oman automobile report

1.
1
Oman
Automotive
Market
Report
2016
OMAN
Automotive
Market
Report
2016
7-­‐10
DECEMBER
2016
Oman
Convention
&
Exhibition
Centre
Muscat,
Sultanate
of
Oman

2.
2
Oman
Automotive
Market
Report
2016
Content
Page
1.0 About
Oman
3
2.0
Oman
Automotive
Sector
Overview
4
3.0
Oman’s
Automotive
Market
5
3.1
GCC
Automotive
Market
5
3.2
Oman
Economic
Outlook
6
3.3
Oman
Market
Outlook
6
3.4
Oman
Total
Vehicle
Sales
7
3.5
Oman
Top
Vehicles
Sales
by
Manufacturer
8
4.0
Oman
and
GCC
Automotive
Trade
10
4.1
GCC
Automotive
Exports
10
4.2
Oman
Automotive
Exports
10
4.3
GCC
Automotive
Imports
by
Source
Country
12
4.4
Oman
Automotive
Imports
13
4.5
Potential
Opportunities
of
Oman’s
Automotive
Industry
13
5.0
Oman’s
Plans
to
Become
an
Automotive
Industrial
Hub
14
5.1
Investment
Opportunities
in
the
Automotive
Sector
in
Oman
15
6.0
Oman
Automotive
Projects
27
6.1
Oman
Requests
Iran
Khodro
IKCO
to
Establish
Car
Unit
27
6.2
Oman
Invest
in
Italian
Car
Parts
Supplier
Sigit
SpA
28
6.3
South
Korean
Firm
Plans
to
Build
Auto
Spare
Parts
Project
in
Oman
28
7.0
Invest
in
Oman
7.1
Where
To
Invest?
29
30
8.0
Automobile
Companies
and
Dealers
in
Oman
34

3.
3
Oman
Automotive
Market
Report
2016
1.0 About
Oman
Oman,
strategically
located
where
the
Arabian
Peninsula
reaches
toward
the
Indian
Ocean,
has
a
long
history
of
trade
with
distant
nations.
In
ancient
times,
Omani
caravans
carried
precious
frankincense
to
the
Pharaohs
and
to
King
David’s
Jerusalem.
The
local
legend
of
Sinbad
inspired
generations
of
Omani
sailors
to
pioneer
trade
routes
to
India
and
China.
Omani
merchants
managed
the
world’s
spice
trade
from
the
island
of
Zanzibar.
When
the
United
States
was
still
a
new
nation,
Omani
merchant
ships
sailed
into
Boston
Harbor,
establishing
a
close
relationship
that
culminated
in
the
2009
Free
Trade
Agreement.
These
centuries
of
interaction
with
foreign
cultures
made
the
Omani
people
particularly
tolerant
and
outward-­‐looking.
But
enlightened
leadership
was
needed
to
unleash
the
potential
of
the
Omani
people.
Today,
Oman
is
a
land
of
opportunity,
enterprise
and
innovation
that
has
retained
and
built
on
its
ancient
heritage
to
become
one
of
the
most
progressive,
dynamic
and
stable
Middle
East
economies.
The
government
has
consciously
fostered
the
country’s
growth
while
preserving
its
cultural
values.
Blessed
with
oil
and
natural
gas
resources,
positioned
along
the
busiest
sea-­‐lanes
in
one
of
the
Fastest-­‐growing
regions
of
the
world,
Oman
was
poised
for
success.
Oman
is
now
a
member
of
the
World
Trade
Organization
and
the
Gulf
Cooperative
Council,
and
signed
Free
Trade
Agreements
with
the
Arab
League,
United
State
of
America
and
Singapore
.The
Basic
Law
of
the
Sultanate
of
Oman
establishes
the
national
economy
on
the
principles
of
justice
and
free
market.
Oman
also
offers
residents
endless
ways
to
relax.
With
its
long
coastline,
many
amazing
beaches
invite
exploration.
In
a
land
that
changes
from
plains
to
mountains,
deserts
to
sea,
dry
wadis
to
lush
greenery,
the
possibilities
of
outdoor
activity
are
vast.
The
Sultanate
extends
the
same
dedication
it
puts
to
industrial
development
to
preservation
of
its
natural
wealth
and
environment.
Today
Oman
is
a
sophisticated
modern
state
that
invites
investment
and
encourages
entrepreneurship.

4.
4
Oman
Automotive
Market
Report
2016
2.0 Oman
Automotive
Sector
Overview
• Oman
is
the
third
largest
automotive
market
in
the
GCC
after
Saudi
Arabia
and
UAE.
The
Oman
automotive
market
includes
cars,
parts
and
accessories,
trailers
and
semi-­‐
trailers,
vehicles,
tractors,
and
others.
• The
Oman
automotive
sector
is
expected
to
grow
by
approximately
7.5%
per
annum.
• In
the
last
decade,
the
Oman
automotive
market
boomed
from
114,000
annual
units
in
2004
to
213,924
in
2014.
• The
government’s
vehicle
purchases
had
increased
by
15.2%
and
rent-­‐a-­‐car
companies’
registrations
had
also
surged
by
29.9
%
in
the
first
seven
months
of
2015,
up
from
a
year
ago
due
to
an
increase
in
the
number
of
infrastructure
projects
and
the
development
of
the
tourism
sector.
• There
are
existing
Omani
automotive
parts
manufacturers,
which
are
leading
the
GCC
market
and
exporting
to
the
worldwide
market.
• According
to
a
study
done
by
Emirates
NBD
research,
Oman
accounted
for
59%
of
total
GCC
automotive
exports
followed
by
Saudi
Arabia
17.3%
and
UAE
16.5%
.
(http://www.emiratesnbd.com/plugins/ResearchDocsManagement/Documents/Resear
ch/Emirates%20NBD%20Research%20UAE's%20Automotive%20Sector%20Overview
%204%20February%202015.pdf
)
pdf
page
2
• There
are
more
than
333
projects
operating
in
the
industrial
estates;
with
a
total
investment
of
over
$6
billion.
• In
2009
over
$5
million
worth
of
radiators
were
exported
from
Oman.
• About
1.2
-­‐
1.7
million
batteries
were
produced
in
Oman;
in
2010
almost
$27
million
worth
of
batteries
were
exported
to
the
world.
• Oman
has
$164.7
billion
worth
of
projects
planned
or
underway
across
all
sectors.

5.
5
Oman
Automotive
Market
Report
2016
Saudi
Arabia
50%
UAE
18%
OMAN
13%
KUWAIT
10%
QATAR
6%
BAHRAIN
3%
Total
Vehicle
Sales
of
total
GCC
as
of
H1
2014
3.0
Oman’s
Automotive
Market
With
the
increasing
importance
of
emerging
economies,
it
is
no
surprise
that
Middle
East
countries
are
fast
becoming
dominant
in
the
automotive
sector.
The
Middle
East
in
general,
and
the
GCC
in
particular,
are
fast-­‐growing
markets
for
the
automotive
industry
and
the
region
has
a
high
ratio
of
car
ownership
per
household.
3.1
GCC
Automotive
Market
The
automotive
sector
in
the
Middle
East
remains
upbeat
and
almost
every
car
maker
in
the
region
has
reported
sales
growth
in
double
digits,
ranging
between
20%
and
40%.
The
automotive
aftermarket
in
the
GCC
in
2012
grew
between
15
and
20%
to
reach
US$7.5billion.
By
2016,
the
aftermarket
sector
is
predicted
to
hit
US$14.4
billion
Over
the
next
five
years,
a
growth
of
between
15%
and
20%
for
parts
and
accessories,
tires
and
tubes,
batteries
and
lubricants
is
predicted.
Oman
is
the
third
largest
automotive
market
in
the
GCC
after
Saudi
Arabia
and
UAE.
Oman’s
auto
market;
however,
is
expanding
rapidly
and
vehicle
registrations
are
expected
to
increase
by
approximately
7.5%
per
annum
indicating
that
the
number
of
cars
in
the
Sultanate
will
reach
1.67
million
by
2020.
Source:
www.oica.net
and
focus2move.com

6.
6
Oman
Automotive
Market
Report
2016
3.2
Oman
Economic
Outlook
The
fiscal
balance
is
expected
to
swing
to
a
large
deficit
in
2015
and
narrow
gradually
in
the
coming
years.
Economic
diversification
and
the
development
of
non-­‐oil
sectors
appear
to
be
a
higher
priority
than
making
fiscal
adjustment.
The
government
will
likely
turn
to
its
sovereign
wealth
fund
and
international
debt
markets
to
sustain
spending,
while
the
International
Monetary
Fund
(IMF)
is
urging
an
overhaul
of
the
tax
system
and
other
fiscal
reforms
to
increase
non-­‐oil
revenues.
3.3
Oman
Market
Outlook
Doubling
volume
of
Omani
new
vehicles
market
from
2005
and
2013
the
market
gained
the
world`s
39th
place
with
an
annual
record
actually
fixed
in
the
2013.
Volume
slightly
declined
by
1.8%
while
the
major
risk
for
changing
the
trend
was
in
the
2015.
The
government’s
policy
was
to
keep
the
same
budget
while
increasing
the
deficit
so
that
consumers
do
not
need
to
reduce
their
spending.
Consequently,
in
the
first
half
of
the
year,
according
to
data
release
by
the
Omani
Authority
for
Transportation,
the
sales
of
new
vehicles
are
reported
to
be
up
again
by
4.6%.
Moreover,
this
was
the
best
half
ever,
considering
that
the
entire
first
half
of
2015
lost
train
just
the
fall
of
the
year.
Therefore,
perspectives
for
the
second
half
are
moderately
positive
while
the
risk
for
2016
are
in
place
depending
on
political
decisions.
In
addition,
Toyota’s
sales
increased,
with
Hilux
topping
the
record
with
13,120
units,
followed
by
Land
Cruiser
P/U
with
11.630
and
the
Land
Cruiser
200
with
11.220
units.

