Sezad 2014-Issue 1

2014 Issue 1

Port of

Duqm

Situated on the southeastern seaboard of the Sultanate of Oman, overlooking the Arabian Sea and the Indian Ocean beyond, Port of Duqm is fast becoming an important reality of the Middle East region’s rapidly transforming maritime landscape. With its deep draft, lengthy quay walls, and expansive basin, Port of Duqm has the trappings of a world-class, multipurpose commercial gateway. And as the principal anchor of a huge Special Economic Zone envisioned at Duqm, it also has the potential to develop into one of the Middle East’s largest ports over 2 the long term

PO Box: 2409, P.C. 111, 4th Floor, Almashreq Building, 18 November Street, N. Azaiba, Sultanate of Oman, Tel: (+968) 24-342-800 Fax: (+968) 24-587-343 E-mail: info@portduqm.com

CONTENTS

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6

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H.E. Yahya Said al Jabri

Lee Chee Khian

Ismail bin Ahmed al Balushi

Open for business

An economic gamechanger called Duqm

SEZAD: One-Stop for Business

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28 Port of Duqm

OMRAN

A strategic enabler

A destination off the beaten track

80 96 84 Duqm Frontier Town:

A perfect community setting

Oman Airports Management Company (OAMC)

Crowne Plaza Duqm:

Mixing business with leisure

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His Majesty Sultan Qaboos bin Said

Vision

Mission

The Special Economic Zone at Duqm is a regional hub for maritime transportation and logistics services; a safe haven for investments in export processing industries based on petrochemicals, mineral resources and fisheries; and an attractive tourism destination on the Arabian Sea; thus acting as an important lever for the economic growth of Oman and the enhancement of the quality of life of the local communities of Al Wusta Governorate.

To improve the business environment of Duqm; develop its infrastructure services; manage its strategic assets and facilities; and build its human-resource capabilities in order to attract local inward and foreign direct investments in transportation and logistics services, high-value-added industries, and tourism in accordance with the approved master plan, best international practices, good governance and the sustainable use of natural resources.

Core Values Transparent, streamlined and proactive business environment in line with the needs of investors and established businesses.

Optimal and sustainable use of financial, natural and environmental resources.

Equal treatment for foreign and local investors.

Maximizing private sector participation in the development of the Zone.

Good corporate governance that values individual responsibility, timeliness of decision making, and institutional accountability based on achieved results.

SEZAD

Tel Fax Email website

Chairman

H.E. Yahya Said al Jabri

CEO

Lee Chee Khian

Deputy CEO

Ismail Ahmed al Balushi

Communications Department

Mohammed al Shezawi Saleh al Maamary

+968 24507500 +968 24587400 info@duqm.com www.duqm.gov.om

OEPPA CEO Editor in Chief HOD Business Development Department Magazine Editor Business Development Department (BDD)

Editorial contribution Photography BDD Designer

H.E. Dr. Ibrahim Ahmed al Kindi Abdullah Salim al Shueili Bader bin Mohammed al Thanawi Conrad Prabhu Prem Varghese Irine Mariam Raju Karen Jane Stephen Kaushalendra Singh Salim Al Maharbi, SEZAD Ali Jawish

Duqm SEZ:

Open for business

T H.E. Yahya Said al Jabri Chairman

Duqm’s investment appeal stems from the competitive advantages it enjoys by virtue of its geographical location and proximity to natural and energy resources.

he establishment of the Special Economic Zone (SEZ) in Duqm, in accordance with Royal Decree No. 119/2011 promulgated on 26th October 2011, represents a highpoint in the ongoing efforts of the Sultanate in diversifying the national economy, notably through the expansion of the country’s industrial base.

Covering an area of 1,777 sq km, with 80 kilometres of oceanfront, the Duqm SEZ is set to be the biggest economic zone in the Middle East. We have already initiated the development of 45 per cent of the free zone area (equating to around 777 sq km). That leaves open an equally huge area for development in the future.

The SEZ has been conceived as a multi-sector industrial and economic hub In line with the Omani government’s goal of attracting a diverse variety of investors. The area is demarcated into eight broad zones comprising the Port of Duqm; Power Generation & Water Desalination and Distribution Area; Refinery and Petrochemicals Complex; Warehousing and Logistics Zone; Light Industrial Zone; Tourism Zone; Fish Processing Cluster and Fishery harbour, and Duqm Town and Business Centre.

The location of each of these areas has been carefully delineated to help capture inter-zonal synergies, facilitate the smooth flow of people from one area to the other, as well as ensure they are developed in harmony with their local natural and environmental settings. Furthermore, a network of arterial carriageways and secondary roads, totaling around 500km in length, will ensure seamless connectivity between the zones.

Duqm’s investment appeal stems from the competitive advantages it

enjoys by virtue of its geographical location and proximity to natural and energy resources. The SEZ is well-positioned to evolve into a hub for oil and gas based industries, as well as processing plants that utilize the abundant mineral resources of Wusta Governorate, notably silica, limestone and dolomite. Its offshore waters are also rich in fishery resources, which can be sustainably harnessed to meet the needs of the local and regional markets. There are also opportunities for establishing major fish processing plants and aquaculture ventures.

Duqm is also known for its moderate weather in summer and winter. With its stunning natural beauty and pristine beaches, Duqm has the potential to attract local and foreign tourists seeking a one-of-akind holiday experience amidst the region’s tranquil settings.

With a view to attracting investors to Duqm, the government has announced an array of incentives in the form of tax exemptions, 100% foreign ownership, unrestricted repatriation of profits and capital, and other inducements. Investors can easily secure land against longterm usufruct agreements that are renewable.

I urge all investors to familiarize themselves with the businessfriendly regulatory framework and system of incentives formulated by SEZAD to help attract investment into Duqm. For our part, we are committed to providing you with a welcoming environment that helps you achieve your long-term business and investment objectives.

Yahya bin Said al Jabri Chairman Special Economic Zone Authority at Duqm (SEZAD)

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Mr. Lee Chee Khian, CEO

Mr. Lee Chee Khian, CEO

An economic gamechanger called Duqm ‘We are now moving from the planning stage to the implementation phase, which will herald the gradual transformation of Duqm into a future hub,’ says SEZAD’s CEO.

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our years in the making, the Duqm Special Economic Zone (SEZ) project is making the rapid leap from the drawing board into the implementation phase – a transition that promises to reveal the contours of what is widely hailed as a game-changer for Oman’s long-term economic development.

Overseeing this transition on behalf of the SEZ Authority at Duqm (SEZAD) is its Chief Executive Officer, Mr. Lee Chee Khian, who brings his considerable expertise in the development of large-scale free zones, to bear on the Oman project.

Mr. Lee was previously associated with SEZs in Singapore, the tiny island nation that made its economic fortunes on the back of free zone schemes.

Mr. Lee joined SEZAD at a crucial juncture in the development of the Duqm project, which while not the country’s first foray in special economic zones, is extraordinary in both scope and scale, necessitating thus expert stewardship in seeing it through to fruition.

Since his appointment as CEO over a year ago, the Singaporean national has busied himself reviewing, revising and fine-tuning project plans in close collaboration with his senior

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colleagues at the Authority, as well as with other stakeholders. Having ensured that the SEZ project is in perfect alignment with the Omani government’s vision for Duqm, Mr. Lee is now energetically moving ahead with the implementation of the Authority’s strategy for the development of the requisite infrastructure for the free zone.

Given Duqm’s utterly green-field characteristics, investment in suitable infrastructure, utilities and support services is imperative to the goal of attracting investors – international, regional and local – to Duqm, he emphasises.

“The last several months were primarily devoted to the finalization of plans, policies and initiatives to support the Authority’s vision for developing Duqm as an industrial and economic hub. We are now moving from this planning stage to the implementation phase, which will herald the gradual transformation of Duqm into a future hub. During this phase, we shall announce a number of contract awards for the implementation of basic infrastructure, as well as float tenders for other key projects,” Mr. Lee said.

For contractors, consultancy firms and assorted service providers – big

and small alike – the Duqm SEZ project is rapidly becoming a rich mother-lode of opportunities. The tendering and procurement of all contracts related to the SEZ is overseen directly by the Authority, in line with the overarching powers vested in it by the Omani government. Thus, armed with its own Tender Board, SEZAD has been able to speed up the process of procuring key contracts imperative to the SEZ’s rapid development.

Strong underpinnings Already, several significant contracts crucial to providing the SEZ with strong underpinnings for its long-term success have been announced, says Mr. Lee. Notable is a consultancy services contract for the design of a massive drainage and flood control system that would secure the SEZ and its investments from any flooding or adverse weather events in the future.

Also as part of the multimillion rial scheme, dam structures are proposed upstream of the free zone, while a network of wadi channels will be created to safely drain any floodwater into the sea.

Equally important has been a recent consultancy services contract for the

“The start of construction work on this mega project in 2015 will give us strong new impetus to market the SEZ as a destination for industrial investment.”

Mr. Lee Chee Khian CEO

design of around 200 kilometres of roads in an area of the SEZ that will house the future township of Duqm.

The package is part of the first phase development of the infrastructure of the so-called Duqm New Town, which will serve as the urban backbone of industrial hub.

Also recently, the Authority floated tenders for the infrastructure design of two key zones within the SEZ that will house all kinds of light and medium industrial investments.

Covering an area of 221.75 sq kilometres, the Northern and Central Industrial Zones encompass some of the SEZ’s biggest developments – existing and proposed – including the Port of Duqm, Duqm Refinery & Petrochemicals complex, Duqm International Airport, and the Town of Duqm. Ample land has been set aside within the Northern Industrial Zone for the SEZ’s anchor venture – the refinery and petrochemicals complex.

And as the SEZ’s infrastructure development shifts into higher gear over the course of this year and the next, so will the volume of contracting opportunities for local businesses, according to the CEO. Up for grabs is a substantial portfolio of projects, some of which are already under tender, while the

Yet another game-changing development with huge ramifications for the success of the SEZ is rail connectivity

rest are in the pipeline. They include tenders for the construction of SEZAD’s headquarters in Duqm, and preparation of land for the industrial zones.

Several plum contracts are expected to be tendered out when the Ministry of Transport & Communications hands over responsibility for Duqm Port’s marine infrastructure to SEZAD. That formal handover of the port infrastructure to the Authority is due to take place within the next several months. With the handover, responsibility for the further development of the port infrastructure effectively passes into the hands of the Authority.

In exercise of that new role, SEZAD will tender out as many as five packages, pertaining to various components of port infrastructure, for implementation over the next six months or so, says Mr. Lee. The engineering design of the packages in question has already been finalized by the Ministry, paving the way for SEZAD to progress them through the tendering and contract award phases.

Mega-scale development The CEO envisions a period of vigorous construction activity at the SEZ during the course of 2015 - 2017, climaxing in the lead up to the launch of the free zone’s anchor project – the world-scale refinery of Duqm Refineries and Petrochemicals Ltd. Several tens of thousands of workers are expected to be mobilised as various contractors and service providers converge on the SEZ to construct the 230,000 barrels per day (bpd) capacity plant, which is expected to cost in excess of $6 billion. The project is expected to showcase to the world the SEZ’s immense potential as an industrial and maritime hub of mega proportions.

“The start of construction work on this mega project in 2015 will give us strong new impetus to market the SEZ as a destination for industrial investment,” Mr. Lee said. “The frontend engineering design (FEED) of the refinery project, which is being jointly developed by a partnership of the governments of Oman and the UAE emirate of Abu Dhabi, has already commenced. Ahead of this landmark development, we will kick off construction of related support 9

Mr. Lee Chee Khian, CEO

infrastructure, including an important link road, drainage facilities, and coastal protection works.”

As a free zone of truly spectacular proportions, Duqm is being suitably developed to pull in investments across a number of industrial and economic sectors. Targeted for investment are projects and commercial activities primarily related to light, medium and heavy industry, mining and mineral processing, fish processing, logistics and warehousing, and tourism.

Dedicated zones earmarked for each type of investment underscore the Authority’s vision for the long-term development of the SEZ. Illustrating the ambitious nature of the SEZ is the government’s plans for an integrated fishery hub, the scope and scale of which is unlikely to be matched anywhere in the Middle East. Covering an area of eight square kilometres, the Fisheries Industrial Zone has been master-planned to attract dozens of processing plants.

Development of the Integrated Fisheries Hub is being spearheaded

by Oman’s Ministry of Agriculture and Fisheries, says Mr. Lee. “The Ministry has completed the master plan for the fisheries hub, initial development of which will go hand in hand with the construction of a large fish harbour at Duqm. A contract award for the fish harbour project is imminent.

At the same time, the Ministry of Agriculture and Fisheries is working closely with us on advancing the infrastructure development of the fisheries hub. The way forward is for the Ministry to prepare the land and invest in infrastructure, paving the way for interested private investors to set up processing plants and other facilities.”

Looking ahead, the CEO cites two landmarks developments that, he says, will ratchet up international investor interest in Duqm. Both developments are slated to materialize on the ground in the year 2017. They pertain to the targeted completion of Duqm’s anchor project, the massive refinery, and the arrival of natural gas by pipeline from the central gas fields of Oman, to the SEZ. “Call them ‘change agents’, if you will, these twin developments promise to impart strong new impetus to the growth of the SEZ,” he said. “Prospective investors drawn by Duqm’s strategic location, but perhaps hedging their bets 10

about investing in a green-field destination, will be reassured about the soundness of the SEZ when they see a multibillion dollar refinery in place. Likewise, the arrival of natural gas at the SEZ will persuade many potential investors to get started with the construction of their facilities.”

Game-changer Yet another game-changing development with huge ramifications for the success of the SEZ is rail connectivity. Duqm, as with the Sultanate’s major maritime gateways at Sohar and Salalah, will be linked to the 2,244km national railway network, which in turn will be integrated with the GCC rail system.

“Connecting Duqm with the national and Gulf-wide rail networks is indispensable to the SEZ’s longterm success. Duqm could also play a strategic role during the construction phase of the rail project because of the abundance of land in the area. We envision a lot of potential for Duqm to host the major workshops and depots linked to the rail network, as

well as facilities for the construction of precast items. Moreover, as we are roughly in the middle of Oman, Duqm could be the starting point for rail track construction traveling simultaneously northwards towards Muscat and southwards towards Salalah.”

But pending the implementation of the rail network, as well as the upgraded road network, the CEO is keenly studying ways to enhance connectivity by sea with Muscat and Salalah. This, he says, is driven by a desire to ensure that construction material necessary to support Duqm’s development into an industrial hub is transported efficiently and affordably to site.

“We are exploring at this stage the possibility of moving construction material by barge from Muscat and Salalah. At present, much of this material is transported by 40-ton trucks. But with construction work poised to grow exponentially, we would need to come up with ways to ship in far greater quantities.

For example, a barge could bring in 8,000-10,000 tons of steel, cement

Another key imperative for SEZAD is improved connectivity by road, air and sea. Significant sums are being invested in the upgrade of a road network linking Duqm with the rest of the country.

and other construction materials per trip. Two trips per week should suffice at current demand trends.

Our commercial berth at Duqm Port is suitably equipped to handle such shipments by barge,” Mr. Lee explained.

Enhanced connectivity Another key imperative for SEZAD is improved connectivity by road, air and sea. Significant sums are being invested in the upgrade of the road network linking Duqm with the rest of the country. The main carriageways leading into and out of Duqm are being reinforced to handle ultra-heavy and oversized project cargoes that will be increasingly routed via the port to oilfields in central Oman.

Significant headway is also being made in the construction of a new airport at Duqm. While packages one and two – pertaining to site preparation works, runway construction and utilities – are almost complete, a tender was floated recently for the third and final package of the project, centring

on the construction of a passenger terminal and air traffic control tower.

Once completed, Duqm International Airport will significantly enhance connectivity with the SEZ and catalyse its further growth, he adds.

So what does the future hold for Oman’s mega SEZ project? The CEO harbours no illusions about the challenges of getting greenfield SEZ ventures off the ground in the initial years. “The first 10 years will be quite challenging.

If you look at examples of major SEZs like Shenzhen (China), Gujarat (India) and the Philippines, they took several years to develop before achieving a measure of success. In my view, the first five years of any SEZ project represent the developmental stage. This is typically followed by the construction phase, when the focus shifts to the implementation of anchor industries, along with the required requisite support infrastructure. Once we reach this maturation stage, other investments are expected to flow in rapidly.”

Getting to the maturation stage

also requires significant effort in making sure that the ‘soft’ infrastructure, indispensable to supporting communities living and working in the Duqm area, is in place as well. “As Duqm is essentially a greenfield development with a low population base, it will take some time to attract personnel with the requisite skill-sets to this area. We need to develop all of the basic facilities, such as schools, clinics, supermarkets, cinema halls, and so on, to enhance Duqm’s appeal to professionals and workers,” he explains.

As for the SEZ’s long-term growth and success, Mr. Lee says it’s never in doubt. “Duqm has some unique advantages as a destination for industrial investment. Hopefully, in the next decade, we will have three refineries feeding a major petrochemicals cluster.

We then hope to move on to pharmaceuticals and other higher value opportunities. So we envision a natural progression in the growth and expansion of the SEZ.” 11

Ismail bin Ahmed al Balushi, Deputy CEO

Ismail bin Ahmed al Balushi, Deputy CEO

SEZAD: One-Stop for Business The Authority has been conceived as a one-stop-shop that offers customised, endto-end professional services to interested investors, says the Deputy CEO.

I

f Singapore’s meteoric rise as a regional economic power is fundamentally attributable to its development of special economic zones (SEZ), then imagine what the SEZ model can accomplish for the Sultanate, especially if the Omani SEZ in question is roughly three times the size of Singapore itself!

Duqm Special Economic Zone (SEZ), by every reckoning, is one for the record books, not simply because of its vast geographical size, but also in terms of the ambitious scale of the development.

Covering a staggering 1,777 sq km, Duqm SEZ dwarfs all other free zones of a similar nature anywhere in the Middle East. Its immense size pays testimony to the far-reaching vision of the Omani government, as well as the promise it holds, in fuelling the nation’s long-term socioeconomic development.

SEZAD’s brief, says Mr. Ismail bin Ahmed al Balushi, Deputy CEO, is to crystallize this vision by leveraging the SEZ’s unique value proposition – its strategic geopolitical location within proximity of emerging markets – to attract investment into this promising hub. In a region awash with free zones, it’s a formidable challenge indeed, but SEZAD is unlike any other free zone authority in the Middle East.

Its robust and sweeping mandate

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Yet another game-changing development with huge ramifications for the success of the SEZ is rail connectivity

gives SEZAD the requisite wherewithal to meet investor expectations and deliver results that virtually no other free zone can match, he explains.

“When the Special Economic Zone of Duqm and the Authority (SEZAD) were established, we set about studying the experiences of major free zones around the world. In particular, we looked at the example of Singapore, which typifies what SEZs can achieve, as well as those closer home in the Gulf and Middle East regions. Given the uniqueness of Duqm – in terms of its massive size and green-field characteristics – we felt it was imperative that the Authority had the all-encompassing mandate to successfully develop, operate and regulate this ambitious undertaking. SEZAD, in its current shape, is the culmination of that effort.”

The Authority, according to the official, has been conceived as a onestop-shop that offers customised, end-to-end professional services to interested investors. Thus, everything from business information and investment advice to environmental permits and visa clearances may be obtained from the Authority’s simplified single-window system designed to make it a breeze for investors to consider Duqm as a base for their business.

The Omani government has left no stone unturned in ensuring the development of the requisite infrastructure to make it attractive for investors to set up operations at Duqm

Mr. Ismail bin Ahmed al Balushi Deputy CEO

“We pride ourselves on being unique and distinctive in our delivery of integrated services to prospective investors,” said the Deputy CEO. “Unlike other countries, where the practice is for an investor to visit multiple offices for company registrations, business licensing, environmental permits, immigration clearances, and so on, at SEZAD we provide all of these services under one roof. All of the cumbersome procedures typically associated with investment applications have been kept to a minimum,” he stated.

Business-friendly regulatory regime Crucially, applicants are processed through an online system via SEZAD’s user-friendly portal that enables interested investors to seek and receive the requisite approvals and permits speedily and efficiently.

Applications for suitable land within the SEZ and the corresponding licenses are also processed in a timely fashion via the Authority’s website.

This seamless and hassle-free system created by SEZAD to process investor applications is an integral element in the value proposition offered by Duqm, the Deputy CEO stressed.

As with any prestigious and strategically important economic project, the Duqm SEZ has been suitably master-planned to ensure

that its objectives are in sync with the developmental goals of the national economy. Accordingly, all 1,777 sq kilometers are carved up into a series of distinctive zones called clusters.

These clusters are earmarked for various categories of investment: heavy industry, light and medium industry, petrochemicals, tourism and leisure, logistics, commercial, and so on. The demarcation of specific clusters for specific types of investment has been done in line with the experiences of successful free zone developments in the Sultanate of Oman, and indeed elsewhere around the world, the official said.

The vision of a mega industrial hub, anchored by a major maritime gateway, stems from the Omani government’s desire to stimulate economic development across the Wusta region of the country. Although a resource-rich governorate with abundant hydrocarbon and mineral wealth, the governorate’s sprawling barrenness and sparse population distribution have thus far been something of an impediment to investment and development in this region.

But the Duqm SEZ project promises to dramatically transform this windswept and desolate coastal swathe on the Wusta coast into a pulsating powerhouse of industrial

and economic development. The objective is to stimulate employment growth and business opportunity in the Wusta region.

Besides, the SEZ seeks to capitalize on its advantageous location on the Arabian Sea abutting important international and Indian Ocean sea lanes to serve markets in the wider region. Underpinning the SEZ’s strategic appeal is Duqm’s location far removed from the potentially contentious Strait of Hormuz waterway leading into the upper Gulf.

Given the green-field nature of the SEZ project, the Omani government has left no stone unturned in ensuring the development of the requisite infrastructure to make it attractive for investors to set up operations at Duqm, says Mr. Al Balushi.

“Government investment in basic infrastructure and support services is in the order of $1.7 billion, while further outlays are pledged as well.

Thanks to these investments, we now have the port and maritime infrastructure substantially in place in Duqm, a world-class ship repair yard in operation within the port, a network of modern roads under development in the area, and an international airport under construction as well. Port of Duqm itself is now in soft operational mode with several oilfield operators and contractors using the port to ship 13

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in project cargo for their hydrocarbonrelated ventures. Exemplifying the early success of the SEZ is the ship repair yard of Oman Drydock Company, which has dry-docked and maintained in excess of 180 since its launch.”

To all intents, thus, Duqm is ready for business, the official stresses.

A choice of hotel properties and resorts now makes it possible for international investors to fly into Duqm via the temporary airfield at Jaaluni for a first-hand assessment of the opportunities offered by the region’s most exciting SEZ. By early 2016, Jaaluni will make way for a fullfledged international airport that will not only receive domestic flights from Muscat International Airport, but direct charters as well. Overland access from Muscat and other key towns is being dramatically improved as well, with connecting highways being dualised and upgraded.

And with Duqm set to be connected to the national rail network at the outset of its implementation, connectivity with Oman’s preeminent SEZ will be truly multimodal, encompassing road, air and rail, he added.

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Duqm SEZ

Duqm SEZ:

Governed by an investor-friendly regulatory framework

D

uqm’s designation as a Special Economic Zone (SEZ) and governed by a special set of laws, regulations and provisions is enshrined in a number of key pieces of legislations issued by His Majesty Sultan Qaboos, Sultan of Oman.

Notable is Royal Decree No. 119/2011 establishing the Duqm Special Economic Zone Authority. This legislation is further underpinned by Royal Decree 79, 2013, issued on 26th December 2013, which spells out the regulations governing the Duqm SEZ. A key underlying goal of these landmark laws is to authorize and empower the SEZ Authority at Duqm (SEZAD) in the achievement of its mandate to support the development of the SEZ as a regional maritime and transit-trade hub, an important complex for export-oriented industries, and an attractive tourism destination on the Arabian Sea. Reproduced here below are the provisions of Royal Decree 79/2013 outlining the powers, prerogatives and responsibilities of SEZAD, and the various financial and legal incentives, tax exemptions, and other benefits that are available to investors seeking to set up projects and businesses at Duqm. It also authorizes SEZAD to take all necessary steps, for example, the establishment of a One-Stop-Shop, to facilitate the speedy handling of all corporate, legal, customs, visa, immigration, environmental, and other such formalities necessary to attract investments to Duqm.

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Article 1 In the implementation of this regulation, the terms and expressions contained shall have the same meaning ascribed to each of them in the regulation of the Special Economic Zone Authority at Duqm’s issued by Royal Decree number (119/2011), and the following terms and expressions shall have the meaning ascribed to each of them unless otherwise implied by the context:

1

-Capital Invested: Machinery, equipment, tools, devices and others necessary to establish, expand or operate a project in the Zone, and foreign currency transferred to and from the region in accordance with the instructions of the Central Bank of Oman.

2

Goods: machinery, equipment, tools, materials, products, spare parts, fuel and others that are used, distributed, produced fully or partially or consumed by the projects for any purpose.

3

Taxes: All kinds of taxes imposed under the laws in force in the Sultanate

Article 3 The projects shall enjoy the exemptions, incentives and facilities accorded to the companies operating in the free zones stipulated in articles (3), (4), (11) and (13) of the Free Zones Law as follows:

1

-Exemption from taxes, this shall be issued by a decision from the Minister in Charge of Financial Affairs at the request of the Board, this exemption shall not apply to banks, financial institutions, insurance and reinsurance companies, projects working in the field of providing telecommunications services, and companies working in the field of road transport except such road transport companies which are registered with the Authority and operate within the borders of the zone permanently.

The exemptions set forth in the previous paragraph shall not include income statements.

2

The capital of the projects may be fully owned by non-Omanis, this is an exemption from the Commercial Companies law and the law of foreign capital investment

3

Exemption from the requirement of minimum capital investment provided in the Commercial Companies Law or in any other law.

4

Exemption from any restrictions related to receiving, trading, and transferring of foreign currency.

5

Exemption from the application of the provisions of the Commercial Agencies Law.

4

Customs Territory: Anywhere within the borders of the Sultanate with the exception of the free zones and special economic zones.

5

One Stop Shop: A system established by the authority, at the Zone, which shall issue all licenses, permits, approvals and visas, and completion of projects commercial registration and implementation of all the rules and regulations related to the zone and the decisions issued by the Authority.

Article 2 Without prejudice to the guarantees and exemptions for the projects under the provisions of the Royal Decree number (119/2011) for establishing the Special Economic Zone Authority at Duqm and issuing its regulation, the projects shall enjoy the guarantees, benefits, incentives exemptions and facilities provided in this regulation.

Article 4 The duration of the tax exemption provided in clause (1) of Article (3) of this regulation shall before a period of 30 years from the date of commencement of the activity, renewable for similar periods by following the same procedures set forth in this clause.

Article 5 The use of land by the projects located in the Zone for all purposes shall be subject to a payment of a fee, and for a period up to fifty years, renewable for similar periods. The usufruct rights shall be according to rules established by a decision from the Board without prejudice to clause (11) of article (5) of the regulation of the Special Economic Zone Authority at Duqm issued by Royal Decree number (119/2011).

The Authority cannot annul or terminate the Usufruct Agreement except in the case of violation of the terms of the Agreement by the projects or the relevant rules issued by the Board or the terms of the licenses issued to such, or for considerations of public utility projects and in accordance with the provisions of the laws in force in the Sultanate.

Project are not permitted to undertake any form of alienation or transfer of the usufruct rights accorded to them, except for other similar projects, subject to the prior approval of the Authority.

Article 6 The projects, alone, shall determine the price of their products, goods and services.

Article 7 Except the goods that are banned by law to be imported, the projects have the right to import all kinds of goods to the Zone without permission, license or prior approval, except if the products are classified as an explosive or chemical material, in which case must follow the rules on importation of such materials that are laid down in the related Laws and regulations in the Sultanate.

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Duqm SEZ

Article 8 The goods imported by the projects are not subject to any restrictions related to the duration of their stay in the Zone, unless specified by the board according to the nature and type of the goods. Such goods shall not be subject to any restrictions on transferring them within the Zone or between any other Free Zone or Special Economic Zone in the Sultanate, without prejudice to the Gulf Cooperation Council Unified Customs Law and the Royal Decree number (67/2003) of its application.

Article 9 Without prejudice to any international agreement to which the Sultanate is a party, goods that are manufactured or assembled in the Zone shall be treated as locally produced products when exported to any country or anywhere else outside the Sultanate.

Article 10 The Projects are not subject to any restrictions on the repatriation of capital invested and profit.

Article 11 The projects have the right to have commercial representative offices within the customs territory. Such offices shall be registered in accordance with the provisions of the laws in force in the Sultanate.

Article 12 All the necessary services for the projects shall be provided through the one-stop-shop, The Authority shall establish an electronic portal through which all the necessary information about the Zone shall be provided.

