An Iranian diplomat said on Sunday that Tehran and Muscat have agreed on setting up a joint auto manufacturing plant in Oman, semi-official Fars news agency reported.

The auto plant will be built in al-Duqm Special Economic Zone of Oman, Iranian Charge d'Affaires to Oman Mohammad Toutounchi said, without elaborating.

Iran is resolved to take steps to further reinvigorate relations with Oman, Toutounchi said, adding that his country will hold a large exhibition in Oman from Jan. 23 to 27.

Toutounchi also pointed to the 35 percent rise in trade exchange between Tehran and Muscat in 2016.

"The volume of annual bilateral trade between the two countries stood at 1.35 billion U.S. dollars," he said.

Mohsen Zarrabi, head of Iran-Oman Joint Chamber of Commerce, said that the rise in Iran's exports to Oman is partly attributed to a direct shipping line launched between the two countries.

source: Xinhua