After Billions in Chinese Investment Oman’s Duqm Port
Could Help Bypass Hormuz, June 16th, 2019 Sabena Siddiqi
Located
between the Gulfs of Oman and Aden, Oman’s Duqm port has special importance as
it lies along the Strait of Hormuz, Gulf of Oman, Indian Ocean and the Arabian
Sea.
With
this strategic location, it is not only close to South Asian countries like
India and Pakistan, it is also easily accessible from East Africa. Since
joining the Belt and Road Initiative (BRI) in 2018, Oman has acquired
additional importance as it has emerged as China’s first base-station in the
Gulf.
Securing
dependable and secure energy resources has always been a top priority for
Beijing and there is no better place for attaining these goals than the Middle
East which holds 48% of
oil reserves and 40 % of gas reserves globally. Therefore, a $10.7 bn Sino-Oman
industrial city and the Duqm Special Economic Zone (SEZAD) are being developed.
Once ready, this will be the biggest SEZ of the MENA region.
Securing dependable and
secure energy resources has always been a top priority for Beijing and there is
no better place for attaining these goals than the Middle East which
holds 48% of
oil reserves and 40 % of gas reserves globally
As
the first phase of construction approaches completion in 2020, Duqm will
have the capacity to link several continents with the logistics and
infrastructure built with Chinese investment. As China’s main energy corridors,
these Middle Eastern routes are the “oil roads” of the BRI, according to Lu Ruquan,
Director of the Strategic Development Department of the China National
Petroleum Corporation (CNPC).
Notably,
Oman will be the first energy producing country which is also a central BRI
node in the Gulf with well-located ports. For successful business ventures,
peace is the first requirement and Muscat has managed to have good ties in the
region as well as with Iran, India, China and the U.S. simultaneously.
Balancing its relations, Oman has encouraged foreign investment from all and
the rivalry between various powers makes no difference.
Another interesting aspect
about Duqm port is that it can be an alternate route outside
the Straits of Hormuz with direct access to the Arabian Sea. Considering that
the Strait is quite unstable due to U.S.-Iran frictions these days, it seems
likely that more attention will be given to Duqm in the days ahead.
Another
interesting aspect about Duqm port is that it can be an alternate routeoutside
the Straits of Hormuz with direct access to the Arabian Sea. Considering that
the Strait is quite unstable due to U.S.-Iran frictions these days, it seems
likely that more attention will be given to Duqm in the days ahead. Recent
attacks on oil vessels near the Strait of Hormuz might even force shipping
companies to consider Duqm instead as a safer route. Located in Oman’s East, it
is far away from the scene of the conflict these days.
Indirectly,
the U.S.-Iran conflict could even promote Oman and most of all, Duqm port,
owing to its crucial location. Being a stable, neutral state with no terrorism
or war threats even though it is situated in a potentially volatile region,
Oman could benefit from the ongoing tussle in the region. Having a strategic
port deal with
Oman, even Washington can have better access to the Gulf and an alternate route
for its ships if the need arises.
Bypassing
the Strait of Hormuz is an important military option right now as tensions with
Iran show no signs of abating. According to a statement from
the U.S. embassy in Oman, the bilateral agreement provides access to facilities
and ports in Duqm and Salalah and “reaffirms the commitment of both countries
to promoting mutual security goals.” Being a big port, Duqm can even turn
around an aircraft carrier according to U.S. officials.
Considering
the current geopolitical scenario, the time has come for Oman to reap the
benefits of its strategic location as well as its neutral foreign policy. Even
though Duqm and other Omani ports are right at the center of a global
competition for influence, Muscat’s stance continues to be neutral and it does
not seem perturbed.
Even though Duqm and other
Omani ports are right at the center of a global competition for influence,
Muscat’s stance continues to be neutral
Also
having an agreement with New Delhi for
logistics support and long-term anti-piracy operations, Oman provides
maintenance facilities for Indian ships at Duqm, the only port in the area with
repair facilities for large vessels. Only last month, joint exercises were held
with the Japanese navy and the port remains a supply and refueling base for the
British, Japanese and American navies.
In
tandem, the Beijing-Muscat alliance is on its peak and this is what makes Duqm
an interesting case. Instead of exclusively giving space to one country, it
gives space to other nations as well and this may be the secret of its success.
There are some drawbacks and just like with Gwadar, another BRI port in
Pakistan, observers wonder whether China could use Duqm for military purposes.
observers wonder whether
China could use Duqm for military purposes
According
to the ‘string of pearls’ sea-lane strategy, China requires several ports in
Pakistan, Myanmar, Sri Lanka and Bangladesh to achieve dominance. However,
China invested to upgrade its energy security and build a large trade network
to stem its slowing economic growth.
For
now, the BRI has helped diversify Arab economies and boosted energy activities
in the region. Nowadays, China is negotiating a Free Trade Agreement (FTA) with
the Gulf Cooperation Council (GCC) Once this is finalized, most uncertainties
surrounding the BRI would be done away with.
Sabena Siddiqi is a Foreign
Affairs Journalist and Geopolitical analyst based in Karachi, Pakistan. The
views expressed in this article do not necessarily reflect those of Al Bawaba
News.