The Chairman of the Board shall take all necessary measures to implement the rule of the previous paragraph in coordination with units of the administrative bodies of the State concerned in relation to services that are not within the jurisdiction of the Authority.

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Article 13 In enforcement of the Law of the Commercial Register within the boundaries of the Zone, the Authority shall have the functions of the General Secretariat of the Commercial Register at the Ministry of Commerce and Industry regarding the registration of projects.

Article 14 In the enforcement of the unified law of industrial regulation of the Cooperation Council for the Arab States of the Gulf, the Authority shall have within the Zone the functions of the Ministry of Commerce and Industry regarding registration in the Industrial Register and the granting of permits, and the Chairman of the Board shall assume the functions of the Minister of Commerce and Industry.

Article 15 In the enforcement of the law of Mining within the boundaries of the Zone, the Authority shall have the functions of the ministry of Commerce and Industry, and the Chairman of the Board shall assume the functions of the Minister of Commerce and Industry.

Article 16 In the enforcement of the laws on Environmental Protection, Combating Pollution, Protection of Potable Water Resources, Nature Reserves, Preservation of Wildlife and regulation on Handling and Use of Chemicals within the Zone, the Authority shall have the functions of the Ministry of Environment and Climate Affairs in relation to issuing environmental permits for the projects and take necessary environmental measures, and the Chairman of the Board shall assume functions of the Minister of Environment and Climate Affairs.

Article 17 In the enforcement of the law of tourism have within the Zone, the Authority shall the functions of the Ministry of Tourism in relation to issuing permits necessary for tourism projects.

Article 18 In the application enforcement of the food safety law within the Zone, the Authority shall have the functions of the concerned body.

Article 19 A manpower department shall be set up in the Zone by a decision from the Minister of Manpower to issue the necessary permits for the foreign labor, according to procedures that are expeditious and efficient that shall be issued by the Board in coordination with the Ministry of Manpower.

In all cases, the period of issuing these permits shall not exceed five working days from the date which the applications were submitted. The lapse of such period without a decision regarding the application shall be deemed as approval. And in the case of rejection, the decision must be justified.

In the enforcement of the Labor Law inside the Zone, the Chairman of the Board shall have the functions of the Minister of Manpower concerning setting the fees for bringing in the foreign workforce and setting the Omanization percentage for Projects.

Article 20 Projects may agree among themselves on the transfer or assignment of workers among themselves without restrictions, in accordance with the rules established by a decision issued by the Board.

Article 21 A branch of the Department of Immigration and Passports shall be established in the Zone, by a decision from the Chief Inspector of Police and Customs in coordination with the Authority, which will be assigned the specific responsibility of issuing entry visas and residency permits for the expatriate workface and their families who will be coming to work in the Zone or visit it.

Article 22 The Board shall in coordination with the Royal Oman Police issue a Customs regulation, ensuring the following:

1 2 3 4

Quick and effective customs inspection.

Clarity and transparency of the basis of valuation.

Simplifying and shortcutting of the customs clearance procedures without prejudice to their effectiveness.

Comprehensive and thorough examination of the samples that are subject to controls within one location.

Article 23 A customs office shall be established in the zone by a decision from the Inspector General of Police and Customs, with functions and responsibilities referred to in article 22 of this regulation.

Article 24 The Chamber of Commerce and Industry is assigned the responsibility for issuing certificates of origin for Projects and ratifying them.

Article 25 The Authority may issue exclusive licenses to certain projects to carry out specific business activities for a limited period of time, and that is for

considerations relating to the protection of the environment or the conservation of natural resources in the Zone or in the scope of implementation of infrastructure projects. Notwithstanding the exception specified above, the Authority is committed to prevent monopoly and securing fair competition in the Zone in accordance with laws in force in the Sultanate and resolutions issued by the Board.

Article 26 The exemption from customs duty stipulated in Article 5 of Royal Decree Number (119/2011) shall not apply to Alcohol beverages, and tobacco products that will be imported into the Zone.

Article 27 In order for the Projects to enjoy the guarantees, benefits, incentives and exemptions provided in this Regulation, they are required to fulfill the following:

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To be registered in the Zone according to the applicable rules and regulations.

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To be licensed to practice one of the specified activities according to the applicable rules and regulation.

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Fulfill its commitment to undertake the business activity for which it is licensed to operate in the Zone.

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Abide by the Omanization percentage specified by the Board.

Article 28 The Authority may set aside a site in the region within the Zone to be part of the customs territory which shall be allocated to companies and industries that aim to export their products to the GCC region and other Arab Countries which have signed the Free Trade Agreements with the Sultanate. The companies and industries located in this site shall be treated the same as the

companies and industries located within the customs territory. A regulation shall be issued by a decision of the board after coordinating with Royal Oman Police to regulate the licensing, work and entry and exit of capital investment within this site.

Article 29 The Authority, in discharging the functions stipulated in Articles (13), (14), (15), (16), (17), (18) and (19/ paragraph 3) of this Regulation, shall adhere to the Laws mentioned therein as well as the instructions and resolutions issued for its implementation, and shall provide the concerned parties with all the information that is required in this regard, which shall be specified in cooperation with these parties in the form of memoranda of understandings.

The Board – in coordination with the relevant authorities and departments - shall take all necessary measures to enable the Authority to exercise these functions. Until these measures are adopted, these authorities and departments shall continue to exercise the functions referred to above, in coordination with the Authority, through the one-stopshop.

Article 30 The provisions of this Regulation shall not contravene with any functions that are accorded to the Authority in accordance with the laws and Royal Decrees in force.

Article 31 The Authority’s employees will be appointed by a resolution from the relevant authority, in accordance with laws in force in the Sultanate and in agreement with the Chairman of the Board, as judicial officers to deal with violations that occur within their specialized jurisdictional areas, and related to the application of the laws mentioned in Articles (13), (14), (15), (16), (17), (18) and (19) of this Regulation, and within the scope of the specialization assigned to them.

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SEZ Investment Opportunities

A new investment haven Duqm is, among other things, Oman’s industrial and logistics hub on the Arabian Sea, a business-friendly safe haven for investments, and a differentiated tourism destination that will contribute to the national economy, says SEZAD’s Investment Services Manager.

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s Investor Services Manager, Mr. Saleh al Hasni is the pitchman-in-chief for the Special Economic Zone Authority of Duqm (SEZAD), tasked with spearheading the Authority’s efforts to attract investors to what is arguably the world’s largest free zone development. It’s a fairly gargantuan responsibility – but one that he shoulders with enthusiasm and panache as he drums up investor interest at road-shows held from time to time in various Gulf and international capitals, as well as during forums held locally and abroad.

“Duqm is a prime Grade ‘A’ development which will help put Oman firmly on the key international development sites’ list used by top commercial property agents. Offering state-of-the-art commercial, port, logistic, manufacturing and industrial facilities, and with superb transport connections, the SEZ has attracted robust interest from international and local investors, as is evident from the billions of dollars in commitments already announced. Yes, we’re off to an excellent start,” commented Mr. Al Hasni in a typically upbeat outlook for

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Oman’s newest free zone project.

The SEZ, according to the official, is set to play a major role in balancing the country’s regional development.

As a strategically-located, multiindustrial and commercial centre in the Wusta Governorate, the free zone has the potential to deliver far-reaching benefits not only for the desert heartland in which in its located, but for the nation as a whole.

“Duqm is Oman’s industrial and logistics hub on the Arabian Sea, a business-friendly safe haven for investments, and a differentiated tourism destination that will contribute to the national economy.

Allowing up to 100 per cent foreign ownership and tax exemptions, Duqm is expected to create 20,000 new jobs and attract $15 billion in investment within the next 10 years as industry diversifies and new technologies evolve,” he said.

Over the past year or so, SEZAD’s Investment Services Manager has travelled to a number of cities in the Gulf, Middle East, and Far East, as he makes a strong pitch for inward investment into Duqm. This sprawling free zone, strategically located within

easy distance of major sea roads linking north-south and east-west markets, enjoys a strong competitive edge that few other SEZs in the region can match.

“Duqm offers a unique value proposition to the investors that virtually no other free zone in the wider region can replicate. In addition to its vantage geostrategic location at the crossroads of major international shipping routes, Duqm also lies within easy proximity of the burgeoning markets of the Middle East, Africa and Asia. There are other advantages as well to investing in Duqm. The Wusta region, of which Duqm is a part, is blessed with prolific oil and gas fields and abundant mineral deposits, while the offshore waters of the Arabian Sea teem with commercial valuable fish resources. Add to this list the SEZ’s vast size – 1,777 sq km – top quality infrastructure, best business practices, and the strong commitment of the Omani government, and you have a winning proposition.”

Spearheading Duqm’s development into the economic powerhouse that it is envisioned to be is the Special Economic Zone Authority at Duqm

In line with its goal to develop a truly world-class hub, SEZAD is putting in place a One Stop Shop designed to provide interested investors with a speedy, seamless and bureaucracy-free experience

(SEZAD). Established by Royal Decree 119 / 2011, the Authority has been vested with the powers, prerogatives and responsibilities necessary to exercise its mandate to develop and administer the SEZ into a hub for maritime trade, industry, fisheries, and even tourism.

For its part, the Government of the Sultanate of Oman continues to invest massively in the development of support infrastructure, utilities and services necessary to jumpstart foreign and local investment inflows into the SEZ. This support infrastructure encompasses, among other things, roads, electricity generation, water desalination, gas supply, flood protection and storm water drainage, residential townships, an urban district, and a full-fledged domestic airport, says Mr. Al Hasni.

Furthermore, to demonstrate its robust conviction in Duqm’s future as a world-class hub in the making, the government has invested in two cornerstone projects – a multipurpose commercial port and ship repair yard – both of which will anchor the SEZ’s long-term growth.

“Port of Duqm, a 50:50 joint venture

SEZAD guiding principles Develop World Class Industrial Complex

Maximize Investment Return by Integrating Existing and New Projects into Sustainable Development Establish New City to Lead Oman’s Economy Build All-Modern Urban Quality of Life Use Nature to Design Duqm’s Unique Character Create New Tourist Economy Preserve and Celebrate Omani’s Values, Culture, and Architecture Construct Efficient and Well Integrated Land Transport Network Provide Adequate Power Supply including Renewable Energy Provide Integrated and Centralized Utilities

of the Omani Government and Port of Antwerp, has been conceived as a major bulk and break-bulk port located astride the busy sea routes outsides of the Strait of Hormuz with immediate access to a range of raw and intermediate materials and preferential access to the Middle East markets,” he said.

SEZAD, says the investment executive, is more than just a real estate administrator. “Royal Decree

79 / 2013 has vested the Authority with powers to administer a system of incentives and tariffs designed to attract investors to Duqm. The Authority offers attractive investment incentives and tax exemptions designed to make the SEZ a magnet for local and foreign investment.

Restrictions on foreign ownership and minimum investment caps have been removed. Investors not only enjoy competitive land lease and utility 21

SEZ Investment Opportunities

Land / Space Planning Urban Master Plan – New Township Industrial Zones – Heavy, Medium, and Light Duqm Refinery and Petrochemical Zone Logistics Airport Zone Mineral Mining Tourist Zones Drainage and Wadis – Dams and Channels Land Transport Network – Roads and Railroads Landfills and Sewage Treatment Plans Power and Utilities Agricultural Land Fishing Port and Processing Industry Heritage and Archeological Sites Coastal Protection tariffs, but also waivers and reductions on customs duties and corporate tax.

All of these incentives put together enhance Duqm’s competitive appeal significantly.”

In line with its goal to develop a truly world-class hub, SEZAD is putting in place a One Stop Shop designed to provide interested investors with a speedy, seamless and bureaucracyfree experience.

“The One Stop Shop will oversee all of the paperwork and formalities, leaving the investor to focus on their ventures. Everything from registrations, permits, approvals, land lease issues, visas, and so on, will be handled by this single window facility,” Mr. Al Hasni said.

Earlier this year, SEZAD signed a Memorandum of Understanding and Cooperation with the Ministry of Commerce and Industry aimed at establishing direct linkages between the SEZAD One Stop Shop with the one-stop station set up at the Ministry in Muscat. The arrangement allows for applications received by SEZAD at Duqm to be speedily processed.

At the same time, a department will be opened at SEZAD for processing commercial registrations and other applications from firms transacting business in the SEZ. The agreement in effect transfers to SEZAD the prerogatives of the Ministry in the following areas: application of the provisions of the law on 22

Completed Projects Commercial Marine Port (Phase1) Dry Dock Diesel Power Plant Desalination Plant Power Distribution Network Potable Water Distribution Network Municipal Sewage Treatment Plant Duqm Town Main Roads Jalooni Airport City Hotel Crowne Plaza Hotel Frontier Town Public Hospital Expansion commercial registrations, provisions of the standard law of industrial organisation, and application of the provisions of the Mining Law. In line with its commitment to good governance and transparency, SEZAD has lately decided to make a significant distinction between its primary role as the free zone authority and regulator from its equally important function as an investor.

Towards this end, the Authority announced recently the formation of a subsidiary holding company to oversee its investment and commercial activities within the SEZ. The so-called Oman Company for Duqm Development (OCDC) [under formation] will be a wholly owned entity of SEZAD and established as a commercial entity in the framework of Oman’s commercial laws.

Upon its formation and incorporation, the holding company is expected to play a key role in enhancing private sector investment in certain projects and initiatives associated with the SEZ. These investments will either be related to infrastructure, utilities and services necessary to support the SEZ’s operations, said Mr. Al Hasni.

Opportunities for investment in the SEZ include possible partnerships in, for example, the expansion of power generation and water desalination capacity, management of wastewater, operation of workshops linked to the ship repair yard at Duqm, airfreight and forwarding services, logistics, and so on.

According to preliminary estimates drawn up by SEZAD, more than 30 significant projects involving an investment of around RO 5 billion are currently in various stages of

design, development and operation at the Duqm SEZ. They comprise a mix of infrastructure, industry, utility, logistics, tourism and leisure, health, fishery and environmentrelated investments. Together, they will provide the underpinnings of a logistics hub that, in terms of geographical area, is already the largest in the Middle East and North Africa (MENA).

The SEZ, Mr. Al Hasni said, has been conceived as an integrated economic development covering an area of 1,777 sq kilometres and fronted by nearly 80 kilometres of coastline. This massive development is, in turn, composed of eight distinct zones: Seaport, Industrial Area, New Town, Fishing Harbour, Tourism Zone, Logistics Hub, Education & Training Zone, and Airport.

Of the 30-plus projects in question, at least a third have already been completed, the Investment Services Manager said. They include: Duqm Port – Phase 1 (RO 1.0577bn), dry-dock (RO 278.9m), power plant (RO 22.9m), desalination plant (RO 10.1m), power distribution network (RO 10.1m), water distribution (RO 16.2m), Crowne Plaza Duqm (RO 16.7m), City Hotel (RO 3m), Duqm Hospital expansion (RO 0.47m), Duqm Frontier Town – Phase 1 (RO 28 million) and temporary fishing jetty (RO 0.35m). Separately, Musstir LLC – a partnership of MB Holding and Omran – is investing RO 7 million in the development of chalets at Duqm.

(Figures quoted here are indicative only).

Also under various stages of tendering and implementation are road projects worth around RO 235 million. They include a section of the main highway linking the port with the Sinaw-Mahout-Duqm carriageway (RO 42.8m), port roads (RO 81m), 250 kilometres of internal roads (RO 100m) and the 9km Nafun Road (RO 1.7m). Separately, SEZAD is investing RO 16.7 million in preparing the groundwork for rail connectivity in Duqm.

The biggest of the industrial projects envisioned at the Duqm SEZ is a refinery and petrochemicals project worth an estimated RO 2.5 billion. A sum of RO 185 million has also been earmarked for the development of a gas pipeline network from the central Oman gas fields to Duqm. Other large investments on the anvil are Package 1 of a flood protection venture worth RO 83 million, Nafun fisheries harbour

Current Projects Under Construction Port of Duqm Facilities Expansion Port of Duqm Internal Roads and Drainage Duqm International Airport ROP Complex 150 Government Houses Project Under Design or Tender Duqm Refinery Duqm Development Drainage Network and Protection Scheme Duqm Roads and Infrastructure – Phase 1 Duqm Main Road Improvement Duqm International Airport Terminal Building Duqm Municipality Market Government Building (SEZAD HQ)

Future projects Oil Refinery & Petrochemical Complex Northern and Central Industrial Zones Infrastructure Natural Gas Supply Oman GCC Railway, Station and Dry Port Marine Port Expansion Expansion of Road Network Expansion of Water Distribution Network Expansion of Electric Distribution Network Construction of Sewage Network Storm Protection Scheme (Dams and Channels) Airport Phase 3 (Terminal Building) Expansion of Desalination Plant New Power Plant (1000 MW) Public Parks and Landscaping Social and Commercial Amenities Public Transport Facilities Fisheries Port & Processing Facilities Government Buildings Environmental Facilities Rock Garden (Visitors and Educational Centre) (RO30m). Also underway are projects supporting the delivery of government services and social housing schemes in Duqm.

All of these infrastructure initiatives offer major contracting opportunities to private companies, the official noted. These opportunities are linked to the Passenger and Cargo Terminal package of the Duqm Airport Project,

Selected Business Opportunities Consultancy and Advisory Services Engineering Services Planning and Feasibility Studies Preliminary and Detailed Design Construction Supervision Construction Heavy Civil Works Sea Port Expansion Works (Liquid Berth and Infrastructure) Roads and Utilities Dams, Channels, and Drainage Network Buildings (Housing, Commercial, Hospitality, Logistics, etc.)

Other Specialty Construction (e.g. Power Plant, STP) Production and Supply of Construction Materials Supply and Service of Construction Equipment Mining and Processing Supply of Qualified Labor and Training Logistic and Transport ServicesParbi fachinter acit, nonducto norum iam condactabi faccibu turbis, ce ad facrume fur quam perum prae cula in re, consus, sumus hum poerris. Caperiorum enat, catquervilis host anum acivastrum, ne ficiese, quid incerioc rectusu perissignam etra re autum ine atabenatium ata inatissoli ina condintio publis.

expansion of the water desalination plant from the current 6000 cubic metres per day to 50,000 cubic metres/day, construction of power and water distribution networks, and the establishment of a new Fisheries Harbour and Processing Cluster.

A role for the private sector is also envisaged in the proposed expansion of power generation facilities from the present 67 MW to an estimated 500MW of capacity. A study to determine the optimal size of this plant is underway by the Public Authority for Electricity and Water (PAEW).

Plans for a Rock Garden by the Ministry of Tourism, designed to protect the area’s unique rock sculptures, also envision a role for private players. So are projects for the development of public parks, buffer zones, laboratories, and inter-city bus stations.

Equally attractive are opportunities for investment in a diverse variety of utilities, such a solid and liquid waste management plants, landfills for hazardous and non-hazardous materials, treatment plants for industrial wastes, development and operation of wind and solar power facilities, operation of industrial clusters, and so on.

Furthermore, with Duqm expected to attract over 100,000 residents, there is ample scope for private investment in amenities and services, such as commercial centres, hotels and tourist resorts, entertainment centres catering to people of different age groups, schools and private health centres, and low-cost housing.

Besides, opportunities are aplenty for investment in commercial ventures such as warehouses, workshops, reexport processing centres, and so on, he added.

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SEZ Infrastructure & Utilities

World class infrastructure for a world-scale industrial hub From an international airport, world-standard road system and railroad connectivity in the future, to new power and potable water capacity, natural gas supplies, and a full suite of industrial utilities, the Special Economic Zone of Duqm is set to enjoy all of the underpinnings necessary to propel its growth into the top league of the world’s mega industrial hubs.

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he task of attracting international investors to a green-field destination in a secluded corner of the country can be a daunting one indeed, but not if the requisite transport, utility and support infrastructure is in place.

Towards this end, the Omani government – through the Special Economic Zone Authority at Duqm (SEZAD) – has been pulling out the stops in the development of worldclass infrastructure for a world-scale industrial hub on the Wusta coast.

An estimated RO 2 billion has been invested so far in the implementation of a raft of projects that together form the cornerstones upon which the Duqm SEZ will eventually be established. While a significant chunk of this amount has been ploughed into the construction of marine infrastructure for the port and dry-dock – both anchor ventures of the SEZ – the rest has gone into the development of other key infrastructural trappings, including a modern road network, international airport, electricity generation and water desalination capacity, and other key facilities.

In the coming months and years, sizable allocations will be made in the implementation of smaller, but equally crucial, initiatives, notably a flood protection and drainage

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system covering the SEZ area, waste management, public healthcare and civic services, and so on.

Inevitably, all of these projects will generate a bonanza of contracting and business opportunities for local and international firms. In particular, small and medium Omani enterprises are set to receive priority attention in the award of many of these contracts under newly adopted national guidelines championing support for SMEs. “Duqm’s SEZ is a very complex and ambitious development that will open the way for a lot of opportunities for different kinds of engineering and consultancy services, construction, heavy civil and marine works, construction of dams, channels and drainage systems, commercial hospitality services, power developers, transport and logistics service providers, equipment suppliers, centralised maintenance utility services, labour, training, and so on,” commented Mr. Andrew Laski, Head – Road Transport Engineering, SEZAD. “Our objective is to build a worldclass industrial hub and a new city that will fuel Oman’s long-term economic growth. This city is envisioned to support a modern, urban quality of life so that people are drawn to Duqm to live and work,” he stated.

Indeed, given the mammoth

scale of the SEZ project, business opportunities abound for all manner of contractors and service providers spanning, among other areas, engineering consultancy, civil construction, roads and transport networks, power generation and water desalination, utilities and distribution networks, sewage and waste treatment, tourism, fisheries and fish processing, tourism and leisure, and logistics.

Notable is a proposal for the development of the required infrastructure for two major zones that will house all of the large and medium scale industrial investments that will eventually be established at the SEZ. Covering a total area of 22 sq km, the Northern and Central Industrial Zones will require road networks, utilities and other infrastructure – a task that will be undertaken in stages.

Another important project with associated contracting and service opportunities is related to the development of a railway system in the SEZ that connects with the GCC Rail Project. A passenger station and dry rail port are envisaged at the Duqm end of this network, Mr. Laski said, adding that public transport facilities integrated with multimodal transit stations will also be part of an elaborate transport system planned for the SEZ. The SEZ will also feature a main road network with around 170 km of carriageways planned in phase 1 of the project. This initiative includes a 6km stretch that will be developed into a boulevard serving as the nerve centre and the principal attraction of the future City of Duqm.

Also lined up for execution is a major drainage and protection scheme that will secure the SEZ and its future industrial investments from potential flood events. At least two dams, but possibly up to 4 such structures, are envisioned for development in conjunction with a network of wadi channels.

Transportation links to and from the Duqm SEZ are envisaged to be nothing short of international-class.

Road connectivity Carriageways to growth ransportation links to and from the Duqm SEZ are envisaged to be nothing short of internationalclass. The objective here is two-fold: firstly, to ensure that overland access to Duqm is speedy, convenient and efficient; secondly, given Port of Duqm’s characterization as a heavylift port that is suitable for the import of oversized and ultra-heavy project cargoes, the road network is being suitably designed to cater for these loads.

Thus, since the commencement of ‘early phase operations’, Port of Duqm has served as an effective gateway for the discharge of project cargoes destined primarily for the oil and gas fields of central Oman, the sites of mega-projects located in the southern half of the country, as well as for ventures under implementation with the Duqm SEZ. Wide carriageways suitably reinforced for heavy loads lead out of the port into the oilfield provinces of central Oman.

The absence of bridges and tunnels, which are a common feature of the road network in the north of the country, also makes it convenient for the movement of such heavy loads directly from the port to the project site. Consequently, Port of Duqm has become the gateway of choice for imports of heavy loads, particularly after restrictions placed on the routing of such cargoes via

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ports in neighbouring United Arab Emirates.

Indeed, speedy and efficient road – and eventually rail - connectivity will be one of the hallmarks of the SEZ’s offerings. An arterial road network is planned to connect the free zone with Muscat, Salalah and all of the major cities and town with the Sultanate. This network will eventually connect with the UAE and Saudi Arabia as part of a wider, integrated transport system.

In the second half of 2012, SEZAD launched work on a major multi-stage plan to improve road connectivity with Duqm. At the heart of the plan is an initiative to upgrade the 372-kilometre-long SinawMahout-Duqm carriageway, which is currently the principal overland route to Duqm via the Sharqiya South Governorate. Vehicles plying between much of the northern half of the Sultanate and Duqm inevitably use this key blacktop because of the advantages in distance (relative to other routes) as well as conveniences offered en route in the form of the presence of filling stations, restaurants, motels and convenience stores.

However, with traffic poised to grow exponentially along this carriageway, in line with Duqm’s planned development into an industrial and maritime hub, an upgrade of the Sinaw-Mahout-Duqm had now become imperative. SEZAD

has appointed contractors to upgrade the existing single carriageway into an all-weather motorway, with an expanded asphalt width, and broader pavement for overlays. At several places along the route, the horizontal and vertical alignment will be improved to accommodate higher design speeds.

Importantly, the realigned route will bypass existing populated areas, including Sinaw town, as well as the ecologically important sabkha (intertidal mudflats) and nearby sand dunes. This streamlined alignment will knock off some 20 kilometres from the current distance, reducing the length of the upgrade carriageway to around 351 kilometres.

Within the SEZ, a main road network of around 170 km of carriageways is envisaged in phase 1 of the project. It includes a 17km three-lane dual road that links the port and airport with residential, hospitality and tourist locations in Duqm. Another 23km beltway project encircles the future City of Duqm with linkages to the waterfront and residential districts. Separately, around 37km of roads are being within the port complex, designed to facilitate traffic flows in and out of the port. Furthermore, a 6km asphalted stretch will be developed into a boulevard serving as the nerve centre and the principal attraction of the future City of Duqm.

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SEZ Infrastructure & Utilities

Air connectivity Flight mode et another component of Duqm’s multimodal integrated transport system is an airport that, authorities hope, will be ready to handle civilian flights before the end of this year.

Getting Duqm Airport operational will be huge triumph for SEZAD’s efforts to enhance air connectivity with Duqm, which is currently served via a temporary airfield at Jaaluni, about 40km from the SEZ. Its international-class runway, which is capable of accommodating the world’s largest civilian aircraft in service today, will allow for the handling of jets that are bigger, faster and more comfortable than the propeller-operated ATRs currently deployed on the MuscatJaaluni-Muscat sector.

Indeed, Duqm International Airport promises to be something of a game-changer when it softlaunches later this year ahead of full-fledged commercial operations sometime in 2015. Flying times between Muscat and Duqm will be slashed to under an hour in one direction, allowing for visitors – primarily government officials, business executives, investors and even tourists – to arrive in comfort in this emerging economic hub on the Wusta coast.

Much headway has been made in the construction of a modern airport facility within the Special Economic Zone. The airfield infrastructure, comprising a 4km long runway, taxiway, apron, airfield

Y

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Rail connectivity lighting and other facilities, is now substantially in place. The focus is now on the third and final package of the airport project, covering the construction of the passenger terminal with a capacity to handle 250,000 passengers annually, an air cargo terminal of 50,000 tons per annum capacity, air traffic control tower, ground equipment workshop, facilities for emergency services, and utility buildings. A contract award for Package 3 is likely to be awarded soon.

Pending the completion of the airport terminal, the Public Authority for Civil Aviation (PACA), which regulates the aviation and aeronautical industry in Oman, is working to prepare the facility for ‘early operations’ sometime during the third or fourth quarter of this year. A temporary terminal building is proposed to be established to process arriving and departing passengers pending the construction of the permanent structure. As with all other civilian airports in the country, operation and management of Duqm Airport will be handled

by Oman Airports Management Company (OAMC).

Tentative plans drawn up by PACA suggest that the new Duqm Airport will be operated as an extension to the air transportation services already provided via the nearby Jaaluni Airport. National carrier Oman Air is expected to deploy its latest fleet of Embraer E-175 jets on the Muscat – Duqm sector.

Tracking development s an industrial and economic powerhouse of the future, Duqm will be connected to the Oman National Railway Network at around the same time that other major cities and growth centres of the country are added to the network.

After all, Duqm SEZ and its port are expected to generate a sizable chunk of the freight volumes necessary to sustain the future success of rail-based transportation services in the Sultanate.

The National Railway System is part of the inter-GCC railway network that will run from Kuwait to Muscat, and onward to Salalah and possibly to Yemen. The 2,244-kilometre national network will be implemented as a single project although in a total of nine segments spanning the length of the country. Duqm will be connected to the network when the 340km Sinaw-Duqm line - representing Segment 3 of the project – is implemented. Onward connectivity from Duqm to Thamrait, a 554km link spanning rugged terrain and plunging ravines, is envisaged in Segment 4. Freight traffic will be the mainstay of Duqm’s contribution to the success of the national rail network. Estimates of freight volumes originating from / and destined for Duqm SEZ are in the range of 2.5 million tons and 2.7 million tons respectively in the year 2039. But these are conservative estimates based on baseline projections.

