Oman, Qatar firms plan bus assembly unit
Muscat, May 2, 2014
Oman Investment Fund (OIF) has signed an agreement with Qatar's national transport company Mowasalat to set up a bus assembly unit in the Sultanate, said a report.
The facility, which will be the first of its kind in the Sultanate, will be constructed on one million sq m of land in Al Mudhaibi in the Al Sharqiyah region at an investment of $160 million, reported the Times of Oman, citing a senior official.
As per the deal, the Omani firm is putting 30 per cent of the total equity worth $48 million, while Mowasalat will invest $112 million.
"Initially, it will start with assembly and later on will be turned into a full-fledged production facility. So, we will start with complete knock down (CKD) now. We will get the parts from the suppliers and will assemble the buses," Khalid Al Yahmadi, OIF general manager, was quoted as saying in the report.
The construction is expected to start within six months and the facility will be completed in two years after the start of construction.
Once ready, the unit will assemble 2,000 buses every year and will cater to Omani market and the rest of GCC countries along with the North African market, it added.