Agreement signed for building materials market in Duqm

Business Reporter -

DUQM, JUNE 4 -

Oman Wanfang LLC, the developer and operator of China-Oman (Duqm) Industrial Park, has signed a shareholder agreement with Al Thabat Holding LLC and Oman Company for the Development of Special Economic Zone at Al Duqm SAOC (Tatweer) for the establishment of a building materials market project in Duqm.

The project shall be developed under a joint venture company, Duqm Material Market SAOC, where Oman Wanfang shall invest 51 per cent while Al Thabat and Tatweer shall hold 34 per cent and 15 per cent equity respectively.

The Building Material Market Project comprises development of land, basic warehousing and retail space for third party building materials companies to showcase and store their products. This project shall enable various companies around the world to come to Duqm and make Duqm a base for marketing and selling their products related to the construction industry. Given the locational advantage of Duqm, this initiative is expected to bring logistic efficiencies for the sector and not only Oman, other countries in the Middle East and East Africa shall take benefit of the construction material market being established at the coast of Duqm.

The project is located within Phase 1 of the China-Oman (Duqm) Light Industry Park, a proposed industrial city of the total land area allocated to the Building Material Market Project, approximately 250,000 sqm will comprise retail/commercial space, warehousing/logistics space and land area for utilities and infrastructure. First phase of the project, expected to commence construction by end of 2018.

Oman Wanfang, which has signed usufruct agreement for development of industrial park and tourist zone in Duqm, is spearheading several projects in Duqm with the support of Chinese investments. Al Thabat Holding is an investment company instrumental in infrastructure activities within Oman.

Tatweer is a 100 per cent subsidiary of SEZAD which act as catalyst for investments in Duqm by participating with minority shareholding and work as local partner for the overseas investors. This is third investment by Tatweer in Duqm in the last twelve months.