100% foreign ownership in Duqm zone

Investors stand to benefit from a package of incentives as part of a regulatory regime which guarantees 100 per cent foreign ownership of businesses. The authority, for its part, will facilitate all necessary approvals and procedures. This was announced by Ismail bin Ahmed al Balushi, Deputy CEO, SEZAD, during a visit by a group of local investors to Duqm late last week.

The visit was an opportunity for the Omani business community to witness at first hand the development of infrastructure at the zone, and the multiplicity of options to invest in its various clusters. The delegation also toured the Port of Duqm, townships, the Rock Garden tourism site and other landmarks. Al Balushi voiced his satisfaction over the progress made to date in the field of transferring the affiliation of the projects at SEZAD from the government agencies to the Authority. "The business area has been attracting a lot of investors from different continents including Asia, Europe and the Americas, many of whom have already visited the zone, while others plan to do so soon," he added. Answering queries from the Omani delegation, Al Balushi said the Authority will provide a full range of infrastructural facilities for investors.

"The total land area of 1,770 sq km is divided into two parts, designed to enable the Authority to gradually expand it. The Authority is now focused on an 800 sq km area which includes the dry dock. Over the past two years, the dry dock has been receiving a number of ships for repairs and maintenance. "Also in operation within this area is the Port of Duqm, which has already commenced early operations and will be ramping up its capabilities soon." He added that construction work on a major refinery is expected to start in 2015 with completion slated for 2018. The project aims at enhancing the Sultanate's status in the field of petrochemical industries, while generating significant job opportunities for Omanis. Hussain Salman, an Omani investor, commented: "What we're seeing is amazing. The SEZAD has accomplished a good deal in the phased development of the economic zone. Of course, as investors, we are still concerned about the availability of support services necessary to sustain any business in such a green-field area. We hope the government represented by SEZAD will provide exceptional facilities for Omani investors.

"Although we understand that SEZAD will provide a lot of facilities for investors, we look forward to something exceptional for Omani investors in order to attract them to invest in this place." Welcoming the government's efforts to develop an airport, hotels, gas utilities and other infrastructure, Hussain Salman nevertheless appealed for more robust assurances to make it attractive for Omani businesses to set up operations in Duqm. "We also need expertise from other countries, such as China, India and Malaysia, that have successfully developed commercial hubs," he stated. Conceived as a logistics hub, the Duqm SEZ has the potential to catapult industry in Oman to a new level and increase import and export trade, providing lucrative upstream and downstream opportunities for investors at both ends of the supply chain. Advantageous investor benefits, combined with existing trade agreements and financial incentives, make Duqm an attractive proposition.

The Duqm project will also play a key role in balancing Oman's regional development. The Special Economic Zone at Duqm will become a strategically-located, multi-industrial and commercial centre in the Al Wusta Governorate with far-reaching benefits for the Sultanate. Allowing up to 100 per cent foreign ownership and tax exemptions, Duqm is expected to generate 20,000 new jobs and attracts $15 billion in investment within the next 10 years as industry diversifies and new technologies evolve. Offering state-of-the-art commercial, port, logistic, manufacturing and industrial facilities, and with superb transport connAir Jordan XIII Slippers