Salalah Free Zone (SFZ) has signed a usufruct agreement for the construction of a 150,000 barrel per day refinery. The project is expected to require an investment of approximately $2.5bn and will supply liquid cargo that will be handled through Salalah port.

The agreement was signed by Ali bin Mohammed Tabuk, chief executive of SFZ and Kent J Kabi, CEO of Salalah Refinery.

Once complete, the refinery will create some 600 jobs and contribute significantly to Oman’s economy. The refinery is expected to become one of the most important in the Middle East, officials said.

Additionally, Tabuk said that SFZ succeeded in attracting foreign investments that will contribute to supporting the national economy and creating direct employment opportunities for citizens. He pointed out that the number of usufruct agreements signed by SFZ with investment companies reached 69, with an investment volume of more than US$5.36bn.

According to a report by the Muscat Daily, 11 usufruct agreements have been signed across various fields including carbonated beverages, food, solar, two gypsum boards factories and support warehouses for the import and export of goods in SFZ. The foundation stone for the Knowledge Academy was also laid, the academy aims to develop the capabilities of Omani youth.