Oman pursuing big port despite downturn

Reuters cited Mr Ahmed Mekki national economy minister of Oman as saying that Oman will build OMR 692 million ports at Duqm as part of its economic development plan despite a global downturn and a projected drop in oil revenue. The government expects reasonable growth for 2009 despite the financial crunch in part because it aims to pursue all the major state led development projects it has launched, using surplus oil revenue or state reserves, if needed.

He said that "The 2009 outlook is relatively good we expect a reasonable growth since we are going ahead with all major plans."

Oman plans to diversify its economy away from oil income dependency, which makes up about 75% of national revenue and is pursuing a number of large scale infrastructure projects.

According to the state figures, the government has already awarded OMR 220 million worth of infrastructural projects since the beginning of the year.

Oman said that it has short listed six companies for the construction of the USD 1.5 billion Muscat airport terminal building. The Duqm development in central eastern Oman aims to create a new city to serve as a key administrative, industrial and commercial centre.

The first phase of the Duqm project calls for the port and a dry dock expansion. Phase 2 includes an airport, an extensive road network and a free trade zone for industries.

Mr Mekki said that "Phase 2 will be the development of various projects whose funds will come from huge foreign and local investments."