|21 July, 2019

Salalah Free Zone signs $2.5bln pact to construct Salalah refinery

The refinery will be instrumental in creating 600 job opportunities and will contribute significantly to the national economy.

Containers of Liquefied Petroleum Gas (LPG) at the Port of Sohar, Oman. Early morning sun casts shadows. Image used for illustrative purpose.

Containers of Liquefied Petroleum Gas (LPG) at the Port of Sohar, Oman. Early morning sun casts shadows. Image used for illustrative purpose.

Getty Images/TERRY MCCORMICK

Muscat - Salalah Free Zone (SFZ) has  signed a usufruct agreement for the construction of Salalah refinery project having a production capacity of 150,000 barrels per day. The total investment envisaged for the project is around US$2.5bn.

The agreement was signed by Ali bin Mohammed Tabuk, CEO of Salalah Free Zone and by Kent J Kabi, CEO of Salalah Refinery.

According to officials, the refinery will be instrumental in creating 600 job opportunities and will contribute significantly to the national economy.

It will also provide business opportunities to vital sectors, such as services and support services. The refinery will supply liquid cargo to be handled through Salalah port, making it one of the most important refineries in the Middle East.

The CEO of Salalah Free Zone said that the SFZ has succeeded this year in attracting foreign investments that will contribute to supporting the national economy and creating direct employment opportunities for citizens.

He pointed out that during the January-July period this year, 11 usufruct agreements were signed in various fields, including carbonated beverages, food industries, solar panels, two gypsum boards factories, support warehouses for import and export, in addition to laying the foundation stone of the plant, the Knowledge Academy for the development of the capabilities of the Omani youth and the pact to set up a sugar factory.

He said that the number of usufruct agreements signed by SFZ with investment companies reached 69 with an investment volume of more than US$5.36bn.

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