What Is the Duqm Special Economic Zone?
Short Answer
The Duqm Special Economic Zone is a large-scale industrial and logistics complex located on Oman’s southeastern coast. Covering approximately two thousand square kilometres, it is one of the largest special economic zones in the Middle East and a centrepiece of Oman’s economic diversification strategy.
Detailed Answer
Situated outside the Strait of Hormuz on the Arabian Sea coast, Duqm occupies a strategic geographic position with direct access to international shipping lanes connecting Asia, Africa, and Europe. The zone was established by Royal Decree and is managed by the Public Authority for Special Economic Zones and Free Zones.
The Duqm development encompasses a deep-water port, a dry dock capable of servicing the largest commercial vessels and naval ships, an oil refinery with a capacity of two hundred and thirty thousand barrels per day, a fishing harbour, a commercial district, and extensive industrial land plots. A dedicated airport and road infrastructure connect the zone to Muscat and other population centres.
Investors in Duqm benefit from a comprehensive incentive package including a thirty-year corporate tax exemption, full foreign ownership rights, no minimum capital requirements, freedom to repatriate capital and profits, and exemption from customs duties on imports and exports. The zone also offers a single-window licensing system to streamline administrative procedures.
Major international investors have committed capital to the zone, including Chinese, Kuwaiti, and Omani consortiums developing industrial parks and petrochemical facilities. The zone aims to become a diversified industrial hub supporting manufacturing, logistics, petrochemicals, and tourism.