7.
7
Oman
Automotive
Market
Report
2016
3.4
Oman
Total
Vehicle
Sales
In
the
last
decade,
the
Oman
automotive
market
boomed
by
200%
from
2004
to
2014
with
an
impressive
series
of
annual
record
interrupted
just
by
the
international
financial
crisis
in
2009
(focus2move.com).
Due
to
the
uniqueness
of
Oman’s
geographical
nature,
which
is
close
to
the
sea
and
desert
and
to
the
increased
public
spending
on
infrastructure
developments,
there
was
an
increasing
demand
for
light
commercial
vehicles
which
are
dominating
Oman’s
vehicle
market.
According
to
Times
of
Oman
(September
22,
2015)
the
government’s
vehicle
purchases
had
increased
by
15.2%
and
rent-­‐a-­‐car
companies’
registrations
had
also
surged
by
29.9
in
the
first
seven
months
of
2015,
up
from
a
year
ago.
0
50,000
100,000
150,000
200,000
250,000
2011
2012
2013
2014
2015
h1
Oman
Total
Vehicle
Sales
as
of
H1
of
2015
Oman
total
vehicle
sales
as
of
H1
of
2015

8.
8
Oman
Automotive
Market
Report
2016
The
leasing
vehicles
percentage
has
increased
by
29.9%
compared
to
the
year
2014.
The
increase
was
due
the
to
increase
in
the
number
of
infrastructure
projects
and
the
development
of
the
tourism
sector.
Although
the
sultanate’s
petroleum
wealth
has
traditionally
provided
a
backbone
for
growth,
efforts
are
well
underway
to
diversify
from
hydrocarbons.
The
Oman
Vision
2020
has
laid
out
plans
to
boost
industrialization
within
the
sultanate
and
to
encourage
the
private
sector
to
take
a
more
active
role
in
the
economy
(www.ncsi.gov.om).
On
the
other
hand,
according
to
(automotive.einnews.com)
The
Middle
East
and
Africa
Automotive
Parts
Die-­‐Casting
Market
registered
revenue
$0.45
billion
in
2014.
Furthermore,
according
to
(researchandmarkets.com)
The
Middle
East
and
Africa
automotive
parts
die-­‐casting
market
registered
a
revenue
of
$1.3
billion
in
2015.
A
study
done
by
Emirates
NBD
research
reports
that
Oman
accounted
for
59%
of
total
GCC
automotive
exports
followed
by
Saudi
Arabia
17.3%
and
UAE
(16.5%).
These
and
other
huge
Oman
automotive
projects
that
will
be
implemented
in
the
upcoming
years
will
see
a
promising
market
and
business
opportunities
for
investors.
3.5
Oman
Top
Vehicles
Sales
By
Manufacturer
According
to
the
first
half
of
2015
ROPs
official
report,
the
market
is
broadly
divided
between
roughly
66%
for
passenger
cars
and
for
34%
for
commercial
vehicles
as
the
Japanese
manufacturers
still
dominate
the
Oman
automotive
market.
Toyota
is
on
top
of
the
sales
chart
with
54.4%
market
share
and
monopolizes
the
top
6
models
ranking
as
the
chart
shows
further:

9.
9
Oman
Automotive
Market
Report
2016
Toyota,
54.50%
Nissan,
11.30%
Hyundai,
8.20%
Kia,
4.90%
Lexus
,
2.70%
Ford
,
1.80%
FUSO,
1.80%
Chevrolet,
1.80%
Mitsubishi
1.10%
Honda,
1%
others
,
10.90%
Source:
www.bestsellingcarsblog.com
and
www.focus2move.com
Toyota’s
market
share
has
been
scaling
50%
for
many
years.
Toyota
still
obliterates
the
sales
charts
with
a
54.4%
market
share
and
monopolizes
the
top
6
model
ranking.
Nissan
came
second
by
11%
followed
by
Hyundai
by
8%
and
Kia
by
4.9%.
In
the
top
models
sales
Toyota
has
been
leading
the
market
for
many
years
and
monopolizes
the
top
first
6
models
ranking
in
the
H1
of
2015.
The
Toyota
Hilux
remains
the
best-­‐selling
vehicle
in
Oman
by
a
large
margin,
selling
more
than
any
other
manufacturer
as
a
whole,
and
despite
sales
down
by
9%
and
11.8%
share.
Followed
by
Toyota
Land
Cruiser
(-­‐14%)
passes
the
Land
Cruiser
Pick-­‐up
(-­‐24%)
and
Prado
(-­‐
17%)
to
claim
the
2nd
spot
overall
while
the
Corolla
(-­‐1%)
overtakes
the
Hiace
(-­‐21%)
to
rank
5th.
The
Nissan
Patrol
at
#7
(+6%)
and
Toyota
RAV4
at
#10
(+60%)
are
the
only
nameplates
in
the
Top
10
managing
to
gain
ground
year-­‐on-­‐year.

10.
10
Oman
Automotive
Market
Report
2016
UAE
39.4%
other
22%
China
11%
Oman
11%
Saudi
Arabia
9%
Egypt
3%
Singapore
2%
Yemen
2%
Who
Gets
GCC
Automotive
Exports
2014
4.0
Oman
and
GCC
Automotive
Trade
4.1
GCC
Automotive
Exports
According
to
the
International
Trade
Center
(ITC),
in
2014
the
GCC
automotive
trade
value
reached
USD
66.5
billion,
which
increased
by
39%
from
2010.
However
90%
of
the
total
market
value
was
imports.
Cars
accounted
for
53.5%
of
GCC
automotive
exports
to
the
world,
followed
by
trucks
(18.4%)
and
part
and
accessories
(16.6%.)
Source:
UAE’s
Automotive
Sector
Overview
2015
(Emirates
NBD)
Oman
is
the
first
automotive
exporter
among
the
GCC
countries.
Oman
accounted
for
59%
of
total
GCC
automotive
export
followed
by
Saudi
Arabia
which
is
17.3%
and
UAE
16.5%.
However,
more
than
half
of
the
GCC
exports
go
to
the
GCC
countries.
39.4%
of
total
GCC
automotive
exports
go
to
UAE
and
China
is
the
only
country
that
records
a
decent
share
of
GCC
automotive
export,
which
was
11.3%
as
the
chart
shows
below:
4.2
Oman
Automotive
Exports
Oman
is
developing
its
light
manufacturing
sector
through
industrial
estates
managed
by
the
Public
Establishment
for
Industrial
Estates
(PEIE) .There
are
more
than
333
projects
operating

11.
11
Oman
Automotive
Market
Report
2016
the
industrial
estates;
with
a
total
investment
of
over
$6
billion.
Oman
is
the
58th
largest
export
economy
in
the
world
and
the
82nd
most
complex
economy
according
to
the
Economic
Complexity
Index
(ECI).
In
2013
Oman
exported
$48.7B
and
imported
$35.4B.
GCC
countries
are
high-­‐consumption
vehicle
markets
that
represent
significant
opportunities
for
manufacturers
of
vehicles
and
associated
components.
In
addition
the
GCC
market
demand
for
automotive
parts
grew
by
34%
every
two
years
while
China,
India
and
Brazil
grew
by
9%
to
14%,
respectively, for
the
same
period.
Oman’s
expanding
export
market
has
led
to
a
significant
increase
in
the
demand
for
automotive
parts,
increasing
in
turn,
the
investment
opportunities
for
local
and
international
manufacturers
to
capture
this
market.
There
are
also
existing
Oman
automotive
parts
manufacturers
which
are
leading
the
GCC
market
and
exporting
to
the
worldwide
market.
The
following
is
a
demonstration
of
the
key
automotive
products
that
manufacture,
export
and
re-­‐export
from
Oman
and
have
significant
levels
of
tread
domestically
and
regionally.
1)
Radiators
for
Motor
Vehicles
Dolphin
Radiators
is
an
existing
local
manufacturer
and
produces
approximately
2,000
to
2,500
radiators
per
year.
According
to
the
Public
Authority
for
Investment
Promotion
and
Export
Development
(Ithraa)
over
$5
million
worth
of
radiators
were
exported
from
Oman
in
2009.
2) Parts
for
Diesel
and
Semi-­‐Diesel
Engines
In
2010
about
$4.5
million
of
these
products
were
exported
from
Oman
as
re-­‐exports.
(predominantly
to
European
destinations).
As
there
are
no
existing
production
facilities
in
the
GCC,
there
is
a
great
opportunity
to
any
prospective
investor
to
start
at
the
lower
end
and
then
tap
into
the
export
market,
at
least
at
the
GCC
level.
The
availability
of
the
resources
in
Oman
and
Oman’s
strategic
location
make
it
the
right
place
for
this
industry
to
operate
and
grow,
not
to
mention
the
advantage
of
the
trade
ports
such
as
Port
of
Sohar
and
Port
of
Duqm.

