZ sign joint venture agreement.
The collaboration aims to target GCC markets and beyond.
Karwa Motors produces around 700 vehicles annually in Oman.
MAZ specializes in Eastern European vehicle production since 1949.
Duqm’s strategic importance enhances shipping and trade capabilities.

Oman and Belarus Join Forces in Car Production

Oman and Belarus have entered a significant partnership in the automotive sector with the signing of a memorandum of understanding to manufacture transportation vehicles in Oman. The collaboration marks a noteworthy development for Oman’s Karwa Motors and Belarus’ Minsk Automobile Plant (MAZ). Established in 2017, Karwa Motors is based in the industrial city of Duqm and primarily produces buses, trailers, heavy goods, and military vehicles, focusing on meeting local market demands with an output of approximately 700 vehicles each year.

Expansion of Manufacturing Units Planned

The agreement aims to enhance manufacturing operations, allowing the companies to target not just the local market, but also the broader Gulf Cooperation Council (GCC) region as well as other international markets. The Oman News Agency highlighted the implications for both entities in terms of expanding their market reach. Currently, Karwa Motors is largely limited in production, while MAZ caters mostly to Eastern Europe, particularly Russia, managing about 14,000 vehicles annually.

Duqm Port’s Strategic Importance Highlighted

Duqm’s strategic location plays a crucial role in this venture, being situated away from the turbulent areas of the Strait of Hormuz, thus providing logistical advantages. It has direct access to the Indian Ocean, functioning as a multipurpose hub for various shipments. Furthermore, Oman’s foreign trade saw remarkable resilience during the recent conflicts, with Duqm Port facilitating over half of Oman’s exports and imports amid the disruptions experienced by the rest of the GCC states.

The new joint venture between Oman’s Karwa Motors and Belarus’ MAZ signifies a promising shift in automotive manufacturing, aiming to broaden their market scope significantly. With enhanced production capabilities centered in strategic locations, both companies stand to benefit greatly from this collaboration. The support from local stakeholders like Oman Investment Authority will further drive this endeavor, indicating a bright future for vehicle manufacturing in Oman and beyond.