Duqm eyes global markets, local suppliers

AL DUQM: Investors choosing Al Duqm need a competitive base from which to serve international markets. The plants they establish can also become customers themselves, creating demand for Omani businesses capable of supplying goods and services to keep production running.
These investment opportunities were the focus of “Duqm Opens”, a Duqm Now session held at Crowne Plaza Hotel Duqm on November 4. OQ8 CEO Abdullah al Ajmi, Ulla Ali, Head of Business Development and International Markets at INVEST Oman, and Amna al Sharji, Director of Investment Promotion at OPAZ, discussed what investors need to establish and operate businesses in the Special Economic Zone at Duqm (SEZAD), as well as how Omani SMEs can secure contracts to supply companies based there.
“An investor wants to know who will pick up the phone when a machine stops working,” said Amna al Sharji. “An engineering company that can get production moving again has something valuable to offer. We want local businesses to see those opportunities early so they have time to train their people, invest in the right equipment and get the certifications customers require.”
Committed investment in SEZAD stood at RO8.8 billion (US$22.9 billion) by June 2026, compared with RO3.6 billion (US$9.4 billion) in 2021. The IMF’s October outlook forecasts growth of 4.1% for Oman in 2026, while neighbouring Gulf economies are projected to contract. Merchandise exports increased 17.8% year on year to RO15.9 billion (US$41.4 billion) in the first seven months of 2026, according to the National Centre for Statistics and Information.
Demand from carmakers for lower-emission steel offers Al Duqm another route to export growth. BMW aims to source the majority of its flat steel from lower-carbon production by 2030. Mercedes-Benz has agreed to buy around 50,000 tonnes of low-carbon steel annually from Sweden’s Stegra. Volkswagen’s memorandum of understanding covers potential supplies of up to 300,000 tonnes annually from Jindal Shadeed’s Duqm steel project for its European plants. The use of lower-carbon steel can reduce a vehicle’s carbon footprint before it leaves the factory.
Food companies are also seeking to reduce emissions further up their supply chains. Norway’s Yara, a major fertiliser producer serving more than 140 markets, has signed a binding long-term agreement to buy 100,000 tonnes of renewable ammonia annually from the first phase of ACME’s Duqm development. Ammonia is a key feedstock for nitrogen-based fertilisers. The agreement gives ACME a buyer with an established trading and distribution network.
PepsiCo buys potatoes for Lay’s, Walkers and Ruffles. The company says fertiliser production and use account for more than half of the average carbon footprint of its potatoes in Europe. A separate partnership between PepsiCo and Yara aims to provide up to 165,000 tonnes of lower-emission products annually by 2030, including products made using renewable ammonia to help growers reduce emissions.
Serving these markets requires reliable production and delivery. Equipment, utility connections and approvals must be in place on a coordinated schedule, alongside shipping services suited to cargo requirements and customer delivery dates. SEZAD’s direct access to the Indian Ocean supports this trade.
OQ8 already serves overseas customers from Al Duqm. Kuwait Petroleum International reported earlier this year that the US$9 billion refinery had completed its 500th export shipment, with more than 19 million tonnes of refined products shipped worldwide since exports began in 2023.
Keeping industrial plants running creates opportunities for SMEs to supply goods and services. An operator’s purchasing schedule, quality and safety requirements, and expected order volumes can help smaller businesses determine how much to invest in equipment and staff. Maintenance and repair contracts can provide repeat business long after construction ends, while industrial operators benefit from having nearby suppliers they can call on as production expands.