OBG talks to Yahya bin Said Al Jabri, Chairman, Special Economic Zone Authority at Duqm (SEZAD)

Interview: Yahya bin Said Al Jabri

What steps has SEZAD taken to balance growth and regulation at Duqm’s special economic zone?

YAHYA BIN SAID AL JABRI: Firstly, the authority has a dual mandate at Duqm, holding responsibility for both developmental and regulatory functions. However, this does not necessarily create a conflict. Public goods and private interest, both of which are integral to any development from the conceptual phase to the implementation and operational phases of a project, do not have to be at odds but can be harmonised with one another. Secondly, the authority assumes a multiplicity of functions and roles in relation to business ventures. It is not purely an external regulator with checks and controls, but is also a business enabler and facilitator. The licences and permits it offers provide access to tax benefits as well as market, location and real business opportunities, while also making sure that businesses respect the boundaries of the public good they are intended to enjoy.

How does the Duqm town plan allow for future growth and economic diversification?

AL JABRI: We are aware of the challenge that Duqm faces in terms of its distance from major population and urban centres, as well as the absence of adequate socio-cultural infrastructure. Therefore, the establishment of a new town is an important part of the vision of SEZAD and the master plan. The Duqm special economic zone is intended to be a location to conduct business but, equally important, to become a place where the local population, other Omanis and the expatriate workforce can work, live and enjoy family and social life. The master plan has designated 23 sq km for the town, which will be able to accommodate an estimated population of 67,000 inhabitants within the coming 20 years. The entire special economic zone will be composed of eight zones with a land area of more than 1777 sq km, which represents 16% of Duqm city. Extra care has been taken in developing the urban plans to ensure that the new town has an authentic identity and is sensitive to its cultural and natural setting; enjoys good infrastructure, social services and green spaces; and has a mixed residential and labour provision.

How is SEZAD encouraging the development of public-private partnerships (PPPs) at Duqm?

AL JABRI: One important objective behind establishing SEZAD, as well as mandating the authority with both developmental and regulatory powers, is to maximise private sector participation at the Duqm zone and capitalise on opportunities for PPPs. The SEZAD law accords the authority the power to identify and develop business opportunities, to establish special-purpose-vehicle companies around these business opportunities and, subsequently, to invite the private sector to share in the ownership of these entities.

Currently, the company responsible for the management and operation of the Port of Duqm is a joint venture between the Omani government and a consortium led by the Port of Antwerp Authority. Also, several Omani publicly owned companies are exploring joint venture opportunities in Duqm in the industrial, real estate and tourism development sectors. Finally, the authority is in the process of establishing its own development arm to structure and package certain business opportunities around which it can build successful PPPs.

Will the development of Duqm boost demand for local goods and services in Oman’s central region?

AL JABRI: This is one of our primary objectives as well as a major challenge. The aim is to maximise local value addition and ensure that strategic investments do not become islands of self-accrued benefits that provide no valuable contribution to the broader economy.

To help ensure that nationals benefit from the high-paying jobs that will be available at Duqm, training and incentive programmes have been established to encourage employers to Omanise their workforce. However, efforts should also include support for small and medium-sized enterprises, value chain development and cluster-based approaches to business development.