CREATING A HUBFOR THE FUTURE

Facts & Figures of Oman

309,500 km2 Muscat 4.2 Mn (2015) Arabic, English

3,466 Kmcoastline

USD 81.14 bnGDP (2014)

Omani Rial= USD 2.58

oil, natural gas, copper, fish,

minerals

MajorTrade Partners

UK, India, Japan,UAE, South Korea,China, EU, Thailand

Facts & Figures of Oman

Oil & Gas reservesand production

Oil and gas revenues account for 51% of GDP and 84% of revenues

Production Reserves

Crude 1 Mio b/d 5.3 Billion barrels

Natural gas 1.1 Trillion ft/d 24.2 Trillion cft

Facts & Figures of Oman

International relationships

Oman has relations with over 140 countries and is a member

of over 105 regional andinternational organizations

Free Trade Agreement

USA, Singapore(GCC)

Oman business environment

Strategic Location

Government stability

Abundant natural& Energy resources

Financial and monetary stability

Low cost utilitiesLand availability at low cost

Equipped modern infrastructure

Liberal invest policies& Business Incentives

Flexible tax system

WhyOman?

Hospitality Culture

Ministry of Commerce and Industry granting mining licenses

Since 2013, ‘best practice’ is being reviewed.

Licensing to Omani as well as foreign companies, registered according to commercial companies laws

Prospecting permits up to 5 years, mining permits up to 25 years, both renewable.

Mining sector in Oman:

Total market valued at 370 Mio USD in 2015

Contribution to GDP modest but growing (by 20% in 2015 to 6% in 2020)

Mainly marble, copper, gypsum, limestone, dolomite and chromite

Reserves are huge, most of mineral resources remain underexploited

Integral part of Governments diversification strategy

Boost from major regional projects

Majority of products still processed locally

Exports mainly from Salalah Port

Sohar Port is processing rather than exporting

Duqm is the new kid on the block eying both processing and export

Gypsum exports 5.5 Mio tones in 2015

Limestone exports 2.4 Mio tones in 2015

Oman’s mineral export marketFujairah

RAK

Oman Production per product

Duqm,the largest development

project of Oman

Duqm,the largest development

project of Oman

Mumbai

4

2

2

4

5

1

Duqm’s strategic location...

Oman is located out of the strait of Hormuz

Connecting East and West

Proximity to major shipping lanes

Doorstep away from major markets

Royal decree:Decree no. (85/2006)DEFINING THE STUDY AREA TOTAL AREA:1745 km²

Port of Duqm

Special economic zone duqm (Sezad)

...in a strategic environment

80 km43 km

Arabian Sea

Duqm business Incentives

100% Foreign Ownership

Tax -exemption for 30 years

Free Repatriation ofCapital & profits

No minimum capital requirement

No currency restrictionsNo personal income tax

Exemption from import& export duties

Usufruct agreements up to50 years renewable

One-stop station service

IncentivesPackage

Proximity to natural resources

Next to the new oil concession, inland andoffshore

Proximity to major mineral mines

Greenfield development allowing for major expansion

Land availability

At the heart of the largest developmentproject of Oman

Beneficial inland road connections

Highlights of Duqm projectRas Musandam

Sohar

Muscat

Sur

Masirah

Duqm

Hayma

Nizwa

Al Buraymi

Salalah

International airport

New residential town

Hotel & resort area

Highlights of Duqm project

World scale deep draft port

Dry dock

Logistics hub

Refinery

Industrial areas

Transport system: Duqm roads

Major Roads (72 km) 80m ROW

Local Road ( 73 km) 20-50m ROW

Duqm is 550 km from Muscat and is accessible by road via:

Muscat – Salalah highway

Sinaw –Mahout– Duqm

The coastal road (Shannah - Mahout) and(Salalah – Duqm)

Transport System:Duqm access road

Masirah

Salalah

Muscat

DUBAI

YEMEN

R 32R 31

Sur

Sohar

IRAN

UAE

KSA

ABU DHABI

Hayma

Al Buraymi

Ras Musandam

Nizwa

Sinaw

Duqm

Centrally located towards the major oil and gas concessions, inland and offshore

Direct road access between Duqm and theoil fields free from bridges and tunnels

Today there is no longer acceptance of (oversized) project cargo going to Oman via UAE’s main ports

Preferred point of entrance for all Oil and Gas related cargoes, as instructed by MOG

Access to O&G projectsSohar

Mina al FahalMuscat

Oman LNGSur

Duqm

Harweel

Khazzan

100km150km200km250km300km

Gas Pipeline

Future Gas Pipeline to Duqm

Oil Pipeline

Future Oil Pipeline to Duqm

Yibal

Transport System:Duqm air connection

Commenced 23rd July 2014

4km Runway

4 flights a week

Capable to handle largest passenger andcargo aircrafts in the world

2 x four star hotels

1 x 3 star hotel

15,000 beds for blue collar workersunder construction (2016)

Duqm Beach Resort under construction

Duqm accomodation

Major residential developments

First 23 ha handed over (Fronteer Town)

The rail route is part of proposed Inter- GCC railway running from Kuwait to Salalah (andpossibly to Yemen).

