Quick answer: Duqm is a small coastal town in Oman's Al Wusta Governorate that the government is turning into a full city, built around a deep-water port, a 255,000 barrel per day refinery, one of the region's largest dry docks and a pipeline of green hydrogen projects. Committed investment in its Special Economic Zone reached OMR 8.818 billion by June 2026, and the official master plan is designed for at least 250,000 residents by 2040, up from about 9,000 in 2019. This guide covers how the city is planned, what life there is like today, education and healthcare, and where the business opportunities are.
If you are looking specifically at buying property, read our Duqm real estate investment guide alongside this one. This article is about the city itself.
Duqm at a glance#
| Topic | Details |
|---|---|
| Location | Al Wusta Governorate, Arabian Sea coast, about 550 km south of Muscat |
| Economic zone | Special Economic Zone at Duqm (SEZAD), about 2,000 sq km, run under the Public Authority for Special Economic Zones and Free Zones (OPAZ) |
| Committed investment | OMR 8.818 billion (end of June 2026), up from OMR 3.650 billion in 2021 |
| City master plan | About 150 sq km, seven districts, planned for at least 250,000 residents by 2040 |
| Anchor assets | Port of Duqm, Duqm dry dock, Duqm Refinery (OQ8), Ras Markaz crude terminal, Duqm Fishing Port, Duqm Airport |
| Refinery capacity | 255,000 barrels per day, up from a 230,000 bpd nameplate |
| Tourism today | About 2,000 hotel rooms; OMR 853 million of committed tourism investment by end of 2025 |
| Higher education | Duqm University College (Logistics Management, Construction Environment) |
| Current plan period | SEZAD 2025 to 2030 strategy and the 2026 to 2030 Five-Year Plan |
Why Oman is building a city at Duqm#
Most of the Gulf's biggest ports, such as Jebel Ali, Dammam and Hamad, sit inside the Strait of Hormuz, the narrow passage that a large share of the world's seaborne oil passes through. Duqm sits outside it, facing the open Arabian Sea and the shipping lanes between Asia, East Africa and Europe. That one geographic fact explains most of what has been built there.
The plan, which runs through Oman Vision 2040, is to use that location to build a major economic centre on Oman's central coast, far from the Muscat and Sohar areas in the north where most economic activity is concentrated today. When His Majesty Sultan Haitham bin Tarik toured the zone on 23 September 2026, the official readout described SEZAD as "an authentic tributary to the national economy" and one of the pillars of Vision 2040, and he directed that work continue to strengthen Duqm's position as an economic and logistics hub.
Duqm is different from Oman's other headline new city, Sultan Haitham City near Muscat. Sultan Haitham City is a housing-led project inside an existing metropolitan area. Duqm is an industry-led project where the jobs came first and the city is being built to catch up with them.
City planning: how the Duqm master plan works#
The size and the target#
The current Duqm city master plan covers about 150 sq km and is designed to grow the population from around 9,000 residents in 2019 to at least 250,000 by 2040. Earlier, narrower plans used much smaller targets: a first town plan projected about 65,000 people over two decades, and other planning documents referred to around 100,000 people living and working in the zone. The 250,000 figure has been the consistent official target in planning documents since the 2017 revision.
Several international firms have worked on the planning over the years. Atkins was appointed for the first-phase masterplan of Duqm City, AECOM was contracted in 2015 to masterplan the earlier US$20 billion Duqm Frontier Town concept, and architects SOM developed a city masterplan with Buro Happold as engineering consultant, whose work included a water strategy using the natural wadi drainage and what the firm describes as Oman's first integrated public transport plan. The 2017 update added smart city principles: public transport designed to reduce dependence on private cars, and renewable energy as a predominant source of power for residents.
The seven districts#
The master plan divides the city into seven districts:
- Rock Garden district, named after Duqm's well-known eroded rock formations.
- Coastal district
- Boulevard district
- Civic district
- Airport district
- Defence district
- Showroom district
Most of the names describe the intended character of each area, but detailed land use rules sit in SEZAD's published urban planning and urban design guidelines, which are the document to check for any specific plot.
