MUSCAT: Small-scale gold refineries – key to the growth of thriving national bullion trade – are among a number of international investors weighing options to set up operations at a major Airport City development taking shape at Muscat International Airport in the Sultanate of Oman.
According to Oman Airports – the national operator of Oman’s seven international and domestic airports, the Airport City project’s Logistics Gate has garnered interest from leading logistics operators, as well as gold refineries.
“In recent months, Oman Airports has been successful with regards to expanding our non-aeronautical revenue streams by attracting FDI for our recently launched Logistics Gate – which is an integral part of our Airport City. The likes of DHL, Aramex, as well as a number of gold refineries have indicated their interest in operating out of Muscat International Airport,” said Oman Airports in its 2023 Annual Report.
“Looking ahead, Oman Airports will continue down this path of expanding our business with the planned launching of the Logistics Gate phase II, in which we are expected to continue fostering foreign direct investment and revenue diversification,” it further noted.
In countries with well-established bullion markets, gold refinery investors tend to operate out of airport free zones to capitalize on steady inflows of gold and silver imports by local and international traders. These refineries transform raw or bulk gold into high-purity gold bars, crafted ornaments, jewellery or other products. Much of this output is marketed locally, but exports represent a promising opportunity as well.
The Airport City development is a key vehicle to enable Oman Airports to diversify its revenue streams and enhance the airport’s role in fostering economic growth. This is sought to be achieved by leveraging airport land for mixed-use developments, including free zone areas, hotels, and business parks,
Investors can also take advantage of an array of benefits in the form of 100% foreign ownership, zero import and export duties, no minimum capital requirements, up to 15 years of income tax exemption, and a single point of contact for all permits, licenses, and approvals.
A key component of the Airport City development is the Muscat International Airport Free Zone, which will be managed and operated by Asyad Group – the integrated logistics services arm of the Omani government – under a concession awarded by the Public Authority for Special Economic Zones and Free Zones (OPAZ).
“Collaborating with business partners in the local and international spheres to not only enhance our customer experience, but also our bottom line is also vital. Diversifying our revenue streams and expanding our non-aeronautical revenue, whether it be with mega projects such as our airport cities, or smaller projects such as expanding our F&B outlets, is a top priority for Oman Airports in terms of maximizing our business growth,” Oman Airports added in its Annual Report.
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