$550 million for Duqm port expansion
BUSINESS REPORTER
MUSCAT, MAY 19
Investcorp, the global alternative investment firm, has announced a landmark $550 million investment in Oman's Port of Duqm, marking one of the largest foreign direct investments into the country's maritime infrastructure.
The investment will be made through Investcorp Aberdeen Infrastructure Partners (AIIP), a joint venture between Investcorp and Aberdeen plc, and will be undertaken alongside the Port of Duqm Company and international partners DEME Group and Port of Antwerp-Bruges. The consortium, operating under the name 'CAP INFRA,' will spearhead the development.
The deal marks AIIP's fourth major infrastructure commitment, following investments in ADNOC's Project Wave in the UAE and two public and social asset concessions in Saudi Arabia. It reinforces AIIP's focus on long-term infrastructure assets across the GCC and broader MENA region.
Located on Oman's southeastern coast with direct access to the Indian Ocean, the Port of Duqm is positioned as a vital global trade and logistics hub. It plays a pivotal role in the Sultanate of Oman's economic diversification efforts and its Vision 2040 strategy.
The expansion project includes major marine infrastructure works, such as dredging and the construction of a new quay wall, which will service a planned low-carbon industrial plant within the Special Economic Zone at Duqm. The facility is expected to produce low CO₂ iron metallics and eventually hydrogen-powered 'green steel,' aligning with Oman's net-zero ambitions.
AIIP secured the investment mandate through a competitive bidding process that saw interest from four other parties.
Mohammed Alardhi, Executive Chairman at Investcorp, said:'The Port of Duqm is one of the most strategically important seaports in the world. We are pleased to be investing not only in one of Oman's largest infrastructure projects, but in Oman's Vision 2040, contributing to the goal of achieving carbon neutrality by 2050.'
Sami Neffati, Managing Partner of AIIP, stated: 'We are delighted to partner with the Port of Duqm Company and CAP INFRA to expand this important shipping hub and further secure trading routes to and from the region. Securing this transaction demonstrates our ability to offer investors access to unique opportunities. We are very excited about the region's infrastructure prospects.'
Reggy Vermeulen, CEO of Port of Duqm Company, commented: 'We are proud to partner with a strategic foreign direct investment from AIIP, a renowned global investment group, to support the development of the port's infrastructure. This investment is a strong vote of confidence in the Port of Duqm's vision and future. It reflects the trust of international partners in our growth story and in Oman's broader economic ambitions under Vision 2040. Through this opportunity, we will not only increase capacity but also advance sustainable industry by supporting future-facing projects like green steel production.'
The project is expected to significantly enhance Oman's port capacity and catalyse industrial growth in Duqm, further positioning the Sultanate of Oman as a regional leader in sustainable logistics and green industry.
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