Overview
Duqm and Jebel Ali represent different generations of Gulf economic zone development. JAFZA is the region’s most successful free zone, while Duqm is an ambitious newcomer seeking to carve out a complementary niche. Comparing them highlights Duqm’s potential and challenges.
Duqm Special Economic Zone
Duqm, established in 2011, spans over 2,000 square kilometres along Oman’s Arabian Sea coast. It includes a deep-water port, dry dock, oil refinery, and designated areas for heavy industry, fisheries, tourism, and logistics. Duqm is targeting heavy industry, energy projects, and transhipment. Key investors include Chinese, Kuwaiti, and Indian firms. Duqm’s population is still small, and infrastructure development is ongoing.
Jebel Ali Free Zone (JAFZA)
Jebel Ali, established in 1985, hosts over 8,700 companies from 140 countries and handles roughly 15 million TEUs annually through DP World’s terminal. JAFZA contributes approximately 23 percent of Dubai’s GDP and employs over 135,000 workers. It offers 100 percent foreign ownership, zero taxes, and seamless customs procedures. JAFZA benefits from Dubai’s established business ecosystem, airport connectivity, and lifestyle infrastructure.
Key Differences
JAFZA has four decades of operational track record, an established tenant base, and integration with Dubai’s wider economy. Duqm is at an earlier development stage with significant infrastructure still under construction. JAFZA focuses on trade and light manufacturing, while Duqm targets heavy industry and energy. Duqm’s location outside the Strait of Hormuz is a unique strategic advantage that JAFZA cannot offer.
Verdict / Bottom Line
Duqm should not attempt to replicate JAFZA’s model but rather differentiate itself through heavy industry, energy, and strategic location. Duqm can succeed by targeting activities that require large land areas, deep-water port access, and proximity to Indian Ocean shipping routes. Complementing rather than competing with JAFZA is the realistic path forward.