Oman - المنطقة الاقتصادية الخاصة بالدقم
The Duqm Special Economic Zone [map] is the largest special economic zone in the Middle East and North Africa, covering 2,000 square kilometers in Al Wusta Governorate, Oman. Located 550 km from Muscat, it is strategically positioned along key global trade routes, making it a prime destination for industrial, energy, and logistics investments.
Duqm SEZ is central to Oman Vision 2040, a national initiative to diversify the economy and reduce reliance on oil. Designed as a multi-sector industrial hub, the zone is home to key infrastructure projects, including a deep-sea port, a dry dock for ship repairs, an oil refinery, a regional airport, and industrial complexes. The transformation of Duqm from a quiet coastal town into a major economic center is expected to be completed by 2040.
Duqm Special Economic Zone Investment Opportunities
Investment in Duqm SEZ is expanding rapidly. By mid-2024, total committed investment reached RO 6 billion, marking a 55% year-on-year growth. This increase reflects rising interest from both local and international investors, driven by major energy and industrial projects such as the Duqm Refinery, Vulcan Green Steel Plant, and the Hyport Duqm green hydrogen initiative.
Duqm is positioning itself as a leader in green industries. Several strategic projects are already in the pipeline, including hydrogen production, renewable energy initiatives, and environmentally sustainable steel manufacturing. These developments align with Oman’s commitment to net-zero emissions by 2050 and further solidify Duqm’s role in the global energy transition.
New refinery
The recently inaugurated Duqm Refinery, with a processing capacity of 230,000 barrels per day, is a game-changer for Oman’s energy sector. It is expected to double the nation’s refining capacity, boosting exports and solidifying Duqm as a major petrochemical and energy hub.
Infrastructure projects in Duqm are designed to enhance global trade connectivity. The newly launched container terminal at Duqm Port, developed in partnership with Asyad Ports, strengthens Oman’s position as a regional shipping and logistics gateway. With a 1,000-meter quay, modern cranes, and a capacity of 26,000 TEUs, the terminal facilitates trade between the Middle East, Africa, and the Indian subcontinent.
Beyond the port, Duqm’s integrated logistics network includes road and rail connections that will streamline cargo movement across Oman and neighboring Gulf markets. The development of industrial parks, warehousing facilities, and commercial zones further supports manufacturing, export, and trade activities within the SEZ.
A Future of Opportunity at Duqm Special Economic Zone
As investments continue to pour in, Duqm SEZ is evolving into a key player in the global industrial economy. The zone’s business-friendly policies, strategic location, and advanced infrastructure make it an attractive destination for companies in energy, logistics, and manufacturing. With projects spanning green hydrogen, steel, petrochemicals, and trade, Duqm is on track to become one of the most dynamic economic zones in the region.
Additional Details for Duqm Special Economic Zone
- Total area: 2,000 sq km – for all uses.
- Land tenure: 50 years land use right.
- Tax incentives. Tax exemption up to 30 years from the date of commencement of operations, renewable for a further 30 years.
Special Economic Zone Authority Duqm (SEZAD)
The Special Economic Zone in Duqm (SEZAD) has been established as per the provision of the Royal Decree No 119/2011 issued on 26TH October 2011. The establishment of SEZAD crowns the great efforts made by the Sultanate to diversify sources of national economy. SEZAD stretches over 2,000 square kilometer with 60km long beach front. They have started developing 45% of the area, about 800 km. The remainder part of the area is left for the future expansions.
SEZAD is the biggest special economic zone in the Middle East region. This large size allows the establishment of various mega projects. The government has taken into consideration to ensure that the area is fit for a wide number of business activities to meet the needs of investors. The area is divided into eight main areas that include the port, the ship dry dock, the oil refinery. It also includes a regional airport, the heavy – medium and light industries complex. There are also residential –commercial and tourism areas plus logistic services. Necessary measures have been taken while preparing the designs to ensure ecological balance and allow residents to move from one area to another smoothly using the main and sub road networks.
Competitive advantages of Duqm Special Economic Zone
SEZAD has many competitive advantages to its credit which qualify it to become a logistic and marine hub not only for Oman but for the Gulf region on the Arab Sea outside Hormuz Straight. The area will house an advanced petrochemical industries complex that will use secured oil and natural gas supplies. It will also house an integrated manufacturing industry area that utilize the available natural resources in al Wusta governorate. Moreover, the area is known for its abundant fish resources, which qualify it to become a hub for fish processing industries and aquaculture projects. Duqm can be also an ideal destination for those seeking tranquility and peace of mind. It enjoys modest climate during summer as well as winter in addition to the natural beauty of the region.
These competitive edges are complimented by a number of facilities and incentives provided by SEZAD Authority. Thse include 100% freehold by foreigners, tax exemption for up to 30 years renewable for similar period and easy recruitment of expatriate manpower for projects in the area. Issuance of entry visas and residency permits for expatriate manpower and their families in addition to the facilitation of customs procedures. Many services are also provided to investors in the area such as registration of business and industrial activities, issuing licenses for tourism projects and issuing environmental permits. Moreover, the land usufruct in the region is for 50 years renewable for similar periods.
