MUSCAT, JUNE 25
Phase 1 of a Light and Medium Industries Cluster is being readied at the Special Economic Zone in Duqm (SEZAD), paving the way for investment inflows into small and mid-scale manufacturing that seek to leverage Duqm’s proximity to major markets in the Middle East, East Africa and Indian subcontinent.
Covering an area of 2.4 sq kilometres, Phase 1 already encompasses a number of small factories that have been in operation or development. This area is roughly divided equally between the Light Industries Area and the Medium Industries Area, collectively made up of around 700 plots.
According to details shared recently by SEZAD authorities, around 26 kilometres of arterial and secondary roads – both dual and single carriageways - have been constructed at a total cost of RO 19 million to enable streamlined access to the Light and Medium Industries Cluster. They include roundabouts that facilitate traffic flows to and from National Road 32. Several key projects currently under development have been connected to the network as well.
The Small and Medium Industries Cluster is set to open up a new stream of investments into the SEZ, which had pulled in an estimated RO 2.319 billion worth of committed investments in 2023 alone. Distributed across 46 project agreements, the lion’s share – amounting to RO 2.313 billion – came in the form of industrial investments. Investments in commercial and residential developments, tourism, logistics and government services made up the remainder.
Importantly, the Public Authority for Special Economic Zones and Free Zones (OPAZ) signed a large array of agreements in 2023 spanning the renewable energy, green hydrogen, green ammonia and green steel production sectors.
Notable is a land use agreement with Hyport Duqm for the production of green molecule based derivatives by harnessing solar and wind resources. Similar MoUs for the development of green energy projects were also signed by SEZAD with a consortium headed by POSCO Energy, another with BP Oman, and a third with Oman Shell.
Furthermore, SEZAD and the Port of Duqm also signed an agreement with Vulcan Green Steel for the construction of a steel mill in Duqm and the operation of an associated commercial berth.
In the realm of fisheries, a land use agreement was signed for the development of a major aquafeed farm on a 20,000 sq metre site with a production capacity of 60,000 metric tonnes per year in the first phase.
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