Given the ‘game-changing’ potential of rail-based transportation, authorities foresee an exponential surge in freight volumes when the network is operational.

Rail infrastructure at Duqm is expected to include a passenger station, intermodal freight yard, and a major maintenance yard.

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Electricity & Water Essential lifelines uqm is presently served by a dieselpowered electricity generation plant with an installed capacity of 67 MW owned by the Rural Areas Electricity Company (RAECO), a wholly owned subsidiary of the Electricity Holding Company (EHC). Output from the plant helps meet the electricity needs of the large infrastructural and commercial undertakings currently in operation within the SEZ, notably the ship repair yard of Oman Drydock Company and the Port of Duqm. A rapidly growing township presently populated by several thousand people also draws its electricity needs from this facility.

But capacity is proposed to be augmented to around 147 MW of diesel-fuelled generation by 2017, which is deemed sufficient to meet projected electricity demand in and around the SEZ until 2019. Thereafter, new demand growth will be met by an Independent Power Project (IPP), the size of which is currently the subject of a study being undertaken by Oman Power and Water Procurement Company (OPWP), the sole procurer of all new electricity generation and water desalination capacity in the Sultanate of Oman.

The state-run procurer expects to finalize plans for a potential Independent Power Project (IPP) at Duqm during 2014, with commercial operation targeted during 2018. The installed capacity is expected to be in the range of 300 MW to 400 MW, but this will depend on a wider study of

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energy options for the Duqm area.

As part of the study, OPWP is evaluating the merits of tendering for a gas-fired IPP to meet growing demand in the medium-term. Strategic options under evaluation may include a transmission interconnection with the network of Petroleum Development Oman (PDO) or with the MIS (Main Interconnected System serving north Oman), and the level of generation capacity that may make such interconnection economically feasible.

The study will also explore the feasibility of incorporating outlying localities, such as towns along the eastern coast from Shuwaymiyah to Mahut and Haima, into the network to be supplied by the Duqm power generation plant.

“OPWP expects to complete the Duqm study in 2014, in order to support an expected procurement action that would lead to a Duqm IPP to begin operation around 2018. At this stage, OPWP expects that this plant would have capacity in the range of 300 MW to 400 MW, and without a transmission interconnection with the MIS, though that could occur in the future depending upon demand development. This scale of plant capacity, in combination with the planned RAECO plants, would meet requirements under all three demand scenarios through 2020, and provide time to observe the pace of demand development toward planning further capacity additions,” the procurer said in its latest 7-Year Outlook Statement covering the 2014 – 2020 timeframe.

Longer term, an interconnection

between the Main Interconnection System (MIS), covering the northern half of Oman, and the Duqm Zone, is also envisioned.

Meanwhile, the Public Authority for Electricity and Water (PAEW), which is responsible for, among other things, the transmission and distribution of potable water supply, has requested OPWP to initiate procurement of a new Independent Water Project (IWP) of 30,000 cubic metres (m3) per day (7 million imperial gallons per day – MIGD) capacity. A tender for the procurement of the IWP is proposed to be floated in the fourth quarter of this year, with commercial operation slated for Q4 2017.

Water demand, both for industrial and non-industrial use, is projected to soar in line with Duqm’s development into a major industrial and maritime hub. A decision on whether to proceed with the IWP procurement will be firmed up later this year once it is clarified whether PAEW will be responsible for Duqm’s industrial water demands, says OPWP. Duqm is presently served by a 6,000 m3/d (1 MIGD) desalination plant, as well as a number of local water sources. Pending the procurement of new capacity, PAEW plans to meet incremental demand growth by adding another 6000 m3/day (1.3 MiGD) of new capacity to its existing plant. Further, temporary desalination capacity of 10,000 m3/day (2 MIGD) is proposed to be moved from Muscat to Duqm in 2017 to address rising demand.

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SEZ Infrastructure & Utilities

The Duqm gas pipeline is expected to be one of OGC’s largest investments to date

Natural gas supply: Fuelling a bright future eeting the Duqm SEZ’s natural gas requirements is an integral part of the Omani government’s commitment to establishing the necessary wherewithal to support the industrial hub’s long-term growth.

Towards this end, the Ministry of Oil and Gas has tasked Oman Gas Company (OGC), the country’s foremost natural gas transportation utility, with building a pipeline that will provide uninterrupted supplies of natural gas to consumers in the free zone. State-owned OGC has since made significant headway in the implementation of the pipeline project, the commissioning of which is slated during 2017.

According to His Excellency Yahya bin Said al Jabri, Chairman of the Special Economic Zone Authority of Duqm (SEZAD), the gas pipeline project is key to attracting industrial investors and service providers to Duqm. “As an important form of energy, gas will support the establishment of a number of industries in the SEZ in the near future, such as the Duqm Refinery, petrochemicals factories, cement factory, utilities and so on. They will offer added value opportunities to the SEZ,”

M

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he said.

Initial requirements of the Duqm SEZ are estimated at 12 million m3/day of gas. This includes an allocation of around 7 million m3/day of gas for electricity generation. Oman Power and Water Procurement Company (OPWP),which oversees the procurement of all new power generation and related water desalination capacity, is evaluating the size of a gas-fired power project based on the SEZ’s estimated long-term energy demand.

The amount of gas that will be pumped will depend on a number of factors, although the Ministry of Oil and Gas has earmarked volumes sufficient to meet the SEZ’s initial needs.

“This project is one of the biggest investments of Oman Gas Company in the field of gas transportation,” said Mr. Yousuf bin Mohammed al Ojaili, CEO – Oman Gas Company.

“Since taking on the task of gas transportation in the year 2000, OGC has extended its gas distribution network to include new areas in the Sultanate, such as Sohar and Salalah. This is in addition to the installation of compression stations at Buraimi, Fahud and Nimr.”

Significantly, the Duqm gas

pipeline will be the single largest pipeline by capacity to be built by a government-run gas transportation company to date. The pipeline is expected to come into operation during 2017, well ahead of the completion of any large utility or industry that will offtake natural gas from the project.

OGC is the major gas transportation company in Oman delivering natural gas to consumers comprising of domestic, power and desalination plants, fertilizer, methanol, petrochemical, refinery, steel and cement plants. OGC is a closed joint stock company between the Government of Oman, represented by the Ministry of Oil & Gas, holding 80 per cent of the shares and Oman Oil Company holding the remaining 20 per cent.

New Town of Duqm: Model of contemporary urban living s one of Oman’s biggest economic development initiatives, the Duqm SEZ is expected to attract an estimated $15 billion in industrial, petrochemical and infrastructure investment over the next five years. Providing a suitable urban environment for the estimated tens of thousands of people who will service this development is indispensable to Duqm’s longterm success, says SEZAD. Accordingly, the Authority has finalised plans for the establishment of a unique township that will serve as a model of contemporary urban planning, with due consideration given to Omani culture and the local environment. It will also catalyse the urbanization and commercialization of Wusta Governorate over the long term.

Covering an area of 23 sq km, the new Town of Duqm will boast a wide array of amenities, including indoor-outdoor sports facilities, youth stadium, parks, public library, malls, administrative offices, mosques and other civic landmarks. Also envisioned in the town centre is a business district and regional hospital.

The Town of Duqm will be initially designed and developed to accommodate up to 67,000

A

The Town of Duqm will be initially designed and developed to accommodate up to 67,000 people with provision made to cater for a total of 111,000 inhabitants over the long term

people, with provision made to cater for a total of 111,000 inhabitants over the long term.

As a green-field development, SEZAD is keen to make sure that the Town of Duqm is designed and built to international standards.

As a first step, the Authority has appointed a reputed consultant to undertake the complete design of road networks, common corridors for utilities and drainage systems, electrical distribution networks, potable water distribution networks, and sewerage and irrigation systems.

Around 205 kilometres of single and dual carriageways will be designed and built as part of the Phase 1 development of the Town of Duqm. This network will primarily serve the Light Industries Enterprise Area (covering an area of 390 hectares), the Showrooms / Logistics Area (encompassing a 762-hectare site), and a pair of residential neighbourhoods (spread over 736 hectares).

Conceived as all-weather roads, the network will be designed along with all necessary drainage structures, including the provision of culverts and wadi bridges.

The final design will also make provision for oil and gas pipelines, rail tracks, and other utility lines crisscrossing the areas under study.

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Port of Duqm Company

Port of Duqm Company:

A strategic enabler Port of Duqm, the Sultanate’s newest maritime gateway, is poised for a major rampup of its infrastructure and capabilities as it prepares to anchor an adjoining free zone that over time will rival some of the largest multicluster economic hubs in the Middle East region.

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Mr. Rien Van de Ven CEO, Port of Duqm

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year into the launch of early phase operations in March 2013, Port of Duqm now finds itself on the cusp of a new phase of its development.

Anticipated investments in new dedicated cargo terminals, related superstructures, industrial clusters, and warehousing and logistics zones, will position the gateway for robust growth - in both shipping and cargo traffic – as construction and developmental activity in the adjacent Special Economic Zone (SEZ) picks up pace.

“We are now at an important juncture in our development as a port conceived at the outset to serve as a platform – a vehicle, if you will – in enabling the development of the Duqm SEZ. In fact, our mission here is two-fold: One - to develop, operate and manage a world-class port on the Arabian Sea, and Two – to support the development of the industrial land around the port. On both fronts, we are making excellent headway,” commented Mr. Rien Van de Ven, CEO,

Since the commencement of early phase operations, the port has been receiving a steady stream of vessels, attesting to the appeal of its strategic location overlooking the Arabian Sea and the Indian Ocean beyond.

Port of Duqm.

Since the commencement of early phase operations, the port has been receiving a steady stream of vessels, attesting to the appeal of its strategic location overlooking the Arabian Sea and the Indian Ocean beyond. But the majority of port calls have involved ships discharging project cargoes for Oman’s mainstay oil and gas industry concentrated in the Wusta governorate where Duqm lies on the coast.

Also calling at the port is a growing number of vessels laden with cargoes and construction material for new ventures under development within the SEZ. The trend is expected to pick up in the coming months and years as developmental activity at the SEZ, starting with the construction of a mammoth refinery, gains momentum.

Growth-bound To keep pace with this anticipated upsurge in shipping and freight traffic, Port of Duqm, along with the Special Economic Zone Authority at 31

Port of Duqm

Duqm (SEZAD), Ministry of Transport and Communications, and other stakeholders, have chalked out a well-defined blueprint for ramping up the port’s infrastructure and capabilities. The strategy calls for investments in new terminal infrastructure and superstructure catering to all of the key cargo commodity types that will be handled at the port. Also envisaged is a raft of initiatives that promise to significantly enhance Duqm’s appeal to international shipping.

“We have identified three key objectives for priority action in order to prepare the port for a new phase of anticipated growth, particularly as we leverage our advantageous geographical location and the robust appeal of the SEZ to attract new business to Duqm,” said the CEO. “Through investments in bunkering services, as well in the development of full-fledged terminals for container and bulk cargoes, we aim to be well-positioned for an upcoming spell of strong growth.”

Topping the list of objectives for early implementation is a proposal for the introduction of bunkering – a service that has the potential to boost vessel calls to the port, 32

At full build-out, the capacity of both terminals is projected to reach around 3.5 million TEUs

particularly the ship repair yard operated by Oman Drydock Company (ODC) within the port complex.

“We have a lot of ships arriving at ODC for dry-docking and repairs.

Most arrive with the barest minimum of bunker, in keeping with safety requirements given the potentially hazardous nature of ship repairs particularly if the vessel in question is fully laden with bunker fuel. So ships scheduled for dry-docking with just enough bunker to take them to Fujairah (UAE) where they load enough fuel for the rest of their voyage. The trip to Fujairah inevitably means more cost to the vessel if it is headed away from the Gulf. So it makes logical business sense for Port of Duqm to offer bunkering services.

This is important not only from the standpoint of our desire to be a onestop provider of various shipping services, but also to enhance ODC’s appeal to international shipping,” Mr. Van de Ven explained.

Terminal development Next on the CEO’s checklist of priorities is the development of a Dry Bulk Terminal to help jumpstart the commercialization of the Wusta’s prodigious mineral wealth. Studies

commissioned by the government have helped unearth virtually limitless deposits of mainly nonmetallic minerals that, if suitably processed and value added, can generate significant business for the port through exports. The resulting industry has the potential to create numerous jobs as well as contribute to the economic development of this region, according to Mr. Van de Ven. “We envision great potential for the development of the Wusta region’s mineral wealth particularly when a dedicated and wellequipped Dry Bulk Terminal is in place at the port. This investment, together with the development of industrial land for minerals based cluster, has the potential to spur the commercialization of these massive reserves. Target markets for processed and semi-processed commodities include the Indian subcontinent and East African coast, as well as the Red Sea, Upper Gulf, Iran, Iraq and so on. But pending the start-up of mineral processing plants in Duqm, we foresee the potential for exports of some volumes in unprocessed form.”

Plans drawn up by the Port of Duqm envisage a 300-metre-long

berth for the handling of bulk mineral commodities with a capacity reaching 5 million tons per annum. Early phase operations will be handled by the port itself pending the selection of a competent operator to invest in the superstructure and handling equipment under a long-term concession agreement, said Mr. Van de Ven. Next on the agenda for implementation is the first of two Container Terminals, development of which is planned in conjunction with the anticipated startup of projects at a dedicated industrial cluster that falls within the port’s concession area. Raw materials and finished goods linked to these industries are invariably containerized, thus underscoring the importance of a fully-equipped Container Terminal to be established at Duqm, says the CEO. Of the 2.325km of commercial quay wall already constructed at the port, adjoining berths totaling 1,600 metres have been earmarked for the establishment of a pair of Container Terminals. Container Terminal 1 is slated to be brought in to operation by mid-2016, followed by Container Terminal 2 a year later. Capacity is

envisaged at around 60,000 TEUs at start-up and progressively ramped up to 124,000 TEUs by 2017 and 150,000 TEUs by 2018. At full buildout, the capacity of both terminals is projected to reach around 3.5 million TEUs. A tender is due to be floated in the second half of this year for the construction of the superstructure for Container Terminal 1, according to the CEO. It covers a package of works that includes paving of the terminal surface, rails for gantry cranes, utility buildings, and so on. As is normally the case, early phase operations will be handled by Port of Duqm until an international investor comes along to operate the terminal under a longterm concession agreement.

While much of Duqm’s containerized cargo is expected to be export-driven, the CEO envisions significant potential for transshipment volumes as well.

“Our transshipment potential lies in serving the ports of primarily the West coast of India and East coast of Africa where shallow drafts prevent large containerships from coming alongside. Given Duqm’s proximity to these markets, we see the potential to position ourselves 33

Port of Duqm

as a transshipment hub for mother vessels, with feeder vessels plying to and from these ports in a typical huband-spoke operation. Likewise, ports along the Red Sea and the Upper Gulf can be targeted as well.”

Break bulk, on the other hand, is already something of a success story at Port of Duqm. Since the commencement of early phase operations, the port has successfully handled the discharge – and in a few cases, the loading as well – of some extraordinarily heavy pieces of project equipment, destined for either for the oilfield provinces of Oman, or the adjoining SEZ itself.

Indeed, the port has already begun to earn plaudits for itself in the way it has handled such heavylift consignments, says Mr. Van de Ven. “At the moment, we are well-regarded as the heavy-lift port of Oman. With our two heavy-lift Gottwald cranes, together boasting a 240-tons lifting capacity, Duqm can handle just about the heaviest project cargo that arrives on Oman’s shores.”

Heavy-lift port Duqm’s green-field setting and proximity to the oilfield heartland of Oman makes it ideally positioned to handle heavy cargoes, according 34 34

to the CEO. “Given Duqm’s location away from the urbanized and developed parts of the country, you won’t encounter the bridges, tunnels and other load and traffic restrictions normally associated with the transport of heavy cargoes through cities and towns. Duqm is open country, with excellent motorways that provide access to the oilfield areas and other project sites.”

Break-bulk volumes flowing through Duqm Port are expected to surge when development begins in earnest on a new giant refinery, as well as the world’s largest crude oil storage terminal planned at Ras Markaz, located just north of the SEZ. Liquids too will constitute a significant part of Duqm’s cargo mix. A dedicated area for liquid berths is under development along the Northern Lee Breakwater. It represents part of the infrastructure that will eventually position Duqm for growth as a petrochemicals hub of the region.

Up to four terminals can be accommodated in the area allocated for liquids handling at the port, says Mr. Van de Ven. The first of these terminals will be built by Duqm Petroleum Terminals Company (DPTC), which is a partnership of Oman Oil Company (90 per cent)

and Port of Duqm (10 per cent).

DPTC’s facilities will handle all of the volumes flowing into and out of the refinery, as well as other related petrochemical investments at the SEZ. The CEO envisions significant potential for investment in tank storage capacity to support Duqm’s ambitions to evolve into a petrochemicals and liquids hub.

“With tank farms, it will be possible tor traders to undertake storage, distribution, blending and other such activities associated with the liquids business. These farms can be built either close to the jetty or onshore, depending upon the cost factor. A suitable location will be decided in consultation with all the stakeholders involved, as well as the consultant appointed by DPTC to undertake the FEED for the Liquid Terminal.”

Elsewhere within the harbour is a dedicated jetty set aside exclusively for vessels belonging to various government agencies, notably the Royal Oman Police Coast Guard, Sultan’s Armed Forces, Royal Yacht, and National Ferries Company. The basic marine infrastructure of the jetty is also in place, with the paving and other superstructure planned for implementation in the next phase of its development.

Cementing a partnership Recognising the signal contribution of its Belgian partner in the development of Port of Duqm, the Government of the Sultanate of Oman signed an agreement on 20th March 2014, granting Consortium Antwerp Port (CAP) a concession to operate, develop and manage the gateway and its industrial land for the next 28 years.

That landmark deal was formalized in the presence of Her Royal Highness Princess Astrid of Belgium. Signing on behalf of the Omani government were HE Yahya bin Said bin Abdullah al-Jabri, Chairman of SEZAD, and Dr. Ahmed bin Mohammed al Futaisi, Minister of Transport and Communications and Chairman of Board of Directors of Port of Duqm Company. Port of Antwerp was represented by Mr. Marc Van Peel.

In all, three key agreements were inked during the royal visit: A Concession Agreement, Grant of Usufruct agreement, and Development Agreement. Together, they build on an agreement signed by the Omani government with Consortium Antwerp Port (CAP) on 29th June 2009. That pact provided the basis for the establishment of the Port of Duqm Company (PDC), a 50:50 OmaniBelgian joint venture between the Omani government and CAP. The latest pacts are a testament

In all, three key agreements were inked during the royal visit: A Concession Agreement, Grant of Usufruct agreement, and Development Agreement

to the role and contribution of CAP, a joint venture between Rent A Port (RAP) and Port of Antwerp International (PAI), in the port’s development, its maritime, nautical and engineering prowess, superior management expertise, and its commitment to co-invest in port’s industrial land development.

As a result of the latest agreements, Port of Duqm Company (PDC) has overall responsibility for the further development, management and commercialisation of the Duqm Port facilities, including the industrial land zone. As an active landlord, PDC will also provide training and coaching of port employees (dockers, pilots, and management), develop global marketing initiatives and establish Duqm as a key petrochemical hub in the region with a focus on the MiddleEast, Indian and West African markets.

CAP’s goal is to develop general port activities with special emphasis on oil and gas. The involvement of Antwerp based companies in the development of the port of Duqm will also improve the position of Antwerp as the main gateway for petrochemicals from the Middle East. The last decade Antwerp/ Belgium became the leading hub for the fast growing GCC chemicals export in Europe (from 2.8 million tons in 2002 to 7.8 million tons in 2012). The market share of Antwerp increased from 10% up to 24%.

Rent-A-Port is an engineering and investment company, specialized in the development of marine infrastructures and industrial zones.

Its main shareholder is Ackermans & Van Haren (AvH), a stock market listed Belgian investment company.

Luc Bertrand, AvH CEO, concludes: “CAP brings together the renowned expertise of Rent A Port and Port of Antwerp International. It allows Oman to rely on the best available men and women in the business of port development. Furthermore, the advantage of having Antwerp and Belgian firms involved makes us top of mind in the region, which gives good prospects for future trade links between the Port of Antwerp and the Port of Duqm.”

Port of Antwerp International is a subsidiary of the Antwerp Port Authority and brings together the Port of Antwerp’s 200-year expertise and know-how and has access to a network of experts and resources to help port companies in their challenges.

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Port of Duqm

PDC Industrial Land & Logistics:

An Integrated Value Proposition Having developed a major maritime gateway on Oman’s Wusta coast, Port of Duqm Company (PDC) has announced an important foray into industrial and logistics activities, emulating the hugely successful example of its Belgian joint venture partner, Port of Antwerp.

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Mr. Peter Broers General Manager Industrial Land, Port of Duqm

36

f the recent agreements signed by Oman with Belgium are anything to go by, then Duqm is destined to go the way of Europe’s second largest port – Antwerp.

Those landmark pacts, signed during the visit of Her Royal Highness Princess Astrid to the Sultanate in March, spell out the basis for the Port of Duqm Company’s (PDC) enlargement of its mandate to include – for the first time – the development of industrial and warehousing clusters at the Special Economic Zone (SEZ) of Duqm.

Thus, in addition to managing the Port of Duqm, PDC will be investing in the development and management of large tracts of land for industrial and logistics related investment. It’s an integrated approach to the development of Duqm driven by synergies between the maritime, logistics and industrial activities within the port area and the adjoining SEZ. In supporting Duqm’s industrial development, PDC aims to leverage

Targeted for immediate development is the Medium Industrial Cluster, which will primarily attract investments that seek to add value to the abundant mineral wealth of the Wusta Governorate.

the formidable expertise of its joint venture partner, Port of Antwerp.

As one of the world’s largest ports, Antwerp anchors a mammoth petrochemical, industrial and logistics hub that generates massive volumes of cargo for the port, as well as huge added value for the country as a whole. Total freight handled by Port of Antwerp hit a new peak of around 190 million tons last year.

Leading PDC’s foray into industrial and warehousing cluster development is Mr. Peter Broers, General Manager – Industrial Land, Port of Duqm. A secondee from Port of Antwerp, Mr. Broers was until recently CEO of Port of Duqm. Having overseen the port’s development from the outset, the industry veteran has now been tasked with formulating a strategy for attracting industrial and logisticsrelated investment into the SEZ. “As part of our concession agreement with Oman’s government, as well as the Usufruct Agreement with SEZ Authority of Duqm (SEZAD), PDC has been allocated

2,000 hectares of petrochemical and medium and heavy industries.

This is a pretty immense area for development in one go, so we will carry it out in stages,” the General Manager said.

PDC’s strategy, according to the official, is to develop two zones each of 500 hectares within the SEZ reserved exclusively for medium industries, the other is earmarked for heavy industries, while the remaining 1000 hectares will serve the downstream petrochemical industries.

Value-add investment Targeted for immediate development is the Medium Industrial Cluster, which will primarily attract investments that seek to add value to the abundant mineral wealth of the Wusta Governorate, says Mr. Broers.

“A market study we had commissioned identifies significant potential for mineral-processing and value-addition activities in the Medium Industrial Zone. Within

a 300km radius of Duqm are enormous quantities of minerals, such as limestone, gypsum, silica, basalt and so on. These could serve as raw materials in the manufacture of products like tiles, gypsum board, glass and paints, among other process related activities.

Cement manufacturing is another key industry that has enormous potential, although such investments should ideally be located within the heavy industrial zone. Outside of mineral-based investments, the study also underlines the potential for industries related to food processing, construction materials, pharmaceuticals, and so on,” he said.

As a first step in the development of the industrial clusters, PDC has floated a subsidiary company that will invest in all of the basic infrastructure and utilities necessary for investors to set up their facilities with near ‘plug and play’ ease. Duqm Industrial Land Company (DILC) is a partnership of the Port of Duqm Company (51 per cent) and a number of shareholders comprising pension 37

Port of Duqm

HE Yahya al Jabri, Chairman - SEZAD (second from left) with HRH Princess Astrid of Belgium at the inauguration of the Medium Industrial Zone, an area dedicated for medium-sized industrial investment at the SEZ

funds and other entities that together hold the remainder 49 per cent of the equity. A first investment to develop a first batch of 250 ha is estimated in the range of $55 million, which will be financed partly through equity contributions and the rest through bank loans.

As with all green-field initiatives of this nature, land development will be phased, says Mr. Broers.

“Our goal is to prepare as soon as possible 250 hectares for development of medium industries in phase 1, and ramp it up to 500 hectares in phase 2. The concept layouts have been formulated, the road system designed, and the utility corridors demarcated. As per plans already firmed up, the Rural Areas Electricity Company (RAECO) will lay medium voltage cables, while Omantel / Nawras will provide data connectivity.

Utilities such as industrial water, industrial gases, waste handling, and so on, will be overseen by the Central Utilities Company. We are fully geared to move ahead with the implementation phase.”

PDC’s land development initiative was formally inaugurated in March 2014 when Princess Astrid, joined 38

by dignitaries from the Omani government and SEZAD, laid a cornerstone to mark her historic visit to Duqm. Against the backdrop of that visit, PDC and its Belgian partners also affirmed their robust commitment to developing Duqm into the Middle East’s preeminent petrochemicals and logistics hub.

Given the strong value proposition associated with Duqm and its SEZ, Mr. Broers and his colleagues are optimistic about leasing the first 25 hectares of industrial land by the end of 2015. “Our objective is to lease out 25 hectares during each of the first two years, and gradually ramp up this effort to reach 50 hectares per day thereafter. At this rate, should be able to lease out all 250 hectares of the first phase within five years. By then, of course, we would have made progress in preparing the next 250 hectares for medium industrial investment as part of phase two.”

Belgian connection In parallel with its land development strategy, PDC also plans to launch a vigorous marketing effort targeted at a mix of local, regional and international investors. Prospective

markets include the India subcontinent, Europe, and countries closer home. Also, by leveraging its Belgian connection, PDC plans to attract players from the Port of Antwerp in a major way.

In developing clusters for industrial investment, PDC is seeking to lay the foundations for Duqm’s eventual evolution into a hub that in many ways will parallel Antwerp, if not in scale, at least in the inflow of investments into the petrochemicals and logistics components of the SEZ. Key to achieving this vision is the refinery project, a massive 230,000 barrels per day capacity plant that will later be integrated with a downstream petrochemicals industry. PDC’s decision to locate its Medium Industrial Cluster opposite the refinery site lends itself well to attract investments in support industries that will service the refinery project.

“Refining and petrochemicals will be a mainstay of the future hub and an engine of growth for the wider economy. That turning point will come post-2017 when a pipeline planned by Oman Gas Company brings natural gas as fuel and feedstock to Duqm’s doorstep.

In developing clusters for industrial investment, PDC is seeking to lay the foundations for Duqm’s

eventual evolution into a hub that in many ways will parallel Antwerp, if not in scale, at least in the inflow of investments into the petrochemicals and logistics components of the SEZ.

PDC’s Medium Industrial Zone is targeted at investments related to, among other things, mineral processing and value-added activities

Investments in heavy industries, include cement plants, that require natural gas as energy and feedstock, will begin to flow in as well.”

Significantly, the landmark agreements signed in March also call for the development of a Logistics & Warehousing Cluster within PDC’s concession area. Around 700 hectares has been earmarked for the establishment of a dedicated zone that will be leased to investors engaged in all kinds of storage, warehousing, and logistics related activities.

As a first step in driving forward this initiative, PDC is in the process of establishing a special purpose company that will invest in warehousing capacity within the Logistics Cluster. The Duqm Warehousing Company - is a partnership of PDC and various pension funds. The remainder will be offered to small Omani investors through an Initial Public Offering (IPO), the General Manager said.

“The Logistics Zone will exploit synergies that will emerge by virtue of its proximity to the port as well as investments in the free zone to attract investments in all kinds of logistics related activities. To

As a first step in driving forward this initiative, PDC is in the process of establishing a special purpose company that will invest in warehousing capacity within the Logistics Cluster.

help smaller players get started with their businesses at Duqm, the under-formation Duqm Warehousing Company will invest in substantial warehousing capacity that in turn will be leased to interested parties.

This will be a mix of open, covered, temperature-controlled and bonded warehousing, which could be for the storage of foodstuff, spare parts, raw materials, construction materials, and so on.”

PDC’s target is to lease around 50 hectares of land within the Logistics Zone annually. This pace is expected to pick up when major industrial projects, which will be dependent on logistics support, will begin to materialize in the SEZ. Longer term, PDC, and indeed the Omani government, see Duqm shaping up as a logistics hub for the wider Middle East region, serving not only East Africa and the Indian subcontinent, but potentially the Upper Gulf and Red Sea as well. This vision is expected to be further reinforced when Duqm is linked to the national and GCC rail networks, effectively positioning this strategically important corner of Oman as a potential logistics gateway for the wider region.

