Tuesday 23 / April / 2024
Yinchuan (China): Chinese companies can take advantage of attractive investment opportunities in Oman, said a top-level official at the Special economic Zone Authority Duqm (Sezad).
Yahaya bin said Al Jabri, chairman of Sezad, said that the Sultanate ensures the success of Chinese investments, which are built on the close friendship, cooperation and mutual interest between the two countries.
“Today I want to convey a clear and brief message that there are lucrative business opportunities for the Chinese private sector, either operating alone or in partnership with the Omani private sector,” said Al Jabir, while addressing a gathering at the China-Arab States Expo 2017 here.
“The investment projects that will be completed in Duqm will not only be lucrative for promoters, but also will contribute to the efforts made by the Sultanate to diversify the national economy, reduce reliance on oil revenues, impart technology and technical expertise, create job opportunities for Omani youths and increase productivity in various economic sectors, especially industry,” added the Sezad chief.
The Sultanate’s delegation to China-Arab States Expo 2017 was led by Al Jabri and included representatives from public firms. Oman’s participation was for promoting investment opportunities in the country, especially in Duqm special economic zone.
A large number of Chinese private and government officials and representatives of Arab, Asian and African countries participated in the China-Arab States Expo 2017.
Chinese investment
Al Jabri hailed the Chinese investments in Duqm. He said that a key foundation has been laid in the Chinese foreign direct investment programme.
Xian Hui, Governor of the Ningxia Autonomous region, received Al Jabri and his accompanying delegation currently visiting China as part of the Sultanate’s participation in China-Arab Expo and ‘Invest in Duqm’ promotional campaign organised by the authority in three Chinese cities.
She confirmed Ningxia’s commitment to invest in Duqm and implement the previously agreed projects between Sezad and Wanfang Oman Company as part of a Cooperation and Development Agreement signed between the two sides in 2016, which provides for the implementation of about 35 projects with investments of about $10.7 billion.
During the meeting, Al Jabri briefed the participants on the strategic location of the Special Economic Zone in Duqm on the Arabian Sea, which is open to the Indian Ocean and its integrated infrastructure, including a multi-purpose port, a dry dock, an airport, a network of double and single roads and other infrastructures. He indicated that Sezad provides several incentives to investors, notably tax exemptions and granting of usufruct rights for up to 50 years.
The delegation accompanying Al Jabri included Sheikh Abdullah bin Saleh Al Saadi, Sultanate’s ambassador to China, officials from the Ministry of Commerce and Industry, the Public Authority for Investment Promotion and Export Development (Ithraa), and Sezad.
“We have seen great interest from Chinese officials and companies to invest in the Sultanate and there is support from the central government in Beijing and the local government in Ningxia for this trend,” said Al Saadi.
He pointed out that the Sultanate’s investment climate and political stability have helped in encouraging Chinese companies to invest in the Sultanate, and Oman’s embassy in China provides all the support and facilities needed by companies wishing to invest in Oman.
Representatives from 47 countries, executives from 1,080 companies, and 5,000 exhibitors covering 31 industries ranging from transport to huge data attended the exhibition, held in Yinchuan, capital of northwest China’s Ningxia Hui Autonomous Region from September 6 to 9.
Attractive destination
Meanwhile, a report highlighted how the special economic zone in Duqm is attracting international investors, especially after the commencement of construction work at the Chinese industrial zone in Duqm.
A report published by Reuters highlighted the promising future of Sezad, which confirms that efforts to promote the Sultanate are beginning to bear fruit, thus achieving the country’s aspirations to promote economic diversification and reduce reliance on oil as a major source of funding the state budget.
The report pointed out that construction equipment brought by the Chinese consortium began to level a large area of sand along the coast, in the first step to invest billions of dollars. It also stressed the efforts of the Sultanate to convert Duqm from a fishing village, located 550 km south of the capital Muscat, to an industrial centre that contributes to diversifying the country’s economy and reducing its dependence on oil and gas exports.
The report added that the Wilayat of Duqm overlooking the Arabian Sea is a potential operating base for Chinese companies near the export markets that wish to develop in the GCC region, the Indian Subcontinent and East Africa, especially as it is close to some of the raw materials that Chinese companies will need for this purpose; particularly oil and gas resources.
Ali Shah, CEO of Oman Wanfang, the Chinese consortium, said that Chinese companies are aiming to invest as much as $10.7 billion in the zone.
Duqm Zone enjoys a strategic location and an attractive destination due to its proximity to international marine routes outside the Strait of Hormuz. The zone also enjoys the existence of a port, dry dock and a refinery.
