Asyad-affiliated free zones attract FDIs of over RO 1 billion in 2023
Published: 01:06 PM,Jun 05,2024 | EDITED : 05:06 PM,Jun 05,2024
Asyad Drydock turned a profit for the third consecutive year, fuelled by an uptick in ship calls for dry-docking and repair services.
MUSCAT: Omani free zones that fall within the ambit of Asyad Group – the integrated logistics provider of the Sultanate of Oman – garnered over RO 1 billion in foreign direct investments in 2023, underscoring the country’s strong investment appeal amid a sustained government-led drive to diversify the economy.
Of this total, the lion’s share of RO 727.5 million flowed into Salalah Free Zone, the oldest of Oman’s port-adjacent free zones. The amount is distributed across seven projects for which usufruct agreements were inked with foreign investors last year, according to Oman Investment Authority (OIA), the parent organization of Asyad Group.
Sohar Freezone was the next big beneficiary of FDI, having signing a total of 10 project agreements with a combined investment value of RO 135.8 million. Khazaen Economic City, an integrated economic zone in South Al Batinah Governorate, pulled in a total of RO 56.6 million through 15 project agreements signed with overseas investors during the year. A further RO 115.4 million in foreign investments were ploughed into other assets of Asyad Group during the year, OIA stated in its 2023 Annual Report.
Significantly, Asyad Group – spanning around 16 entities operating in the shipping, ports, transportation, logistics, ship repairs, free zones and other sectors – posted revenues totaling RO 465 million in 2023, representing a 5% increase over the corresponding figure for 2022. Profits were up 4% to RO 47 million over the same period.
Noteworthy achievements of Asyad Group subsidiaries and joint ventures were also highlighted in the Annual Report. Asyad Drydock (formerly Oman Drydock Company) achieved net profits for the third consecutive year, having also recorded a 4% growth in the number of vessels calling at the Duqm yard for repairs and maintenance.
Asyad Shipping, which owns and operates a diverse fleet of ocean-going cargo ships, signed an agreement with Oman LNG to rent two state-of-the-art LNG carriers for more than eight years. “It is expected that this contract will generate direct and indirect added value surpassing RO 200 million and enhance collaboration between OIA Companies,” said the Authority in its report.
Under a separate contract, Saudi national shipping firm Bahri Shipping has committed to transporting around 600,000 metric tonnes of urea over a one-year timeframe at a cost of RO 4.6 million.
Additionally, a direct partial shipment service was launched to link Khazaen Dry Port (part of Khazaen Economic City) with Nhava Sheva Port on India’s west coast via Sohar Port.
In another significant highlight, Asyad Shipping’s Singapore office generated revenues of RO 32 million in the first year of its operations, vindicating the Group’s decision to set up operations in this vital South Asian maritime hub.
In other notable developments during of the year, Asyad Ports received a total of 138 cruise ships carrying over 430,000 tourists, representing a 92% increase over the previous year. Also in the same year, Asyad Ports was appointed as the operator of a newly launched Container Terminal at the Port of Duqm.
National bus and ferry operator Mwasalat posted a 21% uptick in revenues on the back of a significant rise in travelers, as well as the successful signing of commercial contracts, according to the Annual Report.
Adding to its expanding portfolio, Asyad Group received the mandate to operate, develop, and manage the Free Zone at Muscat International Airport. The announcement was made by the Public Authority for Special Economic Zones and Free Zones (OPAZ).
Of this total, the lion’s share of RO 727.5 million flowed into Salalah Free Zone, the oldest of Oman’s port-adjacent free zones. The amount is distributed across seven projects for which usufruct agreements were inked with foreign investors last year, according to Oman Investment Authority (OIA), the parent organization of Asyad Group.
Sohar Freezone was the next big beneficiary of FDI, having signing a total of 10 project agreements with a combined investment value of RO 135.8 million. Khazaen Economic City, an integrated economic zone in South Al Batinah Governorate, pulled in a total of RO 56.6 million through 15 project agreements signed with overseas investors during the year. A further RO 115.4 million in foreign investments were ploughed into other assets of Asyad Group during the year, OIA stated in its 2023 Annual Report.
Significantly, Asyad Group – spanning around 16 entities operating in the shipping, ports, transportation, logistics, ship repairs, free zones and other sectors – posted revenues totaling RO 465 million in 2023, representing a 5% increase over the corresponding figure for 2022. Profits were up 4% to RO 47 million over the same period.
Noteworthy achievements of Asyad Group subsidiaries and joint ventures were also highlighted in the Annual Report. Asyad Drydock (formerly Oman Drydock Company) achieved net profits for the third consecutive year, having also recorded a 4% growth in the number of vessels calling at the Duqm yard for repairs and maintenance.
Asyad Shipping, which owns and operates a diverse fleet of ocean-going cargo ships, signed an agreement with Oman LNG to rent two state-of-the-art LNG carriers for more than eight years. “It is expected that this contract will generate direct and indirect added value surpassing RO 200 million and enhance collaboration between OIA Companies,” said the Authority in its report.
Under a separate contract, Saudi national shipping firm Bahri Shipping has committed to transporting around 600,000 metric tonnes of urea over a one-year timeframe at a cost of RO 4.6 million.
Additionally, a direct partial shipment service was launched to link Khazaen Dry Port (part of Khazaen Economic City) with Nhava Sheva Port on India’s west coast via Sohar Port.
In another significant highlight, Asyad Shipping’s Singapore office generated revenues of RO 32 million in the first year of its operations, vindicating the Group’s decision to set up operations in this vital South Asian maritime hub.
In other notable developments during of the year, Asyad Ports received a total of 138 cruise ships carrying over 430,000 tourists, representing a 92% increase over the previous year. Also in the same year, Asyad Ports was appointed as the operator of a newly launched Container Terminal at the Port of Duqm.
National bus and ferry operator Mwasalat posted a 21% uptick in revenues on the back of a significant rise in travelers, as well as the successful signing of commercial contracts, according to the Annual Report.
Adding to its expanding portfolio, Asyad Group received the mandate to operate, develop, and manage the Free Zone at Muscat International Airport. The announcement was made by the Public Authority for Special Economic Zones and Free Zones (OPAZ).