'Huge business opportunities available in Duqm', says Sezad CEO
Lee Chee Khian, CEO of the
Special Economic Zone Authority of Duqm (SEZAD) is very bullish about the
future growth of Duqm region. In an interview with Muscat Daily, Khian talked
about ongoing projects and the need to develop more social infrastructure to
attract people in Duqm area.
You joined SEZAD as the CEO in
2013. What were your top priorities when you started working on the projects in
Duqm?
When I started working at
SEZAD in 2013, I did have some ideas about the project. At that time, my
foremost priority was the implementation of the project as planning is
important but more important is how to implement the plans. So for the initial
two years, we dedicated our time on the planning and designs because the
planning needed to be done keeping the logistic challenges in mind. After
making thorough plans for the project, physical implementation of the project
started by the end of 2014. When we started working on the Duqm project there
were some clear directions such as there would be a large port and government’s
plan to set up an oil refinery and petrochemicals complex.
Since Oman is blessed with
natural resources like crude oil and gas available for industries and its
strategic location, the sultanate’s government right from the beginning was
looking to increase in-country value to create jobs for citizens. The Omani
authorities knew it from the very beginning that they cannot just go on
exporting crude oil, but need to focus on value addition in the country to
maximise its potential.
Investments in Duqm region
have picked up considerably in recent years, but things must have been
different in initial stages. What were the key challenges you faced in initial
stages?
When we started working on the
project three key areas, namely, petrochemicals, minerals and fisheries were
identified as the core for further planning. Petrochemicals industry needs
natural gas. Though there were some talks about the availability of gas in
Khazzan field, but nobody was sure about this at that time. However, after the
announcement of Khazzan field’s gas availability, things have started moving
rapidly.
With the establishment of a
petrochemicals industry, exploration and trade of minerals, and the development
of fisheries sector; another natural addition was the development of logistics
sector in Duqm area. So the plans were made for the expansion of Duqm port, a
fishing port, and increasing the road connectivity and setting up a new airport
along with possibility of rail linkages. Now with all these infrastructures,
you need a human habitation which means a new city has to be planned with all
amenities.
With infrastructure and
projects progressing well in Duqm, what are the things that you will be
focusing more in the coming years?
Fishing sector needs to be
given more importance. The development of fishing sector is also closely
associated with the sultanate’s food security. We are looking at developing
this sector aggressively in the region. Once production of fisheries sector
reaches an optimum level then other ancillary activities such as packaging and
processing would also gather speed. Gradually, with the improvement in
logistics infrastructure in due course of time, we can also look at exporting
marine products to other countries in Europe, Africa or the GCC.
Moreover, while looking at
developing the fisheries sector there is also a need to safeguard the interest
of local fisherman. This can be done by earmarking the area exclusively for small
vessels in close proximity to the coast; i.e. around 8-10km area within the
shore can be reserved for local fishermen while area beyond that can be left
open for companies with bigger fishing vessels to catch.
What is SEZAD’s long-term plan
for Duqm and how do you see things will shape up in next five to ten years?
Currently, we are in the phase
1 of the planning which extends upto 15 years. This phase includes some of the
major projects in Duqm which are in different stages of planning and implementation.
These projects are: A 230,000 barrels per day-capacity refinery, a
methanol-to-olefin project, a coal-fired power project, an automobile unit, a
project for manufacturing solar panels, a five-star hotel, a desalination plant
and a sabacic acid unit. Moreover, a hotel along with expansion of the airport
is also going on simultaneously.
My guess is that the total
area under phase 1 is much bigger than the total area of Singapore, which
currently has a population of around 5mn people. With all these projects being
implemented soon more and more people would start going there. So in the first
phase a whole new city in the middle of the desert would emerge with a
population of around 1mn. Duqm has a huge potential due to its strategic
location, it is very near to world’s second largest population and is also
close enough to Eastern Africa, which is likely to grow at very high rate in
future. Duqm is also located very near to a busy global shipping line. So, in
future there will be huge opportunities for shipping maintenance and other such
activities.
What are the challenges that
you foresee in achieving these targets?
Developing the fisheries
sector would be a challenge as we have to ensure that there is enough fish
stock available throughout the year. During the first four months of the year,
the sea is very rough in the region which makes it very difficult to fish.
Moreover, we have to make sure that there is enough feed available for marine
life to flourish throughout the year.
Another big challenge is to convince
people to move to Duqm area. There is the Renaissance Village, which can take
care of people currently building infrastructure and other projects, but we
need more housing projects to cater to people who will be moving there to work
on these projects once they become operational. Not only housing, there is a
need for other amenities such as supermarkets, schools, restaurants, hospitals,
malls and other such social infrastructures.
Now, this is a little catchy
situation, once population is big enough there would be demand and traders will
rush to meet demand. But till these social infrastructures are not there,
getting people ready to move there with families is also a challenge. Now Duqm
has enough projects to provide jobs to sizeable population but other things
such as banks, insurance, and other financial services are currently not there
and those will only come when there is demand. Most people will be reluctant to
move there if such services are not available.
