Investor demand for ESG is growing - the port town of Duqm is an emerging example of responsible business in practice
Oman is undergoing a pivotal transformation aligned with Vision 2040, the country’s national agenda, which includes twelve priorities that guide social, economic, cultural, environmental, and institutional development strategies from 2021 to 2040. This vision plays a key role in strengthening diversification, environmental stewardship, and social protection through reforms like the Social Protection Law, Social Protection Fund, and Wage Protection System. But to attract long-term investment in this vision, compliance with international standards on ESG is increasingly expected.
The port town of Duqm, one of the region’s largest Special Economic Zones established in 2011 and designed to attract investment, boost exports and create jobs through favourable trade and business regulations, is putting this ambition into practice by integrating environmentally and socially responsible growth for both local and migrant workforces.
Covering 2,000 km² of land, Duqm has attracted over USD 7.8 billion (3 billion Omani Riyals) in public infrastructure—from modern housing and schools to logistics and industrial development. Its strategic location grants access to global trade and makes it a natural hub for green hydrogen, renewables, heavy industry, with a climate suitable for long-term settlement. More recently, as of mid-2025, the volume of investments in Duqm has exceeded USD 15.6 billion (6 billion Omani Riyals).
Last month, the Gulf Sustain team had the opportunity to visit Muscat and Duqm to meet with Omani partners and colleagues whose leadership and openness provided valuable space for mutual learning and exchange. This visit, facilitated by Swiss Ambassador Thomas Oertle, gave us the opportunity to engage with stakeholders from the Special Economic Zone at Duqm (SEZAD), the Public Authority for Special Economic Zones and Free Zones (OPAZ), the Duqm Refinery and Petrochemical Industries Company (OQ8), Port of Duqm, Asyad Docks, the Oman Energy Association (OPAL), the Ministry of Labour, the Oman Human Rights Commission, and other national actors to better understand their efforts to advance responsible business conduct and sustainability across sectors.
Beyond the focus on infrastructure and investment, it was clear that Duqm’s development is also increasingly guided by a human-centred approach: one that considers how industrial growth and community life can evolve together. This emphasis on people and place complements the country’s economic vision and offers a path toward inclusive, sustainable urbanisation.
Worker accommodation standards
In Duqm, OPAZ authorities have set high standards for worker accommodation, closing substandard camps and setting new benchmarks with facilities like Renaissance Village Duqm, which is an ILO-compliant, climate-responsive example of worker accommodation hosting up to 20,000 guests. Innovations such as food waste reduction, solar retrofitting, and onsite clinics enhance both sustainability and business resilience. It was evident that the companies housing workers in Renaissance Village Duqm recognise that investments in dignity, health, and recreation are strategic assets, fostering a virtuous cycle of welfare, resilience and investment.
Our engagements in Duqm aimed to reinforce reciprocal learning and appreciation of Omani-led progress. Our role, through Gulf Sustain, is to collaborate closely with Omani counterparts, amplifying the work already underway in the region and supporting by creating platforms like the Oman Advisory Council—to strengthen collective action through dialogue and partnership with government, business, academia, and the diplomatic community. This visit also offered a reminder that Duqm’s long-term success will depend on maintaining this balance: ensuring that economic opportunity, quality of life, and sustainability advance together. Such an approach not only benefits workers and families but also reinforces Duqm’s appeal to investors seeking stable and responsible environments.
In parallel, the reflections of Rumaitha Al Busaidi, an Omani marine scientist and environmental advocate, shared in her recently published opinion piece, offers an important perspective complementing what we saw and learned in Duqm: “In Al Duqm, Oman’s green hydrogen hubs are rising on a foundation of renewable energy and industrial-scale desalination… Could a portion of that power run cold chains for local fisheries? Could a share of that water supply agriculture pilots or rural clinics? The answer is yes, if those priorities are written into plans from the start.” …”Energy, water, food and people belong on the same page.”
These words highlight the urgency of embedding responsible environmental and social standards while Duqm is still being shaped. Rather than viewing these standards as obligations, many partners see them as opportunities—to safeguard Oman’s reputation for reliability and to create a liveable, future-ready city. With over 2,300 registered projects and USD 54.6 billion (21 billion Omani Riyals) invested nationwide, Duqm’s choices today will shape Oman’s broader legacy.
Aligning with responsible investors
ESG standards—especially labour safeguards—have become a central screening criterion: major financial institutions and development banks use ESG scores, including labour and supply chain standards, as decisive factors in capital allocation. These requirements shape access to funding and determine who can participate in new projects. Benchmarks like the IFC Performance Standards and the UN Principles for Responsible Investment (UNPRI) guide investment decisions internationally. The Task Force on Climate-Related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB) set global norms for transparency and reporting.
Across global markets, social performance indicators—including worker welfare and inclusion—are increasingly recognised as integral to responsible investment strategies. By continuing to embed these principles, Oman and Duqm can demonstrate how social progress and business success are mutually reinforcing, aligning with Vision 2040’s priorities on human capital and sustainability.
Oman must sustain multi-billion-dollar annual FDI flows—at least USD 8–10 billion (Omani Riyals 3–4 billion) per year—to meet Vision 2040 targets, with most new investment directed to non-oil, future sectors such as advanced manufacturing, logistics, green energy, and digital infrastructure. Cumulative FDI has already surpassed approximately USD 78 billion (Omani Riyals 30 billion) by 2025, but maintaining high annual investment is critical to ambitions to create a sustainable economy.
In Oman, the Muscat Stock Exchange made ESG reporting mandatory for listed companies from June 1, 2025, and the Oman Investment Authority (OIA) requires responsible investment in line with global expectations. Those failing to uphold high ESG and human rights standards face not only mounting reputational and regulatory risks but reduced access to global capital. The opportunity—and necessity—is to align with frameworks such as the International Sustainability Standards Board (ISSB), UN Guiding Principles on Business and Human Rights (UNGPs), OECD Guidelines for Multinational Enterprises and ILO Core Conventions, alongside EU disclosure and due diligence rules. For Oman and Duqm, reaching and sustaining Vision 2040’s ambitions—and attracting the scale of FDI required—will depend on being recognised as leaders in embedding these standards and demonstrating real-world impact for people and the environment.
We remain grateful to Omani partners for generously sharing their experience and strategies, which will continue to guide our own work in Oman and beyond.