PHOTO
Kuwait’s investments in Oman are set to jump following the signing of a joint venture to build a multi-billion petrochemical plant in the Sultanate.
Kuwait is the third largest investor in the Sultanate after the UK and the US, according to estimates by Oman’s National Statistics and Information centre (NSIC) with investments totalling 1.37 billion Omani rials ($3.5 billion).
The bulk of Kuwait’s public investment in Oman is concentrated in the energy sector, mainly in the $9 billion Duqm oil refinery but analysts say actual assets are much bigger on the grounds many Kuwaiti businessmen invest in property, hospitality and other sectors in the Sultanate.
“Kuwait is the largest Arab investor in Oman as per statements by officials from both countries…besides public investments in the energy sector, many Kuwaiti companies and businessmen invest in real estate, hotels, restaurants and other sectors in Oman,” said Ali Al-Anzi, manager of the Kuwaiti Al-Manakh economic consulting centre.
“After the recent signing of an agreement to set up a petrochemical project, I believe Kuwait’s investments in Oman will increase sharply in the coming period,” he told Zawya Projects.
Early this month, Oman and Kuwait signed an agreement to push ahead with a major petrochemical venture despite the withdrawal of Saudi chemical company Sabic.
Oman’s OQ Group and the state-owned Kuwait Petroleum International (KPI) agreed the deal at an international oil conference in the capital Kuwait City.
The complex will rely on feedstock from the Duqm Refinery, including liquefied petroleum gas, naphtha and natural gas from Oman.
Duqm refinery, owned by OQ and KPI, was completed in late 2023 and has a capacity of 230,000 barrels per day.
Kuwait’s daily Alseyassah said the petrochemical project could cost $8-10 billion and that OQ and KPI would still undertake the project if they could not find a third partner.
Duqm is the largest oil refinery in Oman and is part of ongoing plans to diversify the country’s sources of income. Officials said in 2024 that the Duqm facility would nearly double Oman’s refinery output capacity to around 500,000 bpd.
(Reporting by N Saeed; Editing by Anoop Menon)
Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.