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Port of Antwerp

Port of Antwerp:

A partner in Duqm’s transformation into a model industrial and trading platform Port of Antwerp International (PAI) is very proud to be a partner to the Omani government in contributing actively to the development of Duqm into a world-scale centre of economic activity of the future, says Mr. Jan Blomme, General Manager.

T

he Port of Antwerp is by all means the leading European integrated maritime and logistics hub and second largest seaport in Europe. Located right at the heart of the European single internal market, it has become the centre of worldwide trading activities. Optimal connections through a vast network of highways, railroad infrastructures and inland waterways guarantee a smooth throughput to all of the major European industrial and consumer areas.

Antwerp is a multifunctional port, where all types of cargo (containers, break bulk, dry bulk, liquid bulk), more than 190 millions tonnes annually, are loaded, unloaded, stored and handled in a most efficient way.

With direct services to over 500 ports, 300 of which are called weekly, the Port of Antwerp offers a wide variety of regular seaborne and short sea maritime services to all destinations worldwide including for the largest vessels in operation

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today.

The Port of Antwerp offers a unique blend of cargo handling, industrial activity and logistics operations.

It has the world’s second largest production and distribution centre for chemicals and plastics. Seven out of the 10 biggest international chemical companies have a production site in Antwerp.

With a wide variety of specialised handling techniques, extensive and bonded warehousing, logistics and service facilities, the Port of Antwerp is a truly integrated port. It offers more than 58 million square feet of covered storage capacity including both standard and refrigerated warehouses plus extensive facilities for dangerous goods.

The Antwerp Port Authority determines the strategic options for the port, lays down long-term policy guidelines, and exercises democratic control over port policy. As a landlord it manages and develops the port infrastructure and prepares the port for a sustainable future.

In order to carry out our mission,

We at Port of Antwerp International are very proud to be a partner to the Omani government in contributing actively to the development of Duqm as a world-scale centre of economic activity of the future.

we continuously listen to our stakeholders and offer solutions responding to criteria that shippers and logistic service providers point out as essential: turnaround time, reliability, cost efficiency, quality, flexibility and sustainability. In this perspective, we focus on developing essential components of port performance: such as cost competitiveness, IT- and customs solutions, maritime services and intermodal connections. Further, we strongly believe that an active international presence is of outmost importance for our port community.

As many of you will acknowledge, 2013 wasn’t what will be registered in history books as an economic ‘grand cru’-year. Earlier this year, at the World Economic Forum in Davos, the global outlook for 2014 was defined as cautiously optimistic: the US economy is growing again, the European Union sees signals of a first recovery, and the emerging economies see further solid growth, albeit at a slower pace.

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Port of Antwerp

But there may be no doubt whatsoever that the global population will grow to a staggering 9 billion by 2050 and further continued urbanisation will lead to a growing number of mega-cities.

This alone will lead inevitably to an increased demand for consumer goods, including base materials, steel & non-ferrous metals, forest products, food, cars, and so on. It should be noted that to a large extent this expansion will be concentrated in the countries situated around the Indian Ocean.

Through its superb geographical location, this trend gives Oman, and in particular, the Port of Duqm and its Special Economic Zone, a tremendous opportunity to become one of the leading production and trading centres of this area. Through SEZAD, the Oman government has anticipated this and developed a clear vision to turn the Duqm area into a model industrial and trading platform. We at Port of Antwerp International are very proud to be a partner to the Omani government in contributing actively to the development of Duqm as a world-scale centre of economic activity of the future.

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Oman Dry-dock Company SAOC (ODC)

Oman Dry-dock Company SAOC (ODC):

Delivering world-class shipyard solutions Ships of every size and transport function have been calling at Oman Dry-Dock Company’s ship repair yard at Duqm, underscoring the growing international appeal of one of the world’s most modern dry docks.

S

ince its soft launch three years ago, Oman Dry-dock Company’s (ODC) ship repair yard at Duqm has been the pride of this emerging industrial hub on the Sultanate’s Wusta coast. It was the first major venture to come on stream at the Special Economic Zone, and remains to date the only large-scale undertaking at Duqm to be fully operational.

Furthermore, as an anchor industry in its own right, ODC has the potential to stimulate the growth of ancillary units across all aspects of the supply chain, thereby laying the foundations for the eventual development of a shipbuilding yard in the future.

This state-of-the-art facility, nestled within the tranquil harbour basin of the Port of Duqm, has been attracting growing numbers of vessels. At last count, more than 200 ships had dry-docked at Duqm as of mid-March 2014. Traffic into the yard has been up year-onyear as shipping lines increasingly look to Duqm for their ship repair, maintenance and dry-docking requirements. Dry-dockings for repair and maintenance jobs rose from 70 jobs in 2012 to 75 last year with ODC predicting further growth in traffic during 2014.

“Since we launched ‘soft’ operations about three years ago, we’ve handled in excess of 200

Shaikh Khalil al Salmi Deputy CEO – Oman Drydock Company

vessels either privately owned or belonging to the fleets of national shipping lines or international companies,” said Shaikh Khalil al Salmi, Deputy CEO – Oman Dry Dock Company. “We’ve had ships from the United States, Japan, Iran, India and Korea, besides the Sultanate of Oman. We’ve also repaired ships from countries with which we have agreements through our agents.

All in all, it’s been a fantastic three years, and the business outlook for ODC is getting only brighter.”

Vessels dry-docked at Duqm over the past three years have ranged from Very Large Crude Carriers (VLCCs), LNG / LPG carriers and chemical tankers to container ships, bulk carriers, dredgers, RO-ROs and barges. Its twin graving docks are capable of accommodating the largest commercial cargo vessels in operation today, underscoring ODC’s formidable capabilities as a ship repair yard.

Preferred port of call Not surprising, ODC is rapidly becoming the ship repair yard of choice for a growing number of international shipping lines and operators. This is evident from the state-owned company’s increasingly diverse and prestigious client base, which includes Dynacom Ship Management, NYK, MSC and Exmar Ship Management, Gulf Marine, the 43

Oman Dry-dock Company SAOC (ODC)

ODC is rapidly becoming the ship repair yard of choice for a growing number of international shipping lines and operators.

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Shipping Corporation of India and Pacific International Lines.

ODC’s performance should not be judged purely on the basis of traffic trends at the yards, says Mr. Al Salmi.

“One should also take into account the important strides we have made across our business, and the many successes garnered during the past period. For example, the impressive tally of vessels drydocked at Duqm to date was achieved without any Lost Time Injuries (LTI). We also participated in a number of international exhibitions with a view to promoting ODC globally as well as to capture a larger share of the ship repair market. Our in-house training programme was intensified, while many of our employees were sent for training abroad to get them acquainted with the latest technologies relevant to ship repairs and maintenance. Overall, ODC is making excellent headway in realizing its vision to emerge as the destination of choice for ship repairs and maintenance in the Middle East.

And as we further integrate our infrastructure and capabilities, as

well as build are finances and human resources, we see ourselves wellpositioned to achieve our long-term growth objectives.”

This upbeat outlook, according to the Deputy CEO, primarily stems from the competitive advantages that ODC enjoys because of its strategic location abutting important trade routes between the Indian Ocean and the Arabian Sea – a corridor most visited by Very Large Crude Carriers (VLCCs). Consequently, these vessels can make the most of the comprehensive and modern drydocking facilities available in the close proximity of their trade routes.

Additionally, Duqm’s equally strategic location between the East and West, proximity to the Indian Ocean, Red Sea, East Asia and North Africa, makes it economically advantageous for foreign shipping liners to consider ODC for their repair needs, he explained.

Geographical advantages aside, ODC’s Duqm yard is also simply world-class in terms of its technological capabilities, the

Underpinning ODC’s success is its partnership with one of the world’s largest shipbuilding, repair and maritime services providers, Daewoo Shipbuilding & Marine Engineering (DSME) of South Korea.

Value proposition of Oman Dry-Dock Company ODC

Agency agreements cover the following countries/regions

Description

Advantages and Merits

DSME Support

· Technical back-up and management by DSME, Korea

One Stop Service

· Treatment of tanker’s slop & sludge inside ODC, not Outside

Greece Middle East & India Norway Germany USA

Geographical Location

· Located outside Hormuz Strait · Deep water of quay with 9-10 m depth.

Japan Korea Singapore Hong Kong Italy, Switzerland, Monaco

Climate

· Low humidity · Sunny all through the year

Iran UK Cyprus

Yard Facilities

· Most modern and high quality facilities and equipment. · Vast space (1,277,000m2) for any kind of large scale ship repair, conversion and offshore projects · Two giant dry docks with sizes of 410m x 95m and 410m x 80m and a Panamax floating dock to be added shortly.

technical prowess of its workforce, competence of sub-contractors and the professional caliber of the yard management. Adding to this reputation is its track record in delivering high quality jobs on time and at competitive prices.

Leveraging expertise Underpinning ODC’s success is its partnership with one of the world’s largest shipbuilding, repair and maritime services providers, Daewoo Shipbuilding & Marine Engineering (DSME) of South Koea.

Mr. Al Salmi explained: “ODC’s 10-year partnership with DSME, one of the world’s biggest shipbuilders, is especially important to the shipyard’s ongoing success.

We continue to leverage this relationship to tap into DSME’s unrivalled resources and technical expertise. Our Korean partners provide us with highly experienced senior managers to help run the ship repair yard, as well as conduct trainingservices for Omanis to help them assume various positions at our facilities in the wilayat of

Duqm.”

Indeed, human capital development targeted primarily at Omani nationals is an ongoing priority objective for ODC and its management, says the Deputy CEO. The Human Resources Department has been tasked with aggressively implementing a robust training and professional development programme designed to groom Omanis for fulfilling careers in various technical and administrative positions within the organization.

“We have five batches of engineers who were trained and rehabilitated through special programmes tailored to suit their requirements,” said Mr. Al Salmi.

“A further 100 trainees have been sent abroad for training. Priority is usually given to local Omanis from Al Wusta region who are provided with in-house training to prepare them for employment at ODC.” Given the highly skilled nature of technical jobs associated with ODC’s Duqm operations, the company has formulated an effective strategy for the training and rehabilitation of

Turkey Brazil Panama Baltic States and Russia Poland Benelux

engineers and supervisors either inhouse or by sending them to Korea for a hands-on feel of operations at Daewoo’s facilities.

“Omanization cannot be achieved overnight in our nature of business, and is therefore pursued in a phased and structured manner taking into account our commitment to providing superior services to our customers. We have also sent a group of trainees to DSME’s Romania facilities to attend a two-month training course there,” he stated.

Spurring SME growth Longer time, ODC plans to play an important role in stimulating the growth of Omani owned small and medium enterprises (SMEs) that will serve as vendors and service providers to the Duqm ship repair yard. Given the understandable lack of a local support industry catering to the yard’s requirements, ODC is presently compelled to look overseas for all its technical and service requirements. But this picture is expected to rapidly change over time as Omani entrepreneurs 45

Oman Dry-dock Company SAOC (ODC)

take advantage of opportunities to start their own businesses that will service ODC’s needs.

“Going forward, I do believe we will be in a better position to support Omani SMEs in line with our CSR policy. Together with our ongoing commitment to enhancing the employability skills of Omanis, we are also looking to play an active role in promoting SMEs within Wusta governorate.”

Further impetus for SME development will come when ODC expands its facilities, as well as diversifies its service offerings to include various kinds of offshore marine fabrication services, conversions, and so on.

Also on the anvil is a floating dock project that will significantly add to ODC’s capability. Currently in the design stage, the project will allow for the handling of small and medium-sized vessels, thereby freeing up space at the twin graving docks for larger vessels. Total investment in the venture is around RO 25 million, with DSME expected to deliver the facility by 2016.

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Importantly, community engagement is a key part of its CSR philosophy. In line with this objective, ODC has sought to strengthen ties with local communities, notably by sponsoring a number of initiatives in its neighbourhood. In addition to sponsoring wastewater treatment programmes, ODC has also funded the rehabilitation of the football pitch of the local football club, Duqm Sports Club. It also supported a number of beach cleaning drives in Duqm, the distribution of backto-school items, World Sports Day activities at the wilayat, and the Youth Forum. In addition, the company plans to actively support road safety and women’s awareness issues, as well as a range of initiatives that will translate into tangible benefits for the communities.

Looking ahead, Mr. Al Salmi envisages a bright future for ODC with a coveted place amongst the world’s premier ship repair yards.

Conceived as a strategic project with the aim of contributing to Oman’s

economic diversification, ODC is committed to driving socioeconomic development in the Wusta region of the Sultanate, while staying competitive and in the global marketplace, he says.

“Although we had faced a number of administrative, marketing and operational challenges in the initial stages of our development, we managed to successfully overcome them thanks to our collective will and commitment. We constantly evaluate our performance and benchmark our operations against those of world leaders in the ship repair industry, and thereby strive to be stay on top of our game. Also by showcasing ODC at international exhibitions and conferences, we are making good headway in keeping the global spotlight on Duqm. Our focus this year is to achieve and improve upon all our key performance indicators, as well as deliver on our human capital development goals. All of these efforts, of course, will bode well for the global standing of our yard,” the Deputy CEO added.

DRYDOUK

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ODC’s ship repair yard can accommodate vessels of up to 600,000 DWT

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Industrial Fisheries Zone

Industrial Fisheries Zone:

Creating sustainable wealth from the oceans Duqm’s proximity to the rich fishing grounds of the Arabian Sea and Indian Ocean makes it ideally positioned to host the largest fisheries cluster in the Middle East.

I

f onshore Wusta evokes images of prolific oilfields and vast mineral deposits, its waters offshore recall sights of fishing boats laden with the bounty of the Arabian Sea and Indian Ocean. It is this striking reality about the Wusta region’s resource-rich offshore waters that the Omani government is keen to exploit through the establishment of an integrated fisheries hub at the Special Economic Zone (SEZ) in Duqm.

Spread over an area of eight square kilometres, the fisheries hub is a key part of the government’s strategy to support the growth of a sustainable fisheries sector in the Sultanate. This strategy, which is being spearheaded by the Ministry of Agriculture and Fisheries, is designed to maximize socioeconomic returns to Omanis engaged in the country’s fisheries sector, strengthen food security, generate jobs for nationals, and facilitate the introduction of technology and innovation in the industry.

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HE Dr Hamed bin Said al Oufi Under-Secretary for Fisheries Wealth

“The Duqm project is a oneoff opportunity for Oman to make a step-wise increase in the contribution of the fisheries sector to the national economy through the systematic application of the cluster concept,” said His Excellency Dr Hamed bin Said al Oufi, UnderSecretary for Fisheries Wealth.

“This strategic approach to fisheries development provides strong support to the long-term national development strategy (19962020) with regard to economic diversification and food security,” he added.

The government has pledged more than $250 million in the development of the Fisheries Industrial Zone within the Special Economic Zone at Duqm. The lion’s share, according to the UnderSecretary, will go towards the construction of a major commercial fisheries harbour, as well as infrastructure and utilities catering to investments in processing plants, cold stores, training centres, and quality testing laboratories. As

The government has pledged more than $250 million in the development of the Fisheries Industrial Zone – as the project is dubbed – within the Special Economic Zone at Duqm.

The Wusta region’s rich offshore waters have nurtured a thriving fishing industry in Duqm

many as 60 processing plants can be housed within the fisheries hub in the initial phases of its development, HE Dr Al Oufi said.

Importantly, the government is looking for strategic partners to help build and operate the Fisheries Industrial Zone. Prospective partners, says HE Dr Al Oufi, should ideally be ready to make a longterm business commitment to the Sultanate, and have a proven track record in fish processing and marketing. Investors will be granted long-term land leases and financial incentives in the form of tax holidays, duty benefits and soft loans.

Fishery harbour A master plan commissioned by the Ministry places the commercial fishery harbour just south of the Port of Duqm, with the Fisheries Industrial Zone envisaged alongside.

Jetties will be designed to accommodate ocean-going fishing vessels, with the adjoining fisheries cluster ideally positioned to attract

Part of the government’s objective behind establishing a major fisheries zone in Duqm is to help develop the skills and expertise of young Omanis

a wide array of fishery-related investments.

A contract for the construction of the fishery harbour in Duqm is expected to be awarded shortly.

As a green-field development, the Duqm Fishery Harbour will feature all of the trappings of a fullfledged fishing port, complete with breakwaters, dredged basin and access channel, jetty, pontoons, and so on.

Plans drawn up by the Ministry envisage a large facility with a pair of breakwater arms extending to a total length of almost 3.5 kilometres. Further, as there is no naturally available depth in the area, the selected contractor will be required to dredge the port basin to -6 metres (or -5 metres under the alternative option). Part of the dredged material will be used to reclaim land.

A key component of the project is a 400-metre-long quay wall (200 metres in the alternative option), built with precast concrete blocks. A boat ramp will also be constructed 51

Industrial Fisheries Zone

of fish businesses in Duqm will also generate a need for executive and management staff, opportunities which will be available to the new generation of qualified nationals.

The contribution of aquaculture will also be significant. This requires technical know-how at the highest level, so will present attractive employment opportunities for young Omani graduates,” said HE Dr Al Oufi.

to haul out boats for repairs and maintenance. Also envisioned are a guided floating pontoon, marina facility, two concrete pontoons for fishing vessels, berthing and mooring aids.

Part of the government’s objective behind establishing a major fisheries zone in Duqm is to help develop the skills and expertise of young Omanis.

“Catching, processing and the distribution of fish have been repositories of Omani skills 52

and sources of employment for centuries. Throughout the world it is widely acknowledged that fisheries make an unparalleled contribution to employment, largely because they are essentially “hands-on”.

People have to go to sea and onshore workers need to clean, gut, fillet and process in other ways the resulting product. These are skilled occupations and increasing numbers of Omanis will be needed to fill the vacancies that will occur following this development. The development

Public-private partnerships The concept of a public-private partnership lies at the heart of the government’s vision for a thriving fisheries sector Oman. Fish production and distribution depend upon a regulatory structure which governs resource overexploitation and assures food safety. But the sector is dominated by private businesses, often small, operating as well as they can, to earn a profit. The private sector needs governmental institutions to thrive, and the public sector has an array of policy instruments and project initiatives to support it. The focus will be on the development of Omani-led small and medium enterprises.

The concept of a public-private partnership lies at the heart of the government’s vision for a thriving fisheries sector Oman

Artist’s rendition of Duqm Fisheries Cluster

Additionally, the Duqm project will also create a basis for the further integration of Omani fish processing business to enter international trade and attract the best possible prices for high-quality produce. “The processing sector also supplies an opportunity, albeit regulated, for foreign investment to participate in what is clearly a fertile business environment confidently meeting growing international demand,” said the Under-Secretary.

Farmed shrimp production is expected to be an important addition to the fishery zone’s commercial activities during the second phase of its development.

Farmed fish deliveries are proposed to be sold by contract to fish processors in Duqm, mostly for export.

Importantly, the Integrated Fisheries Zone at Duqm will help provide strong impetus to the government’s goal of boosting fish production to around 1 million tonnes per annum within the next decade, said the Under-Secretary.

Underpinning this strategy is a plan by the government to invest around $1.6 billion in the development of fisheries-related infrastructure over the next seven years, aimed at achieving a doubling of the sector’s contribution to the country’s gross domestic product (GDP). This allocation is in addition to the $259 million budgeted towards fisheries development in the current 8th Five Year Plan (2011 – 2015), the Under-Secretary said.

“The objective of the National Fisheries Development Strategy (2013 – 2020) is to enhance the fisheries sector’s contribution to the GDP as well as generate employment opportunities for Omanis. Our aim is to boost fisheries production from the present roughly 200,000 tons per year to around 480,000 tons by 2020, as well as to create 20,000 additional jobs during this period,” he said.

“By 2020, we estimate direct returns from fishing and fish processing activities to climb from RO 369.6 million today to RO 739.2 million in 2020 after factoring in value addition, direct job creation, and the multiplier effect of such activities in generating indirect jobs as well,” he added.

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Minerals Cluster

Minerals hub in the making Abounding all around the Wusta desert are abundant reserves of commercially valuable minerals, such as limestone, dolomite, gypsum, silica sand, solar salt, kaolin, attapulgite, laterite, basalt, granite and gabbro.

D

uqm Port is banking on the commercialization of the prodigious mineral wealth of Wusta Governorate to generate a sizeable chunk of the industrial hub’s cargo volumes over the long term.

Nearly a dozen types of industrial minerals are located within easy proximity of the Sultanate’s newest maritime gateway, offering immense opportunities for their exploitation and commercialization.

“Industrial activities linked to the commercialization of the region’s mineral resources will represent an important mainstay of our business, alongside the proposed refinery project. The minerals sector and the refinery, along with their diverse downstream and ancillary elements, will be integral to the long-term success of Duqm Port and the adjoining Special Economic Zone,” according to Mr. Peter Broers, General Manager – Industrial Lands, Port of Duqm.

Abounding all around the Wusta desert are abundant reserves of commercially valuable minerals, such as limestone, dolomite, gypsum, silica sand, solar salt, kaolin, attapulgite, laterite, basalt, granite and gabbro.

“Most of these deposits are located not far from the port itself, making them attractive for exportoriented development. We see enormous potential for investment in processing, blending, and other value enhancement activities. Also, with a gas pipeline coming to Duqm,

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there are opportunities for industrial ventures, such as cement and clinker plants, glass manufacturing, and so on.

Indeed, given all of these possibilities, Duqm has the potential to emerge as a major minerals hub,” said Mr. Broers.

Advantageous location Investors, the official explains, can leverage the port’s ideal geographical location and multimodal connectivity to access markets across the Middle East, Indian sub-continent and East Africa. “We have an excellent road network connecting north and south Oman. Moreover, with a major rail network proposed to connect Oman with the rest of the GCC, all of the major markets in the Gulf will be within reach.”

According to the official, near limitless quantities of limestone – a key raw material in cement and steel production, among other applications – have been discovered barely 15 kilometres from the port. Also plentiful are high quality limestone deposits that can be polished and used as ornamental stone.

Dolomite, which is widely used in the construction sector and has various industrial applications as well, can be found in outcrops, especially in the Buah Formation some 25 km from the port. Industrial grade dolomite deposits are also abundant in south Oman.

Also available are vast quantities of gypsum, which has a variety of industrial and agricultural uses. Huge deposits have been struck in Ghaba and Shuwaymiyah, said Mr. Broers.

Silica sand, a resource widely used in the manufacture of glass, can be found in prodigious quantities within distance of the port. In Haushi, about 180km north of Duqm Port, geological surveys have pointed to the presence of 5-6 million tons of kaolin, a raw material for the cement industry.

Small-scale mining of this mineral is already underway, yielding around 50,000 tons of kaolin annually, he said.

Sizable deposits of attapulgite have been discovered in Shuwaymiyah, some 350km south of Duqm. A cylindrically shaped clay mineral, attapulgite has unique gelling and absorption characteristics. It is used in paints, drilling muds, oil spill clean-up and other applications.

Laterite, commonly used in the cement industry, can be found on Masirah Island, among other locations in north Oman. Also available in abundance in Madrakah (80km from Duqm), among other locations is gabbro, a major raw material for the construction industry. High quality gabbro can also be polished into a beautiful dark ornamental stone, sometimes known as ‘Black Granite’.

At Al Jubah, north of Duqm, are large granite deposits suitable for the production of ornamental stone.

Rounding off the list of key minerals is basalt, which abounds in the Al Serab area, some 100km north of Duqm Port. Basalt from this area can be potentially used in the manufacture of Basalt Continuous Fibre (BCF), which has wide application in the construction, automotive, electrical and aerospace industries.

Given the potential for mineralbased industrial activities at Duqm, a Dry Bulk Terminal with an indicative capacity of up to 5 million tons per annum is envisaged as part of the port’s Phase 1 development.

Choice mineral Significantly, limestone is likely to be the mineral of choice for early exploitation and export from Duqm

Given the potential for mineral-based industrial activities at Duqm, a Dry Bulk Terminal with an indicative capacity of up to 5 million tons per annum is envisaged as part of the port’s Phase 1 development.

Port, a scenario that promises to herald investments in local mineral processing facilities which in turn will pave the way for commercialization of the region’s prodigious and diverse mineral wealth.

Port of Duqm’s Commercial Director, Mr. Reggy Vermeulen, is optimistic that exports of minerals from the Sultanate’s newest maritime gateway will commence this year. He identified limestone and attapulgite as among the first of the Wusta’s prolific mineral resources that were in the sights of mining companies.

Unlike most other minerals, limestone requires very little of processing before it is ready to be shipped to consumer markets.

Moreover, Duqm is endowed with huge quantities of high grade limestone, much of it located within a few tens of kilometres of the port.

Consequently, the mineral – a key ingredient in the production of steel, cement, various chemical products, and even marble – can be mined, trucked and exported from Duqm Port at attractively economical rates, say officials.

Geological mapping studies commissioned by the Minerals Directorate of the Ministry of Commerce and Industry have uncovered two principal sites believed to hold immense quantities of high-grade limestone at Duqm. One is located at Al Safiya, just 15km west

of the port, while the other is at Al Hudaybah, about 20km south of the gateway. Their proximity to the port makes them suitable for immediate exploitation.

According to officials, the limestone of Al Safiya is of a grade and quality that make it suitable for use as key ingredient in the manufacture of cement. Covering the top of the Safiya escarpment, the deposits appear in a swathe extending a staggering 20 kilometres long, 400 metres to 2km wide and around 20 metres thick. Chemical analysis of samples obtained from the site reveal a 93 per cent concentration of calcium carbonate and 1 per cent of magnesium oxide. Mixed with shale mined from a site about 10km north of Duqm Port, and blended with small amounts of imported bauxite, silica and laterite, it makes for a superior grade of Portland cement, it is pointed out.

On the other hand, the limestone deposits at Al Hudaybah are ideal for lime production or as an ingredient in steel manufacturing. The top 20 – 35 metres are made up of high quality limestone with a calcium carbonate content of over 97 per cent and magnesium oxide of around 0.7 per cent. These concentrations make this particular grade of limestone perfect as a raw material in the production of ground calcium carbonate, as well as for a range of high-end applications.

Moreover, the construction of a new coastal road leading south from the port opens up convenient access to this site, officials add.

For its part, the Port of Duqm says it will assist interested investors in obtaining all relevant data, as well as facilitate applications for exploration permits and appraisal work. It has stressed however that shipments of mineral products from Duqm will only be allowed against the production of permits expressly authorizing such exports. This is in light of the government’s recent decision to suspend the issuance of new permits for exports of unprocessed mineral products. The move is aimed at encouraging investment in mineral processing and value-addition activities.

The imminent commencement of mineral exports underscores Duqm Port’s appeal as an attractive gateway for imports and exports serving existing and emerging industries envisioned within and outside the Duqm Special Economic Zone (SEZ).

“We are in discussion with potential investors for using Port of Duqm to export minerals, such as limestone and attapulgite, with the first consignment due for export before the end of this year,” said Vermeulen.

“Pending the establishment of a dedicated Break Bulk Terminal, which is set for 2015-16, Port of Duqm will still be geared to providing facilities for the loading and unloading of mineral products. Towards this end, we are due to shortly take delivery of two state-of-the-art mobile harbour cranes, equipped with mobile belt loaders and other facilities, to handle mineral based cargoes at Duqm Port.”

Port of Duqm is currently negotiating with at least three parties interested in developing the vast mineral resources of the Wusta region, Mr. Vermuelen said. Of the three, two have their sights on Duqm’s abundant limestone deposits, while the other is keen to invest in the region’s attapulgite reserves, he added.

The official stressed however that any raw mineral exports from Duqm Port would be subject to permits authorising shipments of unprocessed minerals. He was referring to a recent government announcement curtailing exports of raw minerals with a view to promoting value-addition and downstream processing activities in the Sultanate.

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Building Blocks The ongoing transition of the Duqm Special Economic Zone (SEZ) from the design to the developmental stage has been accompanied by a number of important government edicts, executive decisions and other steps that promise to impart stronger impetus to the growth of the region’s biggest industrial and petrochemical hub. Also during the course of the past 12 months, several important agreements and contracts have been signed with investors, contractors and serviceproviders. A snapshot of the key developments is provided here below:

Delta signs usufruct pact

24 Mar 2014 Muscat-based Delta Co. Ltd signed an agreement for the lease of two plots admeasured around 64,000 sq metres within the SEZ at Duqm. Delta plans to invest around RO 3.7 million in setting up a cement products industry in one of the plots, in addition to a metal workshop, stockyard, and labour camp. Around 100 jobs will be created for Omanis as a result of this investment. Separately, Delta aims to set up a manufacturing plant, block making factory and central store in the second plot.

These investments will help Delta develop a strong presence in the Duqm SEZ.

Zubair Auto signs land usufruct pact 24 Mar 2014 Prominent auto distributor Zubair Automotive Group has signed a land usufruct agreement with SEZAD for the construction of a commercial multi-purpose facility at the SEZ with an investment of around RO 5 million. The facility will comprise car showroom, store, repair and maintenance workshops and staff accommodation. Sister company Sayarti will also set up an automotive service centre and other facilities within the leased area.

