A $550 million infrastructure project at Oman’s Port of Duqm is positioning the Gulf as a serious contender in the global race to scale low-carbon industrial supply chains, with Investcorp’s infrastructure arm, AIIP, taking a central role.
The investment, announced this month, marks AIIP’s fourth major deployment and underscores a pivot across Gulf states toward infrastructure models that integrate energy transition goals with long-term economic growth.
The Port of Duqm, situated on Oman’s southeastern coast, offers strategic maritime access to the Indian Ocean and Asian markets, placing it at the intersection of East-West trade routes. Yet the latest expansion—anchored in dredging works and a new quay wall—isn’t just about capacity. It is tightly linked to the development of a next-generation industrial zone aimed at producing low-carbon iron and eventually green hydrogen-powered steel. The broader ambition aligns with Oman’s Vision 2040 strategy and its target to reach net-zero emissions by 2050.
The Aberdeen Infrastructure Partners (AIIP)—a joint venture between Bahrain-based Investcorp and UK asset manager abrdn—secured its position in the Duqm project through a competitive tender, beating four rival bids. AIIP joins a high-profile consortium dubbed CAP INFRA, which includes Port of Antwerp-Bruges, DEME Group, and the Port of Duqm Company.
At the core of the Duqm port expansion is a planned facility for low-carbon iron metallics—a precursor to hydrogen-based steel production. The significance of this move cannot be overstated. Steel manufacturing accounts for around 7–9% of global CO₂ emissions, and transitioning to hydrogen-based direct reduced iron (DRI) is seen as one of the most technically mature pathways for decarbonising the sector. Duqm’s proposition is to link competitive renewable energy resources inland with a deep-sea port capable of exporting green industrial materials at scale.
Beyond environmental considerations, Duqm’s location is increasingly viewed as an asset. Unlike the congested ports of the Arabian Gulf, Duqm is unencumbered by the Strait of Hormuz chokepoint and offers direct, unimpeded access to international sea lanes. This geography is essential for future-facing export hubs, especially if supply chains shift from bulk hydrocarbons toward higher-value, lower-emission materials.
The $550 million project—one of Oman’s largest infrastructure undertakings—also reflects the growing maturity of blended capital models. AIIP’s involvement, alongside European port authorities and maritime infrastructure specialists, indicates a level of financial sophistication that matches the technical ambition. Public-private cooperation, de-risked through long-term concessions and strategic co-investments, is now the prevailing structure for high-impact infrastructure in the MENA region.
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