Next Duqm Now Session: Unlocking Petrochemicals Investment Opportunities for Business Growth in Oman
MUSCAT: The Special Economic Zone at Duqm (SEZAD) will host a session titled “Duqm Now” on December 10 at the Crowne Plaza Hotel Duqm to explore the evolving economics of the petrochemicals sector. This event aims to provide business leaders with a comprehensive understanding of global industry developments and their implications for Al Duqm and Oman.
Although petrochemicals rarely feature prominently in energy discussions, they are fundamental to many industrial supply chains. According to the International Energy Agency (IEA), petrochemicals accounted for nearly 12% of global oil demand last year—a share that continues to grow even as other energy sectors enhance efficiency. On the production side, significant capacity expansions, particularly in the US and China, have shifted competitive dynamics. New ethylene capacity from these two countries now represents over half of global growth, affecting costs, trade patterns, and investment choices in other regions.
Producers are also re-evaluating operational strategies amid rising energy costs in parts of Europe, which have tightened profit margins. Circularity, once a distant goal, now plays a crucial role in near-term planning as companies explore advanced recycling technologies and alternative feedstocks. These innovations may lead to more resilient cost structures and better regulatory compliance. Such factors are guiding decisions regarding capital allocation, long-term contracts, and supply chain design.
The importance of these changes extends beyond the petrochemicals industry. Manufacturers and investors rely on petrochemicals for producing a wide range of goods, including insulation, packaging, medical devices, automotive interiors, and wind turbine blades. The OECD projects that global demand for plastics, a key petrochemical product, will more than double by 2060, underscoring the sector’s long-term significance. As costs, capacity, and technologies evolve, companies involved in regional and international supply chains require clear foresight.
Eng Ahmed Akaak, CEO of SEZAD, emphasized the timeliness of this discussion given the multiple forces reshaping the petrochemicals landscape. “Petrochemicals are influenced by energy markets, driven by new technologies, and increasingly assessed through sustainability criteria,” he said. “With new capacity altering cost structures and trade flows, producers face critical decisions. The Duqm Now session in December will help us understand these pressures and their implications for industrial growth in Al Duqm and Oman.”
The December 10 event will bring together analysts, industry experts, and policymakers to delve beyond surface-level trends. Their collective insights will illuminate practical impacts on investment strategies and supply chain planning, equipping producers, investors, and downstream industries to navigate a dynamic decade marked by shifting costs, capacities, and competitiveness.
Special Analysis by Omanet | Navigate Oman’s Market
The evolving global petrochemicals sector presents both opportunity and challenge for Oman’s SEZAD, as new capacity shifts trade flows and technology drives sustainability-focused innovation. Smart investors and businesses should prioritize adaptive strategies around cost management, circularity, and supply-chain design to capitalize on Al Duqm’s growing industrial role amid a changing competitive landscape. This strategic foresight is vital for leveraging Oman’s position as petrochemicals demand is forecasted to surge long-term.