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Belgium to partner Oman in promoting Port of Duqm

22 Mar 2014 The Sultanate, stepping up its status internationally, has entered into a joint strategic partnership with the Belgian government to promote the Port of Duqm as a major hub for cross-border investment.

Princess Astrid, representative of King Philip of Belgium, visited the Port of Duqm, accompanied by HE Dr Ahmed al Futaisi, Minister of Transport and Communications and chairman of the board of directors of Port of Duqm Company, and HE Yahya bin Said bin Abdullah al Jabri, chairman of the Special Economic Zone Authority at Duqm (Sezad), along with members of the Belgian trade delegation.

Addressing the media on the occasion, HE Futaisi, said, “From a global point of view, Duqm is placed near all the international and regional container-trading lines as a transshipment hub. We also intend to develop Duqm as one of the largest crude oil and refined products distribution centre in the sultanate. We were aiming to develop a place with greenfield and enough space for heavy industrial development and Duqm has rightly served the objective.”

Duqm Development Co signs pact for hospital in Duqm

10 Mar 2014 Duqm Development Company SAOC (DDC), the developer of Duqm Frontier town at Duqm Special Economic Zone (SEZ), and Starcare Health systems, Oman’s fast growing quality healthcare provider, have entered into an agreement to establish a multispecialty state-of-the-art hospital at Duqm. Total investment in the project is estimated at RO 7 million.

The project will provide a number of job opportunities for Omanis. While the detailed hospital planning process is underway, Starcare is also setting up a 24 hours multispecialty Medical Centre and pharmacy with the support of DDC in order to cater to the immediate needs of the people of Duqm. The medical centre is scheduled to open in five months, while the hospital project will take around 3 years to be completed.

Commenting on the pact, Mr. Ahmed bin Sulaiman al Maimani, Chairman of DDC said: “We are developing the first well-planned community town in Duqm named ‘Duqm Frontier Town’ with an advanced level of design, infrastructure, facilities and the latest technologies. It will be developed in Phases on an area of 270 hectares which will cater to managerial level employees. In total, there will be around 3,000 residential units.

Duqm Frontier Town forms an integral part of the Omani government’s vision for the development of Duqm Special Economic Zone as a major port and industrial hub. “Bringing an international quality hospital to Duqm and Duqm Frontier Town is an important part of the town’s master plan,” the Chairman said.

Shaikh Ibrahim Sultan Alhosni – Deputy Chief Executive Officer of DDC said: “Bringing such a hospital as Starcare to Duqm is one of the major milestones for Duqm Frontier Town (DFT). It is in line with DDC’s commitment to provide the residents of DFT all of the required services to make the destination high quality and friendly and ensure that it offers the perfect balance for business and lifestyle.

Oman Oil and Port of Duqm sign oil terminal deal

22 Nov 2013

Oman Oil has signed a $50mn land lease agreement with Port of Duqm Company to develop an oil bunkering terminal and ancillary facilities at the port. The state-ofthe-art terminal will provide heavy fuel oil and marine diesel oil, as well as marine lubricants to ships calling at the port and surrounding waters, Oman Oil said.Mr. Reggy Vermeulen, Commercial Ddirector of Port of Duqm Company, said, “The signature of these two agreements is opening a new era in the Port of Duqm. The port will now be able to provide bunker services to the ships calling at the port, in addition to the ships being serviced at Oman Drydock.

“Up until now, the ships calling at the Port of Duqm were required to sail several days in order to reach a port for full bunkering.

The agreement is the result of two years of negotiation and fine tuning, and we are proud to be able to join forces with Oman Oil Company to offer services at the port.”

Raysut Cement to set up Cement Terminal

30 Apr 2013 Raysut Cement, the Sultanate’s largest cement producer, plans to bring a new Cement Terminal into operation at Duqm Port by mid2014. The facility will support the speedy development of civil infrastructure, and other industrial and investment projects envisaged at the SEZ. In a presentation at the Investment Forum on the Duqm SEZ, he said the facility is slated to be operational within 10 months of the signing of a Usufruct agreement, for which negotiations with the Special Economic Zone Authority at Duqm (SEZAD) are in the final stages. Civil works on the terminal, as well as the delivery of the packing plant and silos are scheduled to be executed this year.

Significantly, Raysut Cement is also planning in invest in the commercialization of raw materials in the Wusta region, in line with a study that was jointly undertaken with Oman Cement around two years ago.

Duqm’s first community-owned SME

8 Jul 2013 Duqm’s first community-owned business, set up at the outset of the Omani government’s vision to establish an ambitious industrial and maritime hub in that corner of the Sultanate, has outlined plans to evolve into a well-diversified transport and logistics player in the Wusta region.

Duqm Ahlia Development SAOC, according to its chairman, is no ordinary company set up in the mould of small and medium enterprises (SME). Rather, it a closed joint stock company set up by hundreds of local natives of Duqm united by a common desire to partake of, and support, the development of once remote and desolate coastal region into an industrial and economic powerhouse, he explains.

“Duqm Ahlia has 581 local Omani natives of Duqm wilayat as shareholders, and their numbers are expected to increase to around 700 before the end of this year.

This company was founded in 2007 as part of our collective goal to make all of society a partner in the renaissance being witnessed in Duqm,” commented Mr. Taher al Junaibi, Chairman.

The agreement, Al Junaibi said, provides Duqm Ahlia with a strategic location and important operational base as it prepares to roll out its business activities in earnest. The pact, he explained, comes within the framework of cooperation agreed by the Port of Duqm and Duqm Ahlia with an eye on the immense commercial opportunities arising out of the huge investments committed by the government to Duqm’s development.

Set up with a capital of RO 500,000, Duqm Ahlia plans to undertake a number of logisticsrelated activities through joint venture arrangements, strategic alliances, and other such routes, with established parties, he said.

Medallion to invest in Duqm rare earths project 1 Mar 2014 Canadian rare earths mining development firm Medallion Resources says it is focused on securing monazite feed for its proposed rare earths project in

Duqm. The Vancouver-based company said in a corporate update published at the weekend that negotiations are under way with a number of heavy-mineral sands producers and developers in this regard. It acknowledged, however that securing these agreements has taken longer than anticipated.

Medallion Resources is focussed on re-establishing monazite as a significant economic mineral and major source of rare earths. Last year, the company announced a partnership with Takamul Investment Company, a wholly owned subsidiary of Oman Oil Company, to evaluate a proposal to import monazite feedstock and produce rare-earth products at a proposed processing facility in the industrial city of Duqm, Oman.

Rare earths are used in critical components for virtually all computing and mobile electronic products, as well as wind turbines, electric and hybrid vehicles, and strategic defense systems. Medallion is committed to following best practices and accepted international standards in all aspects of mining, mineral processing and the safe management of waste materials.

Medallion added it was pressing ahead with its initial activities with both Arab Mining Company and Takamul Investment Company, with whom Medallion has established Memorandums of Understanding (MOUs) to investigate the establishment and investment in a monazite-based rare-earth processing facility in Duqm.

MoU inked for major acetic acid project in Duqm

16 Dec 2013 Oman Oil Company (OOC), the wholly government owned energy investment arm, has signed a non-binding memorandum of understanding (MoU) with energy major BP to develop the world’s first acetic acid manufacturing plant using BP’s revolutionary new SaaBre process.

The MoU covers joint economic evaluation and a detailed feasibility study for a proposed one million tonne per year acetic acid plant in the SEZ in Duqm. Subject to negotiating definitive agreements, it is anticipated to lead to a joint venture investment, with start-up expected in 2019.

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Oman Oil Company SAOC

Oman Oil Company SAOC:

Anchoring Growth There is no mistaking Oman Oil Company’s robust commitment to Duqm’s long-term success. With a formidable investment portfolio spanning crude oil storage, refining, petrochemicals, heavy industry, and minerals, among other strategic sectors, Oman’s national flagship company is set to play a pivotal in driving growth at this emerging hub.

O

man Oil Company has, from the outset, been bullish about Duqm’s development into the Sultanate’s next major industrial and economic powerhouse.

This is abundantly manifest in its commitment to playing a strategic role in the development of this massive Special Economic Zone (SEZ) taking shape on the country’s southwestern coast.

After all, the vision of a vibrant industrial hub that promises to power the Sultanate’s long-term economic growth is perfectly in sync with OOC’s core mandate to support the development of a diversified, sustainable and globalised national economy. Working closely with the SEZ Authority of Duqm (SEZAD), among other stakeholders, OOC has already lined up an impressive suite of ventures that will underpin the free zone’s success over the long-term.

Indeed, the Omani government’s ambitions for Duqm are truly worldscale, according to His Excellency Nasser bin Khamis Al Jashmi, OOC Chairman. “Duqm is set to be one of the largest free zones in the world and will host a large industrial area that is expected to become a major regional hub for refining and petrochemicals industries, crude and products storage terminals as well as metal industries,” said HE Al Jashmi, articulating OOC’s shared vision for establishing a mega hub designed to sustain the country’s prosperity and the socioeconomic well-being of the Omani people.

The Special Economic Zone at Duqm

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enjoys a strategic location with close proximity to Asian markets and energy fields. The area has been divided into eight main projects: industrial areas, commercial port and dry dock, residential blocks, resorts and tourism area, business centre, fishing port and fishing industry, logistics centre and educational city. The entire project is one of tremendous potential: new industries, new employment opportunities and new revenue streams for the nation, the Chairman noted.

“OOC plays an important role in the Sultanate’s efforts to diversify the Omani economy and promote Omani and foreign private sector investments. One of OOC’s mandates is maximising local resources and developing local talents, which is reflected by the number of investments in Duqm by OOC and its subsidiaries, as part of the company’s strategy to invest for the future of Oman. The additional opportunities for future downstream projects in Duqm will transform the city into the next industrial and economic hub in the Sultanate and the region,” Al Jashmi stressed.

Mega projects As the single biggest investor in Duqm, OOC is expected to inject several billions of Omani riyals into a raft of strategically vital projects that, in turn, have the potential to attract sizable investments in secondary and ancillary ventures.

“We believe that the developments

in Duqm will act as a catalyst to enable us to achieve this goal as it is a perfect fit with our strategy to build an optimal downstream portfolio through processing highvalue and high-end downstream businesses. It provides OOC with access to attractive specialty chains, which will create local technical experts in a number of industries including the petrochemicals sector.

With our portfolio of investments, we will contribute to the mission of the Special Economic Zone at Duqm to become an emerging regional transittrade hub by building local economic infrastructure,” said HE Al Jashmi.

True to its reputation as Oman’s pre-eminent strategic investment vehicle, OOC has unveiled a substantial portfolio of projects that promise to anchor Duqm’s long-term development. OOC investments in Duqm span the energy, strategic storage, refining, petrochemicals, metals, minerals and infrastructure sectors. They include mega ventures such as the Duqm Refinery and Ras Markaz crude oil storage terminal – endeavours that will further underscore Oman’s strategic importance overlooking the Arabian Sea and Indian Ocean.

“We have started the development of refinery with a capacity of 230,000 barrel per day with an estimated cost of OMR 2.4 billion and expected to be commissioned end of 2018. Other projects in the area include the Duqm Petroleum Terminal Company to develop and operate refined product storage business and the anticipated 200 million barrel planned crude oil storage terminal at Ras Markaz.

A Centralized Utilities Services has now been developed by Takamul Investment Company (a subsidiary of Oman Oil Company) to provide utilities for the whole industrial areas in Duqm Free Zone. Overall, our investments in Duqm are expected to play a key role in the zone’s industrial transformation,” he said.

Strategic ventures Here’s a brief look at some of OOC strategic investments in Duqm SEZ:

As a shareholding in Oman Shipping Company, Oman Oil Company has supported the development of a strong national shipping and marine transportation sector

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Oman Oil Company SAOC

HE Nasser bin Khamis Al Jashmi OOC Chairman

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Duqm Petrochemicals & Refining Company: The project is to develop grass-root refinery in Duqm in a 50%:50% partnership with International Petroleum Investment Company (IPIC). Based on the current project schedule, the commissioning of the 230,000 bbl/d refinery is expected in 2018 as the first phase of the project. During the first half of 2013, we completed a topographic survey of the project site. Technical evaluation of the technology selection base tenders has been completed and Front End Engineering Design (FEED) tenders received. Financial advisors evaluation was completed in May 2013 and both geotechnical investigation and Environmental Impact Analysis (EIA) tenders were completed. The Award of FEED and technology selection contracts is expected in Q1/2014.

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2

Ras Markaz Crude Oil Park Oman Tank Terminal Company LLC (OTTCO) was established in December 2012 to build, own and operate a major crude oil terminal in Ras Markaz, 70km south of Duqm.

OTTCO is 90% owned by OOC and 10% owned by Takamul.

OTTC is currently pursuing a Memorandum of Understanding (concluded with the Ministry of Oil and Gas in December 2012) that includes strategic plans to develop storage capacity for Oman crude oil.

The crude oil will be stored at the Ras Markaz Terminal, prior to exporting to international markets. The natural depth of 32 metres and its location on the Indian Ocean (south of the Strait of Hormuz and on the east coast of Oman) gives Ras Markaz an advantage to handle large size crude carriers and provides an excellent opportunity for it to emerge as an important hub in the Middle East for storage and trading.

Also as part of the MoU, a pipeline study and route survey will be undertaken to connect the Ras Markaz terminal with the Main Oil Line at

Nahada and with the new Duqm Refinery and Petrochemical Industries Company (DRPIC). The pipeline feasibility study from Nahada to Ras Markaz and from Ras Markaz to the Duqm Refinery has been completed with positive recommendations. Ras Markaz terminal has the potential to become Oman’s second export terminal of Oman Blend in addition to Mina Al Fahal. The first phase is expected to be completed in 2017.

“The terminal will serve strategic and commercial storage requirements for various customers and will provide blending facilities for crude. It enjoys the advantage of being connected via a dedicated pipeline to supply crude oil to the Duqm Refinery. The tender for a gas pipeline from Nahada to Duqm is in progress and this will ensure gas is supplied in time to the refinery and other potential industries.

Co-ordination work between the refinery and pipeline project teams is continuous to ensure the two schedules and interface issues are integrated,” HE Al Jashmi commented.

As the single biggest investor in Duqm, OOC is expected to inject several billions of Omani riyals into a raft of strategically vital projects that, in turn, have the potential to attract sizable investments in secondary and ancillary ventures.

5

Centralized Utilities The project business model is in place and will establish a company to provide a broad range of utilities to industrial and petrochemical zones. A joint venture partner is being identified for Takamul with a percentage of 30 to 49% and 51 to 70% respectively.

Potable, process and cooling waters, wastewater steam, power and industrial gases will be supplied.

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3

Liquid Terminal The project involves the development and construction of a liquid bulk terminal with loading and unloading facilities at the Port of Duqm. The project is being developed in two phases. Phase one includes marine works (dredging and reclamation) for a new port basin, superstructures, loading/ unloading arms, petroleum coke storage facilities, associated infrastructures, buildings and workshops.

The second phase entails the construction of terminal storage facilities. The Joint Development Agreement (JDA) was signed in May 2012 to establish a joint venture between OOC and Port of Duqm Company (PDC) with a 90%:10% shareholding respectively.

4

Mining & Minerals Cluster In October 2010, a Memorandum of Understanding was signed between Vale Oman Pelletizing Company (VOPC) and OOC for a study of the mining and minerals cluster in addition to a joint venture in projects identified by the study. OOC also signed an agreement with Vale and the Ministry of Commerce &Industry (MOCI) in December 2010 for Oman mineral data sharing. Due to lack of data to assess the potential of Potash in Oman, a second phase of the study was recommended. The study will assess drilling information including the geological and geophysical well records together with the highresolution seismic data products.

OOC considers metals to be a core business unit with the primary objective of creating domestic industry hubs, multiplier effects and local jobs.

The areas of focus will be aluminium and coal. Mining is an enabling business unit, with international scope and the focus is to supply feedstock and create options for value chain synergies with metals and other businesses.

Steel, Aluminum & Carbon Clusters A market study was concluded in August 2012, which recommended the establishment of Steel, Aluminum and Carbon clusters that include a wide range of products along these three value chains.

Recommendations of the market study supports pursuing units within these clusters that focus on local and international demands and job creation.

Underlying all of these investments are several core objectives that represent the essence of OOC’s vision and mission as the country’s national flagship company. In addition to championing economic diversification, OOC-driven investments are also design to contribute significant to employment generation and sustainable development. Supporting small and medium enterprises (SMEs) and In-Country Value (ICV) are integral to OOC’s core philosophy too.

HE Al Jashmi said: “OOC is committed to supporting Oman’s efforts to maximise value from local resources, raising the skill levels of the local workforce through development and training programmes and identifying new ways to increase ICV. Aligning our strategy with the Oil and Gas ICV Programme, launched by the Ministry of Oil & Gas in 2012, OOC is ensuring a sustainable path of economic development in which Omani owned businesses; entrepreneurships and Small Medium Enterprises (SMEs) are enabled to thrive and ultimately compete in the global marketplace.”

Value-addition In fact, OOC focuses on businesses and investments that can create value chains within Oman, the Chairman pointed out. “We recently finalised the acquisition of OXEA, the world’s largest supplier of Oxo chemical products based in 61

Oman Oil Company SAOC

Germany. OXEA will strengthen our position in the global chemical sector and contribute to our longterm downstream strategy. This will provide adequate scope for growth in Duqm’s economic zone, as well as other planned projects in industrial areas in Oman. The jobs created in this sector and especially from projects of this magnitude, will develop a platform for further human capital development, while fostering talent growth and business leadership in Oman,” he said.

OOC is in the process of strengthening its domestic and international refinery and chemical portfolio. It is through this that we aim to add significant value to natural resources in Oman by joining with winning partners and bringing the know-how technology and access to global markets. OOC interacts closely with various authorities to ensure the development of the Duqm Industrial Area and other direct and indirect support services are progressing to deliver this key project on time and on budget, the Chairman further added.

OOC’s human capital development unit, Takatuf, has also been busy at work grooming young Omanis into future business leaders

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and professionals not only with en eye on Duqm, but also the wider national economy.

“We provide talented Omanis with learning opportunities and equip them with the tools required to sustainable employment, growth and development. New employees entering an increasingly competitive working environment today need experienced mentors to guide their career progress and maximise their potential,” said Al Jashmi.

“The Takatuf HR Academy was recently launched, becoming the first of its kind in Oman to enhance management practices and advance skill sets of HR teams across the OOC Group, which is critical to the staffing and continued development of our workforce. The oil and gas sector is very competitive and we aim to generate new employment opportunities and increase the potential of our employees to benefit the entire industry and new businesses created in the sector with long-term outcomes. The direct employment created so far throughout the OOC Group is nearly 8,000 with Omanis comprising about 75%,” he continued.

An integral part of OOC’s commitment to sustainable

economic development is a farreaching In-Country Value (ICV) strategy. This initiative, says HE Al Jashmi, is key to driving the growth of SMEs, as well as changing the mind-set of local businesses to first look outside of the Sultanate to secure goods and services.

“We have made it our first priority to pro-actively look for opportunities to secure our goods and services from local SMEs. We provide them with additional training and support to ensure high quality of their products and services. We see this as an investment in both our long term success as the companies are able to develop themselves, while we build a bigger network of SMEs who we know can deliver according to international standards.”

Emphasizing OOC’s long-term commitment to Duqm’s growth, he said the company’s vision is to be a significant part of a strong and integrated economy in Oman diversified both across industry sectors and geographically, which utilises Oman’s natural resources, workforce and geo-strategic location. “We are aiming to reach a direct contribution of 10% to the national GDP by 2020,” the Chairman added in conclusion.

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Takamul Investment Company

Takamul Investment Company

Delivering one-stop industrial solutions Takamul’s mandate is to develop, promote and invest in green-field industrial projects as well as in existing industrial companies to support Oman’s thriving industrial sector. The company’s key objective is to act as a catalyst in developing a sustainable downstream value chain to extend Oman’s increasingly promising chemicals, metals, minerals and industrial service sectors.

T

akamul Investment Company SAOC, a subsidiary of Oman Oil Company, is poised to play a major role in attracting investors to the Duqm SEZ. The company is developing utilities and services that are indispensable to the smooth, safe and efficient operation of industries that will come up within the SEZ. Takamul was formed in 2008 to develop sustainable downstream chains to support Oman’s thriving industrial sector. The company’s primary objective is to promote and invest in value-added, economically viable projects that are fed from local upstream industries.

Hitherto focused on downstream industrial initiatives, Takamul made a landmark foray into industrial services in May 2013 with the signing of a joint venture agreement with the utilities arm of Sembcorp Industries of Singapore.

His Excellency Nasser bin Khamis Al Jashmi, Chairman of Oman Oil Company SAOC, signed the JV pact with Mr Tang Kin Fei, Group President & CEO of Sembcorp Industries. It led to the establishment of the Centralized Utilities Company (CUC),

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which will provide a range of utilities to the industrial area of the Special Economic Zone at Duqm. Takamul holds 65 per cent of CUC with Sembcorp owning the rest.

The CUC represents an important addition to Takamul’s industrial portfolio of investments and one of Takamul’s first investments in industrial services. HE Al Jashmi commented: “This is a significant step in a very positive direction, where Takamul Investment Company has taken the initiative to create a centralized utilities company that will provide important long-term economic and social benefits. We see this project as a critical step that will contribute to the success of SEZAD by encouraging development of industries and also provide good and worthwhile careers for Omanis who wish to become involved in the many opportunities that will flow from the project.”

One-stop solution Mr Nabil al Ghassani, CEO of Takamul, who is also Chairman of CUC, stated, “We believe that this concept is the first of its kind in Oman and will help capture value and efficiencies

for industries in Duqm through CUC as a one-stop utilities solution. The choice of partner is very critical for the success of such a project.

Sembcorp was selected, using a very extensive evaluation process of a number of providers, because of their considerable expertise and integrated operating experience in this field. Sembcorp is a global pioneer in centralized utilities with an unrivalled international track record of success. The centralized utility company will be a collaboration of Takamul’s experience of industrial development together with Sembcorp’s industrial utility experience and associated technical expertise.”

Sembcorp Utilities, a pioneer in one-stop outsourced energy, water and on-site logistics for multiple companies in energyintensive industrial hubs, is owned

by Sembcorp Industries, which is headquartered in Singapore and operates across six continents worldwide.

CUC has been conceived as a one-stop provider of a full range of centralized utilities such as power(on a captive basis), steam, all types

Takamul Investment, through its newly incorporated Centralized Utilities Company (CUC), has also signed an agreement with SEZAD to provide industrial utilities within the Duqm Special Economic Zone (SEZ).

of water including seawater for cooling, collection and treatment of industrial waste, industrial gases, the management of service corridors, and pipeline distribution services to the industrial customers in the SEZ at Duqm.

This concept will enable industries to outsource all its utilities required to support their operations to CUC, rather than building and running their own utilities facilities. This will not only offer industries with a reliable utilities supply, but also create synergies, as well as the opportunity to benefit from economies of scale, and save on investment and operating costs, thereby allowing them to focus on their core businesses.

Together with selected technology providers, Sembcorp and Takamul intend to invest in separate special purpose companies (SPVs) which will develop and own facilities supplying CUC with energy, water, industrial gases and other on-site logistics.

Operations and maintenance of the facilities will be undertaken

by CUC. CUC’s potential customers will include anchor customer Oman Oil Company, which is developing

a 230,000 barrels per day refinery targeted to begin operations in 2018 as well as a petrochemical complex on the site.

Enhancing value Takamul Investment, through its newly incorporated Centralized Utilities Company (CUC), has also signed an agreement with SEZAD to provide industrial utilities within the Duqm Special Economic Zone (SEZ).

The 25-year agreement gives CUC exclusive rights to provide all utilities to the industrial zone within the Duqm SEZ. The establishment of the CUC intends to provide timely support to the Duqm Oil Refinery with respect to all its utility needs, as well as enhancing the value proposition of the Duqm-investment product to the industrial sector at large, including petrochemical and mineral processing.

“This cooperation between SEZAD and Takamul is a significant step in a very positive direction in bringing important long-term economic and social benefits to the Duqm area and Oman as a whole.

Takamul’s pioneering investment

in the industrial services sector will contribute to the overall and long term success of SEZAD by encouraging development of industries. We know these industries will also provide good and worthwhile careers for Omanis who wish to develop their skills by being involved in the great many opportunities that will flow from the zone,” Mr. Al Ghassani added.

Upon the establishment of CUC, industries will only need to coordinate with one entity in order to address their utility and permit requirements. The utilities to be provided will include steam, industrial gases, process water, and seawater for cooling purposes, captive power, distribution of natural gas and industrial waste water treatment. In addition, CUC will manage the utilities and service corridors within the industrial zone ensuring reliable supply and efficient operation to industries in Duqm.

More recently,Takamul signed a joint venture agreement with Air Products, the leading global hydrogen provider, to establish an integrated industrial gases SPV, which will become a one-stop 65

Takamul Investment Company

View of Takamul’s aluminium rolling mill in Sohar

provider for a full range of industrial gases such as hydrogen, nitrogen and oxygen for all customers in the SEZ at Duqm.It will also aim to deliver the highest operational excellence by leveraging Air Products’ world-class capabilities in large industrial gas plant design, pipeline infrastructure development and operational knowhow, as well as Takamul’s strong multi-utility infrastructure position in Duqm, via its Centralised Utility Company (CUC).

Mr Hilal al Kharusi, Chairman of Takamul, commented, “There is a lot we can learn and benefit from partnering with international companies such as Air Products as we drive to bring safe, reliable, highly efficient, centralized utilities to the SEZAD. With Air Products’ proven track record in Oman and the Middle East, we will be working with them to provide innovative solutions for large scale industrial gases that will enable our customers to become more productive, energy efficient and sustainable.”

Integrated platform Significantly, Takamul’s commitment to Duqm’s future success is not limited to the provision of specialist industrial and utility services alone.

The company also has ambitious plans to support the development of a thriving downstream industry 66

within the SEZ, encompassing petrochemicals, metals and minerals, among others.

In particular, Takamul sees the acquisition of OXEA by Oman Oil Company last year, as auguring well for the Omani government’s longterm goal to spur the development of an integrated chemical platform in the Sultanate, most notably in the SEZ at Duqm.

Germany-headquartered OXEA ranks among the world’s largest suppliers of oxo chemicals – intermediate commodities used in the manufacturing of products of everyday use. Operating from a string of plants in the Americas, Europe and Asia, the chemicals giant produces around 70 different types of oxo chemicals, such as aldehydes, oxo-alcohols, oxo-derivatives, carboxylic acids, polyols, esters, and amines. These constitute primary ingredients in the manufacturing of, among other things, paints and coatings, adhesives, flavours and fragrances, cosmetics, lubricants, pharmaceuticals and plastics.

OXEA’s buyout by its parent company has the potential to open up new synergies with its own strategy to develop a downstream petrochemicals cluster in Duqm, among other locations in the Sultanate, according to Takamul.

Catalysing growth Incorporated in 2008, Takamul’s mandate is to develop, promote and invest in green-field industrial projects as well as in existing industrial companies to support Oman’s thriving industrial sector.

The company’s key objective is to act as a catalyst in developing a sustainable downstream value chain to extend Oman’s increasingly promising chemicals, metals, minerals and industrial service sectors.

Starting with two projects in 2010, Takamul has since seen its portfolio of investments grow by leaps and bounds. In early January 2014, that portfolio had swelled to a total of 20committed projects, with nine operating assets and a further 11 projects under construction or formation. Nearly 850 local, direct jobs had been created, with numerous other jobs being created through suppliers and service providers supporting the Takamul projects. To date Takamul has committed some OMR164 million equity in bringing the projects to fruition.

Takamul Investment Company is owned by Oman Oil Company (95.49 per cent), General Holding Corporation PJSC [Senaat] (3.26 per cent) and Al Maha Strategic Industries for Investments LLC (1.25 per cent).

Opening Doors for Opportunities

At Takamul, we develop, promote, and invest in sustainable industrial projects mainly in the value added chain of metal, mineral, chemicals, and industrial services in Oman. We are committed to making a real dierence to the wellbeing of our host communities by opening doors for investment opportunities.

We see endless possibilities. www.takamul.com

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Public Authority for Electricity and Water

Public Authority for Electricity and Water (PAEW):

Ensuring sustainable and reliable potable water and power supply Securing the electricity and potable water demands of the Special Economic Zone at Duqm is a key objective of the Public Authority for Electricity and Water (PAEW) which, as the principal policymaker for the power and water sectors, is committed to playing its part in sustaining the longterm success of Oman’s biggest free zone development.

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eeting the Duqm SEZ’s power and potable water needs is as critical as any other component of support infrastructure that has been envisaged for implementation as a prerequisite for this region’s long-term success.

