The Automobile City in Salalah is scheduled to begin operations during the second quarter of 2027. The project will create a dedicated hub for Oman’s automotive industry.
Construction has already reached almost half completion, according to project officials. The first phase will cover approximately 53,000 square metres.
Developers expect the initial stage to cost around OMR6 million. That figure equals approximately $16 million based on current exchange rates.
The project aims to bring several automotive services together in one location. Consequently, customers and businesses could access a wider range of services within the same destination.
The development will include vehicle showrooms and dealership facilities. It will also provide dedicated areas for vehicle maintenance and repair services.
Spare parts businesses will form another important part of the development. Furthermore, the project will include outlets selling tyres and automotive batteries.
Financial services will also have a presence within the new automotive destination. Banks, insurance providers and vehicle finance companies will operate alongside automotive businesses.
This integrated model could make Salalah more attractive for automotive companies. It could also create additional opportunities for businesses serving vehicle owners across southern Oman.
The first phase represents only part of the wider Automobile City development. Authorities and project partners have not yet disclosed the total investment required.
However, the project forms part of Oman’s broader economic diversification efforts. The country continues seeking new industries beyond its traditional dependence on energy exports.
Automotive manufacturing could become one area supporting that diversification strategy. The planned development could therefore support both commercial activity and industrial growth.
The project has already attracted interest from international industrial companies. In November 2025, an agreement supported plans for an automotive factory in Salalah.
The planned factory involves Salalah Global City Company and China’s Jiangsu Changhong Intelligent Equipment. The facility could strengthen Salalah’s position within Oman’s emerging automotive industry.
Meanwhile, Oman continues attracting investments across its special economic and free zones. Authorities announced investment agreements exceeding OMR200 million during April.
Those investments target several industrial projects across the country’s economic zones. Therefore, the government continues encouraging private investment and industrial development.
The strategy aims to create new sources of economic activity and employment. It also seeks to reduce the country’s reliance on oil and gas revenues.
Oman currently produces roughly one million barrels of crude oil each day. However, energy markets can experience significant changes in prices and demand.
Consequently, developing alternative industries remains an important national economic priority. Manufacturing, logistics and automotive services could contribute to that objective.
Salalah offers several advantages for businesses targeting southern Oman and nearby markets. Its location also supports connections with regional trade and logistics networks.
The new automotive destination could therefore attract companies seeking access to the Dhofar market. Additionally, it could support businesses that require dedicated commercial and service facilities.
Once operations begin, customers could find multiple vehicle-related services in one area. This convenience could help the project establish itself as a major regional automotive centre.
The development could also generate opportunities for local suppliers and service providers. As activity increases, businesses could benefit from greater demand for automotive products.
Moreover, the project could support skilled employment across several automotive-related fields. These areas could include maintenance, sales, finance, insurance and spare parts.
The Automobile City could also encourage further investment in related manufacturing activities. New companies may consider establishing facilities near an established automotive business cluster.
As construction progresses, investors will likely watch the project’s development closely. The opening of the first phase could mark an important step for Salalah’s industrial sector.
The Automobile City therefore represents more than a commercial development. It forms part of Oman’s wider effort to build a more diversified economy.
If the project attracts additional companies, its economic impact could expand considerably. Meanwhile, the planned 2027 opening provides a clear milestone for the automotive sector.
Overall, the Automobile City is positioning Salalah as an emerging destination for automotive businesses. Its integrated facilities could support trade, services, investment and industrial development across southern Oman.
