Overview
The Special Economic Zone at Duqm is Oman’s flagship investment destination, designed to attract large-scale industrial, logistics, and tourism investments. Located on the Arabian Sea coast in central Oman, Duqm offers a greenfield development opportunity with world-class infrastructure and significant government investment. The Special Economic Zone Authority at Duqm manages the zone, providing one-stop-shop services for investor registration, licensing, and operational support. The zone encompasses a deep-water port, dry dock, industrial zones, logistics areas, tourism districts, and residential communities. Duqm represents one of the largest integrated economic zone developments in the Middle East and a centrepiece of Oman’s Vision 2040 strategy.
Key Facts
The Duqm SEZ covers an area of approximately 2,000 square kilometres, making it one of the largest economic zones in the region. The deep-water port can accommodate the largest vessel classes and provides direct access to international shipping routes. The dry dock facility is one of the largest in the Middle East, serving shipbuilding, repair, and conversion. A refinery with processing capacity of 230,000 barrels per day is operational within the zone. Investment incentives include 30-year tax holidays, customs duty exemptions, and 100 percent foreign ownership. Bilateral agreements, including with China, have brought significant international investment commitments.
Regulatory Framework
The SEZ at Duqm is established by Royal Decree and governed by dedicated legislation separate from mainland regulations. The Special Economic Zone Authority at Duqm acts as the regulatory body and one-stop-shop for all investor services. Land is allocated on long-term usufruct basis of up to 50 years, renewable for additional periods. Labour regulations within the zone follow a dedicated framework with additional flexibility for workforce management. Environmental regulations apply to all activities, with impact assessments required for industrial projects.
Opportunities
Heavy industry including petrochemicals, metals processing, and manufacturing benefits from port access and energy availability. Logistics and warehousing operations leverage the port’s strategic location on east-west trade routes. Green hydrogen production is planned within the zone, with dedicated areas allocated for renewable energy installations. Tourism development along the coastline includes resort hotels, marinas, and recreational facilities. Support services for the oil and gas industry including fabrication, maintenance, and supply chain operations.
Considerations
Duqm is a developing location, and some infrastructure and amenities are still being completed. Remote location requires planning for workforce housing, transport, and community services. Construction costs may be higher than in established urban centres due to logistics and material transport. Long development timelines for major industrial projects require patient capital and robust project management. Water and power supply adequacy should be confirmed for large-scale industrial operations.