Oman signs 28 deals worth $790m for zones and industrial cities

Muscat, Oman - Oman's Public Authority for Special Economic Zones and Free Zones has concluded 28 investment deals valued at more than $790 million (OMR 304 million) for new projects and expansions across the country's special economic zones, free zones and industrial cities.

The deals take up more than two square kilometres of land, and span industrial manufacturing, food production, logistics, recycling and commercial activities.

Industrial cities run by the Public Establishment for Industrial Estates (Madayn) took the biggest portion, at about $383.9 million (OMR 147.6 million).

Sohar Free Zone came next with $152.1 million (OMR 58.5 million), ahead of the Special Economic Zone at Duqm at $143.3 million (OMR 55.08 million), Salalah Free Zone at $85.7 million (OMR 32.95 million) and Khazaen Economic City at more than $27 million (OMR 10.4 million).

The authority said it expects the projects to support Oman's drive to diversify its economy, grow industrial output and draw in private investment, in line with the goals of Oman Vision 2040.

The largest single commitment is in Sohar Industrial City, where Atlas Steel will put more than $291.3 million (OMR 112 million) into an iron and steel products plant on roughly 440,000 sq m. Fujian Mancheng Industries and Investment is investing $52 million (OMR 20 million) there in a ceramics facility of more than 241,000 sq m.

In Raysut, Gulf Company for Organic and Biological Fertilizers will build an $18.2 million (OMR 7 million) plant making phosphate and nitrogen fertiliser. The remaining Madayn projects, in Raysut, Ibri and Nizwa, cover structural metal products, paper and corrugated cardboard, and equipment and services for the oil and gas sector.

The official release names those investors as Sahm Samhan Trading and Contracting in Raysut, National Paper Investment in Ibri, and Al Hilal Oil and Gas Services and Shandong Yukos Petroleum Equipment in Nizwa.

Qais Mohammed Al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones, said the agreements were part of efforts to bring in specialised investment, make the zones and industrial cities more competitive, create jobs and widen economic activity.

He said the projects would help build local supply chains and raise value addition by linking manufacturing, logistics and supporting industries.

Al Yousef added that Oman has been working to widen its economic base beyond hydrocarbons, putting money into industry, logistics and other productive sectors as part of a long-term programme to diversify the economy.

At Sohar Free Zone, Sohar Automotive and Advanced Industries Company will invest $98.8 million (OMR 38 million) in a 317,000 sq m automobile assembly complex. It is meant to draw vehicle manufacturers, automotive supply chain firms and businesses working in advanced manufacturing.

Voltamp High Voltage Transformers plans a $39 million (OMR 15 million) plant making power and electrical distribution transformers for regional and international markets, and Lalan Middle East will spend $3.9 million (OMR 1.5 million) expanding its medical devices factory.

In Duqm, Al Jazir Feed Plant will invest $104 million (OMR 40 million) in a shrimp feed facility on about 88,000 sq m, which will supply an integrated shrimp farming project.

Salalah Free Zone's share includes a $50.1 million (OMR 19.25 million) steel structures facility by Al Nawras Industries and a $20 million (OMR 7.7 million) gypsum products project by Integrated Gypsum Company. Marai Dhofar will put $15.6 million (OMR 6 million) into making Italian cheeses and dairy products.

At Khazaen Economic City, Aleemit International Services will build a plant for electric vehicle chargers and their components worth more than $8.8 million (OMR 3.4 million), while Joger Modular Building Technologies plans a $6.5 million (OMR 2.5 million) facility for precast concrete building components.

The other Khazaen agreements cover construction materials, ready-mix concrete, industrial units, logistics facilities and warehouses.