The phasing published for the city puts Duqm Heights and the Boulevard district, plus development of the tourism zone, into the second phase covering 2023 to 2027. SEZAD's own urban planning guidelines describe Duqm Heights as a large area of Ministry of Housing land on higher ground with sea views, including 150 units of compensation housing for families relocated by the zone's development, plus medium and high density residential uses. The guidelines specify medium density zones for detached or attached townhouses "for both Expatriate and Omani family living", which tells you the city is being planned for mixed communities rather than separated compounds.
Roads and infrastructure in 2026#
The visible progress on the ground in 2026 is mostly roads. As of March 2026, SEZAD reported:
- Sultan Said bin Taimur Road dualisation: Phase I 92.8% complete and Phase II 64% complete, covering about 50 km including 26 km of main road and more than 22 km of service roads. This links the city centre with the refinery, the medium industries area and the heavy industries zone.
- Southern section of Sultan Said bin Taimur Road: a 10 km carriageway, opened in 2026, connecting the city centre with the airport, the oil storage facilities and the renewable energy projects.
- Coastal tourism road: 14 km of dual carriageway with four roundabouts and modern drainage, linking the tourism area with the fishing port and the fisheries and food industries complex.
- Internal roads in Block 52: construction started.
Power is the other big piece. An Omani and Korean consortium signed in June 2026 for an 890 MW power plant worth about US$910 million, with early commissioning expected in 2028 and full commercial operation in 2029. That plant matters for residents as much as industry, because a city of 250,000 needs a grid sized for it.
The economy: what actually employs people in Duqm#
Port of Duqm and the dry dock#
The Port of Duqm is the reason the town exists in its modern form. Between 2021 and 2025, total cargo handling rose 5.66%, dry bulk cargo 3.88% and roll-on roll-off cargo 8.2%. SEZAD's latest published trade figures, released in April 2026, put imports through Duqm Port at OMR 1.67 billion, re-exports at OMR 591.1 million and exports at OMR 165.5 million.
Next to the port, the Duqm dry dock completed about 1,340 ship repair and maintenance projects between 2020 and the end of 2025, which makes it a steady employer of skilled marine trades.
Duqm Refinery (OQ8)#
The Duqm Refinery is a joint venture between Oman's OQ and Kuwait Petroleum International, operated as OQ8. It has already expanded from its 230,000 bpd nameplate to 255,000 bpd, passed its lenders' reliability test, and is considering a further capacity increase of about 10%. Its next major unit is a reformer to upgrade naphtha into gasoline components. Crude is fed from the Ras Markaz terminal roughly 80 km away, which has about 26.7 million barrels of storage.
A refinery of this size brings a permanent workforce of engineers, operators and technicians, plus a much larger contractor ecosystem during shutdowns and expansions. Those are the people who need housing, schools and clinics in the city.
Green hydrogen and energy transition#
Green hydrogen is the newest and largest pillar of Duqm's growth story. Oman's state hydrogen company, Hydrom, has awarded eight large-scale green hydrogen projects across Duqm and Dhofar in two auction rounds, with more than US$49 billion in investment commitments, and launched a third round for Duqm land.
The biggest single 2026 commitment is from India's ACME Group, which signed a US$4.2 billion agreement in June 2026 to fund phases two and three of its Duqm green hydrogen and ammonia project on 10 sq km of land. Those phases are scheduled to start commercial operation in 2030 and 2033 and, combined, produce 800,000 tonnes of green ammonia and 142,000 tonnes of green hydrogen a year. Phase one, designed for 100,000 tonnes of green ammonia a year, is under construction. Separately, HyPort Duqm, a partnership between OQ and DEME Concessions of Belgium, plans a first phase of 250 to 500 MW of green hydrogen capacity and about 1 million tonnes a year of green ammonia at full build. We found no public confirmation of its final investment decision as of October 2026.
These timelines are developer targets and have moved before. The safer read is that Duqm has secured land, agreements and in some cases construction for the industry, while full production arrives over the 2030s.
