Oman has asked Iranian automaker Iran Khodro Industrial Group to consider a production site financed by Muscat, IKCO CEO and president Hashem Zare said after a meeting with the manager of Oman's free trade zone of Duqm, Yahya al-Jaberi.

The site would provide Iran Khodro with easy access to markets deep in eastern and northern regions of Africa. Financial support from Oman's Development Fund would be sought.

Al-Jaberi said Oman's free trade zone of Duqm would be an ideal base for exporting cars to India, Pakistan, Bangladesh and eastern Asia.

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

"Several months ago, the heads of Oman's Development and Investment Fund visited Iran to discuss the possibility of establishment a joint venture to produce IKCO vehicles in Oman," he said.

IKCO would provide the site with engineering services and spare parts. The site would be financed by Oman's government and development fund and initially produce 15,000 vehicles a year.