12.
12
Oman
Automotive
Market
Report
2016
3) Lead
Acid
Accumulators
of
a
Kind
Used
for
Starting
Piston
Engines
(Batteries)
The
existing
local
manufacturer
of
car
batteries,
reem
batteries,
is
a
well-­‐established
manufacturer.
The
plant
production
is
about
1.2
-­‐1.7
million
batteries.
The
company
exports
85%
to
the
MENA
region
and
Europe,
while
15%
of
production
is
retained
in
Oman.
In
2010
almost
$27
million
worth
of
batteries
were
exported
from
Oman
with
only
1%
as
re-­‐export.
In
addition,
the
GCC
is
a
net
importer
of
batteries
and
this
demonstrates
demand
within
the
regional
market,
which
could
be
further
satisfied
by
an
additional
Omani
supplier.
Furthermore,
the
value
of
sales
in
this
product
profile
represents
just
3.5%
to
5%
of
total
demand
in
the
GCC
in
2010
and
between
0.15%
and
0.2%
of
global
import
market
in
2010.
4) Safety
Glass
Laminated
for
Vehicles,
Aircraft,
Spacecraft
or
Vessels
The
existing
market
for
safety
glass
in
Oman
is
quite
significant
(about
200,000
units
in
2010),
and
this
has
generally
been
increasing
significantly
year
on
year.
Moreover,
almost
26
million
units
were
imported
into
the
GCC
in
2009
and
this
represents
a
huge
potential.
Further,
in
2009
around
10.5
million
worth
of
this
product
were
exported
from
Oman
as
re-­‐
exports
(all
to
Thailand,
although
in
previous
years
exports
have
also
been
to
Hong
Kong
and
Singapore).
In
addition,
the
estimated
value
of
sales
in
this
product
profile
represents
just
3.5%
to
7%
of
total
demand
in
GCC
in
2010
and
between
0.07%
and
0.14%
of
global
imports
in
2010.
A
study
done
by
the
Public
Authority
for
Investment
Promotion
and
Exports
Development
(Ithraa)
demonstrates
the
investment
opportunities
of
the
automotive
sector
in
Oman.
The
study
identified
a
range
of
automotive
products
that
enjoy
great
potential
opportunities
to
be
manufactured
in
Oman.
4.3
GCC
Automotive
Imports
by
Source
Country
According
to
the
International
Trade
Center
(ITC)
in
2014
cars
represented
67.9%
of
total
GCC`s
automotive
imports
from
the
world
followed
by
trucks
which
is
13.6%
and
parts
and
accessories
is
8.9%.
The
first
importer
is
Saudi
Arabia
which
received
a
substantial
39.8%
of
total
GCC`s
automotive
imports,
followed
by
UAE
39.9%
and
Oman
10.1%.
On
the
other
hand,
Japan
was
the
top
automotive
exporter
to
the
GCC’s
by
26.5%,
followed
by
USA
19.9%
and
Korea
9.2%.
Oman
came
in
the
seventh
rank
of
total
exporters
to
the
GCC
by
4.2%,
followed
by
UK
3.2%
and
China
3.0%.

13.
13
Oman
Automotive
Market
Report
2016
Japan,
26.50%
USA,
19.90%
other,
19.10%
Korea,
9.20%
Germany,
9%
Thailand,
6%
Oman,
4.20%
UK,
3.20%
China,
3%
Source:
International
Trade
Center
(ITC),
and
Emirates
NBD
research
4.4
Oman
Automotive
Imports
According
to
the
International
Trade
Center
(ITC),
Oman
is
the
third
largest
automotive
importer
in
the
GCC
region,
which
represents
10.1%
of
total
GCC
automotive
imports.
On
the
other
hand,
Japan
is
the
top
automotive
exporter
to
Oman
with
26.5%,
followed
by
USA
19.9%
and
Korea
9.2%.
According
to
the
Oman
statistical
year
book
2015
of
the
National
Center
for
Statistics
and
Information,
the
total
value
of
imported
passenger
vehicles
has
declined
from
1,
711,2
million
in
2012
to
1,688,7
million
in
2014.
The
value
of
imported
commercial
vehicles
however,
has
increased
from
105,6
million
in
2012
to
117,6
million
in
2014.
The
increase
was
due
to
the
increase
in
the
public
spending
on
infrastructure
development
which
led
to
the
increasing
demand
for
light
commercial
vehicles.
Furthermore,
the
value
of
other
imported
automotive
vehicles
such
as
vessels,
aircrafts
and
associated
equipment
has
slightly
increased
from
2,564,
4
million
in
2012
to
2,568,
4
million
in
2014.
4.5
Potential
Opportunities
of
Oman’s
Automotive
Industry
Oman’s
auto
market
is
expanding
rapidly
and
vehicle
registrations
are
expected
to
increase
by
approximately
7.5%
per
annum,
indicating
that
the
number
of
cars
in
the
Sultanate
will
reach
1.67
million
by
2020.
Furthermore
according
to
(researchandmarkets.com)
The
Middle
East
and
Africa
Automotive
Parts
Die-­‐Casting
Market
registered
a
revenue
of
$1.3
billion
in
2015.
Oman
is
the
first
automotive
exporter
among
the
GCC
countries,
accounting
for
59%
of
total
GCC
automotive
exports
by
exporting
and
re-­‐exporting
to
the
auto
parts
and
related
products
to
the
region
and
the
world.

14.
14
Oman
Automotive
Market
Report
2016
5.0
Oman’s
Plans
to
Become
an
Automotive
Industrial
Hub
Vehicle
sales
in
the
Gulf
states
increased
by
8
percent
to
1.8
million
last
year,
according
to
market
researchers
at
focus2move.
The
region’s
largest
market
is
Saudi
Arabia
with
2014
vehicle
sales
of
864,488,
up
12
percent.
Ranking
second
was
the
United
Arab
Emirates
with
sales
of
401,106,
a
rise
of
11
percent.
Oman
came
third
with
a
flat
volume
of
218,185.
On
the
other
hand,
Oman
has
the
financial
strength
to
attract
parts
suppliers
first
and
then
automakers
by
offering
them
a
combination
of
oil-­‐derived
products,
low
energy
costs
and
access
to
the
Greater
Arab
Free
Trade
Area.
Recently
the
Oman
government
has
bought
into
an
Italian
supplier
as
part
of
its
goal
to
develop
the
car
production
industry.
Oman
has
planned
to
establish
an
Iranian
car
production
site
through
financing
provided
by
the
sultanate,
which
can
be
one
of
the
most
important
moves
to
develop
the
auto
industry.
One
of
the
plans
is
to
build
an
automobile
spare
parts
manufacturing
project
in
Sohar
to
produce
aluminum
automobile
wheels
in
cooperation
with
a
South
Korean
company.
There
are
a
lot
of
efforts
made
by
the
private
sector
to
engage
in
the
development
of
the
automotive
industry.
Noor
Majan
is
one
of
the
good
examples
of
Oman’s
capability
to
innovate
in
the
automotive
industry.
Its
project
to
build
a
strong,
sport,
luxury
and
green
car
was
started
in
2009
and
successfully
completed
in
2015.
It
aims
at
encouraging
youth
to
innovate
and
promote
their
dream
projects.
Efforts
are
undertaken
by
the
government
and
the
private
sector
to
develop
the
automotive
industry
in
Oman
through
projects.
Not
to
mention
the
development
of
the
infrastructure
in
Oman
and
the
improvement
of
the
government
services
in
terms
of
speed
and
facilitation.

