Overview
Muscat and Duqm represent different facets of Oman’s economic development. Muscat is the established capital and commercial centre, while Duqm is a greenfield development designed to become a new economic growth pole on the Arabian Sea coast.
Muscat as an Economic Hub
Muscat, home to over 1.5 million residents, is Oman’s political, financial, and commercial capital. It houses the Muscat Stock Exchange, major banking headquarters, government institutions, and the primary international airport. Muscat’s economy is diversified across services, trade, real estate, and government activity. Port Sultan Qaboos has been repurposed as a tourism waterfront.
Duqm as an Economic Hub
Duqm, located 550 kilometres south of Muscat, is being developed as a major industrial and logistics hub centred on the Special Economic Zone at Duqm (SEZAD). The zone encompasses a deep-water port, dry dock, refinery, and industrial areas spanning over 2,000 square kilometres. Duqm targets heavy industry, oil refining, fisheries processing, and transhipment, with significant Chinese and Kuwaiti investment.
Key Differences
Muscat is a mature urban economy focused on services and governance, while Duqm is an industrial greenfield project. Muscat has established infrastructure and a skilled workforce, whereas Duqm requires massive infrastructure investment and workforce development. Duqm’s deep-water port and location outside the Strait of Hormuz are strategic assets Muscat cannot replicate.
Verdict / Bottom Line
Muscat and Duqm are complementary rather than competitive. Muscat will remain Oman’s commercial and services capital, while Duqm can become the industrial and logistics anchor of southern Oman. The success of Duqm is critical to Oman’s geographic economic diversification and Vision 2040 goals.