Duqm attracts investments worth RO 2.9 bn

Al Duqm, June 8

The Special Economic Zone at Duqm (SEZD) has secured RO 2.9 billion ($7.5 billion) in new investments across energy, industry, battery materials, chemicals, tourism and housing, marking one of the largest investment packages announced for the zone in recent years.

The Public Authority for Special Economic Zones and Free Zones (OPAZ) signed 10 investment agreements and cooperation memoranda on Monday with companies from Oman, India, China, Germany, the Philippines and Egypt.

The package strengthens Duqm’s position as a strategic platform for heavy industry, clean energy supply chains and regional trade, while supporting Oman’s wider economic diversification agenda under Vision 2040.

The largest project is the second and third phases of ACME’s green hydrogen development, with investments of RO 1.6 billion ($4.2 billion). The project will produce green hydrogen and green ammonia on a large industrial scale, with each phase designed to produce 400,000 tonnes of green ammonia and 71,000 tonnes of green hydrogen annually.

Once completed, the two phases will have a combined capacity of 800,000 tonnes of green ammonia and 142,000 tonnes of green hydrogen a year. Commercial operations are expected to begin in 2030 for the second phase and in 2033 for the third.

A second major project is an 890 MW independent power plant to be developed by Al Sahil Power at an investment cost of RO 350 million ($910 million). The plant will support rising electricity demand from Duqm’s industrial expansion and is expected to start early operations in April 2028, with commercial operations planned for April 2029.

The agreements also include a RO 192.2 million ($500 million) project to manufacture silicon-based anode materials used in lithium-ion batteries for electric vehicles. The project is expected to begin trial production in the second quarter of 2027, with capacity rising from 2,000 tonnes to 5,000 tonnes annually after the second phase.

Other signed projects include a RO 30 million residential city for Jindal Oman employees, a RO 12.3 million chemical manufacturing plant, a RO 10 million steel fabrication facility and a RO 5.7 million precast concrete housing factory.

Three cooperation memoranda were also signed. They include an RO 288 million ($750 million) natural gas liquids separation and processing plant by OQ Group, a RO 192.2 million integrated light industries complex by Trot Holding and a RO 184.5 million tourism and technology project by Ruby Investment and Development.

Qais bin Mohammed al Yousef, Chairman of OPAZ, said the agreements reflect the confidence of local and international investors in Oman’s investment environment and in Duqm’s infrastructure, strategic location and role in regional and global supply chains.

He said the projects are aligned with global investment trends in the green economy, renewable energy and electric vehicle components, while also improving quality of life in Duqm through housing and tourism developments.

Ahmed bin Ali Akaak, Chief Executive Officer of the SZED, said the agreements show that Duqm has moved beyond the stage of being a promising project and has become an integrated economic platform capable of attracting high-value investments.

He said OPAZ and SEZAD would continue supporting investors, accelerating procedures and helping turn the announced projects into operating assets that add real value to the national economy.

Several of the projects are expected to support local supply chains, create employment opportunities, raise in-country value and deepen Duqm’s role as a hub linking energy, manufacturing, logistics and export-oriented industries.

The latest agreements underline Duqm’s growing importance in Oman’s economic strategy, particularly as the country seeks to expand non-oil industries, attract foreign direct investment and position itself within emerging global supply chains for clean energy and advanced manufacturing.