Chinese Investors to Build Industrial City in Oman Getty Images

Chinese Investors to Build Industrial City in Oman

The industrial zone would include an oil refinery; a complex for petrochemical industries; cement and automobile assembly plants; and a solar power generation facility.

MASCATE, Oman—Chinese investors signed a deal Monday with Oman's government to build an industrial city, including an oil refinery, in the southern port town of Duqm, a joint statement said.

The deal would pave the way for investments worth $10.7 billion by 2022 to finance industrial projects in Duqm, on the Arabian Sea, which Oman is developing in a bid to diversify revenues beyond oil, it said.

The industrial zone would include a refinery with a production capacity of 230,000 barrels per day, a complex for petrochemical industries, cement and automobile assembly plants, and a solar power generation facility among other investments.

By the end of last year, Chinese investments in Oman had exceeded $2 billion while trade between both countries surpassed $17.2 billion, according to the statement released at the signing ceremony in Muscat.

The sultanate derives 79% of its revenues from oil, of which it produces only about one million barrels per day.

Gulf states have been hit hard by a cash crunch due to a sharp drop in oil prices since June 2014.

Most of them have introduced austerity measures and have decided on a series of measures to boost non-oil revenues.

Copyright Agence France-Presse, 2016

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