Alternative investment firm Investcorp has signed a cooperation agreement to invest in a $550 million infrastructure project in Port of Duqm in Oman.
Investcorp Aberdeen Infrastructure Partners (AIIP) – a joint venture with Aberdeen plc, will be the shareholder in the project, alongside the Port of Duqm Company, the DEME Group and Port of Antwerp Bruges (jointly formed a consortium named CAP INFRA).
This investment is closely aligned with AIIP’s mandate to invest in long-term concessions across the GCC countries and the broader MENA region, and its strategy to develop long-term partnerships with key industry players, such as the Port of Duqm Company and CAP INFRA.
The Port of Duqm, situated in the south-east of Oman with direct access to the Indian Ocean, serves as a crucial gateway and transit point for global trade and commerce, cementing its role as a strategically important infrastructure assets in Oman.
Benefiting from a prime central location on the Omani coastline, the Port serves as a multipurpose hub, handling container shipments, dry and liquid bulks, general and bagged cargo.
As part of the marine infrastructure works, dredging and construction of a new quay wall are envisaged which will service a new low-carbon industrial plant within the Special Economic Zone at Duqm.
The plant aims to produce low CO2 iron metallics products and, ultimately, hydrogen powered steel, or ‘green steel’. The port expansion and ultimate creation of a green steel plant aligns with Oman’s Vision 2040 and the country’s commitment to sustainable infrastructure development.
The opportunity to invest in the project was a competitive process, with AIIP securing the mandate over four other parties.
“The Port of Duqm is one of the most strategically important seaports in the world. We are pleased to be investing not only in one of Oman’s largest infrastructure projects, but in Oman’s Vision 2040, contributing to the goal of achieving carbon neutrality by 2050,” said Mohammed Alardhi, Executive Chairman at Investcorp.
“We are delighted to partner with the Port of Duqm Company and CAP INFRA to expand this important shipping hub and further secure trading routes to and from the region. Securing this transaction demonstrates our ability to offer investors access to unique opportunities. We are very excited about the region’s infrastructure prospects,” added Sami Neffati, Managing Partner of AIIP.