$10 Billion Investments in Duqm: Unlocking New Opportunities for Businesses in Oman
MUSCAT: OQ, Oman’s leading global energy investment company, is playing a pivotal role in the rapid development of the Special Economic Zone at Duqm (SEZAD), positioning it as a significant driver of industrial and economic growth in the nation. With cumulative investments exceeding $10 billion, OQ has established a comprehensive energy ecosystem in Duqm that encompasses refining, petrochemicals, storage, utilities, and global trade, redefining Oman’s status on the international energy landscape.
OQ8: The Foundation of Duqm’s Industrial Future
Central to this transformation is OQ8, a $9 billion joint venture between OQ and Kuwait Petroleum International (KPI). Featuring a refining capacity of 255,000 barrels per day, OQ8 stands as one of Oman’s largest and most sophisticated industrial assets. Since commencing full operations, it has successfully exported over 560 shipments to international markets without any operational incidents, highlighting its commitment to safety and reliability.
The refinery completed its Lenders Reliability Test (LRT) on its first attempt within ten months, showcasing exceptional technical performance and readiness for global competition. OQ8 has effectively established Duqm as a regional benchmark for efficiency, innovation, and sustainable industrial practices.
Ras Markaz: Oman’s Energy Gateway to the World
Supporting OQ8’s operations, the Ras Markaz Crude Oil Storage Terminal, managed by Oman Tank Terminal Company (OTTCO) — a subsidiary of OQ — has emerged as a crucial global logistics hub. With a total storage capacity of 26.7 million barrels, including 5.2 million barrels designated for OQ8, the terminal is linked to the refinery via an 80-km pipeline.
Since starting operations in 2023, OTTCO has handled over 176 million barrels of crude oil through 98 vessels, positioning Duqm at the intersection of regional and global energy trade. OTTCO has forged significant partnerships, notably with Royal Vopak of the Netherlands, to create a unified energy storage and export platform, as well as with Iraq’s State Oil Marketing Organisation (SOMO) to develop a new integrated storage project at Ras Markaz. These collaborations further enhance Oman’s status as a logistics and energy hub of international repute.
OQ Trading: Connecting Duqm to Global Markets
Completing OQ’s value chain, OQ Trading (OQT) serves as the Group’s marketing and trading arm, managing the sale of OQ8 products and overseeing global energy flows. Operating from Muscat, London, and Singapore, OQT boosts the competitiveness of Omani oil and petroleum products while strengthening Oman’s energy presence across Asia, Europe, and Africa.
By leveraging strategic supply chain management and trading expertise, OQT integrates Duqm’s production, storage, and export activities into a cohesive commercial system, translating operational efficiency into substantial national value.
Marafiq: Powering Industrial Growth Sustainably
Among OQ’s key investments in Duqm, Marafiq serves as the essential utilities backbone of SEZAD. It operates a 326 MW gas turbine power plant and a 36,000 m³/day desalination plant, ensuring a reliable supply of energy and water to OQ8 and adjacent industries.
Since commencing commercial operations in March 2024, Marafiq has achieved 100% operational readiness, delivering over 85 GWh of electricity and 710,000 m³ of water. The company is also in the process of constructing seawater intake facilities with a capacity of 1.4 million m³/day. Additionally, OQ Gas Networks (OQGN) aids Duqm’s industries with an 80-km gas pipeline with a capacity of 25 million m³/day, guaranteeing a consistent energy supply for future growth.
Boosting Local Economy and In-Country Value
Beyond infrastructure development, OQ’s investments have yielded significant economic and social benefits. Between January 2024 and June 2025, OQ and its partners generated $1.57 billion in In-Country Value (ICV), with over $1 billion allocated for local expenditures — accounting for 64% of total spending. Investments in small and medium-sized enterprises (SMEs) exceeded $36 million, while $24 million was directed towards companies registered under Riyada, Oman’s authority for small business development.
This strong local engagement underscores OQ’s commitment to enhancing domestic supply chains, fostering entrepreneurship, and aligning with Oman Vision 2040 goals centered on economic diversification and industrial sustainability.
New Milestones Ahead
Looking to the future, OQ is poised to further expand Duqm’s energy ecosystem. During the Duqm Economic Forum 2025, OTTCO and Royal Vopak plan to formalize a joint venture (with 51% ownership to OTTCO and 49% to Vopak) to develop and operate new integrated storage facilities for energy products. This initiative will reinforce Duqm’s position as a regional trading hub and a model for sustainable energy transition.
Additionally, OQ will inaugurate the Oman Oil Top Loading Station, the first of its kind in Duqm, featuring a state-of-the-art top-loading system and biodiesel supply operations managed by an Omani SME.
Shaping Oman’s Sustainable Future
Through a network of interconnected investments and partnerships, OQ has catalyzed Duqm’s emergence as a global industrial and logistics powerhouse. By fostering innovation, supporting local enterprises, and ensuring operational excellence, OQ continues to craft a diversified, resilient, and future-ready Omani economy — one built on sustainability, knowledge, and shared national progress.
Special Analysis by Omanet | Navigate Oman’s Market
OQ’s transformation of the Special Economic Zone at Duqm signals a robust opportunity for businesses, with over $10 billion in investments creating a dynamic industrial environment. This growth encourages smart investors to explore partnerships and leverage Duqm’s strategic position in global energy trade, while the emphasis on local supply chains presents both risks and rewards. Entrepreneurs should align their ventures with Oman’s vision for economic diversification and sustainability to capitalize on the burgeoning local market and opportunities in renewable energy.