Accordingly, the Public Authority for Electricity and Water (PAEW) has, from the very outset of the SEZ’s conception, been working in close collaboration with the Rural Areas Electricity Company (RAECO) and lately with Oman Power and Water Procurement Company (OPWP) to secure the future hub’s electricity and water requirements.

Both RAECO and OPWP are subsidiaries of the Electricity Holding Company (EHC), which groups all of the government-owned power generation (and related water), transmission and distribution companies serving the length and breadth of the Sultanate.

RAECO, in whose jurisdiction Duqm falls, has a clearly defined strategy for meeting the SEZ’s short and medium term power and water needs, although OPWP could be called to step in to oversee the procurement of new capacity if projected demand is

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HE Mohammed al Mahrouqi Chairman of PAEW

substantial.

“Our expectation is that the peak power demand in Duqm will have reached around 100 MW by 2017, based on the demands of the core infrastructure projects and general development and population growth in the area,” said His Excellency Mohammed al Mahrouqi, Chairman of PAEW. “The demand growth after that will depend heavily on the pace of industrial development.

Assuming a relatively rapid build-up of industrial projects, in line with the SEZ’s objectives, peak demand could potentially reach as much as 750 MW by 2025, and this excludes the very large discrete demand that would be associated with an aluminum smelter project, were it to go ahead,” he stated.

According to the official, power demand in the near-term will continue to be met from REACO’s existing diesel-fuelled power plant. In addition, RAECO has plans to add up to 80 MW of additional generation capacity by 2017. However, OPWP is currently evaluating the merits of tendering for an Independent Power Project (IPP) to meet demand in the medium-term (using natural gas as the primary fuel).

RAECO, says HE Al Mahrouqi, is expected to remain responsible for meeting power demand in Duqm at least until an interconnection with the Main Interconnected System (MIS) and/ or the Salalah system is completed (which is not expected in the shortterm).

“If OPWP were to tender for an Independent Power Project in the meantime then it is anticipated that the power from such project would be sold by OPWP to RAECO, who would remain responsible for transmission, distribution and supply of the power,” the Chairman noted.

Commenting on water demand, he said the current projection is for potable

“Our expectation is that the peak power demand in Duqm will have reached around 100 MW by 2017, based on the demands of the core infrastructure projects and general development and population growth in the area.”

Diesel-fuelled power station in operation in the SEZ

water demand to increase to around 15 million litres per day (equivalent to around 3 million gallons per day) within the next 5 years and to continue to grow rapidly in subsequent years.

“In the near-term, demand will continue to be met from the existing desalination plant operated by RAECO and some temporary plant relocated from elsewhere in Oman. It is planned to commission a new plant around 2018, to meet demand over the medium-term.

This project is expected to be tendered

by OPWP as an Independent Water Project,” the Chairman explained.

As for industrial water demand, he said the Special Economic Zone Authority at Duqm (SEZAD) has already entered into an agreement with a Centralized Utilities Company (CUC) to provide industrial water services to industrial consumers.

The PAEW is a governmental institution founded by Royal Decree to serve as a policymaker for both water and electricity services in Oman. In addition, PAEW is also a direct water service provider, responsible for supplying potable water to all homes and businesses in Oman except in Sohar

city and in the Dhofar governorate. In total, PAEW serves a population of more than 1.5 million people, transporting on average more than 650000 cubic metres of water per day.

In line with the Government’s policy of reducing reliance on ground-water drinking water supply, PAEW uses seawater, through desalination, as the main source of drinking water. The Authority currently takes water from four major desalination sites – Ghubra, Barka, Sohar and Sur. The Gubrah, Barka and Sohar desalination plants serve the Main Interconnected System (or MIS) which supplies the most populated areas of Northern Oman. The Sur desalination plant serves the needs of customers in Sharqiyah region, where there is a separate extensive water transmission system.

These large desalination plants have been built and are being operated by outsourced water utility contractors. The Public Authority purchases the water produced by these plants through Oman Power and Water Procurement (OPWP) and manages the supply, storage and distribution to the Omani population.

In addition to the large desalination

plants, water is also produced by a number of well fields. Wells provide a strategic long term reserve mainly used as alternative resources to support the service during consumption peak periods or plant shutdowns.

In order to meet the growth challenge, PAEW is significantly investing to extend the water network throughout the country, with the objective to reach an average of RO 150 million spent every year for new water infrastructure. A program for transmission line development and distribution network construction is under progress, resulting in a considerable growth in customer numbers. New reservoirs are also being built to provide more storage closer to customers and consequently improve the security of supply. Finally, water plant projects are underway to expand the water production capacity and fully fulfill customer needs. This rate of expenditure will allow PAEW to provide water by pipe supply to more than 70% of the population in its service area by 2020 and more than 90% by 2030.

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Duqm SEZ - Land use map

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Omran

A destination off the beaten track Thanks to sizable investments by Omran in the development of a vibrant residential and hospitality industry in Duqm, the primordial magnificence of this once desolate corner of Wusta Governorate will now attract more than just the odd camper and adventure tourist.

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indful of the importance of a substantial hospitality, leisure and entertainment component to sustain Duqm’s development as an industrial and maritime hub, Omran – the Sultanate’s tourism development flagship – has embarked on a far-reaching strategy to address this need.

The wholly governmentowned entity has invested, either independently or in partnership with prominent developers, in a string of ventures designed to provide visiting businesspersons, investors, executives, officials and tourists with a welcoming and comfortable setting from which to go about their business in Duqm and the surrounding region.

Omran is mandated by the Government of Oman to deliver major hospitality related projects and manage tourism assets and investments that benefit local communities and the national economy while protecting Oman’s unique and fragile environment. The tourism and hospitality sectors have been identified as key economic drivers, and its role is to develop the infrastructure necessary to position Oman as an attractive

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Our investment in the tourism industry is in support of the Government’s aim to substantially increase the sector’s contribution to the national GDP, which aims to reach 5 per cent by 2020

tourist destination and competitive business platform.

Duqm in particular represents a unique opportunity for Omran to showcase not only what it can achieve in terms of its core focus on tourism development, but also in supporting the Omani government in promoting the Special Economic Zone (SEZ) internationally as an investment destination.

“When it comes to Duqm specifically, we believe in the enormous potential of the Wilayat and have invested heavily in Duqm and will continue to do so as part of our mandate to spread our operations beyond the capital and attract private sector participation and investment. Our investment in the tourism industry is in support of the Government’s aim to substantially increase the sector’s contribution to the national GDP, which aims to reach 5 per cent by 2020,” said Eng. Wael bin Ahmed al Lawati, CEO, Omran.

Endless possibilities According to the official, Duqm’s eventual growth into one of the region’s strongest industrial and economic hubs opens up endless opportunities for business and

Demonstrating its commitment to Duqm, Omran has already established two key hotel properties in this green-field industrial hub. The five-star Crowne Plaza Duqm, which is the first and only luxury property in Wusta Governorate, and City Hotel Duqm, a budget hotel targeted at the mid-market segment, are already in operation.

Crowne Plaza Duqm, owned by Omran

leisure tourism, whether domestic or foreign. With the expansion of manufacturing, business visitors and the prospect of tourism, Duqm requires high quality hospitality infrastructure capable of supporting increased demand. The population of Duqm alone is expected to expand five-fold, growing from 10,000 people to an estimated 50,000 in the next five years.

“To create a vibrant hospitality sector in Duqm, we need to realize that tourism is not just about providing hotels but expanding road networks, restaurants, car hire facilities, entertainment facilities, business facilities, commercial opportunities and other support amenities. These facilities are at the core of attracting visitors and investors from across the globe and will offer the means by which the city will thrive in all aspects as industry increases,” Eng. Al Lawati said.

Demonstrating its commitment to Duqm, Omran has already established two key hotel properties in this green-field industrial hub.

The five-star Crowne Plaza Duqm, which is the first and only luxury property in Al Wusta Governorate, and City Hotel Duqm, a budget hotel

targeted at the mid-market segment, are already in operation.

In addition, Duqm Development Company (DDC) - a 50:50 joint venture partnership between Omran and Daewoo Shipbuilding & Marine Engineering Oman LLC (DSME Oman) – is developing the new Duqm Frontier Town in two phases. Phase I of the project was completed in May 2013, comprising 250 furnished apartments, 94 furnished villas and a club house, with support infrastructure and amenities over 23 hectares. The entire phase has been leased to Oman Drydock Company SAOC for management staff housing.

Phase II of the Duqm Frontier Town will be constructed in line with government plans to attract investment in Duqm and based on a market-demand study to feature around 500 residential units, hospital, school, shopping mall with a hypermarket and entertainment facilities. Phase II is expected to commence this year and is expected to be completed in 2018.

“Featuring an advanced level of design, infrastructure and facilities to meet the needs of the community, once the entire project that is set on a 270 hectare area is completed, Duqm Frontier Town will provide

the first planned, state-of-the-art community in the Wilayat,” Eng. Al Lawati said.

As a joint venture company, Omran sits on DDC’s Board of Directors to ensure efficient project execution and delivery, secure funding on equity basis and ultimately, safeguarding Omran’s greater interests in Duqm Frontier Town, the CEO explained.

Business visitors Significantly, passenger traffic into Duqm is expected to ramp up upon the launch of a new domestic airport in the near future, says Wael. “With Duqm Domestic Airport due to be completed in 2014, the airport will become a vital cog in the city’s expanding tourism industry. The airport will initially cater to delivering business visitors and freight to the city but with the capacity to bring an additional 500,000 people each year, we expect tourism interest in the city to grow.”

Passenger arrivals into Oman have steadily increased in recent years with Muscat International Airport recording a rise in passengers of 10% between August 2012 and August 2013 and Salalah Airport 75

Omran

traffic rising by 18% over the same period, reaching a total of close to 6 million people visiting Oman during the 12 month period.

“This rise in passenger numbers has been mirrored by an increase of 4% in freight between August 2012 and August 2013, totalling nearly 80,000 tonnes of loaded and unloaded freight. We would expect traffic into Duqm to follow this upward trend as the phased approach to developing the city progresses,” he remarked.

Indeed, Duqm exemplifies Omran’s commitment to stimulating tourism development even in greenfield, yet promising, areas of the Sultanate. Some of these greenfield destinations were initially earmarked for Integrated Tourism Complexes (ITCs), where Omran would represent government stakes in these projects like in the case of Jebel Sifah, Salalah Beach and Saraya Bander Jissah, to name a few.

The purpose is to develop these areas for a mixed-use entertainment and residential facilities, the CEO noted.

Responsible developer Established in 2005 as the tourism investment and development arm of the Government, Omran has since garnered an impressive portfolio of projects that it oversees in its capacity as investor, developer and 76

Omran has taken on the complex challenge of creating projects that will create many job opportunities and contribute income to our economy both now and in the future asset manager.

Notable are the iconic Oman Convention and Exhibition Center (OCEC) which aims to position the Sultanate as a key destination for MICE holidays, the distinctive Alila Jabal Akhdar Resort, and the alluring Atana Musamdam Resort.

In addition, Omran is a joint venture partner in a raft of mega-project developments, such as Salalah Beach, Saraya Bandar Jissah, Jebel

Sifah, Al Baleed Resort, and so on.

But underpinning all of these investments is a core philosophy that champions the importance of making the Omani people and local communities as key stakeholders in all of its ventures.

Integral to this commitment is also a pledge to safeguard the natural environment and the country’s rich cultural heritage across all phases of a project’s development – from conception and design to execution, management and operation.

The goal is to leverage these investments to create sustainable livelihoods for Omanis, open up opportunities for local businesses, and introduce Omanis to new careers and skill-sets associated with Omran’s diverse tourism and hospitality-related investments.

“Omran has taken on the complex challenge of developing projects that will create many job opportunities and contribute income to our economy both now and in the future. Our investments identify a gap in the market and an opportunity to enhance Oman’s tourism offering in harmony with the long-term vision of His Majesty Sultan Qaboos. We are always looking for suitable initiatives and new ventures to boost our portfolio and continue supporting the growth of Oman’s emerging tourism sector,” Eng. Al Lawati added.

At Omran we develop strategic tourism projects which will bring substantial benefits to the national economy & local communities. We act as a partner of first choice for potential investors who wish to invest in our nation’s tourism boom. We also provide best practice management to the Government-owned hospitality assets.

omran.om

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Carlson Rezidor Duqm property set for summer launch

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arlson Rezidor, one of the ten largest hotel groups worldwide, has announced that its newest property in the Sultanate – the Park Inn by Radisson Hotel and Residence Duqm – is scheduled to welcome its first guests during summer.

The launch will further build on the success of the existing Park Inn

by Radisson Hotel Muscat, which is popular for its modern design and cool amenities, such as a rooftop swimming pool and fitness centre.

The property, owned by Duqm Beach Hotel LLC – a subsidiary of MB Holding – is currently under construction at a site about 8

kilometres from the airport and 10 kilometres from the Port of Duqm.

It offers 50 one-bedroom chalets, 9 two-bedroom villas, 13 one-bedroom and 2 two-bedroom apartments. The design and the character of all 73 accommodation units and the entire hotel will be inimitably Park Inn

by Radisson, designed for the new generation traveller.

The hotel will grow by another 46 units in the next 5 years. The future-forward and trendsetting property will also offer an all-day dining restaurant, signature RBG grill restaurant, meeting rooms, business centre, kids’ corner, tennis court, beauty salon/spa, gym, free high

speed internet throughout the hotel, indoor and outdoor bars as well as an outdoor swimming pool.

“The Middle East is an important development market for Carlson Rezidor. We aim to further strengthen our core brands in the region - Radisson Blu is covering the contemporary upper upscale segment; Park Inn by Radisson the dynamic mid-market segment targeting the growing clientele of Gen X and Y,” commented Mr. Wolfgang M Neumann, President & CEO The Rezidor Hotel Group.

Park Inn by Radisson Hotel and Residence Duqm is scheduled to launch on 1st August 2014.

Al Madina to invest in tourism and real estate project

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ocal developer Al Madina Real Estate SAOC signed (11th March 2014) an agreement with SEZAD for the lease of land for the establishment of a tourism, commercial and residential project in Duqm.

The company plans to invest around RO 70 million in the construction of a commercial centre, golf course and hotel apartments in Duqm.

The project will be implemented in four stages, and has the potential to generate around 1000 jobs for Omanis.

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(Contract Services Group)

• World-class accommodation for workforces • 16,000 beds in Duqm • Higher standards at lower costs through economies of scale • Safe, Efficient, Green & Local

P.O.Box 1676, Postal Code 114 Muttrah, Sultanate of Oman Tel/Fax: +968 24700127, email: renaissance@tiscooman.com www.renaissance-oman.com

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Ministry of Tourism

Anchoring Oman’s tourism sector The Sultanate’s port town of Duqm is on the brink of a multi-pronged developmental surge that is edging it closer towards becoming a global vantage point for tourism, industry and commerce. Thanks to epic drives by government bodies such as Oman’s Ministry of Tourism, Omran and SEZAD, the region is in the midst of a path-breaking transformation from humble fishing village to highly soughtafter destination by tourists, investors, businessmen and industrialists alike. Today, Duqm has become ground zero where the Sultanate’s Vision 2020 goals are shaping up closer to fruition.

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hile the region’s development as a prominent harbour town and upscale township remains paramount, in recent years, its positioning as a popular tourist destination has come under the spotlight. The Ministry of Tourism along with its investment entity (OMRAN) has launched a slew of milestone initiatives aimed at unlocking latent tourist potential of this once artisan village. But these initiatives don’t just stop at there; they are directed at turning Duqm into an anchorage point for similar nationwide tourism drives.

Already underway are star-class hospitality establishments, such as the four-star Crowne Plaza Duqm which was inaugurated recently.

The RO17-million project is expected to give momentum to the government’s tourism initiatives apart from reaffirming the coastal town’s strong positioning as the MENA region’s rapidly developing

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commercial, industrial and tourism hub. What it will also accomplish is the provision of world-class amenities for visitors and tourists in the wake of sweeping developments to uncover Duqm’s tourism potential.

The government’s thrust on Duqm’s tourism development lies centerfold of larger plans to grow Oman’s tourism sector and increase its contribution to the country’s GDP. In recent comments to the media, Ahmed Bin Nasser Al Mehrzi, Minister of Tourism, outlined fresh strategies that focus on making tourism a key factor that drives GDP. According to 2012 statistics, this contribution – both direct and indirect - stood at 6.6 per cent of the Sultanate’s GDP, with a definitive inclination upwards if the numbers are anything to go by.

According to external analysts, as of July 2013, Oman recorded the highest growth of active hotel development among all MENA

countries, with 4,577 rooms added since July of 2012. The Sultanate’s overall goal is to add 3,000 new hotel rooms; by 2022 the total number of new rooms is expected to be 19,376 throughout the country, including Duqm. These impressive figures are the result of combined, phased initiatives launched by the Ministry of Tourism and its partners that prioritise the development of world-class hotels, resorts and other infrastructural facilities as key precursors to a successful tourism industry.

With Duqm being hailed as one of the many pristine vestiges of Omani culture, history, heritage and panoramic desert landscapes, the government is doubling up on efforts to showcase it to the world as a choice tourist destination. Recently, Omran announced feasibility studies for 12 new prospective projects aimed at successfully leveraging the region’s natural beauty through the development of forts, castles, theme parks and eco-friendly resorts.

As Wael Al Lawati, CEO of Omran succinctly put it, “The platform is now set.” The investment arm of the tourism ministry is orchestrating the development and growth of a diverse range of tourism-related projects for Duqm. A recent noteworthy initiative is its ‘Duqm Calling’ campaign to present the upcoming harbor town as a unique vacation hotspot for families, international tourists and business guests.

As these initiatives materialise, so also will the country’s dream to transform Duqm into a mainstream leisure zone and competent platform for industry and business.

The initialisation of the Ministry of Tourism’s many infrastructure projects will also further establish the region as a leading logistics centre, fostering favourable geopolitical policies and an attractive option for business and tourism.

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Duqm Development Company SAOC

Duqm Frontier Town:

A perfect community setting Established on 24th April 2010, Duqm Development Company is jointly underwritten

by Oman Tourism Development Company (Omran) - the Sultanate’s leading investor and developer of tourism infrastructure - and Oman Drydock Company, which operates and manages the ship repair yard in Duqm.

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hase One of Duqm Frontier Town project, a wellplanned and fully equipped community development constructed within the Duqm Special Economic Zone, was officially inaugurated on 26th April 2014 at a ceremony held under the auspices of His Excellency Yahya bin Said Al Jabri, Chairman of the Special Economic Zone Authority at Duqm (SEZAD).

Also in attendance were a number of dignitaries, as well as top officials of Duqm Development Company SAOC, a leading real estate developer which is behind the Duqm Frontier Town project.

Established on 24th April 2010, Duqm Development Company is jointly underwritten by Oman Tourism Development Company (Omran) - the Sultanate’s leading investor and developer of tourism infrastructure - and Oman Drydock Company, which operates and manages the ship repair yard in Duqm.

HE Ahmed bin Sulaiman al Maimani, Chairman of Duqm Development Company and Under-Secretary of the Ministry of Commerce & Industry for Administrative, Financial & Regional Affairs commented: “The Duqm Frontier Town is an integral part of the government’s vision towards developing the Duqm Special

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Sheikh Ibrahim Sultan Alhosni Deputy Chief Executive Officer of DDC

Economic Zone. Furthermore, the convenient geographical location of the port makes it ideally placed to capitalise on the global shipping trade. The official opening of Duqm Frontier Town will provide an ideal environment with high levels of comfort and lifestyle for workers and their families.”

Sheikh Ibrahim Sultan Alhosni, Deputy Chief Executive Officer, Duqm Development Company SAOC highlighted the role of the company in the real estate sector, saying, “When the Duqm Development Company was established, we set a goal for ourselves to be the leading developers of real estate in the Sultanate of Oman. Our company is responsible in establishing sophisticated residential projects, massive industrial complexes and commercial centres. The Duqm Frontier Town project was challenging in both scope and delivery timing, so today we are very proud to officially inaugurate phase one of the township, as we also celebrate four years since the establishment of the Duqm Development Company. We have succeeded in delivering real in-country-value for the Omani economy, and the subsequent phases of construction for Duqm Frontier Town will create further employment opportunities during the construction and operational

Oman Drydock Company SAOC has signed a 25 years lease agreement with DDC to lease Phase One and its management staff are currently occupying the residential units.

phases.”

Sheikh Ibrahim Sultan Alhosni – Deputy Chief Executive Officer of DDC said: “We are developing the first well planned community town in Duqm named ‘Duqm Frontier Town’ with an advanced level of design, infrastructure, facilities and the latest technologies. The town is 15 minutes’ drive from Oman Dry-dock and Duqm Airport. It will be developed in phases in an area of 270 hectares which will cater to managerial level employees and in total will accommodate around 3,000 residential units.

“Construction of Phase One started in December 2010 and completed in May 2013. Phase One consists of a fully furnished 344 residential units (94 villas and 250 apartments). In addition, a Club House was developed as a recreational center that includes gym, squash court, multi sports hall (basketball, volleyball, badminton, football, and handball), tennis courts, and restaurant, retail area which will include grocery store, mini bank branch and laundry.

Phase 1 is developed with complete infrastructure and facilities (primary

substation, sewage treatment plant linked to the irrigation system, roads, centralized gas network, fiber optic network, water network, and sewage network),” Alhosni said.

“A Jame’e (mosque) and Operation and Maintenance Building will be constructed soon on DFT – Phase One land. The project is using energy saving systems and water recycling methods to reduce power, fuel and water consumptions as a part of the project sustainability plans. We are basically building a whole new city” he added.

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Duqm Development Company SAOC

Special Economic Zone Authority at Duqm (SEZAD) and Duqm Development Company SEZAD is playing a significant role from the day it was established by a Royal Decree in 2011 in managing, regulating, and developing all economic activities in Duqm. SEZAD and DDC compliments each other, as DDC’s project ‘Duqm Frontier Town’ is an attraction point for the investors SEZAD is promoting the area to, and DDC responses to the demand raised by the attracted investors and projects. In addition to that; DFT provides a perfect living environment for the employees of companies and government organisations in Duqm.

Duqm Frontier Town – Phase II DDC has appointed a consulting firm to conduct a demand analysis for the residential units and the needed facilities in order for DDC to understand the feasibility of developing Phase II of DFT. The consultant has projected that population will reach to around 205,000 by 2025 and as high as 550,000 by 2035. DDC has signed a land Usufruct Agreement for an area of 29.2 hectares to develop Phase II of Duqm Frontier Town.

Ibrahim Alhosni said, “By having discussions with different companies operating in Duqm; they all are having

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a difficult time in either attracting staff or retaining the existing ones due to the fact that they have to live in Duqm. In order to attract staff to work and live in Duqm; all basic facilities needs to be provided for them. Most importantly staff has children and they need a good school in the city so they can be close to them. Phase II for instance; in addition to the residential units it will have an International School to suite different cultures and nationalities, a Hospital with multi specialisations and a Shopping Mall with a Hypermarket. The Mall will have different types of shops and entertainment facilities so that the residents don’t have to drive all the way to Muscat during the weekends for these entertainment activities.

Value Addition of DFT to Duqm Commenting on the value the DFT is adding to Duqm, Ibrahim Alhosni said: “I believe the whole Duqm Special Economic Zone project -which our project is part of- will raise the standard of living in the area. The massive investment in infrastructure that the government has made in recent years is crucial to the success of Duqm. After the airport is completed, the port is running at full capacity and after the railway is in place Al Wusta will prosper.”

In addition to the dry dock,

port and airport, the Duqm refinery and petrochemical complex will be an important economic catalyst. Once it starts, we will see growth in the area in addition to the downstream industries that will also develop.

“Ultimately, I think it will be a good thing for the local population and will offer many job opportunities for them. I believe there will be further expansion in the region beyond Duqm. The population of Duqm is small, so this huge increase will not be from Duqm residents only.

This influx of residents from surrounding towns such as Mahoot, Haima, AlJazer and even Sinaw will build the impetus,” Alhosni said.

Human Resources in DDC “We believe that Human resources are one of the main assets of any organisation and developing them via specialised training programmes is a gain to the organisation and the employee as well”.

We are a team of 20 and we grow on need basis.

We are developers, so for construction we contract with specialized construction companies and consultants who assist us. We strictly adhere to best corporate governance practices and contracting is done through a tender process as specified in our Tender and Procurement Manual.

Duqm Development Company S.A.O.C.

Duqm Frontier Town

Duqm Frontier Town (DFT) formed an integral part of Oman’s government vision for the development of Duqm Special Economic Zone as a major port and industrial hub, therefore Duqm Development Company SAOC was formed in the year 2010.

Duqm Development Company SAOC P.O. Box 734, Postal Code 115 Office 42, Al Ufooq Building 2825, Way 3036 Shatti Al Qurum Sultanate of Oman

: (+968) 24636200 : (+968) 24636220 : ddc@ddc.om

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www.ddc.om

Crowne Plaza Duqm

Crowne Plaza Duqm:

Mixing business with leisure Crowne Plaza Duqm, the only four star deluxe property in the Wusta region, promises to be the first choice for discerning business visitors and leisure travellers seeking the finest in quality that Duqm’s nascent hospitality industry has to offer.

Exterior By Day

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or many on hand at the recent grand inauguration of the Crowne Plaza Duqm, the occasion was reminiscent of an equally momentous event dating to 1977 when Oman’s first 5-star luxury property – the InterContinental Muscat – was opened.

Echoes of that historic day had a special resonance at Duqm when dignitaries and guests joined in celebrations marking the official opening of the Wusta region’s first internationally branded luxury hotel on 23rd April 2014.

Back then, the InterContinental Muscat’s launch ushered in a new and vibrant national tourism and hospitality industry. Thirty-seven years on, the formal opening of Crowne Plaza Duqm is seen to hold similar promise in heralding the growth of an equally exciting industry in this future industrial hub.

“In a sense, it all started 37 years ago with the InterContinental Muscat, which is owned by Omran and managed by the InterContinental Hotels Group (IHG).

Crowne Plaza Duqm too is owned by Omran and managed by IHG. Thus, our relationship with the Ministry of Tourism then, and Omran now, goes

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back many decades, and we intend to keep enriching and building on our business ties in the coming years as well,” commented Mr. David Todd, Regional General Manager – IHG (Oman).

Crowne Plaza Duqm is the latest addition to the group’s growing portfolio of international-class properties in the Sultanate. These properties, located in Muscat, Salalah, Sohar and now Duqm, are operated by three of IHG’s hotel brands – InterContinental, Crowne Plaza and Holiday Inn. The next big addition to the list is scheduled during 2016 when another Omranowned property opens at the Oman Convention & Exhibition Centre (OCEC) under the Crowne Plaza brand.

Since the property commenced operations in April 2013, Crowne Plaza Duqm has been the accommodation of choice for the large majority of government officials, business visitors, technical professionals, and other visitors arriving in this emerging port and free zone hub.

Located a mere 10km from the entrance to Duqm Port, the fourstar beachfront business hotel showcasing a blend of modern and

traditional Omani architecture, is a landmark in its own right.

From its imposing entrance and soaring hallways to the landscaped garden overlooking the expanse of the Arabian Sea, the property is distinctive in its design and appeal.

All 213 rooms – comprising a mix of deluxe rooms, executive suites, family suites and a royal suite – are spacious and handsomely furnished with subtle good taste. In-suite amenities are comprehensive and modern, keeping the discerning business traveller in mind.

Corporate travellers account for most of the hotel’s total business – a trend that will continue given Duqm’s positioning as a port and free zone hub, says Mr. Todd. “The business aspect will continue to grow year on year, and we hope to benefit from the increased traffic into Duqm particularly as projects within the Special Economic Zone (SEZ) come on line. As the first hotel in the region, the Crowne Plaza Duqm has already established a reputation for quality in the market.”

Furthermore, the management aims to leverage its already strong relationships with key stakeholders at the SEZ to drive revenue growth.

Crowne Plaza Duqm is the latest addition to the group’s growing portfolio of international-class properties in the Sultanate.

“We have aligned ourselves closely with the Special Economic Zone Authority at Duqm (SEZAD), Port of Duqm, Duqm Development Company, and other large undertakings. We also enjoy good business relationships with other key accounts in order to serve their businesses. One opportunity for us is to grow our outside catering market.”

Underscoring Crowne Plaza Duqm’s appeal as a hotel essentially geared to the corporate market is its expansive business and conference facilities. It includes a 780 sq metre Events Centre – the largest in the region – featuring two ballrooms and one boardroom.

Complementing these state-of-the-art facilities are a business centre and four separate meeting rooms.

Of late, however, the hotel has been receiving a steady trickle of leisure travellers, drawn by Duqm’s stunning natural appeal, unspoilt beaches and one-of-a-kind geological attractions.

“We are starting to see some leisure guests coming to Duqm.

