Infrastructure

Omani shipbuilding facility to serve regional markets

June 10, 2025, 1:05 PM

A new dry dock in Musandam will boost Oman's regional trade and give local fishermen easier access to GCC markets

Maritime gateway unlocked
Boosting trade and tourism
Construction completed by 2027

A new shipbuilding dry dock in the remote but strategic Omani town of Musandam will serve regional markets and give the Gulf state’s farmers and fishermen a new lease of life.

Musandam Global Investment Company (MGIC), a Turkish and Omani joint venture, will build the shipbuilding and marine repair facilities and the project is expected to be completed in the second quarter of 2027.

The first phase, at a cost of $15 million, will have a fishing vessel construction yard, while the second phase will focus on the building of cargo ships and marine repair facilities, at a cost of $20 million.

“The project, when completed, will provide local farmers and fishermen quick access to GCC markets by shipping their products much cheaper and quicker instead of using land transportation networks,” Dr Saud bin Hamoud al Habsi, Oman’s Minister of Agriculture, Fisheries and Water Resources, told Oman Television.

Musandam already has a port in the town of Khasab managed by state-owned Asyad Shipping Company.

The MGIC’s new dry dock facilities are located about 20 km away, facing the Strait of Hormuz, between the Arabian Gulf and the Gulf of Oman.

Analysts say the project is about much more than helping local farmers and fishermen.

“The isolated Musandam Peninsula is now the focus of development and investors realise the business potential of the area as a profitable maritime getaway, not only to the GCC countries, but the Indian Ocean as well,” said Saud Al-Hashmi, managing director of Muscat-based Capital Investments.

Oman’s ministry of heritage and tourism announced last month that it is building 450 properties and a 200-room hotel on the Musandam’s beach front that will be offered to both local and international investors.