The June 2026 investment round#
In June 2026, SEZAD signed agreements worth more than US$7.5 billion with investors from Asia, Europe and the Middle East. Beyond ACME and the power plant, the round included:
- OQ Group: a US$750 million natural gas liquids separation and processing plant in the petrochemical industrial zone, providing feedstock for downstream industries.
- A Chinese battery materials company: a US$500 million silicon-carbon anode facility for lithium-ion batteries, scaling from 2,000 to 5,000 tonnes a year.
- TROT Holdings (India): a US$500 million integrated light industrial complex on 1 million sq m, built in four phases.
- Jindal Shadeed Oman: a US$78 million (OMR 30 million) employee residential community with 500 homes on a 460,000 sq m site, with sports clubs, halls and services, first phase due in 2028.
- Ruby Investment and Development: a US$480 million tourism project with two hotels, a shopping mall and office space.
That round explains most of the jump from OMR 6.394 billion of committed investment at the end of 2025 to OMR 8.818 billion by mid-2026.
Fisheries, food and other industry#
Duqm Fishing Port, completed in 2021, is the largest multi-purpose fishing port in Oman, and a dedicated fisheries and food processing zone sits beside it to add value to the catch locally rather than exporting it raw. The Sino-Oman Industrial Park, signed under a 50-year lease in May 2016 with around US$10 billion of announced Chinese investment, was the first big foreign anchor in the zone. That figure is an announced commitment, not money already spent, so treat it as a ceiling rather than a measure of what has been built.
Living in Duqm: what life is like for residents#
Who lives there#
Duqm began as a small fishing town, and its residents today are a mix of local Omani families, Omanis who have moved for jobs at the port, refinery and public bodies, and expatriates of many nationalities. Alongside the permanent population are construction workforces that rise and fall with each project phase and are housed largely in worker accommodation.
The honest picture for a family moving there today: Duqm is a working town with the basics in place, a growing set of amenities and a lot of open space, but it does not yet have Muscat's range of shopping, dining and entertainment. Our moving to Oman guide and residence visa guide cover the national paperwork.
Housing#
Housing in Duqm today falls into four groups:
- Employer housing, from company compounds to full residential communities such as Jindal Shadeed's 500-unit project.
- Worker accommodation villages for the construction and contractor workforce.
- Ministry of Housing land, including the compensation housing in Duqm Heights for local families.
- Private apartments and townhouses in developer projects, available to rent or buy, including to foreigners inside the SEZAD boundary.
The choice of homes is far narrower than in Muscat, so it pays to see units in person before signing. Our cost of living in Muscat guide is the closest published benchmark for household budgets.
Healthcare#
The Ministry of Health's Duqm Hospital is the main public facility, supported by health centres in the wilayat. According to figures released in September 2026, the hospital is getting a new emergency building with OQ Group as partner and a kidney dialysis unit, while the private Badr Al Samaa Medical Centre plans a cardiac unit and more specialties. By mid-2024 the town already had seven private hospitals and health centres and six pharmacies. For specialist treatment, check in advance which services are available locally.
Schools#
Duqm has several public schools for Omani children and a small number of private schools. A'soud Global School takes both Omani and international students. The choice is nowhere near Muscat's range, which our international schools in Muscat guide covers, so families with children in the upper years should check curriculum and exam board availability before committing.
A recent addition is the Educational Community Cultural Center, which SEZAD reports was completed using 3D printed construction.
Leisure and things to do#
Duqm's leisure offer is built around nature more than malls:
- Rock Garden: a landscape of naturally eroded rock formations and one of the town's best-known sights.
- Beaches: long stretches of coastline, plus Duqm Beach Camping.
- Arabian Oryx Sanctuary: the protected desert reserve elsewhere in Al Wusta Governorate.
- Oman Bowling Centre: 12 lanes, plus padel courts and a fitness centre.
- Public parks: including a 13,000 sq m park in the Saay district with playgrounds and walking paths.
