Duqm Port Leads Economic Transformation in Line with Oman Vision 2040

Duqm Port Leads Economic Transformation in Line with Oman Vision 2040

1. Event Summary

The Special Economic Zone at Duqm witnessed the opening of the second edition of the Duqm Economic Forum 2025, held under the theme “Duqm Leading the Change” and organized by the Public Authority for Special Economic Zones and Free Zones. The forum saw broad participation of over 400 attendees representing 50 nationalities, with 54 speakers and 23 international experts, reflecting the growing international confidence in the Omani economy — and in Duqm in particular.

Emphasizing the government’s commitment to supporting investment in sectors with competitive advantages.

The government is committed to supporting investment in sectors with competitive advantages, such as manufacturing and clean energy, and has formed a specialized government team to negotiate and accelerate procedures for major investors and remove obstacles they face. Duqm is transitioning from the stage of industrial establishment to a stage focused on improving quality of life and building an integrated city that combines industry, housing, services, and entertainment — a modern global trend in the development of free zones.

The transformation of Duqm into a population and economic hub

Official statements highlighted the transformation of Duqm into a population and economic hub, as more than 600 families have relocated there, and major companies and projects have begun focusing on developing living standards and services, in parallel with progress in renewable energy and infrastructure projects.

2. Strategic Agreements and Partnerships

The deepening of international partnerships and the expansion of the investment base in Duqm, including:

1. A strategic partnership agreement between OTTCO and ROYAL VOPAK of the Netherlands to establish and operate facilities for storing petroleum and chemical products, with future plans for projects in the fields of ammonia and green hydrogen. This agreement supports transition toward clean energy and reinforcing Duqm’s position as an international logistics hub for energy.

• Partnership Agreement between Energy Development Oman (EDO) and Sumitomo Corporation of Japan to establish a company specialized in supply chain management for the energy sector. This partnership represents an extension of Omani-Japanese cooperation in the fields of technology and sustainable energy.

• Memorandum of Understanding (MoU) to develop an integrated tourism, residential, and commercial project between the Special Economic Zone at Duqm (SEZAD) and the companies Tatweer and Al Abrar Real Estate. This step signifies Duqm’s transition from a purely industrial character to a fully integrated economic and tourism city.

• Cooperation Agreement between Marafiq Duqm Company and the German University of Technology (GUtech) to establish a social complex using 3D printing technology. This reflects the integration of modern technology into social and environmental infrastructure projects.

• Memorandum of Understanding (MoU) between Duqm Port and Nippon Yusen Kaisha (NYK Line) of Japan to develop cooperation in the fields of maritime transport and port infrastructure. This supports making the port a regional hub for transport and logistics services.

3. Future Vision

Structural transformation in the concept of investment in Duqm

The free zone is heading toward becoming an integrated economic, residential, and tourism city — representing a new urban model that combines work, life, and services. This transformation carries important legal and regulatory dimensions, the most notable of which are:

• The need to develop special legislation governing ownership, residency, and long-term foreign investment within the zone.

• The need to adapt real estate laws and investment contracts to the multi-purpose nature (industrial – residential – tourism).

• Updating licensing and approval systems to facilitate the establishment of diversified projects within the framework of transparency and governance.

Attracting Foreign Investments

The signed agreements confirm that Duqm has become an international platform attracting investments from the Netherlands, Japan, Germany, and others. This necessitates strengthening the legal protection of investors through:

• International commercial arbitration (as a local center in Duqm).
• Balanced investment contracts that ensure stability in legal and tax transaction.
• Flexible environmental legislation that encourages transition toward a clean economy, innovation, and renewable energy without compromising environmental standards.

Duqm as a Legislative Laboratory for Sustainable Development

Duqm is expected to become a model for implementing modern legislation in green economy fields, such as:

• Renewable energy laws.
• Environmental and social responsibility systems for investors (ESG).
• New regulatory frameworks for modern construction technologies such as 3D printing and artificial intelligence in infrastructure.

In its development trajectory, the Public Authority for Economic Zones aims to establish a legal code for industrial zones that are investment-friendly, with flexible and transparent frameworks for investors, work environments, and logistics systems.

Tourism and Real Estate Sector – The Next Opportunity

The shift toward making Duqm a destination for luxury tourism and adventure marks a new stage in economic diversification, which requires:

• Legislation allowing foreign ownership in tourist zones under specific regulations.
• Incentive laws for resort, hotel, and tourism housing projects.
• Development of licensing mechanisms within a partnership framework between the public and private sectors.

What Can We Expect for Duqm Under the Forthcoming Legal Vision

In light of current indicators, the following can be anticipated:

1. The issuance of new regulatory amendments for economic zones during 2025–2026 to govern the relationship between investors and the authority, and to unify procedures across free zones.
2. A move toward green incentive legislation granting tax and customs exemptions for renewable and sustainable energy projects.
3. The expansion of commercial arbitration jurisdictions in Duqm to resolve disputes between foreign and local companies swiftly and transparently, along with the establishment of specialized court circuits.
4. The transformation of Duqm into an integrated legal zone with its own administrative entity, where economic, real estate, and environmental systems are harmonized and interconnected to promote smart and sustainable growth.

The Duqm Economic Forum 2025 was not merely an economic event, but rather a signal of a new phase of legislative and regulatory transformation in the Sultanate of Oman. Today, Duqm represents a laboratory of the future, where economic, legal, and environmental visions converge to present to the world a balanced model of sustainable development. Omani law firms are expected to play a pivotal role in the coming phase—through drafting contracts, structuring partnerships, and providing proactive legal consultations that ensure the stability and long-term prosperity of these projects.

Prepared by: Saied Ahmed Ahmed

Al Alawi and Co. – Advocates and Legal Consultants