What’s interesting is that they are booking online directly through our own InterContinental reservations channels. They are using Duqm as a midpoint for travel from Muscat to Salalah or vice versa,” said Mr. Todd.

Duqm’s leisure appeal, according to

His Highness Sayyid Taimour bin Assad al Said was the Guest of Honour at the formal inauguration of Crowne Plaza Duqm on 23rd April 2014. He is seen here receiving a memento from HE Nasser bin Khamis al Jashmi, Chairman of Omran. Also present on the occasion were HE Yahya bin Said al Jabri, Chairman of SEZAD; Mr. Wael bin Ahmed al Lawati, CEO of Omran; and Mr. David Todd, Regional General Manager – InterContinental Hotels Group (Oman).

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Crowne Plaza Duqm

the Regional General Manager, stems from a lot of factors. “There’s a wide selection of places of visit in and around Duqm. Very close to the hotel is the famous Rock Garden, which is a unique geological attraction. About 140km further south at Al Jazer is a shipwreck by the beach itself. Four hours away by road from Duqm are the remnants of a petrified forest of enormous geological significance.

Then, of course, you have the Arabian Oryx Sanctuary in the heart of the Wusta region. Thus, from the leisure guest’s point of view, Duqm has a lot to offer, especially if you want time to relax by our poolside or our expansive beachfront, and not be disturbed by shopping or other such pursuits.”

As the only hotel operated by a renowned international brand in Duqm, the property has emerged as town’s pre-eminent hotspot for leisure, entertainment and cuisines.

A lively bar, aptly called the Frontier, is a favourite hangout for local folks looking to chill out on evenings and weekends. Live entertainment by a resident band, DJ evenings, karaoke room, billiards table and darts room all make for lively evenings at the hotel.

Another top draw is Crowne Plaza Duqm’s culinary offerings. “Adding to our selection of well appointed restaurants, we recently introduced themed nights, such as Seafood Nights and BBQ Nights at our popular Al Safi restaurant, which has a fantastic open terrace overlooking the beach and gardens. Live cooking stations are a big draw with the local and international guests. So we are constantly looking at ways we could excite the local population and keep them attracted to the hotel. Also because of the limited size of the market in Duqm, we need to keep reinventing ourselves, and we tend to do this by changing our offering every quarter and adapting it to our guest requirements.”

But key to the long-term success of the hotel is the relationshiporiented approach to business, says Mr. Todd. “We have a team that is very relationship oriented. So they are constantly on the floor talking to guests, understanding what their needs are, and looking at ways to improve and deliver quality services to them. That’s typical of an IHGbranded property in a new frontier.

It’s all about building relationships.”

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Mr. David Todd, IHG Regional General Manager (left), with the Guest of Honour.

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City Hotel Duqm

City Hotel Duqm:

A home away from home City Hotel Duqm is a good example of how tourism-related projects drive business, industry, tourism and the economy, as a whole.

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hen the Sultanate’s government set up the Oman Tourism Development Company (Omran), its aim was to appoint a governing body to carry forward plans of maximising Oman’s tourist potential by creating landmark destinations and memorable experiences that accrue long-term benefits to local communities and the economy. City Hotel Duqm is a good example of how tourism-related projects drive business, industry, tourism and the economy, as a whole.

“The hotel has been designed to cater to the rapidly growing needs of both business and leisure travellers for hotel, accommodation and business facilities in the area. It targets client segments that seek all the comforts of a business hotel at an economical cost.

These clients are visitors connected with business and projects to the new port/harbor, airport, oil refinery and new industrial areas of Duqm,” says Mr. Arunkumar, Financial Controller, City Hotel Duqm.

The client profile of the hotel, therefore, is diverse and cosmopolitan ranging from investors, company managers, ministry personnel, business executives and the like. “We also have tourists who travel to Duqm to enjoy the scenic beauty of its beaches, mountains and natural rock formations. A good portion of our visitors are also Omani nationals,” says Mr. Arunkumar.

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A three-star hotel built by Omran at Duqm, City Hotel Duqm was introduced to the public with a soft opening in June 2012, before being officially opened in December the same year. It consists of 118 guest rooms with the availability of single, double, twin beds, and 5 well-appointed suite rooms.

The hotel exudes contemporary style and elegance and contains elements of distinctly local flavour to create a welcoming ambience for a diverse visitor demographic. “Whether our guests are just staying for one night or for two weeks, we always do our best to make them feel like our hotel is their home away from home. The City Hotel Duqm is warm and welcoming; our guests always want to come back,” says Mr. Arunkumar. Its rooms are divided into 90 twin beds; 20 single beds; three deluxe suites; two executive suites and three handicap rooms.

The hotel’s proximity to important project sites in the region is a major advantage - especially for its corporate guests - for it gives them better accessibility to all the important development zones as well as to stellar hospitality facilities within the area.

With the region of Duqm being developed as an industrial port and harbour town as well as a prime tourist destination, City Hotel Duqm will service requirements for high quality facilities to maximise investment potential from these three sectors. It will

accomplish this primarily by offering budget friendly quality accommodation to visiting businessmen and investors to the region; at the same time, its threestar lodgings will be a comfortable pad for business tourists.

According to Mr. Arunkumar, the hotel’s positioning in Duqm’s market is underpinned by the diversity of services and amenities it offers clients. This has led to increased occupancy uptake over the last year. “We are seeing more and more investors from round the world coming to visit Duqm. With the ships landing at the port, we are receiving more guests to dine at City Hotel Duqm and enjoy our Sheesha lounge and juice bar. We expect more visitors in the near future because of the many projects underway. We are here to accommodate our guests with excellent service and to make them feel welcome and make them feel at home,” he says.

Apart from the hotel’s economical accommodation rates, several other factors attest to its rapid rise as a popular establishment among guests.

A multi-cuisine restaurant, expansive and relaxing lounge spaces, authentic Arabian experiences such as ‘Sheesha’ all add up to its increased ratings. Says Mr. Arunkumar, “The head chef at City Hotel is probably one of the best in Duqm. He is known for his liberal use of local and international ingredients, attention to detail, creativity and his focus on quality, taste and service. Our

With the region of Duqm being developed as an industrial port and harbour town as well as a prime tourist destination, City Hotel Duqm will service requirements for high quality facilities to maximise investment potential from these three sectors.

Areesh Restaurant offers multi-cuisine specialties for breakfast, lunch and dinner apart from a theme buffet that features country-specific specialities.”

Guests also have access to the hotel’s Kushk lounge where they can unwind and enjoy mocktails over a game of pool or during a live karaoke performance!

At the hotel’s Sheesha Lounge, guests and visitors can revel in the ultimate experience of Arab style relaxation – the quintessential ‘sheesha’ – while they watch big screen television and languidly take in grand views of the hotel’s lush gardens and the region’s rugged scenery. Skilled and professional services and free wi-fi for residents are some of the other luxuries offered.

“City Hotel Duqm always meets or exceeds expectations. To cater to our guests business needs, the hotel’s Business Center is fully equipped so that it can accommodate any request.

The hotel’s guests can gather in the cozy lobby and listen to soft, relaxing music while enjoying a welcome drink, or Arabic coffee with dates or simply have a relaxing workout at the hotel’s gym,” says Mr. Arunkumar.

As the operator of the hotel, he and his team, ensure that there are ample incentives to sustain tourist and investor interest in Duqm and in the hotel’s positioning as a quality establishment. “We promote the area’s attractions to our customers; we also offer transportation to the port, airport,

Rock garden, reserved area, surrounding cities, beaches and other locations.

City Hotel Duqm also offers transport services such as pick-up and drop for guests from the hotel to sites or work areas and back to the hotel when requested,” he says.

In addition, the hotel, he says, introduces special room rates to companies and government entities as well as attractive packages for travelers and long-staying guests. “City Hotel’s restaurant prices are affordable for travelers or visitors to the region. Our set menu features a variety of choices and delicious food to make our guests feel at home even if they are far away from home,” he reiterates.

As Duqm makes the major metamorphosis into a world class port and town there is bound to be increased visitor interest in the region from tourists, businessmen and investors.

City Hotel Duqm, explains Arunkumar, is gearing up for this transcendental change by investing in added infrastructure and amenities. “The future plan is to have a large swimming pool, large fitness area, tennis court and well equipped spa facility and large banquet area. We are also planning to install an Arabian style “Khaima” tent in the back area for Sheesha and related entertainment,” he says.

Additionally, the company’s other properties too have made substantial contributions to the overall growth of

tourism, showcasing the Sultanate’s spellbinding beauty to the rest of the world. Its three properties Masira Island Resort, Ras Al-Jinz Turtle Reserve and Uwaifiyah Rest House all offer guests excellent hospitality facilities and access to some of the country’s most unique natural tourist attractions.

Masira Island Resort Masira Island is located 15kms off the southeast coast of Oman with miles of isolated sandy beaches and known for its wildlife. It hosts all four of Oman’s nesting species of Turtles and is world famous as the home of the largest population of Loggerhead Turtles. The Island is magnificently diverse and offers a wide range of nautical sports with excursions into the nearby deserts and hills. The island is off the coast of the Barr Al Hikman area, and can be accessed by taking a ferry.

Masira Island Resort is situated on the borders of the breeding grounds of the turtles, making it perfect destination for nature lovers. The resort lobby displays the Masirah Natural Wildlife Museum featuring the flora and fauna of this unique destination. Also, for travelers with an edge for adventure there are umpteen nautical sports to choose from.

The resort offers 22 contemporary rooms including suites and chalets with stylish feature and luxurious space offering sea facing private balconies, Satellite TV including 91

City Hotel Duqm

international channels, Wi-Fi Internet Access, Safe deposit locker, Individually controlled air conditioning system, Telephone IDD line, Tea-coffee making facilities, Mini bar, Hair drier Iron & Ironing board.

The resort also features The Dhow - An elegant ambience all-daydining restaurant, Oasis - an outdoor tavern with live performance in the evening, Sanctuary - a calm and cozy atmosphere outlet offering the perfect rendezvous and socializing, Al-Hamra - a fully-equipped meeting room to accommodate up to 75 guests, Outdoor garden by the poolside ideal for banquets and weddings and can accommodate up to 200 guests for a reception, Business centre Contemporary and well equipped, and Recreational facilities - Beach Volleyball, Tennis and Basket ball.

Ras Al Jinz Turtle Reserve The world famous Ras Al Jinz Turtle Reserve boasts of various facilities for visitors. Ras (Cape) Al Hadd is an internationally renowned nesting site sanctuary for the Green Turtles, Chelonia Mydas, harboring one of the largest nesting populations in the world.

Around 13,000 sea turtles come ashore along this sanctuary every year. Ras Al Hadd sanctuary is the largest nesting site in the Indian Ocean and the only site in the world where green turtles come every night almost all year round.

But the story of Ras Al Jinz is not just a story about turtles. It’s just as much a story about humans who have been sharing this same beach with turtles for eight thousand years and probably more. The archaeological findings at Ras Al Jinz site - although the settlement there was only a fishing village - present a glimpse into the Ancient Civilization of Maganthat, between 3000 and 2000 BCE, had culturally unified the Oman Peninsula, from the Abu Dhabi islands down to Masirah, in close connection with Mesopotamia, Iran, and the Indus Valley.

Ras Al Jinz which is part of Ras Al Hadd sanctuary is the rock that forms the easternmost tip of the Arabian Peninsula. Between the cliffs of Ras Al Jinz lay safe beaches, which have long been the favorite nesting site for Green Turtles of the Indian Ocean.

Ras Al Jinz Turtle Reserve is a world class turtle reserve and offers breathtaking natural sights, state of the art Turtle Museum (done by a French company), the stargazing experience and of course much in demand turtle 92

The Ras Al Jinz property offers a mix of well-appointed Carapace Rooms and Luxury Eco-Tents

watching experience. The property is a preserve of unspoiled natural beauty and offers guided turtle nesting excursions at night and at dawn.

Its accommodation of 31 units includes a mix of well-appointed 19 Carapace Rooms and 12 Luxury Eco-Tents (from Australia), located on a hillock closely, where visitors can enjoy the beauty of nature and modern luxuries.

Other facilities include a restaurant that offers mouth-watering dishes, a gift shop, library and a meeting room for up to 30 persons.

Stay in the nature!

The recently added 12 Luxury Eco-Tents on a hillock close to the reserve have been imported from Eco-Structures Australia and are first of its kind in Oman. These luxury tents are wind proof/ rain proof and have been

tested in cyclone hit areas as well for their safety. Residents can enjoy the panoramic views of the Ras Al Jinz sea beaches from their tents/ sit out area.

The Luxury Eco-tents are suitable to accommodate larger and smaller families as well. Each Luxury Eco- Tent has a separate Bath area, Dressing Table, Tea Coffee Maker, Safe Deposit, Mini Fridge & LCD TV.

Uwaifiyah Rest House Located en route to Salalah and Nizwa, Uwaifiyah Rest House offers a soothing reprieve from the rigours of a road trip. Its 10 spacious, wellfurnished rooms offer excellent service and accommodation and make for a great stopover from a long journey. The rest house also guarantees visitors a peaceful ambiance together with warm and welcoming Omani hospitality.

CITY HOTEL-DUQM One of many best kept secrets of Al Wusta Governorate Your comfortable base in Duqm during your official, business and investment-related visits to this mega-hub of the future Luxurious rooms, world-class business facilities, gastronomic choice of cuisine and impeccable service‌ Experience it at all City Hotel-Duqm

City Hotel - Duqm PO Box 85, Postal Code 711(Haima) Duqm Sultanate of Oman : (+968) 25214900 : (+968) 25214933 : rsvn@cityhotelduqm.com

www.cityhotelduqm.com

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Duqm Rock Garden

Duqm Rock Garden:

A geological marvel

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omplimenting Duqm’s – and indeed the wider Wusta governorate’s – stunning natural appeal is one of Oman’s most spectacular geological wonders – a Rock Garden.

This unique geological attraction, which located in the heart of the Special Economic Zone at Duqm, has been conferred the status of a protected heritage site and will thus be carefully preserved under a joint initiative planned by the Ministry of Tourism and Ministry of Heritage and Culture in close coordination with the Special Economic Zone Authority at Duqm (SEZAD).

The Rock Garden is made up of limestone and sandstone rocks that were formed in an underground freshwater aquifer more than 46 million years ago. The action of wind, water, frost and other natural forces over millions of years resulted in the formation of these sculpted rocky wonders spread over a three-square kilometre area.

The Minerals Department of the Ministry of Commerce and Industry ranks the Rock Garden as one of the top 25 sites of geological scientific importance in the entire Sultanate of Oman. This view is also endorsed by the World Heritage Society, which in a report published in a reputable journal, describes the Rock Garden as formations of exceptional scenic beauty that provide visitors with an “impressive insight of the geological and geomorphological wonders of our planet”.

According to Dr. Reto Jagher, Chief Investigator of the Central Oman Paleolithic Survey (COPS), Duqm’s archaeological potential is of a magnitude “rarely seen in prehistory even on a global scale”.

Accordingly, a number of measures have already been taken to conserve this extraordinary geological attraction. This includes a formal decision to protect the site. Efforts have also been made to delineate its boundaries and document other locations of geological importance in the Duqm area. An Integrated Tourism Strategy covering these attractions is also under formulation.

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Duqm Rock Garden

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Glimpses of Duqm

Duqm average temp Between

20째C / 68.0째F and

30째C / 86.0째F

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Glimpses of Duqm

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Oman Airports Management Company

Oman Airports Management Company (OAMC):

A formidable operator at the helm As it prepares to take over operation and management of the Sultanate’s two upgraded and modernised international gateways at Muscat and Salalah, as well as a clutch of domestic airports, Oman Airports Management Company SAOC (OAMC) will inevitably find itself catapulted into the big league of airport operators.

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or Oman Airports Management Company (OAMC), the transition from the present two-airport operation to a five-airport one – slated during the 2016-17 timeframe - promises to be momentous from many standpoints.

One, it heralds a new coming of age for the country’s national airports operator as it ramps up its capabilities to take on a significantly beefed up operational mandate. Two, it is set to play a pivotal role in the promotion and marketing of Oman as a tourism destination and regional aviation hub. Thirdly, central to its mandate as a key stakeholder in the national aviation industry is a responsibility to leverage the country’s airport and aeronautical industry to support economic development through employment generation, fostering business investment, and generating new revenue streams for the local and national economy.

OAMC’s acting Chief Executive Officer, Mr. Vic Allen, is upbeat about the company’s expanded

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Mr. Vic Allen OAMC’s acting Chief Executive Officer

responsibility. “In terms of gearing up for all these new airports, OAMC is moving full speed ahead.

A separate department has been constituted within OAMC to coordinate and spearhead all of our preparations for the new airports,” he said.

Preparations encompass a broad spectrum of objectives, such as staff recruitment and training, procurement of interior furnishings, operation and maintenance of airport equipment such as baggage handling, passenger bridges, information technology systems, fire-fighting and safety, customer services, and so on.

As with any large and complex enterprise, staff recruitment and training ranks high on OAMC’s list of priorities. “Total staff numbers of OAMC will rise from around 600 to 1,800 in order to come up with the personnel required to operate the new airports. That’s roughly three times the original size of the company. Our recruitment is progressing well. We’re trying to

Total staff numbers of OAMC will rise from around 600 to 1,800 in order to come up with the personnel required to operate the new airports. That’s roughly three times the original size of the company.

Oman Air currently operates a thrice-weekly service to Jaaluni

Duqm Airport’s newly built runway

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Oman Airports Management Company

recruit well educated young Omanis as much as possible and provide training for them to carry out the functions at the new airports,� Mr. Allen said.

While Muscat and Salalah are still some time away from completion, OAMC anticipates a role for it in the early-phase start-up of Sohar and Duqm airports. Both facilities are expected to be ready for fullfledged commercial operations during 2016/17, but with the runways at both locations suitably tested, the Ministry of Transport and Communications and the Public Authority for Civil Aviation (PACA) are actively exploring the potential to offer temporary services before the end of this year. Thus, pending the completion of the passenger terminals, among other facilities, at the two locations, the possibility of offering temporary flights into and out of Sohar and Duqm, is being keenly studied.

Significantly, temporary air services are already a reality at Duqm, where the Omani government is overseeing the development of a huge industrial and petrochemical hub. Working in coordination with the Special Economic Zone Authority at Duqm (SEZAD), OAMC is operating an airfield that belongs to the Royal Oman Police at Jaaluni, about 40km 100

from Duqm SEZ. A staff complement of around 29 OAMC employees has been attached to Jaaluni Airport, from where only narrow-body aircraft can operate to and from Muscat International Airport. This number will be ramped up to 45 staff when the new airport at Duqm is fully operational sometime during 2016/17.

Air services are envisaged as the quickest, effective and most convenient mode of transport from Muscat. Completing Duqm Airport in a timely manner is thus a key goal for the Ministry of Transport and Communications. The facility is seen as indispensable to the goal of attracting local and foreign investors, business persons, consultants and even tourists to Duqm.

When operational, Duqm Airport will have a capacity to handle 250,000 passengers per annum.

Furthermore, given the airport’s proximity to the SEZ, the ship repair yard of Oman Drydock Company, and other current and future mega installations, a dedicated air cargo services terminal is planned on the airport with a capacity to handle 50,000 tons of air freight per annum.

Omanisation at the wholly Omani government owned company stands at an impressive 90-plus per cent.

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Bank Muscat

Bank Muscat:

Committed to adding value to Duqm Port, SEZ development Bank Muscat recognises the investment prospects and potential that Duqm offers and is committed to supporting the strategic national initiative to develop Al Wusta Governorate and identify opportunities aimed at attracting investment in line with Oman’s Vision 2020 economic blueprint.

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uring the last 32 years since its inception in 1982, Bank Muscat has been closely involved in the progressive march of the nation. The outlook for Oman’s economy is positive and in view of the government commitment to infrastructure development and industrialisation, Bank Muscat anticipates considerable growth opportunities in Duqm.

Bank Muscat recognises the investment prospects and potential that Duqm offers and is committed to supporting the strategic national initiative to develop Al Wusta Governorate and identify opportunities aimed at attracting investment in line with Oman’s Vision 2020 economic blueprint.

Bank Muscat has been involved in various initiatives to promote the Special Economic Zone in Duqm.

The bank participated as a strategic partner in a high-level conference highlighting ‘GCC Investment Prospects at the Duqm Special Economic Zone’. The bank also participated in various high-level meetings and delegations with the Special Economic Zone Authority at

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Bank Muscat has been involved in various initiatives to promote the Special Economic Zone in Duqm.

Duqm and the Port of Duqm.

Bank Muscat has opened a stateof-the-art branch in Duqm as part of its commitment to adding value to national development initiatives.

The bank’s involvement in Duqm Port and special economic zone projects stems from its commitment to the government objectives to diversify the national economy in non-oil sectors, creation of employment opportunities to young educated Omani youth and expansion of industrialisation in the Sultanate. The expanding branch network, especially in areas where developmental activities are gaining momentum, highlights Bank Muscat’s focus to remain the nation’s bank of first choice. The extension of the branch network in Duqm reiterates Bank Muscat’s commitment to the country’s future development.

Bank Muscat’s commitment to add value to Duqm is supported by its proven track record of benchmark project finance and investment transactions. As a result, Bank Muscat has been credited with many first-ever transactions, including the long-term Sohar Free Zone project

Bank Muscat has opened a state-of-the-art branch in Duqm as part of its commitment to adding value to national development initiatives.

Dignitaries pictured at the opening of Bank Muscat’s new state-of-theart branch in Duqm: (l to r) His Highness Sayyid Taimour bin Assad Al Said (Guest of Honour); Mr. AbdulRazak Ali Issa, Chief Executive of Bank Muscat; and His Excellency Yahya bin Said Al Jabri, Chairman of the Special Economic Zone Authority at Duqm

finance, the first-ever Greenfield project finance transaction in Oman in Salalah Free Zone, and the first ever mezzanine transaction in Oman, to name a few.

Bank Muscat’s experienced team of project & infrastructure finance professionals and its 24-member strong team of experienced investment banking professionals, which constitutes the largest pure advisory desk in the Sultanate of Oman and the region, is active in all types of debt financing and equity funding, offering unique solutions which combine their deep local knowledge, experience and expertise with extensive structuring capabilities and product understanding. The bank is well positioned to offer tailored solutions to the Special Economic Zone and Port of Duqm.

The key to the bank’s project finance proposition is the constant endeavour to add value to projects through financial structuring to ensure bankability. These services are backed by innovative financial structuring, sectoral expertise and sound due diligence techniques. The bank is focused on maintaining its

Bank Muscat’s newly launched and fullyequipped branch in Duqm

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Bank Muscat

As the Sultanate’s largest lender, Bank Muscat has pledged to make a robust commitment to Duqm’s future growth

leadership position in the project finance domain.

The growth strategy is based on leveraging strong client relationships and enhancing client servicing capability at the operational level. The bank’s reinforced approach directed at specific economic sectors and business groups has enhanced customer confidence leading to stronger relationships.

Bank Muscat is the only bank in Oman to offer a full suite of treasury products and services ranging from products linked to exchange rates, interest rates, fixed income instruments and commodities. The availability of foreign currency is ensured at all times, actively monitoring and hedging interest rate risk. By initiating proactive measures, margins are protected though lending spreads globally.

Among Omani banks, Bank

Muscat has the largest underwriting capacity and the strongest customer base. The project finance team has the expertise and experience in arranging equity, advisory services, syndication and providing financing solutions to project owners and private investors.

As the flagship financial institution in Oman with assets worth over USD 22 billion, Bank Muscat accounts for 37 per cent market share of assets.

The bank enjoys investment grade credit ratings and is rated ‘A1’ by Moody’s and ‘A-’ by Standard & Poor’s. The bank’s biggest footprint and presence across the Sultanate and world class products and services are helping to make the vital differentiation, with the focus on its ‘Let’s Do More’ vision.

Bank Muscat offers the complete range of innovative banking products and services to the largest banking family in Oman. The bank

has an extensive network of 137 branches in Oman, as well as direct and indirect presence in all six GCC states, including a branch each in Saudi Arabia and Kuwait, as well as an office in Singapore which focuses on financial institutions and trade business. With the best and most knowledgeable team in the country, Bank Muscat remains committed to providing a world class banking experience.

Ranked among the top 500 banks worldwide, Bank Muscat enjoys the flagship position in Oman, a clear recognition endorsing the global best practices pursued by the No.1 financial institution.

Bank Muscat’s core business activities include Retail Banking, Corporate Banking, Investment Banking, Treasury, Asset Management, Private Banking, Financial Institution and International Operations.

Bank Muscat’s head office in Muscat

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National Bank of Oman

National Bank of Oman:

Duqm’s financial backbone and project financier National Bank of Oman seeks to continue its support to large infrastructure projects in Oman, and maintain its role as a significant player in the banking industry,

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he National Bank of Oman’s association with Duqm and its burgeoning image as a frontier town is one that predates any development in the region. It is a relationship born out of the bank’s commitment to the Sultanate’s Vision 2020 plan and the attendant goals of economic progress and nationwide growth.

The bank has been at the fulcrum of Duqm’s development; right from the get-go, when Duqm was just gathering appeal to investors as a region of immense opportunity, the National Bank of Oman was the most reliable if not the only solution to financial assurance and project funding. To date, NBO is the only financer for all the major projects currently in progress, serving as the region’s financial backbone that has remained firm and supportive of Oman’s visionary goals for the region.

That is how Hassan Shaban, Head of Government Banking at the National Bank of Oman, describes the bank’s close involvement with Duqm’s sweeping developments. The

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pride and honour in his voice is unmistakable when he says, “National Bank of Oman is proud to be the first and so far the only bank to have financed large projects in Duqm.”

He cites the biggest and most compelling example of Duqm’s much talked about Frontier Town Project being undertaken by the Duqm Development Company.

The project’s entire funds of RO25 million was financed by NBO. In addition the bank also provided quality accommodation for employees of the Oman Dry Dock Company (ODDC). “As of now, National Bank of Oman is the only bank which has provided project financing in Duqm, as the ODDC project was fully funded by the Government without any bank financing,” says Shaban.

In addition to providing long term project financing for the DDC’s Frontier Town Project, NBO will be extending its role as Duqm’s key financer by offering additional funding in association with other banks. “This will be mostly for the various large infrastructure plans in the

National Bank of Oman is proud to be the first and so far the only bank to have financed large projects in Duqm

In the last five years, a period when Oman has undergone significant transformation as a global economic contender, the National Bank of Oman has been a key financing ally.

Hassan Shaban Head of Government Banking

pipeline for Duqm, including the Duqm refineries and the petrochemical complex amongst others,” explains Shaban.

A ‘top performer’ in Oman’s banking sector As one of the oldest and, possibly, largest financial institutions in the Sultanate, the National Bank of Oman ranks number two against the industry’s most common criteria for validating a bank’s growth and market share. “Yes we are the second largest bank in terms of commonly used criteria such as profits and assets size with a market share of around 15 per cent. But more importantly NBO is one of the top performers when it comes to many key financial parameters including total shareholder returns. Our aspiration is to outperform the market on a consistent basis and we have skilled and motivated human resources to accomplish this,” emphasises Shaban.

With Oman’s 2014 GDP projections still standing the same as last year’s five per cent, NBO’s growth, he insists, has outstripped

The bank is well positioned to take advantage of any growth opportunity where it can see value to its stakeholders

Oman’s GDP plus inflation over the last few years. “It has also grown its loans faster than the total credit growth in the market, clearly implying the stronger role it has played in this market compared to its peers in recent years. The year 2014 will not be an exception. The bank is well positioned to take advantage of any growth opportunity where it can see value to its stakeholders,” he says.

Major project financer In the last five years, a period when Oman has undergone significant transformation as a global economic contender, the National Bank of Oman has been a key financing ally. Some of the country’s milestone projects have succeeded in reaching fruition thanks to the bank’s stable financial solutions and favourable lending policies when it comes to project funding.

“Over the last five years, National Bank of Oman has played a major role in Oman’s industrial and infrastructure sectors, and looks to continue to support

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National Bank of Oman

projects of national importance,” says Shaban.

On its portfolio is a number of significant projects including Oman Refineries and Petrochemicals Company, Octal Petrochemical Company, Electricity Holding Company plus subsidiaries, Duqm Development Company as well as all IPP and IWPPs which were established in the country including Sohar Power, Dhofar Power, Barka Power, Sembcorp Salalah and Al Kamil.

“National Bank of Oman seeks to continue its support to large infrastructure projects in Oman, and maintain its role as a significant player in the banking industry,” emphasises Shaban. The bank, he adds, will not limit opportunities strictly to government initiated projects, but seeks to extend support to corporate entities tasked with the development of these. He further points out “The government has recently announced its largest budget. We believe it is well balanced in meeting short, medium and longer term sustainable development of the nation. Several projects have been announced in creating the much needed infrastructure. Banks play an important role in supporting groups who are entrusted with

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Strategy for growth

We have a fully-fledged branch in Duqm catering to retail and SME banking, as well as ATMs in the area

these. These groups range from large and medium corporates and small entities. The bank will look to play an active role to support these entities in many different ways not only within Oman but also from UAE, where it has banking operations.”

