Thursday 25 / April / 2024
Muscat: An agreement to build a large bus assembly unit with a capacity of 2,000 units per annum between Oman and Qatar is expected to prop up the attractiveness of Duqm as an ideal location for investment by regional and international investors.
The bus assembly unit, along with the recent agreement between China and Oman for building an industrial city in Duqm to attract $10 billion investment, will enhance the status of the port city as an ideal centre for transshipment to the regional markets, after the success in attracting almost $20 billion investment from transnational companies in Sohar.
These agreements give the much needed fillip to the Sultanate’s efforts in attracting foreign investment in Duqm, which is all the more important in view of a fall in government revenue in the aftermath of sluggish oil income.
The Special Economic Zone Authority in Duqm and Qatar’s Karwa Automobiles (part of the country’s national transport firm) have signed an agreement for allocating one million square meters of land for building an automobile assembly/body building unit for small bus, school bus, trucks and other vehicles. A signing ceremony was conducted when a high-level Qatari delegation visited Oman on Thursday.
The land lease agreement for the project, which will provide 400 to 500 direct and indirect jobs for locals, is for 25 years, subject to renewal.
The project includes the construction of a number of administrative buildings, staff housing, and a yard to conduct vehicle test, storage yard and display yard.
Almost two years ago, an agreement for establishing a bus assembly unit in Oman was signed between Oman Investment Fund (OIF) and Mowasalat, national transport company of Qatar (Karwa is an affiliate of Mowasalat).
The facility, which will be the first such a large unit in the Sultanate,will have a capital expenditure of $160 million.
Karwa and Oman Investment Fund will provide capital for the project in the ratio of 30 per cent by Oman and 70 per cent by Qatar.
The target markets are Oman, other Gulf Cooperation Council (GCC) countries and North Africa.
Qatar is also investing in other projects in Oman, which include mining and tourism projects.
The Public Authority for Mining (PAM) and Qatar Primary Materials Company (QPMC) also signed a memorandum of understanding for two queries in Khatmat Milaha in the Wilayat of Shinas for getting necessary approvals to carry out its business in the quarries.
Another agreement was signed to construct a pier in the Wilayat of Shinas to export rocks to Qatar.
Both countries have also signed another major deal to get land for Ras Al Hadd tourism project. The agreement was signed between Qatari Diar and the Ministry of Tourism and the project construction will start in January 2017. — With input from Oman News Agency