- Hotels: including the four-star Crowne Plaza Duqm and Park Inn by Radisson Hotel and Residence Duqm.
Education and skills: Duqm University College and training#
Higher education in Duqm is at an early stage, and it is important to separate what exists from what is planned.
Duqm University College was established by a Ministry of Higher Education, Research and Innovation decision in September 2021. A 2023 ministerial resolution approved its first two degrees, a Bachelor of Science (Honours) in Logistics Management and a Bachelor of Science (Honours) in Construction Environment, both chosen to match the port and construction economy. It operates under the rules for private universities and colleges, can grant qualifications under Oman's National Framework for Academic Qualifications, and admits Omani and non-Omani students holding a general education diploma or equivalent. The start date has slipped more than once: the 2023 resolution set 2024/2025, and figures released in September 2026 refer to the college launching its first academic year in 2026. Prospective students should confirm current intake directly with the college.
The original plan, announced by SEZAD with Iskan Oman and Middle East Education Venture, described the college as the anchor for a wider academic city with more higher education institutions. That academic city has not yet been built.
For skills pipelines, the most active programme in 2026 is the SEZAD and Sultan Qaboos University summer internship, which in its 2026 pilot placed 18 SQU undergraduates with companies in the zone for two weeks and received full student recommendation. Expect more of these industry-linked programmes as the hydrogen and petrochemical projects need Omani engineers and technicians, which matters given Oman's Omanisation targets.
Tourism: the 16 km coastal plan#
Tourism and renewable energy are the two sub-zone priorities SEZAD's chief executive singled out when the 2025 to 2030 strategy was launched. The 2026 to 2030 Five-Year Plan includes a coastal tourism master plan covering a 16 km waterfront, with hotels, resorts, public spaces, walking trails, eco-tourism facilities, a marina, cultural and sports facilities, an equestrian club and a golf course.
The published targets are specific:
| By 2030 | By 2040 | |
|---|---|---|
| Hotels and resorts | 7 | 14 |
| Hotel rooms | 687 | about 1,990 |
| Residential units | 870 | 3,770 |
| Holiday homes | not specified | 697 |
| Annual tourists | over 200,000 | about 740,000 |
Committed tourism investment had reached about OMR 853 million by the end of 2025, and SEZAD launched a "Stop by Duqm" tourism campaign in July 2026. For context on how a coastal tourism zone in Oman matures, compare Hawana Salalah, which is further along the same path.
Business opportunities in Duqm#
The incentive package#
Companies operating inside SEZAD can access up to 30 years of corporate tax exemption for qualifying activities, customs duty exemptions within the zone, unrestricted repatriation of capital and profits, and 100% foreign ownership. Land is typically granted through usufruct agreements with SEZAD rather than outright sale; in the first half of 2025 alone, SEZAD signed usufruct agreements worth OMR 22.6 million and received 19 new investment applications. More than 2,300 economic activities were registered in the zone by 2024, and SEZAD's April 2026 update reported 427 economic licences issued. The personal and property tax side is covered in our Oman tax guide.
Where the realistic openings are#
The headline projects are billion-dollar ventures, but most of the opportunity for smaller and mid-sized businesses is in serving them:
- Logistics and maritime services: freight forwarding, warehousing, customs brokerage, ship chandlery and crew services around the port and dry dock.
- Industrial services: maintenance, inspection, scaffolding, equipment rental and specialist contracting for the refinery, the NGL plant and the hydrogen projects.
- Workforce services: accommodation, catering, laundry, transport and facilities management for tens of thousands of workers at peak.
- Construction supply chain: building materials, ready-mix concrete, steel fabrication and fit-out as the city districts, roads and hotels are built.
- Food and fisheries: cold storage, processing, packaging and export from the fishing port and the food processing zone.
- Hospitality and retail: restaurants, cafés, gyms, clinics, schools and everyday retail for a population that is growing faster than its services.
- Tourism operators: tours to the Rock Garden and the oryx sanctuary, water sports and eco-tourism along the new coastal strip.