15.
15
Oman
Automotive
Market
Report
2016
5.1
Investment
Opportunities
in
the
Automotive
Sector
in
Oman
Oman
is
a
land
of
opportunity,
enterprise,
and
innovation
that
has
retained
and
built
on
its
ancient
heritage
to
become
one
of
the
most
progressive,
dynamic
and
stable
Middle
East
economies.
Blessed
with
oil
and
natural
gas
resources,
positioned
along
the
fastest-­‐growing
regions
of
the
world,
Oman
is
poised
for
success.
Oman
is
a
member
of
the
World
Trade
Organization
and
the
Gulf
Cooperation
Council,
and
also
signed
a
free
Trade
Agreement
with
Arab
League,
USA
and
Singapore.
Moreover,
the
basic
law
of
the
Sultanate
of
Oman
establishes
the
national
economy
on
the
principles
of
justice
and
free
market.
Oman
today
is
a
very
sophisticated
state
that
invites
investment
and
encourages
entrepreneurships.
Based
on
a
study
done
by
the
Public
Authority
for
Investment
Promotion
and
Export
Development
(Ithraa),
There
are
a
number
of
automotive
products
that
enjoy
a
great
potential
to
be
manufactured
in
Oman.
These
products
were
based
on
a
range
of
criteria
including
market
potential,
production
factors,
financial
and
economical
viability
and
investment
potential.

16.
16
Oman
Automotive
Market
Report
2016
1)
Radiators
for
Motor
Vehicles:
Definition
Radiators
are
cooling
devices,
through
which
water
or
other
fluids
circulate
as
a
coolant
for
the
engine.
Dolphin
Radiators
is
an
existing
local
manufacturer
and
produce
approximately
2,000
to
2,500
radiators
per
year.
According
to
Ithraa
in
2009
over
$5
million
worth
of
radiators
were
exported
from
Oman.
In
addition,
the
GCC
is
a
net
importer
of
radiators,
showing
demand
within
the
regional
market,
which
could
be
satisfied
by
an
Omani
supplier.
The
estimated
value
of
sales
in
this
product
profile
represents
just
5.5%
to
10%
of
total
demand
in
the
GCC
in
2010
and
between
0.08%
and
0.1%
of
global
import
market
in
2010.
Key
Quantitative
Information
Size
of
Premises
10,000
–
15,000
M
2
Number
of
Employees
100
–
200
Capital
Investment
($)
20
–
25
million
Volume
of
Sales
(#)
150,000
–
200,000
units
per
annum
Value
of
Sales
($)
3.75
–
7
million
Pricing
Structure
$25
–
$35
per
unit
Profit
Margin
4
–
5%

17.
17
Oman
Automotive
Market
Report
2016
2)
Parts
for
Diesel
&
Semi-­‐Diesel
Engines:
Definition
This
product
group
includes
a
range
of
cast
iron
(or
other
metal)
parts
including
pistons,
piston
rings,
cylinders,
cylinder
blocks,
cylinder
heads,
fuel
inlet
valves
and
pipes,
valves,
carburetors
and
nozzles.
It
is
likely
that
a
company
setting
up
as
a
manufacturer
of
one
of
these
products
will
also
manufacture
other
products
from
within
this
group.
The
GCC
is
a
net
importer
of
products
in
this
group,
showing
demand
within
the
regional
market
which
could
be
satisfied
by
an
Omani
supplier.
The
estimated
value
of
sales
for
this
product
group
represents
just
1.6%
to
10%
of
the
total
demand
in
the
GCC
in
2010
(as
there
are
no
existing
production
facilities
in
the
GCC,
demand
can
be
assumed
to
be
imports
minus
exports
which
is
$480
mil)
and
between
0.1%
and
0.2%
of
global
import
market
in
2010.
The
estimated
sales
value
for
this
product
group
ranges
from
being
comfortably
within
the
Oman
demand
parameters
($12.1
million
sales
value
in
2009
and
$16.3
in
2010)
to
well
exceeding
it.
Therefore
it
will
be
critical
for
any
prospective
investor
to
start
at
the
lower
end
and
then
tap
into
the
export
market,
at
least
at
the
GCC
level.
Key
Quantitative
Information
Number
of
Employees
100
-­‐
200
Capital
Investment
($)
15
–
20
million
Volume
of
Sales
(#)
1.5
–
2.5
mil
Value
of
Sales
($)
7.5
–
50
mil
Pricing
Structure
($)
Average
of
$5
–
$20
per
unit
(although
the
pricing
ranges
from
around
$0.1
-­‐
$400
depending
on
the
type
of
part
and
vehicle,
engine
type
and
specification.
A
lower
range
has
been
used
for
the
profiling
as
this
is
considered
a
market
entry
level)
Profit
Margin
10
–
12
%

18.
18
Oman
Automotive
Market
Report
2016
3)
Pneumatic
Tyres
for
Motor
Cars
Including
Station
Wagons
&
Racing
Cars:
Definition
Tyres
are
ring-­‐shaped
rubber
coverings
which
protect
the
wheel
and
enhance
vehicle
performance
by
absorbing
shock.
Pneumatic
tyres
are
the
most
common
form
of
tyres
and
are
filled
with
compressed
air
to
form
an
inflatable
cushion.
The
existing
market
for
tyres
in
Oman
is
quite
significant
at
about
1
million
units
in
2010.
This
presents
a
good
opportunity
to
establish
a
manufacturer
on
the
grounds
of
meeting
local
demand.
However,
the
capital
investment
required
is
significant
and
therefore
it
would
be
necessary
to
consider
a
larger
market,
at
least
at
the
GCC
level,
to
make
any
investment
stack
up.
There
is
also
huge
potential
in
the
regional
market
with
the
demand
for
tyres
increasing
rapidly
(consumer
tyre
demand
in
Dubai
expected
to
grow
annually
by
10%
and
in
Saudi
the
annual
growth
is
expected
to
be
12%).
The
number
of
tyres
(under
this
code)
imported
into
the
GCC
in
2009
was
about
25.7
million.
It
should
also
be
noted
that
it
is
likely
that
a
manufacturer
would
also
produce
tyres
under
code
401120
and
therefore
there
is
potential
additional
demand
relating
to
this
product
group
(this
represents
additional
demand
for
between
9
and
20
million
tyres
per
annum).
The
estimated
value
of
sales
in
this
product
profile
represents
just
3%
to
5%
of
net
imports
in
the
GCC
in
2010
(as
there
are
no
existing
production
facilities
in
the
GCC
demand
can
be
assumed
to
be
imports
minus
exports
which
is
$1,185
mil)
and
between
0.1%
and
0.2%
of
global
import
market
in
2010).
Key
Quantitative
Information
Size
of
Premises
50,000
–
70,000
M
Number
of
Employees
400
-­‐
600
Capital
Investment
(US$)
125
–
150
million
Volume
of
Sales
(#)
350,000
–
500,000
units
per
annum
Value
of
Sales
(US$)
35
–
60
million
Pricing
Structure
(US$)
100
-­‐
120
per
unit
Profit
Margin
2
–
5%

19.
19
Oman
Automotive
Market
Report
2016
4)
Lead
Acid
Accumulators
of
a
Kind
Used
for
Starting
Piston
Engines
(Batteries):
Definition
Lead-­‐acid
accumulators
were
the
first
type
of
rechargeable
batteries.
Due
to
their
high
power
to
weight
ratio
they
can
provide
the
high
current
required
by
automobile
starter
motors.
The
existing
local
manufacturer,
Reem
Batteries,
is
a
well-­‐
established
manufacturer.
The
plant
production
is
about
1.2
–
1.7
million
batteries.
The
company
exports
85%
to
the
MENA
region
and
Europe,
while
15%
of
production
is
retained
in
Oman.
In
2010
almost
$27
million
worth
of
batteries
were
exported
from
Oman
with
only
a
small
proportion
(1%)
as
exports
.The
main
destinations
for
exports
are
the
UK
and
Jordan.
There
is
an
existing
export
market
and
reputation
for
batteries
produced
within
Oman.
As
such
there
is
a
possibility
to
develop
the
success
further
with
additional
local
production.
In
addition,
the
GCC
is
a
net
importer
of
batteries
and
this
demonstrates
demand
within
the
regional
market,
which
could
be
further
satisfied
by
an
additional
Omani
supplier.
The
number
of
batteries
imported
into
the
GCC
in
2009
was
about
4.3
million.
The
estimated
value
of
sales
in
this
product
profile
represents
just
3.5%
to
5%
of
total
demand
in
the
GCC
in
2010
and
between
0.15%
and
0.2%
of
global
import
market
in
2010.
Therefore
production
at
the
scale
identified
within
this
product
profile
is
at
an
appropriate
level.
Key
Quantitative
Information
Size
of
Premises
15,000
–
20,000
M
Number
of
Employees
200
–
300
Capital
Investment
($)
15
–
20
million
Volume
of
Sales
(#)
0.7
–
0.8
million
units
per
annum
Value
of
Sales
($)
10.5
–
16
million
Pricing
Structure
$15
–
$20
per
unit

