Duqm’s RO 2.9 Billion Investment Surge: What It Means for Your Business Opportunities in Oman
Al Duqm, June 8 – The Special Economic Zone at Duqm (SEZD) has secured a significant investment package totaling RO 2.9 billion ($7.5 billion), encompassing sectors such as energy, industry, battery materials, chemicals, tourism, and housing. This represents one of the largest recent investment commitments for the zone.
The Public Authority for Special Economic Zones and Free Zones (OPAZ) formalized this development by signing ten investment agreements and cooperation memoranda with companies from Oman, India, China, Germany, the Philippines, and Egypt.
These investments reinforce Duqm’s strategic role as a hub for heavy industry, clean energy supply chains, and regional trade, while advancing Oman’s Vision 2040 objectives for economic diversification.
The largest initiative is the second and third phases of ACME’s green hydrogen project, involving RO 1.6 billion ($4.2 billion) in investments. Each phase will produce 400,000 tonnes of green ammonia and 71,000 tonnes of green hydrogen annually, totaling 800,000 tonnes and 142,000 tonnes respectively once both phases are completed. Commercial operations are anticipated to start in 2030 for phase two and 2033 for phase three.
Another major project includes an 890 MW independent power plant by Al Sahil Power, with an investment of RO 350 million ($910 million). This plant will meet the increasing electricity demand driven by Duqm’s industrial growth and is expected to commence early operations in April 2028 and full commercial operations by April 2029.
Additional projects include a RO 192.2 million ($500 million) facility for manufacturing silicon-based anode materials used in lithium-ion batteries for electric vehicles. Trial production is planned for the second quarter of 2027, with capacity expanding from 2,000 to 5,000 tonnes annually following a second phase.
Other agreements include the construction of a RO 30 million residential city for Jindal Oman employees, a RO 12.3 million chemical plant, a RO 10 million steel fabrication facility, and a RO 5.7 million precast concrete housing factory.
Three cooperation memoranda were signed, covering a RO 288 million ($750 million) natural gas liquids separation and processing plant by OQ Group, a RO 192.2 million integrated light industries complex by Trot Holding, and a RO 184.5 million tourism and technology project by Ruby Investment and Development.
Qais bin Mohammed al Yousef, Chairman of OPAZ, emphasized that these agreements showcase investor confidence in Oman’s business environment and Duqm’s infrastructure and strategic regional significance. He highlighted the alignment of projects with global trends toward green economy, renewable energy, and electric vehicle component manufacturing while enhancing Duqm’s living standards through housing and tourism development.
Ahmed bin Ali Akaak, CEO of SEZD, noted that Duqm has evolved from a promising initiative into a fully integrated economic platform attracting substantial high-value investments. He assured ongoing support from OPAZ and SEZAD to expedite project implementation and maximize their contribution to the national economy.
The new investments are expected to bolster local supply chains, generate employment, enhance in-country value, and deepen Duqm’s position as a nexus connecting energy, manufacturing, logistics, and export sectors.
These developments confirm Duqm’s expanding role within Oman’s broader economic strategy, particularly in growing non-oil industries, attracting foreign direct investment, and integrating into emerging global supply chains for clean energy and advanced manufacturing.
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The RO 2.9 billion investment surge in Duqm’s Special Economic Zone signals Oman’s transformative pivot towards green energy, advanced manufacturing, and industrial diversification under Vision 2040. Businesses in Oman should eye emerging opportunities in green hydrogen, electric vehicle battery materials, and sustainable infrastructure, while investors must consider the zone’s strategic role in global supply chains as a catalyst for long-term economic growth and innovation. Smart entrepreneurs should leverage government support and rising local demand to pioneer ventures that integrate with Duqm’s expanding ecosystem.
