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, a senior official said in a report.

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, added the Iran Daily report, citing Fars News Agency.

Yekee Zare further hoped that the site could be established as soon as possible with the financial support of Oman's Development Fund, said the report.

He underlined that Oman project begins with the establishment of a production line which will develop further into a production site.

Al-Jaberi praised the high technologies of Iran Khodro saying commercial relations between Iran and Oman need to expand further to match their political ties.

He also said Duqm has a high capacity for exporting cars to India, Pakistan, Bangladesh and eastern Asia.

Al-Jaberi added that IKCO products facilitates its access to Asian markets, while on the other hand, Duqm enjoys some appropriate grounds for car production.

Iran Khodro Deputy for Export and International Affairs, Saeed Tafazzoli also held talks with Al-Jaberi.

During the talks, Tafazzoli referred to the last joint Iran-Oman economic committee in December, during which they agreed to expand IKCO’s projects in Oman.

He noted that several months ago, the heads of Oman's Development and Investment Fund visited Iran to discuss the establishment a joint venture to produce IKCO vehicles in Oman, and that the vehicle manufacturer would provide the site with engineering services and spare parts, added the report.