Overview
The Duqm Special Economic Zone (Duqm SEZ) is Oman’s most ambitious industrial development project — a greenfield economic zone covering approximately 2,000 square kilometres on the Arabian Sea coast of Al Wusta Governorate, managed by SEZAD (Special Economic Zone Authority at Duqm) under OPAZ oversight.
Strategic Rationale
Duqm was selected for SEZ development because:
- Outside the Strait of Hormuz: Reducing geopolitical maritime risk
- Deep natural harbour: Capable of handling Very Large Crude Carriers and bulk vessels
- Available land: Vast undeveloped area without competing population or agricultural uses
- Indian Ocean access: Direct access to African and Asian trade routes
- Government commitment: Sustained investment in infrastructure (port, roads, airport, utilities)
Key Investments
Duqm Refinery (OQ-Aramco JV, 230,000 bpd): Operational since 2024 — the anchor industrial investment, processing crude into transportation fuels and petrochemical feedstocks.
Oman Drydock Company: Ship repair and maintenance facility — one of the Middle East’s larger drydocks, capable of handling VLCCs.
Hyport Duqm (OQ-Shell-Uniper-Engie): Green hydrogen and green ammonia project in development — potential to transform Duqm into a post-oil energy export hub.
Logistics zone: Warehousing and distribution serving zone commerce.
Zone Benefits
- 100% foreign ownership
- 30-year corporate tax exemption
- Duty-free imports for zone operations
- Simplified licensing through SEZAD one-stop-shop
- Long-term land leases
Infrastructure
- Port of Duqm (ASYAD)
- Duqm International Airport
- Road network connecting to Muscat (~550km) and Salalah (~600km)
- Power and water utilities
- Duqm town for zone workforce (~5,000 residential population, growing)