Oman and Belarus Form Joint Venture to Manufacture Vehicles

• Oman’s Karwa Motors and Belarus’ MAZ have signed a joint venture agreement.
• Karwa Motors produces around 700 vehicles yearly and targets the local market.
• The new venture aims to access the GCC and wider international markets.
• MAZ produces about 14,000 vehicles annually, primarily for Eastern Europe.
• Duqm’s strategic location enhances shipping and manufacturing capabilities.

Karwa Motors Partners with Belarus’ MAZ for Manufacturing

In a significant development, Oman’s Karwa Motors and the Minsk Automobile Plant (MAZ) from Belarus have formalized a memorandum of understanding aimed at jointly manufacturing a range of transportation vehicles in Oman. Founded in 2017, Karwa Motors, located in Duqm, specializes in producing buses, trailers, heavy goods, and military vehicles. The current production capacity stands at around 700 vehicles per year, primarily focused on serving the local Omani market.

Expansion Plans in the GCC and Beyond

The newly established partnership will enhance the manufacturing capabilities of both companies, with intentions to penetrate the Gulf Cooperation Council (GCC) market and potentially extend beyond, as reported by the Oman News Agency. Karwa is predominantly backed by Qatari state public transport provider Mowasalat Qatar, which holds a substantial 70 percent stake, complemented by the remainder held by the Oman Investment Authority, the country’s sovereign wealth fund. Meanwhile, MAZ has a historical production presence since 1949 and is entirely government-owned, focusing sales primarily to Eastern European nations, including Russia, and boasting an annual output nearing 14,000 vehicles.

Strategic Location of Duqm Supports Expansion

Experts, like retired official Abdullah Al-Kiyumi of Oman Maritime Affairs, indicate that the collaboration stands to significantly broaden the market reach for both manufacturers. Currently, Karwa’s limited production capabilities and MAZ’s regional market restrictions constrain their growth. However, the venture is strategically positioned to leverage the industrial successes of Duqm, which is conveniently located for maritime operations, giving access to global markets, and facilitating the expansion of their production capacity.

This joint venture between Oman’s Karwa Motors and Belarus’ MAZ marks a pivotal moment for both companies, potentially allowing them to tap into new markets beyond the GCC. With the backing of significant stakeholders like Mowasalat Qatar and the Oman Investment Authority, the expansion of operations in Duqm further provides a promising pathway for growth. Overall, this partnership, alongside the advantageous geographic location, offers a multitude of new opportunities for vehicle manufacturing.