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he National Bank of Oman’s growth plans, particularly in relation to Duqm goes beyond project financing. The bank is also keen on establishing reliable and efficient retail reach, in anticipation of a labor force influx for the region’s numerous projects. “We have a fullyfledged branch in Duqm catering to retail and SME banking, as well as ATMs in the area. There is a dedicated team located at the Head Office which regularly travels to Duqm.

They also interact on a regular basis with Duqm companies who have a presence in Muscat in order to stay on top of developments taking place in the region, to be able to offer support and services as early as possible,” says Shaban.

The bank is also stepping up initiatives to consolidate its presence in Oman. It already has a wellestablished position thanks to an efficient, countrywide network of 61 branches, 173 ATMs and CCDMs as well as two branches in Abu Dhabi and Dubai. In addition, the bank’s dedicated call centre and online banking services give customers free access to quality banking services throughout the year.

The bank is also expanding its outreach to its SME clients following the ‘overwhelming’ response to Tijarati – a product designed to meet the demands of Oman’s SME segment. “In this unit, customers enjoy the dedicated services of experienced Relationship Managers.

We are expanding the Tijarati banking to 10 more dedicated Tijarati Hubs across the Sultanate to ensure that we are close to our customers,” he adds. The bank recently opened up a new branch in Dubai as part of its expansion plans.

“In 2014, the National Bank of Oman will continue to offer superior service levels, ensuring quality in everything we do for further value addition to our customers. Also, as the needs of the market change, the National Bank of Oman has expanded its offering through various customer propositions across geographies,” says Shaban.

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HSBC Bank Oman:

Helping businesses pursue and achieve their dreams HSBC has been playing a pivotal role helping Omani families and businesses pursue and achieve their dreams, since its arrival in Oman some 65 years ago. HSBC Bank Oman prides itself on its extensive local knowledge and international expertise. This has enabled it to provide customized banking and financial services to meet customers’ growing financial needs, as it continues to help individuals and businesses achieve their potential and reaffirm its dedication to positively contributing to the Sultanate’s continued prosperity.

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ith HSBC’s distinction of being the largest Project and Export Finance franchise of any bank in the region, HSBC Bank Oman is a key player in providing project finance for industrial, infrastructure and economic ventures in the Sultanate.

Its strength lies in power and utilities, oil, gas and petrochemicals, core infrastructure and structuring Export Credit Agency supported financing to projects in these sectors. These are important sectors for the future and for sustainable economic growth in Oman, and the Bank’s management expects HSBC Bank Oman will play a significant role in advising, arranging ECA finances and supporting projects in this regard.

Key player

Oman has long been a stable market for project financing.

Numerous transactions involving local, regional and international financial institutions have been successfully concluded in the power and utilities sector. This trend is expected to continue and, in addition, a number of important 110

project financing transactions in the oil, gas and petrochemical sector are expected to come to market in the medium term that will build on several successful transactions concluded over the past 5-7 years.

Keeping in mind the Bank’s track record in project financing, HSBC Bank Oman is keen to play an important role as a key provider of project finance and funding support for investors at the Special Economic Zone Authority Duqm (SEZAD). HSBC Bank Oman has been a major participant in most of the previous project financing transactions concluded in Oman either as a financial advisor and/or lead arranger. For example, HSBC Bank Oman was a key lender under the Japanese Export Credit facility for the Sohar Port development and the Sohar Fertiliser (SIUCI) financing.

Wide range of credit and term loan facilities

Mr. Iain Morrison Head of Commercial Banking for Oman

HSBC Bank Oman provides a wide range of credit and term loan facilities to finance working capital and equipment used by contractors.

For example, the Bank recently provided an OMR 40m financing facility to a major contractor, which included bill discounting and performance bonding. In essence, HSBC Bank Oman is one of the leading suppliers of financing to contractors involved in major infrastructure and industrial projects around Oman.

Though HSBC Bank Oman does not have plans at present to provide Islamic financing, it does have significant experience in providing advisory services for PEF deals, which have included Islamic tranches.

Post-merger, HSBC and OIB clients now have access to a wider branch network, including over 80 branches across Oman. This increased footprint allows for a better coverage of infrastructure and port projects.

Oman Arab Bank

Oman Arab Bank:

Window to development OAB has been active from the very beginning with financing major infrastructure projects and branch already there to facilitate major projects going on in Duqm.

O

MAN Arab Bank has been the provider of banking services and credit lines to all the sectors in the Sultanate and has major contractors and promoters as its client in major infrastructure and industrial projects. The Bank’s current and

112

future outlook for project finance is very positive with potential opportunities available lying in infrastructure project across Oman.

The driving force behind this outlook is government supported projects in the areas of road, railway, power and oil and gas

sectors.

Michel Lefur, OAB’s Deputy General Manager Corporate Credit and Business Development, asserts the Bank’s long standing role as a major player in Oman’s development for so many years and loves to carry forward this legacy together with parent group Arab Bank.

In Duqm, OAB has been active from the very beginning with financing major infrastructure projects and branch already there to facilitate major projects going on in Duqm. The Bank is closely monitoring the developments in Duqm and it is prepared to offer far better services to new facilities including Duqum Refinery.

“We are open to expansion as and when needed to cater to the needs of Special Economic Zone Authority Duqm (SEZAD). As a banker we have provided banking services and credit lines to the major contractors and promoted major infrastructure and industrial projects in Oman that include Bechtel Airport , Astaldi Expressway and Al Gubrah Desalination plan to name a few,” said Lefur.

Oman Arab Bank also has Islamic window to look into opportunities in the future for project funding. It has an independent Islamic banking window under the brand name ‘Al Yusr’, the products of which have special focus on retail, SME and corporate banking segments. Some products are also tailored according to the needs of Omani customers.

113

Strabag Oman LLC

Strabag Oman LLC:

Laying the framework for better infrastructure A ‘local company’ with more than 43 years of experience in construction in the Sultanate, Strabag Oman LLC is driven by a mission to assist and support the government in its goals of infrastructural development. STRABAG was established in Oman in the year 1970.

Subsequently it was incorporated as Strabag Oman LLC in 1985.

S

trabag Oman LLC is owned by local investors and Strabag SE. Our Parent company Strabag SE was the first registered Construction Company in the European Union (EU). Since 1998, an Austrian investment group has developed the “New Strabag SE. The company - backed by the support of its parent firm – has been developing the use of state-of-the-art technology and expertise. It boasts a diverse portfolio ranging from construction of roads, airports and runways, dams, culverts and retaining

114

walls flyovers and building, to marine works bridges and sports and recreation complexes.

The company has been a key player in some of the country’s major infrastructural projects that have helped build a solid framework for Oman’s industrial and economic goals. In Duqm, Strabag Oman continues its successful decadeslong partnership with a selection of premier road-works projects that are part of the government’s planned developments for Duqm. Last December the company was awarded

a new road contract totalling USD120 million to build a 100-km section of the 400-km-long road between Sinaw and the Duqm industrial zone. The project also entailed the installation of street lighting and other road safety structures.

Earlier, in 2011 the company secured a USD210.3 million contract to build access roads to Duqm port and the adjoining dry dock. According to the contract, the Austrian company’s subsidiary in Oman was required to build six-lane, four-lane and two-lane expressways as well as access roads from the arterial DuqmMahoot highway right into the port’s facilities. The company was also assigned construction of drinking water and fire-fighting water lines, waste water and irrigation systems and power and telecommunications infrastructure. The scope of work also included construction of more than 30km of road and building structures to divert some of the wadis.

Its road construction projects in Duqm and elsewhere in Oman have resulted in the company having completed over 12,000 kilometres of roads in Oman to emerge as pioneers in the road construction industry. Driven by a workforce of 2,500 employees Strabag Oman has helped the Sultanate bridge gaps in the infrastructure by building roads across the length and breadth of the country.

The company’s endeavour towards excellence in construction quality, safety, performance, employee satisfaction and social responsibility has enabled it to be the most trusted and sought after engineering, procurement, construction, operation and maintenance and project management company in the region.

It has consistently delivered projects, providing value-added engineering, construction and service skills to customers for whom the quality of execution, efficiency and reliability are critical.

Oman L.L.C

Worldwide Experience With our experience of our partner company Strabag SE, in constructing international projects at the highest level we have made a name for ourselves - worldwide. Vision, courage and expertise have been the keys to our success all around the world. Since our first international operation in 1891, we have been implementing global projects and have left our mark on all continents. For example, we were in Argentina in 1911 with harbour facilities, built railways in Iran in 1938, hydro electric power plant in Iraq in 1953.

The first international railway in Nigeria was built in 1959, 1965 we finished water barrage in Pakistan and in 1967 dams in Morocco. Today, the STRABAG Group has operations around the world - in more than 60 countries worldwide in all classical and niche construction segments.

Oman STRABAG Oman LLC

Building No 700 Way No 5007

P O Box 444 100 Muscat Sultanate of Oman

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Mohsin Haider Darwish LLC

MHD BRINGS THE TOOLS FOR THE JOB As one of Oman’s longest-standing and largest business houses, Mohsin Haider Darwish LLC know better than most how much Oman has developed during the last forty-four years. With the Duqm Special Economic Zone marking the most ambitious development in the Nation’s history, there is a boom in construction and strong demand for resilient and proven equipment.

“

Duqm is a city, and industrial park and a major port project all being built effectively from nothing. As well as this unprecedented construction, it needs roads and an airport to bring it closer to the rest of the country and the international businesses it is attracting. In short, the civil work related to Duqm is something the like of which we have never seen.

And that means a lot of contractors with some vast projects. We are bringing them the machines and the support to build this city”, said Ramaswamy Krishnan, Director of MHD’s Engineering Products Division.

“We are bringing the right tools for the job: high-quality equipment that’s proven in Oman and the region, with market-leading price competitiveness”.

116

Among the most promising products for the Omani market are BEML’s medium and heavy dump trucks, and popular bulldozer models.

“What the BEML range brings is good quality at excellent prices: highend proprietary design, imported top-of-the-market components, and established quality control – combined with cheaper assembly costs. BEML’s specifications are unrivalled, yet they can beat all their equivalent competitors on cost, which is something every contractor and operator has always to bear in mind”. The BD155 dozer now has thousands of trouble-free hours on reservoir and highway projects in Oman, despite its recent entry to the market.

MHD also offers BEML dump trucks with capacities ranging from 35 up to

117

Mohsin Haider Darwish LLC

a massive 150 tons. These dumpers are equipped with high power engines, automatic transmissions, and offer both a high power to weight ratio and faster cycle time with large volumetric body and low loading height to ensure high productivity.

“These larger dump trucks are vital for large scale works, and we’re looking at Oman’s growing mining sector as well. This kind of quality versus price is unbeatable, which is why these vehicles are at work on every Continent and already proven in the demanding conditions of the Middle East. BEML have a lot of potential in Oman and we’re delighted to be bringing them here now when projects as important as Duqm and the new airports need reliable machinery to make them happen”.

Alongside BEML, MHD has had success with class-leading products from around the world: Sakai Rollers from Japan have also been seen on every major project in Oman, such as the Expressway and Dualization projects. The new SV520D model is available in stock from MHD. Other leading products are Generators from FG Wilson, Dumpers and Mixers from Winget – all made in the UK, Doosan of South Korea, and Mitsubishi’s popular forklift range. They also sell a wide range of personal protective, safety and testing equipments from Drager, Germany.

MHD’s Engineering Products Division now has a purpose-built, integrated facility in Ghala Industrial 118

Mohammed al Kharusi Group Director for Business Development

– close to the Expressway, and housing both a modern showroom and a large engineering facility.

Some of MHD’s mixers, hoppers and other equipment are actually assembled at the facility that also boasts a state of the art maintenance workshop and a separate high-tech paint booth. “The success we’re having is simply a matter of trust in the product, and a great price. We will be looking at a special service to delivery equipment to Duqm and

Ramaswamy Krishnan Director of Engineering Products Divisionof DDC

collect it for service in the very near future, while of course MHD as a group is always looking to expand its footprint in this fast-growing market”, add Mr. Ramaswamy.

MHD Engineering Products is ISO 90002 certified, and one of fifteen companies and divisions in the MHD group representing some five hundred brands and products. They can be contacted on 24210802 (Ghala) and 23212893 (Salalah).2421080024210800

Rural Areas Electricity Company S.A.O.C

Rural Areas Electricity Company S.A.O.C. :

Committed to raising its reliability bar THE Rural Areas Electricity Company (RAEC) is committed to maintain highest order of power generation and distribution security standards by raising its reliability bar. The thrust areas for the RAEC are power system, power generation capacity, power generation efficiency of facilities, decreasing cost of generated energy units as also energy loss etc. Action has already been initiated at all the power systems owned and operated by the RAEC.

KEY FACILITATOR Rural Area Electricity Company plays an important role in fulfilling energy needs in rural areas. Its primary mandate is to provide electricity and potable water in some areas, to those living in remote communities throughout the Sultanate of Oman.

Once connected with the RAEC network, delivery, reliability, safety, affordability and environmental responsibility becomes the concern of the company that strives hard to satisfy its customers.

RAEC has been doing this successfully under the sector law since 2005 and they plan to continue doing so in the foreseeable future.

The company is implementing

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Rural Areas Electricity Company S.A.O.C

The table below presents RAEC power generation capacity and water production in 2013 and those planned to be delivered through 2018.

2013 Region

Installed Capacity

2018 No. of Production Facilities

Installed Capacity

No. of Production Facilities

Power MW Al Wusta

118

14

268

11

Dhofar

62

19

175

20

Musandam

83

3

136

3

Total

263

36

579

34

Water M3 Al Wusta

10,750

4

18,750

4

Dhofar

198

1

400

1

Musandam

450

1

850

1

Total

11,398

6

20,000

6

the following technical Initiatives in order to improve systems performance, supplying reliable and cost effective power and reduce environment pollution: Rehabilitation of power stations; Expansion of power generation and water desalination capacities; Reinforcement and extension of network systems; Developing of the metering system; Interlinking small capacity power plants to local total systems; Construction of grid line and substations to transmit power purchased from the proposed gas power station at Tibet in Musandam area and implementation of renewable energy.

The company maintains very good track record as a key provider of electricity based support, substations with all the required networks to cater all demands for Duqum port, new town, commercial and governmental berths, hotels and tourism facilities, water plant, water and sewage pumping stations, airport, ROP, internal street lighting, etc. Less than 25 per cent of the available capacity is being used. To meet the expected 120

Eng.Hamed bin Salim Al Magdheri CEO of RAEC

demand at the area, the company plans to add capacity of 80 MW to the existing power generation capacity.

RAEC looks to provide its customers sustainable and cost effective services enabled through programmmes like Implementation of projects in rehabilitation; upgrading power systems and desalination plants; operating its production plants and distribution networks in cost efficient; safe and environmentally responsible manner; develop HR management and competency frameworks while implementing projects.

Above all, RAEC’s Omanisation plan is right in place and aims to exceed the target values and develop a corporate culture of transparency and openness with effective level of communication.

In the last 3 years RAEC has completed the construction of 70 MW power stations with all the required substations and power transmission and distribution networks. They have also constructed desalination plant of 6000m3/day production capacity.

Less than 25 per cent, however, is being used as of now.

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NESPAK & Partners LLC

NESPAK & Partners LLC:

Laying the roadmap for economic success As Oman continues to climb the ranks towards becoming a global economy it relies on the support of long and trusted business partnerships for the wealth of know-how, expertise and leading edge technologies these guarantee. National Engineering Services Pakistan (NESPAK) holds a coveted position on the Sultanate’s list of long-standing business alliances because it has been at the forefront of many watershed moments in Oman’s economic resurgence. Back in the day when Oman was still shedding the trappings of a modest artisan village, NESPAK helped the country build and implement critical infrastructure that put it on the fast-track to progress.

N

ESPAK was established in Pakistan in 1973. It commenced operations in Oman in 1980 with its fledgling project – the Al KhaburaDariz Road Project. Three decades hence, it has acquired another 168 or so projects along with a reputation of being an efficient and reliable consultancy organisation committed to assisting the Sultanate in accomplishing goals of economic diversification through a solid infrastructure framework. The company’s operations run chiefly into roads, water supply/sewage schemes and dams.

NESPAK’s long and shared history with Oman gives it the unique advantage of being able to provide consultancy expertise that reflects an in-depth understanding of the country’s requirements, its goals and ambitions.

“NESPAK has been providing consultancy services to various Government Ministries and

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Departments in the Sultanate of Oman since 1979. From a modest beginning in the `80s to mega projects, we have emerged as a consistent and dependable partner to the Government of Oman in the development of infrastructure facilities,” says the company’s Managing Director, Amjad A. Khan.

The company had started its contribution towards development of Duqm in 1998 when it designed and supervised construction of 185 km long Duqm-Kahil Road for Ministry of Transport and Communications.

It stands to reason therefore, that when the government unveiled the blueprint for the Duqm Frontier Town Project and its adjoining free zone, NESPAK was the preferred choice for contracts involving important road infrastructure.

Last November, the company was awarded a massive Package-I contract for the design and supervision of roads and infrastructure in the

upcoming Town of Duqm. The project, which is the first major step in establishing Duqm as an important township and international free zone, will see NESPAK design a network of single and dual carriageways extending up to 180 km. Also included in the contract is the designing of electrical distribution networks, potable water distribution facilities and sewage and irrigation systems.

The road network will serve the 3.9 sq km Light Industries Enterprise Area, the 7.62 sq km showrooms and logistics segment of the township and a couple of residential areas extending over 7.36 sq km. NESPAK has drawn up a design to construct the network as all-weather roads with necessary drainage systems and provisions for culverts, wadi bridges, oil and gas pipelines, railroad tracks and other utility lines.

Duqm’s Package-I project will give NESPAK an opportunity to replicate

Khasab coastal road

Wadi Dayqah dam

past successes in providing turnkey design solutions. More importantly, it will launch the region of Duqm into taking crucial baby steps towards becoming a powerful economic growth indicator for Oman. Massive infrastructure and industrial developments taking place in Duqm will certainly play an important role in Oman’s future success as a self-reliant resilient nation.

The region’s planned 23 sq km township that is located within the Special Economic Zone (SEZ) is expected to soon become a home for an estimated 67,000 inhabitants, with further projections pegging this figure at 110,000 residents once the SEZ is tenanted to capacity. Along with the government’s firm commitment to transform the region into a thriving hub, these constitute a forward thinking game plan to diversify Oman’s economy away from relying on predominantly oil-based revenues to other lucrative alternatives.

The road network will serve the 3.9 sq km Light Industries Enterprise Area, the 7.62 sq km showrooms and logistics segment of the township and a couple of residential areas extending over 7.36 sq km

In signing up for a project of such magnitude, NESPAK demonstrates a keenness to prove that it does have what it takes to deliver results on par with government expectations and international standards. Compelling statistics from the company that point to a wide field of national and overseas operations backed by a team of nearly four thousand staff worldwide; and a total project cost of USD201 billion, vouchsafe for its credentials. In Oman, the company has an accumulated USD5 billion worth of projects across various sectors – highways and transportation, environment and public health engineering and water resources, with as many as 20 projects currently in progress. Recently, the company won a consultancy services contract for the design of internal roads at Mabellah.

NESPAK has been assigned the charge of providing detailed geometric design and conducting topographical surveys for 136 km of internal roads 123

NESPAK & Partners LLC

Nespak is a key infrastructure design consultant

ZURUBBuraimi Road

124

for a housing scheme in Muscat.

The other major project is the rehabilitation of the Nizwa-Thumrait Road from Haima to Muqshin extending to a total length of 154 km. The USD44 million-project saw NESPAK complete a detailed design and currently progressing on with related operations pertaining to removal of existing pavement, reconstruction of sub-grade, aggregate base course, asphaltic base and wearing courses. Also included is the construction of detours and road safety utilities.

Other projects include design and supervision of a sewage network and treatment plant at Sur, Buraimi, Nizwa, Samail, Khasab and Misfat Al Abrean.

NESPAK was also in charge of the water supply project for Musanaah Wilayat, besides from being involved in the design and supervision of the Wadi Dayqah dam project. These are to name a few.

With Duqm, and the whole of Oman, arriving at the cusp of a 360-degree developmental breakthrough, enduring partnerships such as that of NESPAK’s will be vital from the standpoint of deploying reliable infrastructure, creating avenues for investment and employment opportunities. It is clear that in launching Duqm as a world class harbour town and free zone, Oman is already on the road towards those objectives.

NATIONAL ENGINEERING SERVICES PAKISTAN & PARTNERS L.L.C

Headquartered in Pakistan, NESPAK is a multidisciplinary engineering consultancy services firm with a presence in more than 34 countries around the world, most notably in the Gulf and Middle East region.

In the Sultanate of Oman, NESPAK has been at the forefront of the nation’s infrastructure development since we set up operations here in 1980. Over the past 33 years, NESPAK delivered a total of 168 projects with a combined project value of around US$ 5 billion. Our expertise encompasses the design and construction supervision of highways and transportation systems, environmental and public health engineering, and water resources development, among a host of other sectors. An expanding order book, that includes as many as 20 current projects, bears witness to our reputation as a world-class engineering consultancy services provider.

www.nespak.com.pk

Nespak & Partners L.L.C P.O. Box 3506, P.C 112, Ruwi Sultanate of Oman : 00968-24789668, 24701729 : 00968-24703702 : nespak@omantel.net.om

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Oman Gulf Company

Oman Gulf Company:

The road to economic progress The region of Duqm continues to develop according to government goals of transforming this once fishing-settlement into a prime destination for tourists and investors alike. Central to this development is the spate of infrastructural projects that meet crucial transport and logistics requirements. The Oman Gulf Company (OGC) can confidently lay claim to the construction of critical road infrastructure in Duqm, establishing important connections within the region.

F

rom the time that Duqm’s SEZ began to take shape, Oman Gulf Company has been, quite literally, paving the road to success for the region, helping link all of its master tourism projects and infrastructural developments.

One such critical project is the construction of a primary and secondary dual carriageway. The project is located in Duqm town in the Al Wusta Governorate. The total length of the first two roads is approximately 46 km. According to officials at Oman Gulf, the project is in its final stages of completion and will provide seamless, hassle free access to all of the region’s upcoming developments, apart from preparing the town for its transition in a fullyserviced, well-connected region.

As a company, Oman Gulf has already etched a name for itself in infrastructure long before Duqm began rising in status as a potential economic hub with lucrative prospects. The wholly owned Omani Company boasts a well-established

126

position in the Sultanate for over 40 years, with a current turnover of RO20 million as of 2013.

The company combines decades of extensive experience in project management, engineering and construction in areas such as roads, earthmoving, civil and drilling. Its leading position in the construction of road infrastructure is further bolstered by a numerous projects that have helped build a safe, durable and reliable road network across the country. Some good examples are the timely and successful completion of the Tan’am Hamra Ad’Duru Road Phase I and II with a total length of 88 Km; the construction of a link road from Mahout to Nizwa-Thumrait Road (Section 1 and 2) with a length of 58Km; the construction of ShaleemShuyamiyah road length of 40Km; the Hadbin-Hashik Road with a length of 34Kms;construction of Taqah-Ma’amurah dual carriage way with a length 20Km; construction of Mazyounah Internal Roads with a length of 43Kms including various

The project will provide seamless, hassle free access to all of the region’s upcoming developments, apart from preparing the town for its transition in a fully-serviced, well-connected region.

activities such as a Box Culvert, Pipe Culvert, Irish Crossings, concrete and steel safety barriers and road furniture. Oman Gulf has also recently completed the Al-Ajaiz air strip which will be used as the Air Base for the R.O.P. The company’s regional office is located in Salalah, while its fully equipped head office and main workshop are at Thumrait.

Numerous and well-established base camps set up at strategic location along the company’s operational sites ensure prompt and efficient service. Additionally, Oman Gulf also operates self-sufficient, mobile camps with well-experienced construction teams to maximise productivity and tackle challenging projects.

Oman Gulf’s current scope of work for road works at Duqm also extends to construction of drainage systems such as Irish bridges, pipe and box culverts, proper traffic signs, road markings, barriers, dyke, protection works and street lighting.

127

Oman Gulf Company

Also included are earth works, construction of aggregate, asphalt and concrete pavement layers, among other necessary components.

On the company’s current project portfolio are the previously mentioned road construction works for Duqm and three maintenance projects for which Oman Gulf has been contracted out to carry rehabilitation works on the NizwaThumrait Road. Also included in the company’s list of ongoing projects is the maintenance of track and paved roads in the A’Sharqiyah North and South and A’Dakhliyah governorates.

In addition to being a leading road construction and transport company, Oman Gulf also offers its expertise and experience in water well drilling up to depth of 1,200 metres. The company has successfully completed numerous wells for the Ministry of Regional Municipalities and Water Resources, the Governorate of Dhofar – Directorate of Water Supply, Salalah and other clients from the private

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46

sector.

The company’s operational

km

is approximately the total length of the first two roads

credentials also run into civil engineering, and has been the contractor of choice for such projects for Petroleum Development Oman over the past 15 years. Other clients in this category include Occidental of Oman Inc; independent oil and gas companies such as Gulf Stream and Resources, Japex Oman Ltd, Phillips Petroleum 66, ELF and ARCO Oman Inc. When it comes to health and safety of its staff, Oman Gulf operates a stringent and recognised HSE policy and is registered in the internationally accredited ISO 9002 Quality Assurance Programme. These have been implemented to the full satisfaction of its employers. Above all, the company is keen to highlight the expanding list of satisfied clients as a testament of is ability to execute challenging projects against all odds. Inclement weather or difficult terrain has not dissuaded its team of dedicated workers from laying the road for a smooth ride into Oman’s future.

OMAN GULF COMPANY L.L.C Civil Engineering Contracting and Trading

Head Office:-Tel:23279727/23279722 Fax:23279796 Muscat Office:Tel:24449253/24449254,Fax:24449256 P.O:Box:223 || Postal Code:211 || Salalah || Sultanate of Oman Email:info@omangulf.com.om/omangulf@omantel.net.Om www.omangulf.com.om Specialist in Civil Engineering,Road Contracting,Water Well Drilling,Earthmoving and Transportation

Directory

Sr.

COMPANIES

PHONE NO:

FAX

EMAIL

COMPANIES 1

SEZAD

24507500

24587400

info@duqm.com

2

Port of Duqm

24342800

25587343

info@portduqm.com

3

Oman Drydock Company

24520222

24520360

marketing@omandrydock.com

4

OMRAN

24391111

24391112

info@omran.om

5

Oman Oil Company

24573100

24573101

info@oman-oil.com

6

Takamul Investment Company SAOC

22004333

22004300

info@takamul.com

7

Duqm Development Company

24636200

24604287

ddc@ddc.om

8

Oman Airports Management Company

24518030

24518088

feedback@omanairports.com

9

Rural Areas Electricity Company

24473254

24473244

info@reefiah.com

10

Renaissance Services SAOG

24700127

24700127

metilda@tawoos.com

11

Nespak

24789668

24703702

nespak@omantel.net.om

12

Strabag Oman

24526905/ 99446260

24526902

strabag@omantel.net.om

13

Mohsin Haider Darwish LLC

24732550

24702685

info@mhd.co.om

14

Oman Gulf Company

23279796/99279674

23279796

arshad@omangulf.com.om

15

Galfar

24525000

24591676

galfar@omantel.net.om

16

Desert Line Projects

24494845/ 99446727

24613345

dlpoman@dlpoman.com

17

Consolidated Contractors Company

99445191/24515100

25515245

rmiddian@ccc.com.om

18

Hanjin Heavy Industries

24490884

24490669

hajin.arjun@gmail.com

19

Bahwan Group LLC

24793741

24789533

becoman@becoman.com

20

Iskan Oman Investment Company

24812900

24546328

info@iskanoman.com

21

AL Madina Real Estate CO. S.A.O.C

22022200

22032200

info@almadina-re.com

22

General Automotive Company LLC

24500000

24500100

webresponse@zubairautomotive. com

23

Sayarti LLC

24490430

24409500

info@sayarti.com

BANKS 24

Bank Muscat

24767103

24787768

info@bankmuscat.com

25

National Bank of Oman

24778438

24778439

info@nbo.com

26

HSBC Bank Oman

24947673

customer.experience@hsbc.com

27

Oman Arab Bank

24754444

24125145

contactus@oman-arabbank.com

28

Bank Dhofar

24726287

24726282

sk.albalishi@bankdhofar.com

HOTELS 29

Crowne Plaza Duqm

26850850

26850800

salim.alhukairiihg.com

30

City Hotel Duqm

25214900

25214933

fc@cityhotelduqm.com

EMERGENCY

130

31

Ibn Sina Pharmacy

25427318

24813472

32

Duqm Hospital

25427066

22057900

131

132

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