The risks to price in#
Duqm's business case is real, but it comes with conditions. Demand depends on the timing of large projects, and project timelines can move, as the university college's start date shows. The population is still small, so consumer-facing businesses can arrive ahead of their market. And at roughly 550 km from Muscat, supply chains and staffing take more planning. A signed contract or anchor customer before opening is the safest way in.
Duqm compared with other Omani growth areas#
| Duqm | Sultan Haitham City | Muscat (established areas) | |
|---|---|---|---|
| Driver | Industry, port, energy | Housing and urban expansion | Capital city demand |
| Stage | Early city, industry operating | Under construction | Mature |
| Foreign ownership | 100% inside SEZAD | Expats in select areas, under the ITC framework | Designated zones only for non-GCC buyers, mainly ITCs |
| Liquidity | Thin | Not yet tested | Deepest in Oman |
| Best suited to | Businesses, long-horizon investors, workers in the zone | Owner-occupiers in Muscat | Most buyers and renters |
The ownership rules across all of Oman's zones are explained in our where can foreigners buy property in Oman guide.
What to watch in Duqm over the next few years#
- 2026 to 2027: completion of the Sultan Said bin Taimur Road dualisation, Duqm Heights and Boulevard district buildout, the first Duqm University College intake, and Hydrom's third auction awards.
- 2028: first phase of the Jindal Shadeed residential community and early commissioning of the 890 MW power plant.
- 2029 to 2030: full operation of the power plant, ACME phase two, and the first set of coastal tourism targets: 7 hotels, 687 rooms and over 200,000 tourists a year.
- 2033 to 2040: ACME phase three, the 2040 tourism targets and the master plan horizon of 250,000 residents.
The single most useful indicator is not investment totals, which count commitments, but how many people actually move to Duqm with their families. When school enrolments, private clinic openings and full-time residential occupancy rise together, the city is working.
Bottom line#
Duqm is one of the most ambitious urban projects in Oman outside Muscat, and in 2026 it is clearly past the drawing-board stage: the port, dry dock, refinery and fishing port operate, roads are nearly finished, and OMR 8.8 billion of investment is committed. What is still catching up is the city around them, the homes, schools, hospital capacity and everyday amenities that turn an industrial zone into a place people choose to live.
For workers and businesses, that gap is the opportunity. For property buyers, it is the main risk, which is why our Duqm real estate investment guide treats it as a long-horizon bet rather than a like-for-like alternative to Muscat. You can also use the AI Property Advisor to compare a Duqm move or purchase against Muscat and Salalah for your own budget and timeline.
Sources: Times of Oman, "Committed cumulative investment in Duqm rises to over OMR8.8bn" (23 September 2026); Oman Observer, "HM visits Special Economic Zone at Duqm" (23 September 2026); Muscat Daily, "Global investors commit $7.5bn to Duqm projects across key sectors" (9 June 2026); Oman Observer, "SEZAD plans major coastal tourism expansion" (2026); Oman Observer, "SEZAD reports major progress in Duqm road projects" (25 April 2026); Oman Observer, "SEZAD investments reach RO 6.394 billion in 2025" (2026); Oman Observer, "Duqm Refinery charts next growth phase after capacity boost" (2026); Oman Observer, "Duqm SEZ unveils strategy for 2025-2030" (2025); Oman Observer, "Duqm: Portrait of a lively city in Al Wusta Governorate" (17 August 2024); Oman Observer, "Duqm University College gets nod to start studies" (30 July 2023); SEZAD Urban Planning Guidelines (duqm.gov.om); Arab Urban Development Institute project record for Al Duqm City; Buro Happold project record for Al Duqm; MEED reporting on the Atkins and AECOM masterplanning contracts; DEME and Uniper releases on HyPort Duqm; Hydrom and ACME Group project disclosures; Times of Oman coverage of the SEZAD and SQU internship programme (2026); Ministry of Health, Al Wusta Governorate facilities. Project timelines and investment figures are commitments reported by SEZAD, OPAZ and the companies involved and can change; confirm current details with SEZAD before making decisions. Property figures per our methodology.