SEZAD signs a usufruct agreement to set up an auto assembly factory
June 01, 2016
Yahya bin Said al- Jabri, Chairman of Special Economic Zone Authority in Duqm (SEZAD) signed a usufruct agreement with Khalid al- Hail, Chairman of Karwa Automobiles by which SEZAD will provide the company with usufruct right to set up an auto assembly factory with about RO160 million worth of investments.
Yahya bin Said al- Jabri, SEZAD Chairman affirmed that the agreement enhances cooperation and economic partnership between the Sultanate and the State of Qatar.
"We are happy to sign the land usufruct agreement with Karwa Company whose investment will be a good addition to the existing investments in the Zone, al- Jabri said in a press statement.
Karwa Company and Oman Investment Fund will finance the capital of the project (30% for the Sultanate and 70% for the State of Qatar).
Under the agreement, SEZAD allocated a land of about one million square meters in the medium industries area to the factory with a capacity of about 2,000 units annually of various types of large and small buses, school buses, trucks, cars and other vehicles.
The project includes the construction of a number of administrative support services, staff housing, and a yard to conduct operational tests for cars, storage yard and display yard, in addition to the other benefits associated with the project.
The usufruct agreement is 25 years, subject to renewal. It is expected employment opportunities to be provided by the project are to range from between 400 and 500 jobs directly and indirectly.