Special Economic Zone at Duqm
On June 27, 2019, MIGA signed a contract issuing guarantees of US$1.7 billion covering the risk of Non-Honoring of Sovereign Financial Obligations by the Sultanate of Oman (GoO) with a syndicate of lenders comprised of Standard Chartered Bank, JP Morgan, Société Générale, Crédit Agricole, Banco Santander and Bank of China. MIGA’s coverage has been sought for a tenor of up to 15 years.
The Project consists of financing and/or refinancing of seven infrastructure projects within the Special Economic Zone (SEZ) at Duqm, Oman pertaining to the construction of infrastructure and roads at the port’s commercial pre-gate, design and dredging for a new liquid bulk berth, roads and corridors connecting the refinery to the liquid bulk berth and dams and channels to protect the area against floods. These seven projects are considered priority projects within the scope of the SEZ.
The Project is expected to have developmental benefits within Oman and the broader region. In Oman, the Project has the potential to contribute to the national economic diversification strategy by expanding the logistics sector and Oman’s export capacity. It will also expand economic activity and employment in Al Wusta governorate, a comparatively less developed region of the country.