Getty Images
Image

Chinese Investors to Build Industrial City in Oman

May 23, 2016
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

About the Author

Agence France-Presse

Copyright Agence France-Presse, 2002-2024. AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!