20.
20
Oman
Automotive
Market
Report
2016
5)
Parts
for
Spark-­‐Ignition
Type
Engines:
Definition
Spark-­‐ignition
engines
are
those
which
use
petrol
as
opposed
to
diesel.
A
piston
is
a
disk
or
short
cylinder
fitting
closely
within
a
tube
in
which
it
moves
up
and
down
against
a
liquid
or
gas,
used
in
an
internal
combustion
engine
to
derive
motion,
or
in
a
pump
to
impart
motion.
However,
estimated
production
levels
suggest
that
there
would
be
a
need
to
serve
a
regional
and
global
market.
Demand
in
the
regional
market
is
for
around
10
–
20
million
units
per
year.
The
estimated
value
of
sales
for
this
product
group
represents
just
2%
to
15%
of
the
total
demand
in
the
GCC
in
2010
(as
there
are
no
existing
production
facilities
in
the
GCC
demand
can
be
assumed
to
be
imports
minus
exports
which
is
$326
mil)
and
between
0.1%
and
0.2%
of
global
import
market
in
2010).
The
estimated
sales
value
for
this
product
group
ranges
from
being
comfortably
within
the
Oman
demand
parameters
($25
million
sales
value
in
2009)
to
well
exceeding
it.
Key
Quantitative
Information
Size
of
Premises
10,000
–
20,000
M
Number
of
Employees
150
-­‐
200
Capital
Investment
($)
30
–
40
million
Volume
of
Sales
(#)
50,000
–
100,000
units
per
annum
Value
of
Sales
($)
15
-­‐
40
million
Pricing
Structure
$300
–
$400
(can
range
from
around
$250
–
$2,000
dependingon
vehicle,
engine
type
and
specification.
A
low
range
has
beenused
for
the
profiling
as
this
represents
a
market
entry
level)
Profit
Margin
2 –
5%
3

21.
21
Oman
Automotive
Market
Report
2016
6)
Transmissions
for
Motor
Vehicles:
Definition
This
product
group
includes
transmissions
for
either
manual
or
automatic
vehicles.
The
transmission
on
a
vehicle
is
an
automotive
assembly
of
gears
and
associated
parts
by
which
power
is
transmitted
from
the
engine
to
a
driving
axle
and
is
also
known
as
a
gearbox.
Market
Assessment
The
existing
market
for
transmissions
in
Oman
is
quite
small
at
only
just
over
6,000
units
in
2009.
The
GCC
is
a
net
importer
of
transmissions
and
this
demonstrates
demand
within
the
regional
market
which
could
be
satisfied
by
an
Omani
supplier.
The
estimated
value
of
sales
in
this
product
profile
represents
about
19%
to
50%
of
net
imports
in
the
GCC
in
2010
(as
there
are
no
existing
production
facilities
in
the
GCC
demand
can
be
assumed
to
be
imports
minus
exports
which
is
$79.6
mil)
and
between
0.03%
and
0.09%
of
global
import
market
in
2010).
Therefore
the
success
of
production
of
this
product
would
be
heavily
dependent
on
exports
to
the
global
market
and
if
taken
forward
as
a
business
proposition.
This
should
initially
be
at
the
lower
end
of
the
sales
volume
range
with
potential
to
develop
and
expand
into
global
market
over
time.
This
is
a
high
value,
high
tech
product
and
relatively
specialized
and
would
be
product
targeted
mainly
at
the
vehicle
assembly
market.
Due
to
the
nature
of
the
part,
any
company
producing
this
could
start
by
serving
the
local
GCC
market
but
in
terms
of
growth
would
need
to
consider
the
global
market.
In
order
to
develop
the
market
potential
for
Oman
there
will
need
to
be
a
partnership
with
an
FDI.
Key
Quantitative
Information
Size
of
Premises
10,000
–
20,000
M
Number
of
Employees
150
-­‐
200
Capital
Investment
($)
30
–
40
million
Volume
of
Sales
(#)
50,000
–
100,000
units
per
annum
Value
of
Sales
($)
15
-­‐
40
million
Pricing
Structure
$300 – $400 (can range from around $250 – $2,000
depending on vehicle, engine type and specification. A
low range has been used for the profiling as this
represents a market entry level)
Profit
Margin
2 –
5%

22.
22
Oman
Automotive
Market
Report
2016
7)
Spark
Plugs:
Definition
The
purpose
of
a
spark
plug
is
to
provide
a
place
for
an
electric
spark
that
is
hot
enough
to
ignite
the
air/
fuel
mixture
inside
the
combustion
chamber
of
an
internal
combustion
engine.
This
is
done
by
a
high
voltage
current
arcing
across
a
gap
on
the
spark
plug.
The
purpose
of
a
spark
plug
is
to
provide
a
place
for
an
electric
spark
that
is
hot
enough
to
ignite
the
air/fuel
mixture
inside
the
combustion
chamber
of
an
internal
combustion
engine.
The
existing
market
for
spark
plugs
in
Oman
is
very
significant
at
about
4.2
million
units
in
2010,
although
these
are
generally
quite
low-­‐value
parts.
This
presents
a
good
opportunity
to
establish
a
manufacturer
on
the
grounds
of
meeting
local
demand
based
on
the
scale
estimated
for
this
profile.
However,
this
would
need
to
be
supplemented
with
additional
regional
demand.
There
is
also
huge
potential
in
the
regional
market
as
the
number
of
imported
parts
into
the
GCC
under
this
code
in
2008
was
around
26
million.
The
estimated
value
of
sales
in
this
product
profile
represents
just
3%
to
6%
of
net
imports
in
the
GCC
in
2010
(as
there
are
no
existing
production
facilities
in
the
GCC
demand
can
be
assumed
to
be
imports
minus
exports
which
is
$97.6
mil)
and
between
0.1%
and
0.3%
of
global
import
market
in
2010).
Key
Quantitative
Information
Size
of
Premises
10,000
–
20,000
M
Number
of
Employees
100
-­‐
200
Capital
Investment
($)
10
–
15
million
Volume
of
Sales
(#)
6
–
8
mil
units
per
annum
Value
of
Sales
($)
3
–
5.5
million
(23
–
42%
of
GCC
import
market/0.2
–
0.6%
of
global
import
market)
Pricing
Structure
$0.5
–
$0.7
per
unit
(can
range
from
around
$0.10
–
$50
depending
onvehicle,
engine
type
and
specification.
A
low
range
has
been
used
for
the
profiling
as
this
represents
a
market
entry
level)
Profit
Margin
5
-­‐
8%

23.
23
Oman
Automotive
Market
Report
2016
8)
Safety
Glass
Laminated
for
Vehicles,
Aircraft,
Spacecraft
or
Vessels:
Definition
Safety
glass
in
relation
to
the
automotive
sector
includes
front
and
rear
windshields,
door
glass
for
cars,
vans,
trucks,
buses,
trains
and
construction
vehicles.
It
is
tempered,
safety
glass
and
undergoes
a
specific
treatment
for
windscreens.
The
existing
market
for
safety
glass
in
Oman
is
quite
significant
at
about
200,000
units
in
2010,
and
this
has
generally
been
increasing
significantly
year
on
year.
Further
in
2010
about
$10.5
million
worth
of
this
product
were
exported
from
Oman
as
re-­‐
exports
(all
to
Thailand,
although
in
previous
years
exports
have
also
been
to
Hong
Kong
and
Singapore).
The
exports
have
been
growing
significantly
since
2008
and
therefore
there
is
a
large
and
growing
export
market
already
developed
for
this
product
which
could
be
satisfied
by
local
production
and
presents
the
opportunity
to
develop
the
export
potential
further.
In
addition,
the
GCC
is
a
net
importer
of
safety
glass
and
this
demonstrates
demand
within
the
regional
market,
which
could
be
satisfied
by
an
Omani
supplier.
The
estimated
value
of
sales
in
this
product
profile
represents
just
3.5%
to
7%
of
total
demand
in
the
GCC
in
2010
and
between
0.07%
and
0.14%
of
global
import
market
in
2010.
Key
Quantitative
Information
Size
of
Premises
30,000
–
50,000
M
Number
of
Employees
200
–
400
Capital
Investment
($)
70
–
100
million
Volume
of
Sales
(#)
300,000
–
400,000
sqm
per
annum
(approx.
same
as
one
unit)
Value
of
Sales
($)
2.5
–
5
million
Pricing
Structure
($)
30
–
40
Profit
Margin
6
–
10%

