BURGEONING INVESTMENT INFLOWS
While Saudi Arabia does not count among the top sources of Foreign Direct Investment (FDI) into the Sultanate, Saudi owned businesses and enterprises have, of late, been increasingly eyeing opportunities to set up operations in Oman. This build-up in interest from the Saudi side has been sparked by a flurry of landmark reforms adopted by the Sultanate to enhance the country’s overall investment appeal.
The Observer looks at some of the key investments and developments involving Saudi players preparing to establish a presence in the Sultanate:
Ibri II Solar IPP
Shams Al Dhahirah Generating Company, representing a multinational consortium led by ACWA Power — a leading developer, owner, and operator of power generation and water desalination plants based in Saudi Arabia — is preparing to bring its utility scale solar PV Independent Power Project (IPP) into operation at Ibri in Al Dhahirah Governorate before the end of this year.
The 500 MW project, billed as Oman’s largest renewable energy based scheme to date, features an estimated 1.4 million solar panels covering an area of 13 million sq metres. At peak generation capacity, the plant output will be enough to supply an estimated 33,000 homes with electricity and will offset 340,000 tonnes of carbon dioxide emissions a year.
Omani-saudi JV to set up 7 plants in Khazaen
Khazaen Economic City signed last November three new tenancy agreements valued at nearly RO 3 million with United Vision for Investment and Development and Al Maha Food Industries LLC, an Omani-saudi joint venture to establish several manufacturing units in the economic city.
Under the three agreements, Khazaen will lease about 27,000 m2 to United Vision for Investment and Development, and to Al Maha Food Industries LLC, to build seven manufacturing units for bottling drinking water, ice production, manufacturing of water bottles, sweets factory, production of tomato ketchup, baby related products in addition to a factory for plastic related products.
Logistics hub in Port of Duqm
Earlier in January 2020, Saudi-based Rezayat Logistics Group has signed an agreement for the establishment of a logistics hub at the Port of Duqm with an initial investment of $15 million. Under the agreement, the company has leased four hectares of prime land within the port’s Logistics Zone to set up Rezayat Logistics Oman (Duqm Branch). A shipment of modern and premium brand mobile cranes that was recently discharged at the port will be used to serve ongoing projects in Duqm. The initial $15 million investment will cover services that include temperature-controlled, chilled, frozen and general warehousing, heavy transportation, equipment rental, crane rental and general transport which will expand its extensive GCC network and fleet.
$500m Saudi-led steel plant in Salalah
Construction work is progressing on steel industries plant with a 150,000 tonnes production capacity per annum at Salalah Free Zone. It follows an agreement signed by the free zone with the National Company Complex of Saudi Arabia in September 2019. The plant will fabricate various steel products that are used in the manufacture of refrigerators, generators, panels, steel roofs, heavy structures for large commercial and residential buildings, bridges, commercial complexes, factories and gas stations. Two-thirds of this total output will be exported to regional markets.