Investcorp Aberdeen Infrastructure Partners to Lead $550 Million Port Expansion Project in Duqm
Investcorp Aberdeen Infrastructure Partners, a joint Anglo-Bahraini investment vehicle, has been selected to spearhead a consortium aimed at advancing a $550 million project to enhance port facilities in Duqm. The consortium includes the state-owned Port of Duqm Company, the Belgian DEME Group, and the Port of Antwerp.
Located on Oman’s south-eastern Arabian Sea coast, Duqm offers strategic advantages by being free from the constraints of the Straits of Hormuz. The port already boasts essential infrastructure for container handling, an international airport in close proximity, and maintenance and dry dock facilities capable of servicing merchant vessels and large warships.
The expansion project will involve marine infrastructure works, dredging, and the construction of a new quay wall to augment the existing port facilities. These enhancements will support the growth of an industrial area within the Duqm Special Economic Zone, which plans to harness solar and wind energy from the desert hinterland to produce green hydrogen fuel. This fuel will then be utilized in the production of low-carbon iron briquettes and base metal products.
Driving the Transition to Green Energy
Dr. Firas Al Abduwani, leading a delegation from the Omani Ministry of Energy and Minerals, recently visited Rotterdam and Brussels to promote the use of Oman’s renewable energy sources for the production of low-carbon iron in Duqm. This initiative aims to support the retention of labor-intensive, low-energy processes in Europe necessary for manufacturing finished iron and steel goods. Future phases of development are expected to see the production of green steel in Duqm as well.
Hydrom, an Omani parastatal, has already allocated contracts valued at $30 billion to five consortia for the development of solar and wind power projects generating 18 gigawatts. These projects will produce green hydrogen fuel in collaboration with international partners such as Shell, BP, and companies from Belgium, Korea, and Singapore, alongside OQ and private Omani firms. The planned output of green hydrogen from these ventures has already been earmarked for sale.
Investment in Sustainable Infrastructure
Mohammed Al Ardhi, head of Investcorp Aberdeen’s Bahrain office and a former Royal Air Force of Oman fast jet pilot, is leading the charge in investing in major infrastructure projects across the Gulf region. The fund has already made significant investments in the GCC and is actively seeking opportunities to support similar large-scale projects.