24.
24
Oman
Automotive
Market
Report
2016
9)
Ball
Bearings:
Definition
Ball
bearings
are
rolling
elements
that
separate
the
bearing
races
with
balls.
They
are
used
to
reduce
rotational
friction
and
support
radial
and
axial
loads.
The
existing
market
for
ball
bearings
in
Oman
is
significant
at
around
6.4
million
units
in
2010,
although
these
are
generally
quite
low
value
parts.
This
presents
a
good
opportunity
to
establish
a
manufacturer
on
the
grounds
of
meeting
local
demand
based
on
the
scale
estimated
for
this
profile.
However,
this
would
need
to
be
supplemented
with
additional
regional
demand.
There
is
also
huge
potential
in
the
regional
market
as
the
number
of
imported
parts
into
the
GCC
under
this
code
in
2008
was
around
27
million.
The
GCC
is
a
net
importer
of
ball
bearings
at
over
$200
million
worth
in
2010
which
represents
significant
market
that
may
be
tapped
in
to
by
an
Omani
supplier.
The
estimated
value
of
sales
in
this
product
profile
represents
just
1.9%
to
9.8%of
total
demand
in
the
GCC
in
2010
(as
there
are
no
existing
production
facilities
in
the
GCC
demand
can
be
assumed
to
be
imports
minus
exports
which
is
$203
mil)
and
between
0.01%and
0.06%
of
global
import
market
in
2010).
Key
Quantitative
Information
Size
of
Premises
2,000
–
5,000m2
Number
of
Employees
50
–
100
Capital
Investment
($)
10
–
15
million
Volume
of
Sales
(#)
1.5
–
4
million
Value
of
Sales
($)
3.8
–
20
million
Pricing
Structure
$3.5
-­‐
$5.0
per
unit
(although
the
pricing
ranges
from
around
$1
to
$200
depending
on
vehicle,
engine
type
and
specification.
A
lower
range
has
been
used
for
the
profiling
as
this
is
considered
a
market
entry
level)
Profit
Margin
8
–
12%

25.
25
Oman
Automotive
Market
Report
2016
10)
Oil
or
Petrol
Filters
for
Internal
Combustion
Engines:
Definition
Oil
filters
are
devices
that
block
dirt
and
any
other
impurities
from
going
into
the
moving
parts
of
the
engine,
to
prevent
any
damage.
The
existing
local
manufacturer
only
serves
a
small
part
of
the
existing
local
market
(approx.
300,000
filters
out
of
total
demand
for
2.98
million
per
annum).
This
may
be
due
to
issues
relating
to
the
perception
of
the
quality
of
Oman-­‐produced
products.
Anecdotal
evidence
suggests
that
the
local
product
is
actually
of
a
very
high
quality
standard
but
the
perception
and
lack
of
licensing
as
an
OEM
manufacturer
restricts
local
sales.
The
estimated
production
levels
for
the
profile
are
broadly
equivalent
to
the
local
demand
levels;
it
is
unlikely
that
a
new
manufacturer
would
simply
satisfy
the
existing
demand.
However,
there
is
significant
demand
on
which
to
develop
a
new
business
and
once
established
the
company’s
growth
could
develop
based
on
the
significant
market
within
the
GCC,
with
demand
in
the
GCC
in
2008
at
around
95.6
million
units.
The
GCC
is
a
net
importer
of
oil
and
petrol
filters
and
this
demonstrates
demand
within
the
regional
market,
which
could
be
satisfied
by
an
Omani
supplier.
The
estimated
value
of
sales
in
this
product
profile
represents
just
0.7%
to
3.2%
of
total
demand
in
the
GCC
in
2010
and
between
0.02%
and
0.1%
of
global
import
market
in
2010.
Key
Quantitative
Information
Size
of
Premises
1,500
-­‐
3,000
M2
Number
of
Employees
50
–
100
Capital
Investment
($)
10
–
15
million
Volume
of
Sales
(#)
1.25
–
3.0
million
units
per
year
Value
of
Sales
($)
1.25
–
6
million
Pricing
Structure
($)
$
1
–
$
2
per
unit
(although
the
pricing
ranges
from
around
$0.5
to
$500
depending
on
vehicle,
engine
type
and
specification.
A
lower
range
has
been
used
for
the
profiling
as
this
is
considered
a
market
entry
level)
Profit
Margin
6
–
10%

26.
26
Oman
Automotive
Market
Report
2016
11)
Fuel
Pumps,
Lubricating
Pumps
or
Cooling
Pumps
for
Internal
Combustion
Engines:
Definition
The
fuel
pump
is
responsible
for
pumping
the
fuel
from
the
fuel
tank
to
the
engine
and
it
delivers
under
low
pressure
to
the
carburetor
or
under
high
pressure
to
the
fuel
injection
system.
The
cooling
pump
is
a
simple
device
that
pumps
the
coolant
through
the
cooling
system
as
long
as
the
engine
is
running.
The
existing
market
for
fuel
pumps
in
Oman
is
very
significant
at
around
1.8
million
units
in
2010.
This
presents
a
good
opportunity
to
establish
a
manufacturer
on
the
grounds
of
meeting
local
demand
based
on
the
scale
estimated
for
this
profile.
There
is
also
huge
potential
in
the
regional
market
as
the
number
of
imported
parts
into
the
GCC
under
this
codein
2010
was
around
38
million.
The
estimated
value
of
sales
in
this
product
profile
represents
around
7%
to
15%
of
net
imports
in
the
GCC
in
2010
(as
there
are
no
existing
production
facilities
in
the
GCC
demand
can
be
assumed
to
be
imports
minus
exports
which
is
$101
mil)
and
between
0.07%
and
0.1%
of
global
import
market
in
2010).
Key
Quantitative
Information
Size
of
Premises
3,000
–
5,000
M
Number
of
Employees
100
–
150
Capital
Investment
($)
10
–
15
million
Volume
of
Sales
(#)
0.75
–
1.0
million
Value
of
Sales
($)
7.5
–
15
million
Pricing
Structure
10
–
15
(ranges
from
1
to
100)
Profit
Margin
5
–
8%

27.
27
Oman
Automotive
Market
Report
2016
6.0
Oman
Automotive
Projects
Oman
has
$164.7billion-­‐worth
of
projects
planned
or
underway
across
all
sectors.
Oman
must
use
capital
spending
to
diversify
its
economy,
both
by
expanding
its
downstream
hydrocarbons
capabilities
and
non-­‐oil-­‐and-­‐gas
industries,
and
by
connecting
the
country
with
transport
and
logistics
infrastructure
schemes.
Oman
mega
projects
are
the
$20
billion
Duqm
New
Town,
Development
of
the
Khazzan
and
Makarem
oil
fields,
The
Oman
National
Railway,
the
$15
billion
Duqm
Refinery,
The
Wave
housing
development
and
the
development
of
Sohar’s
port
and
free
zone.
With
such
ambitious
mega
projects,
Oman
is
bound
to
be
a
global
leader
in
economic
expansion
and
infrastructure
transformation,
proving
to
the
rest
of
the
world
that
Oman
is
ready
to
attract
heavy
industrial
investment.
In
the
progress
of
attracting
auto
industry
investment
Oman
has
made
moves
to
invest
in
other
leading
automotive
manufacturers
such
as
Iran
Khodro
Industrial
Group
(IKCO),
and
Italian
parts
supplier
Sigit
SpA.
6.1
Oman
Requests
Iran
Khodro
IKCO
to
Establish
Car
Unit
Iran
Khodro
Industrial
Group
(IKCO),
a
leading
Iranian
vehicle
manufacturer
with
headquarters
in
Tehran,
has
been
requested
by
Oman
to
establish
a
car
production
site
through
financing
provided
by
the
sultanate.
IKCO’s
managing
director
Hashem
Yekee
Zare
met
with
the
head
of
Oman's
Special
Economic
Zone
Authority
Duqm
(SEZAD),
Yahya
Al-­‐Jaberi,
and
during
the
meeting
referred
to
the
longstanding
Iran-­‐Oman
relations
adding
that
the
site
can
provide
Iran
Khodro
with
access
to
markets
in
eastern
and
northern
Africa.
Yekee
Zare
further
hoped
that
the
site
could
be
established
as
soon
as
possible
with
the
financial
support
of
Oman's
Development
Fund.
IKCO,
which
was
founded
in
1962
with
the
name
of
Iran
National,
has
transformed
into
the
largest
industrial
group
in
Iran
in
the
automotive
sector,
producing
both
passenger
cars
and
commercial
vehicles
with
a
workforce
of
around
58,000.
IKCO
has
an
asset
of
$6,240
million
and
generated
total
revenue
of
$4,480
million
in
2013,
owns
a
large
share
of
Iran's
auto
market
and
is
exporting
its
products
to
the
international
markets.
Its
products
have
been
welcomed
in
countries
such
as
Russia,
Belarus,
Syria,
Turkey,
Iraq
and
Lebanon.
In
2013,
IKCO
managed
to
produce
370,000
units
of
different
passenger
cars.
The
company
exported
about
221,019
units
of
passenger
car
between
2005
and
2014.
Export
of
auto
parts
forms
another
part
of
IKCO's
major
activities.

