Duqm: The Special Economic Zone at Duqm (Sezad) has attracted billions in investment. Companies considering a move there need to understand what opening will cost and how they will reach customers. Local businesses have a stake in those decisions too, as new large-scale operations create opportunities to supply goods and services.
“Duqm Opens”, the next Duqm Now session will explore those decisions 7.30pm, Wednesday 4 November at Crowne Plaza Hotel Duqm. Abdullah Al Ajmi (pictured) CEO of OQ8 and Ulla Ali, Head of Business Development & International Markets at INVEST Oman will join moderator Talal Al Shahri, Director of Specialised Radio Stations at the Ministry of Information.
The discussion comes against a favourable assessment of Oman’s economy. The IMF’s October outlook forecasts growth of 4.1% in 2026 giving Oman a strong outlook at a time when neighbouring economies, including the UAE and Saudi Arabia, are projected to contract. S&P’s September review also affirmed the country’s investment-grade BBB- rating with a stable outlook. Duqm’s direct access to the Arabian Sea contributes to Oman’s resilience, reducing dependence on passage through the Strait of Hormuz.
A company choosing a production base still has to work through the costs of using it. A shipment waiting for a sailing leaves cash tied up in stock. A customer facing a missed deadline can take the next order elsewhere. Geography becomes valuable to a producer when the shipping service fits the business.
OQ8 brings experience of serving overseas customers from Duqm. Kuwait Petroleum International reported earlier in the year the $9 billion refinery had completed its 500th export shipment with more than 19 million tonnes of refined products shipped worldwide since exports began in 2023. Keeping an operation of that scale running also creates demand for services. Local SMEs need to understand which contracts they can compete for and what they must invest in before they qualify.
The scale of Duqm’s development makes those opportunities worth a closer look. Committed investment on Sezad reached OMR8.8 billion ($22.9bn) by June 2026, compared with OMR3.6 billion ($9.49bn) in 2021 - an increase of 144%. For a supplier deciding whether to buy equipment or recruit staff, understanding when projects will open and which contracts will recur helps shape those decisions.
International customer relationships are developing alongside this investment. Volkswagen’s memorandum with Jindal Steel Duqm covers potential supplies of up to 300,000 tonnes of lower-emission steel annually for its European plants. The arrangement connects Duqm’s planned steel production with a major international manufacturer seeking cleaner materials for its vehicles. Green ammonia provides another example. Yara’s binding agreement to purchase 100,000 tonnes annually from the first phase of ACME’s development connects production in Duqm with an established international distributor. The session will explore how producers build these relationships and meet buyer requirements on price, delivery and emissions performance.
“Before a company can supply its first customer, a lot has to come together at the site,” said Mohsin Al Kathiri of Sezad, organiser of Duqm Now. “If equipment arrives before the power and water connections are ready, the business has costs to cover and no sales coming in. We want to hear how investors manage that process, work through approvals and get help when something holds up the opening.”
Recruitment belongs in that planning too. An employer needs time to develop local recruits and arrangements that help experienced staff settle in Duqm. Housing and family services influence whether people stay with consequences for a business trying to increase production.
November’s Duqm Now will bring the experience of established operators together with the perspective of INVEST Oman. Investors will hear what establishing a business on Sezad involves and local companies will gain a clearer understanding of how to prepare for the work those operations require.