Oman's Duqm Special Economic Zone Set for $15 Billion Project Investment Bonanza

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Oman has selected Duqm as the country's next industrial center for development. Over the next 10 years, investments of up to $15 billion are expected to be made in Duqm. "We are targeting $5 billion foreign investment at Duqm in the next five years," said Finance Minister Darwish Al Balushi.

Last week, Oman Oil Company (OOC) announced that it would build a 200 million-barrel crude oil storage facility at Duqm, with an investment of $1 billion. The company is currently developing a 230,000-barrels-per-day oil refinery in a project with the United Arab Emirates' International Petroleum Investment Company (IPIC). OOC is contacting lenders to raise $4 billion for the $6 billion refinery project.

This week, the Duqm Special Economic Zone Authority (SEZAD) signed two service agreements. One was with Duqm Petroleum Terminal Company (DPTC) to manage the overall engineering, construction and operations of the liquid jetty at the Port of Duqm; the other was with special purpose Takamul Investment Company to manage the overall engineering and construction of seawater intake at the SEZAD.

The $200 million liquid jetty agreement is expected to improve the port's competitive position. The initiative, which will support the Duqm refinery, is expected to enhance the development of other related industries.

Takamul's seawater work is a vital part of the SEZAD's infrastructure, as it will supply much-needed cooling water to the industries and will provide feedwater for a desalination plant to produce potable and process waters.

Takamul is forming a new company, Centralized Utilities Company (CUC), to be a one-stop-shop for all utility services for the industries coming up at Duqm, including power, captive power, steam water, sea water, natural gas supply and wastewater management.

The economic zone is divided into eight main areas: an industrial area; a commercial port and dry dock; residential blocks; a resort and tourism area; a business center; a fishing port and fishing industry; a logistics center; and an education city.

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