28.
28
Oman
Automotive
Market
Report
2016
6.2
Oman
Invests
in
Italian
Car
Parts
Supplier
Sigit
SpA
The
Oman
government
has
bought
a
40
per
cent
stake
in
Italian
car
parts
supplier
Sigit
SpA
as
part
of
its
plan
to
develop
a
car
manufacturing
industry
in
the
Sultanate.
The
move
is
part
of
Oman’s
plan
to
begin
production
of
auto
parts
in
the
country
within
two
years
and
then
open
a
car
manufacturing
plant
in
2020.
Sigit
is
a
privately
owned
company
that
was
set
up
in
1966.
Currently,
it
supplies
thermoplastic
and
rubber
components
to
some
of
the
world’s
biggest
carmakers,
including
General
Motors
and
Fiat
Chrysler
Automobiles.
Sigit,
which
is
headquartered
in
Chivasso,
in
the
north
of
Italy,
has
nine
manufacturing
plants
around
the
world,
including
in
Morocco,
Serbia
and
Poland,
while
it
reported
sales
of
€72.5
million
last
year.
According
to
a
local
press
report,
the
sovereign-­‐wealth
fund
is
already
a
30
per
cent
equity
partner
in
Karwa
Auto
Motors,
a
joint
venture
between
Oman
and
Qatar
that
will
establish
the
GCC’s
first
bus
assembly
plant
in
Mudhaibi,
in
the
Al
Sharqiyah
North
Governorate.
It
is
believed
this
plant
will
have
the
capacity
to
assemble
2,000
buses
a
year
for
distribution
in
the
GCC
and
Middle
East
North
Africa
(MENA)
region.
6.3
South
Korean
Firm
Plans
to
Build
Auto
Spare
Parts
Project
in
Oman
South
Korean
multinational
company
is
planning
to
build
an
automobile
spare
parts
manufacturing
project
in
Sohar
to
produce
aluminum
automobile
wheels,
Daesik
Kim,
Korea’s
ambassador
to
Oman
said;
Korean
companies
are
realizing
the
importance
of
Oman
as
strategic
location.”
that
Korean
companies
in
the
recent
past
were
mostly
engaged
in
oil
exploration
field
in
Oman.
Now
they
have
interest
in
the
manufacturing
sector
as
Posco,
a
Korean
firm,
has
already
tied
up
with
Sun
Metal
(a
joint
venture
between
Oman
and
Indian
investors)
for
building
a
steel
project
in
Sur.
Kim
also
said
that
his
country
has
close
economic
relations
with
Saudi
Arabia
and
the
United
Arab
Emirates.
In
the
case
of
UAE,
Korea
has
a
close
tie-­‐up
in
the
healthcare
sector.
He
said
that
the
Omani
youth
could
get
training
in
Korea
in
various
fields.
When
Korea
started
its
economic
development,
the
country
depended
on
developed
nations
for
know-­‐how
and
transfer
of
technology.
And
now,
he
said,
Korean
firms
are
known
for
its
world-­‐class
technology
in
several
industries,
including
shipbuilding,
automobile,
information
technology
and
healthcare.

29.
29
Oman
Automotive
Market
Report
2016
In
general,
there
are
many
large
developments
in
progress
in
Oman,
from
oil
and
gas,
tourism,
ports,
manufacturing,
logistics,
to
ICT
-­‐
all
creating
opportunities
for
end-­‐users
and
businesses
wishing
to
relocate
to
the
Sultanate.
High
quality
and
competitively
priced
industrial
and
office
space
is
available
across
Oman
in
superb
industrial
estates,
free
zones
and
ports.
Indeed,
land,
warehouse,
manufacturing
units
and
office
accommodation
is
currently
available
in
a
wide
range
of
locations,
including:
Rusayl,
Sohar,
Al
Buraimi,
Nizwa,
Raysut,
Sur,
the
Port
of
Sohar,
Duqm
Port,
Salalah
Free
Zone,
Al
Mazunah
Free
Zone
and
Oman’s
flagship
technology
park,
Knowledge
Oasis
Muscat.
7.0
Invest
in
Oman
Investment
in
Oman
plays
a
major
role
in
all
developing
economies;
as
it
drives
its
dynamic
basics
of
growth,
development,
and
structural
changes.
Despite
the
prevailing
economic,
political
and
social
circumstances
at
the
Omani
renaissance
in
1970,
the
intensive
programs
on
investment
during
the
last
four
decades
along
with
His
Majesty’s
prudent
guidelines,
have
been
able
to
transfer
the
modest
oil
revenues
to
a
developed
economic
and
social
infrastructure,
essential
for
leading
sustainable
development.
In
fact,
the
Sultanate
has
the
infrastructure
that
encourage
and
facilitate
the
national
and
foreign
investment
in
Oman.
Its
geographical
location
that
overlooks
international
and
regional
sea-­‐lanes
along
with
the
existence
of
Omani
ports
open
new
horizons
for
investment
and
free
trading.
Moreover,
the
Sultanate
is
characterized
by
its
stable
economy,
strong
infrastructure,
and
qualified
human
resources
that
guarantee
the
easiness
of
investment
in
Oman.
Not
to
mention
the
regulations
issued
to
support
this
open
economic
direction
and
to
encourage
foreign
investments,
which
are
gradually
increasing
by
the
Sultanate's
engagement
in
international
organizations,
international
trading
organization,
and
free
trading
agreement
with
USA.

30.
30
Oman
Automotive
Market
Report
2016
Sohar
Port
&
Free
Zone
7.1
Where
to
Invest?
Oman
offers
investors
various
investment
opportunities
across
its
free
zones,
special
economic
zone
and
industrial
estates,
each
providing
fully
serviced
areas
with
industry-­‐specific
clusters.
Free
Trade
Zones
Sohar
Free
Zone
Salalah
Free
Zone
Al
Mazunah
Free
Zone
Duqm
Special
Economic
Zone
Industrial
Estates
Knowledge
Oasis
Muscat
Special
Economic
Zone
Industrial
Zone
•
Investors
benefit
from
first
mover’s
advantages
into
relatively
“young”
zones
•
Attractive
incentive
packages
including
highly
discounted
land
and
utilities
•
One-­‐stop-­‐shop
services
Advantages
Incentives
Foreign
Ownership
Corporate
Tax
Customs
Duties
Level
of
Omanization
Capital
Investment
Income
Tax
Repatriation
of
Capital
100%
Foreign
Ownership
10
year
exemption
of
corporate
tax
No
customs
duties
on
goods
brought
into
the
free
zone
Minimal
Omanization
requirements
No
minimum
capital
investment
or
requirement
No
tax
on
personal
income
No
restrictions
on
repatriation
of
capital,
profits
and
investments

31.
31
Oman
Automotive
Market
Report
2016
Salalah
Port
&
Free
Zone
Overview
• 18km2
free
zone
adjacent
to
Salalah
port
• Full
operational
infrastructure
including
deep
water
port,
raw
material
transport
line,
power
generation
and
desalination
• Offers
space
for
manufacturing,
warehousing,
logistics,
distribution,
research
and
development,
office
facilities,
retail
outlets,
resort
and
residential
developments
• Top
5
Free
Zone
in
the
Middle
East
by
fDI
magazine
• Inter-­‐modal
hub
with
sea,
land,
and
air
connections
Readiness
for
Business
• First
phase
complete
providing
200ha
of
distribution,
logistics,
freight
forwarding
and
manufacturing
facilities
• Second
phase
of
400ha,
currently
under
construction,
will
focus
on
light
and
medium
industrial
units
• Investments
expected
to
reach
USD
5bn
by
2015
Location
• Southern
coast
of
Oman
on
the
Indian
Ocean
• Fastest
transit
times
to
Europe
and
Asia
32%
lower
than
competing
ports
Opportunities
• Chemical
and
Material
Processing
• Manufacturing
and
Assembly
• Logistics
and
Distribution
• Agro-­‐industry
• Mining
• Liquid
bulk
storage

