The Special Economic Zone at Duqm (SEZAD) is one of the most ambitious development projects in Oman’s history — a new industrial city and deep-water port complex being built on Oman’s barren southeastern coastline. In 2026, Duqm is actively attracting international investment across oil refining, petrochemicals, maritime services, logistics, and manufacturing. This guide explains why Duqm matters and what opportunities it offers.
What Is Duqm?
Duqm is a coastal town in the Al Wusta Governorate, approximately 600km southwest of Muscat. Before 2010, it was a small fishing village. Today, it is the site of the Special Economic Zone at Duqm (SEZAD) — a 2,000+ square kilometre development zone anchored by:
- A world-class deep-water commercial port (Port of Duqm)
- A strategic ship repair and dry dock facility (Oman Drydock Company)
- A new oil refinery (DRPIC — Duqm Refinery and Petrochemical Industries Company) — a joint venture between OQ and Kuwait Petroleum International
- Industrial zones for petrochemical, fisheries, food processing, and general manufacturing
- A residential and tourism zone
- Duqm Airport (operational)
Why Duqm — The Strategic Logic
Duqm’s location offers specific advantages:
- Outside the Strait of Hormuz: Unlike most Gulf ports, Duqm is not in the Persian Gulf and does not depend on safe passage through the Strait of Hormuz — a critical advantage for strategic industries and energy security
- Indian Ocean access: Direct access to Indian Ocean shipping lanes connecting East Africa, South Asia, and East Asia
- Large land area: 2,000+ square kilometres provide room for major industrial complexes that smaller Gulf free zones cannot offer
- Chinese investment: Oman and China established a special relationship around Duqm, with Chinese companies making significant investments in the port and industrial zone
SEZAD — Investment Incentives
Companies investing in SEZAD benefit from:
- 30-year corporate tax exemption (extendable)
- 100% foreign ownership
- No import/export duties on goods within the zone
- Streamlined licensing with a one-stop-shop approach through SEZAD Authority
- Access to deep-water port and ship repair facilities
- Competitive industrial land lease rates
The Duqm Refinery — A Major Milestone
The Duqm Refinery (DRPIC) — a 230,000 barrel per day refinery — is one of the largest single investments in Oman’s history. When fully operational, it processes Oman crude and Kuwaiti crude to produce refined petroleum products for export. The refinery is a JV between OQ (Oman’s state energy company) and Kuwait Petroleum International, with international contractors involved in engineering and construction.
Who Is Investing in Duqm?
- China: Multiple Chinese state-owned enterprises and private companies in logistics, manufacturing, and construction
- Kuwait: Kuwait Petroleum International (DRPIC refinery partnership)
- India: Indian business groups in logistics and food processing
- International maritime companies: Using the Oman Drydock facility for ship repair and maintenance
- European manufacturers: Exploring Duqm as a base for production serving Indian Ocean markets
Frequently Asked Questions
How do I invest in Duqm?
Contact SEZAD (sezad.gov.om) — the Special Economic Zone Authority at Duqm. SEZAD has a dedicated investor services team and can facilitate land lease agreements, licences, and connections to relevant Omani government authorities.
What industries suit Duqm?
Duqm is best suited for: maritime services, ship repair, petrochemicals, heavy manufacturing, logistics and warehousing, food processing, and fisheries-related industries. It is less suitable for financial services, technology, or retail businesses that need Muscat’s business environment and talent pool.
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Also Read: Oman Real Estate 2026: Al Mouj Muscat, Foreign Ownership Rules and Property Market Guide | Oman Cost of Living 2026: Muscat vs Salalah Expenses Breakdown for Expats | Oman Banking and Finance 2026: Central Bank of Oman, Meethaq Islamic and Muscat Stock Exchange