Provide greater capacity for freight transport to:

reduce cost and road freight services

create faster transfer of goods services between countries in GCC

create a massive hinterland for Duqm area

Transport System:Duqm railway connection

Salalah

Muscat

DUBAI

YEMEN

Sur

Sohar

IRAN

UAE

KSA

ABU DHABI

Hayma

Al Buraymi

Duqm

GCC Railway

Port of Duqm,the heart of the Duqm Special Economic

Zone

Port of Duqm,the heart of the Duqm Special Economic

Zone

Role of Port of Duqm Company

Endorses the Duqm Port Concession and Land Development (Usufruct) Rights Agreement (28 years)

Actual investment done by the Government

50/50 JV between Government of Oman and Port of Antwerp consortium: provision of expertise on development, operations and marketing

By Royal Decree 28/2015 (8th July 2015): Develop, manage and operate Duqm port

Role of Port of Duqm Company

PORT AUTHORITY

TERMINAL OPERATOR

LANDLORD SINGLE FOCAL POINT FOR INVESTORS

Authority for the entire Special Economic Zone

Developer outside of Port of Duqm Concession area

One Stop Shop

SEZAD (Special Economic Zone Authority of Duqm)

Other stakeholders

Other stakeholders

Developer of the Duqm Permanent Accommodation for Contractors (PAC)

Renaissance Services

Generation, transmission and distribution of electricity within the zone

RAECO(Rural Areas Electricity Company

of Oman)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Dry BulkEarly Container Operations

LogisticLand Hand-over

Liquid Bulk

Refinery Start up

Break Bulk / Project Cargo

Duqm Airport

Industrial Land Hand-over

Rail line Start up

Container Terminal

Operations

Liquid Bulk LandHand-over

ODC start up

IP 3 start

IP 2 start

IP 4 start

IP 7 start

Duqm timeline

Main road and infrastructure

Commercial quay

Pre-Gates and security

Government berth

Main gates and admin building

Logistic Land

Liquid bulk and phase 2

Transforming the Port: Investment packages

1 2

3

4

5

15

55

6

7

7

7

7 1

2

3

4

5

6

7

107 Mio OMR

96 Mio OMR

80 Mio OMR

20 Mio OMR

140 Mio OMR

250 Mio OMR

Execution between2016 and 2019

Commercial quay: IP2

2200 m

Multipurpose Early Container Dry bulk Navy

TOD

AY 350m

2019

Multipurpose Container 1 Dry bulkContainer 2

Limestone quarry

Dolomite quarry

Limestone

Dolomite

Silica Sand

Duqm area

Deposits within and outside Sezad

Dolomite, Limestone and Silica Sand in direct vicinity of the Port

Gypsum, Laterite, Chromite at further distance

Export to major markets (India, Qatar)

Downstream opportunities for variety of industries

Logistical companies, service and equipment providers

Mineral opportunities near Duqm Port

Operational Capabilities dry bulk

24/7 operations

300m quay, expandable

18m draft

Wheel loaders and tiper trucks

For time being only self geared vessels

Short term: investment in automated systems (conveyor belt)

Longer term: train connectivity

Container feeder line connecting Jebel Ali –Sohar – Duqm – Salalah

Operated by Oman Shipping Company

Weekly or up to 14 days for round trip

Started up in April 2016

Direct calls as from 2019, after commissioning of Container Terminal 1 (IP2)

Early Container Operations: Feeder service to Duqm

Salalah

Sur

Sohar

Duqm

Jebel Ali

Port of Duqm: Landlord

5000 ha

Logistics

Liquid Bulk / Petrochemicals

Industrial

Phase 2

Port of Duqm in 2016

In summaryIn summary

Non congested deep draft port

Prime gateway to numerous overseas markets

Transshipment hub

Land availability at low cost

Intermodal model: air, road, sea, rail

What Port of Duqm has to offer:

In summary

Natural resources abundantly available

Beneficial investment incentive packages

One stop shop

Outspoken investment friendlyenvironment

What Port of Duqm is looking for:

In summary

Entrepreneurs looking to conquer overseas markets, taking full advantage of Duqm’s location

Oil and Gas and Dry Bulk related cargo flows

First movers with long term view

Production facilities looking for cost beneficial environment

Logistical service and equipment providers

Facilities able to support explosive expansion of Duqm

Erwin MortelmansCommercial Director

Port of Duqm CompanyErwin.Mortelmans@portduqm.com

Mob. +968 988 72167

www.portduqm.comwww.duqm.com

Thank you!