32.
32
Oman
Automotive
Market
Report
2016
Duqm
Special
Economic
Zone
(SEZ)
Overview
• Halfway
between
Muscat
and
Salalah
• Largest
economic
zone
in
MENA
region
• To
be
supported
by
multimodal
transport
system
including
airport,
road
and
rail
Readiness
for
Business
• First
phase
of
the
port
will
handle
containers,
general,
and
bulk
cargo
• Duqm
airport
now
operational
•
Integrated
Zone
with
Sea
Port
Fisheries
Zone
Mineral
Cluster
Industrial
Zone
Tourism
Zone
• Abundant
fisheries
and
marine
resources
• Ideal
for
fish
processing
and
aquaculture
• Dedicated
fishery
harbor
• Abundant
mineral
deposits
discovered
around
Duqm
• Offers
unique
opportunities
to
mine,
process
and
export
these
minerals
Divided
into
industrial
clusters:
• Light
and
heavy
industry
• Major
export
refinery
• Reserved
area
for
hotels
and
resorts
• Crowne
Plaza
Hotel
already
operational

33.
33
Oman
Automotive
Market
Report
2016
Knowledge
Oasis
Muscat
(KOM)
Overview
• Opened
in
2003,
KOM
is
Oman’s
flagship
technology
park
with
81ha
of
land
• Caters
to
knowledge-­‐based
businesses
including
budding
entrepreneurs,
small
and
medium-­‐sized
enterprises
and
established
multi-­‐nationals
• Over
35
hi-­‐tech
tenants
from
Europe,
the
US,
Asia
and
the
Middle
East
including
HP,
Microsoft,
WiPro
• 2
IT
tertiary
institutes
with
1,000+
undergraduates
• Currently
expansion
to
provide
10,000m2
of
office
accommodation
Competitive
Advantage
• Close
proximity
to
top
technology
corporations
• Eco-­‐friendly
facilities
and
top-­‐tier
communication
network
• Runs
The
Knowledge
Mine
business
incubator
program
• Offers
a
subsidized
leases
and
utilities
and
various
business
support
program
services
Location
• Located
in
Muscat,
10
minutes
away
from
Muscat
International
Airport
Competitive
Advantage
• Call center and research
• Back office support i.e. data recovery
• Mobile commerce
• E-Security
• Software development
• IT consultancy and services
• Development activities by blue-chip firms
• Knowledge-driven small and medium-sized enterprises

34.
34
Oman
Automotive
Market
Report
2016
Other
Industrial
Estates
and
Zones
in
Oman
• Located
near
Yemeni
border
• Key
business
areas
include
offices,
warehouses,
small
industries,
administrative,
vehicles
trade
and
livestock
Al
Mazunah
Free
Zone
Rusayl
Industrial
Estate
• 45
km
from
Muscat
• Occupies
750
hectares
• 240ha
fully
developed
and
divided
into
plots
• Located
near
Port
Salalah
• Covers
268
hectares
• 63ha
already
developed,
serviced
and
subdivided
into
plots
ranging
from
1,350
to
11,000m2
Raysut
Industrial
Estate
Smail
Industrial
Estate
• Located
45
km
away
from
Muscat
International
Airport
• Occupies
an
area
of
7.4mn
m2
• Over
130
investors
have
signed
leases
since
announced
in
2010
• Situated in Al Sharqia region
• 300 km from Muscat
• Covers 3,610 hectares
• Deep water harbor
• Major tenants include Oman LNG,
National Gas Company and Oman India
Fertilizer Company
Sur
Industrial
Estate
Nizwa
Industrial
Estate
• Located in Oman’s interior
• 180 km from Muscat
• Covers 214 hectares
• Contains 80 plots, ranging from 1,200 to
8,000 m2
• Occupies 550 hectares
• 25 ha already occupied in plots
ranging from 500 to 6,000 m2
• 155 factories operating with further
Buraimi
Industrial
Estate

35.
35
Oman
Automotive
Market
Report
2016
1.
Harley-­‐Davidson
Muscat
2.
Alfa
Romeo
3.
Lamborghini
1.
Mercedes
Benz
2.
MAN
1.
BMW
2.
MINI
1.
Cadillac
2.
Chevrolet
3.
Chery
4.
Hyundai
5.
Isuzu
6.
Subaru
7.
SsangYong
1.
GMC-­‐
ambulance
-­‐
fire
fighting
-­‐
freezer
trucks-­‐
refuellers-­‐
transporters-­‐
golf
cart
2.
Suzuki
-­‐
motorcycles,
automobiles
3.
Kawasaki-­‐
heavy
equipments
4.
Formula
1
-­‐
auto
care
products
5.
Reberlo-­‐
car
refinishing
products
6.
Veedol
-­‐oil
7.
Sprint-­‐
refinishing
products
1.
Nissan
2.
Infiniti
3.
Renault
4.
BMW
5.
Mini
6.
Rolls
Royce
7.
New
Holland
Kobelco-­‐
8.
Iveco
9.
Popular
per-­‐owned
cars
–used
cars
Shanfari
Group
Zawawi
Trading
Company
LLC
Al
Jenaibi
International
Automobiles
LLC
OTE
Automotive
Business
Group
(Oman
Trading
Establishment
LLC)
Moosa
Abdul
Rahman
Group
Suhail
Bahwan
Group
8.0
Automobile
Companies
and
Dealers
in
Oman

36.
36
Oman
Automotive
Market
Report
2016
1
MHD
LLC
Oman
Marketing
and
Services
Company
(OMASCO)
Saud
Bahwan
Group
1
1.
Ashok
Leyland
–truck
and
bus
2.
Jaguar
3.
Landover
4.
Volvo
5.
Luxgen
6.
MG
7.
BYD
8.
CMC
9.
JMC
1. HONDA
–
CARS
, Motorcycles
1.
Toyota
2.
Lexus
3.
Ford
4.
Daihatsu
5.
Kia
6,
Best
cars
7.
Yokohama
tyres
8.
Continental
tyres
9.
Batteries
:
PT
GS
,
AuroraS,
Furukawa
,
Delkor
10.
Lubricants:
Elf,
ENOC
11.
Allied
Products
:
12.
Vehicle
Refinishing
System
13.
Marine
Products
14.
Heavy
vehicles
15.
MAN
16.
Hino:
17.
CONSTRUCTION
EQUIPMENT:
18.
Komatsu
19.
CONCRETE,
ROAD
BUILDING
&
QUARRYING
EQUIPMENT
20.
CIVIL
DEFENCE
&
FIRE
PROTECTION
21.
Fire
Tenders
and
vehicles:
22.
SEAPORT
EQUIPMENT
23.
AIRPORT
EQUIPMENT
24.
INDUSTRIAL
EQUIPMENT
25.
Hertz
Cars
Rental
26.
Arabian
Car
Marketing
LLC
27.
Lincoln

37.
37
Oman
Automotive
Market
Report
2016
2
Zubair
Automotive
Group
2
1.
Mitsubishi
Motors
2.
Fuso
3.
Bentley
4.
Audi
5.
Volkswagen
6.
Skoda
7.
Peugeot
8.
Citroen
9.
Great
Wall
10.
Chrysler
11.
Jeep
12.
Dodge
13.
Ram
14.
Volvo
Trucks
15.
Renault
Trucks
16.
Bobcat
17.
Hi-­‐Force
18.
Kennedy
19.
Graco,
20.
Ingersoll
Rand
21.
Ferrari
crane
22.
Ausa
Dumpers
23.
Case
constructions,
24.
Putzmeister
25.
Liebherr
26.
Yamaha
Motorcycles
27.
BRP
(Sea-­‐Doo,
Evinrude
and
Can-­‐am)
28.
Segway
29.
Fiat
Marketing
these
brands
are
a
number
of
different
Zubair
subsidiaries:
1.
General
Automotive
Company,
• Mitsubishi
Motors
2.
Wattayah
Motors
LLC
• Audi
• Volkswagen
• Bentley
• Sko
3.
European
Motors
• Peugeot
4.
Rumaila
Motors
5.
Dhofar
Automotive

38.
38
Oman
Automotive
Market
Report
2016
3
Towel
Auto
Center
LLC
Alfardan
Motors
Saeed
United
International
Co
L.L.C
Al
Hashar
&
Co
L
3
6.
International
Heavy
Equipment
(IHE)
7.
Interparts
1.
Mazda
2.
Zhengzhou
Nissan
3.
Higer
–bus
4.
Navistar
–trucks
5.
JAC
–
trucks
6.
Values
cars
–used
cars
7.
Towel
lease
1.
MASERATI
2.
FERRARI
1.
Bugatti
1.
TATA
Motors
2.
TATA
Daewoo
3.
UD
Trucks
4.
PROTON
5.
Jinbei,
Brilliance
6.
Tailift
7.
PM
cranes
8.
Tadano
9.
DOOSAN
10.
LUBRICANTS
&
BATTERIES
11.
KOBA
12,
PETROMIN
LUBRICANTS
13.
LIQUI
MOLY
14.
ATLANITIC
LUBRICANTS
15.
TUDOR
16.
Tyres
17.
FIRESTONE
-­‐JK
TYRE
18.
APOLLO
19.
RADAR
20.
SOLIDEAL
21.
ODYKING