Large Projects in Light of Oman's Diversification Strategy: the Case of Special Economic Zone in Duqm

Authors:

Pages: 178-186
DOI: https://doi.org/10.54664/KGLK3760

Abstract:

The Special Economic Zone Duqm (SEZD) in Oman is the largest special economic zone in the Middle East and North Africa Region allowing it to host various big projects. To ensure that the area is fit for a wide number of business activities to meet the needs of investors, area is divided into eight main areas: the heavy-medium and light industries complex, the port, the ship dry dock, the oil refinery, the tourism area, the logistic services area, the regional airport, and the residential/commercial area. SEZD has many competitive advantages to be a logistic and marine hub for Arab countries outside Strait of Hormuz. It is a hub for advanced petrochemical industry, manufacturing industry, fish industry and aquaculture projects, logistics services, educational institutions and tourism. For those seeking peace of mind and tranquility, Duqm is an ideal destination where it combines the natural beauty of the region and the modest climate around the year. SEZD provides many incentives for investors such as: exemption from profit tax for up to 30 years and renewable for similar period, 100% freehold by foreigners, easy recruitment of manpower, and imports of raw materials into the zone are tax-free. These facilities and incentives give SEZD a competitive advantage. SEZD is an ideal example of an integrated economic development zone. Government of Oman is trying to achieve the following national objectives from establishing such economic zone: first, economic diversification; second, sustainable economic growth; third, securing job opportunities; fourth, balancing Oman’s regional development; finally, increase private sector contribution to GDP.

Keywords:

Economic zone; big projects; economic diversification; national objectives; Oman.

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