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Oman International Exhibition Centre

24– 26 October 2011

SULTANATE OF OMAN: EXPLORING OPPORTUNITIES

Port of Sohar Cargo Throughput DevelopmentSohar Industrial Port

Sohar is a deep sea port in the Middle East situated in the Sultanate of Oman, 220km northwest of its capital Muscat. The management of this industrial port lies with Sohar Industrial Port Company (SIPC SOAC), a 50/50 joint venture between the Government of Oman and the Port of Rotterdam. The original agree-ment between the two parties was signed in 2002 and included a port area of 2100 ha and for SIPC to manage and develop the port. Today, the port is fully operational with state-of-the-art facilities. With current investments exceeding $14billion it is one of the world's largest port development projects.

Located just before the Strait of Hormuz, Port of Sohar is within easy reach of the booming economies of the Gulf and the Indian subcontinent and with great connectivity to Abu Dhabi, Dubai, Al Ain and Muscat. Sohar houses three clusters: logistics, petrochemicals and metals. World-leading companies Air Liquide, Alcan, Hutchison Port Holdings, Larsen & Toubro, LG, MAN Ferrostaal, Methanol Holding International, Odfjell, Oiltanking, Jindal Shadeed Iron & Steel, Steinweg and Suez have already chosen Sohar. The three terminals are operated by world class leading companies. Steinweg for general cargo, Odfjell/Oiltanking for liquid and OICT (Hutchinson Whampoa) for containers.

The first vessel called the Port of Sohar in 2004 for delivering components in constructing the present industries. Port of Sohar has witnessed an increase in the number of vessels calling the port every year and continues to have more and more shipping lines choosing the Port of Sohar as their preferred port of call.

Developments include:

✓ The Automatic Identification System (AIS) tender procedure is operational.

✓ The port has 3 tug boats operating in the harbor (4th coming in July 2011).

✓ 2 of the tug boats are equipped with fire fighting foam to improve fire fighting standards within the port.

✓ The custom rotation system, a safe and more efficient way for agents to clear cargo digitally is operational.

✓ Marine service facilities (pilotage, linesmen, marine supplies, STS and bunker services and crew change) are all in place in the port.

✓ The new jetty with 25 meter draft will be opera-tional in 2011 and ready to receive some of the largest vessels in the world.

MILESTONES

1990: Conclusion of the study by Japan International Cooperation Agency recommending the site selec-tion of the Port of Sohar and Freezone Sohar.

1999: Commencement of the breakwater onstruc-tion on the Port of Sohar

2002: A 50/50 joint venture was signed in the conces-sion agreement between the Government of Oman and the Port of Rotterdam to develop and manage the port by Sohar Industrial Port Company SAOC (SIPC).

2003: First lease (sub usufruct) agreement was signed between SIPC and Sohar Refinery; followed by a similar agreement for the general cargo terminal with Steinweg.

2004: Commencement of ship operations, and devel-opment for the industrial projects. The port received the first cargo vessel at the general cargo terminal.

2007: An addendum to the concession agreement

was signed between the Government of Oman and the Port of Rotterdam thus expanding the concession area to include 4500 hectares for Freezone Sohar. This was to promote investments in mainly added-value logistics and downstream industries supported by educational infrastructure. The agreement also granted SIPC an extension to its term up to 2043.

2007: A broad master file vision of the North Batinah was prepared by the Port of Rotterdam under the supervision of the Ministry of Transport and Communi-cations, and in collaboration with other governmen-tal bodies and IPC. The master plan was approved by the members of the Supreme Committee of Town Planning.

2009: SKIL Infrastructure from India is included as a shareholder to jointly develop and manage Freezone Sohar.

For any further information on the Port of Sohar, please contact Head of Corporate Communica-tion; Ms. Annica Sigevall, +968 26852700.

(*) teus are calculated from known number of containers against the applicable 20ft/40ft ratio

(**) 2007and 2008 figures are estimated by deriving the average call size in 2009 and to use these against

the known number of vessel calls

(***) Based on an average load per TEU of 9.66 ton

Dry Bulk (frt) 231,841 785,241 1,868,733 2,830,549 51%

Break bulk (frt) 376,249 545,840 205,822 188,928 -8%

Liquid Bulk (frt) 3,055,899 4,761,931 7,256,926 7,727,030 6%

Project (frt) 465,349 411,284 326,803 373,151 14%

Subtotal FRT 4,129,338 6,504,296 9,658,283 11,119,657 15%

Containers (*) (units) 6,290 24,416 76,334 79,988 5%

(teus) 8225 31931 99,830 101,338 2%

Containers in FRT (***) 79,454 308,453 964,358 978,927 2%

Roro (**) 6,894 74,118 49,978 73,429 47%

TOTAL FRT 4,215,686 6,886,868 10,672,619 12,172,014 14%

Vessel calls 556 780 1013 1110 10%

2007 2008 2009 2010 Change

The Port of Salalah

Company Profile

✓ Incorporated in 1997✓ Traded on Muscat Securities Market✓ 30-year concession for management and

operation of the Port of Salalah✓ Support from the Omani Government, and the

A.P. Moller – Maersk Group

Full Service Port

✓ Stevedoring✓ Reefer services✓ Container M&R✓ Cargo consolidation✓ Tugs and pilots✓ Cruise services✓ Port Authority✓ Bunkering✓ Warehousing✓ Storage✓ Real estate lease

Port of Salalah Main Features

✓ Location on the Indian Ocean Rim, right at the major east-west shipping lanes

✓ Ability to handle any container vessel on earth✓ Deep draft, 16 m to 18 m alongside✓ Short pilotage✓ 24 / 7 / 365 operations✓ Easy and efficient customs process for transshipment cargo✓ General Cargo Terminal servicing local business✓ Expanding local market and free zone that is served 100% by POS✓ Geared to transshipment business✓ Full integration of Marine Services and Terminal Operations

Facts and Figures - Container TerminalFacts and Figures - Container Terminal

with Berths 7, 8 & 9

A.P. M Terminals BV

30%

Pension funds and

General public 29%

Institutional

Investors 21%

Government of Oman

20%

Water depth

Berths

Quay cranes

Yard

Throughputcapacity

Facilities

16.0 m alongside berth 1-4 & 31, 18.0 m at berth 5 & 6

18.5 m approach

7

2,505 m

25 Post Panamax gantry cranes +2 MHC

900,000 m2 / 90 ha / 222 acres

58,090 yard slots

1,750 reefer slots

6 Million TEU

CFS with 9,000 m2 warehouse

Container M&R

Bunkering, via underground piping (BP)

Water depth

Berths

Quay cranes

Yard

Throughputcapacity

Facilities

16.0 m alongside berth 1-4 & 31, 18.0 m at berth 5 -9

18.5 m approach

10

3,855 m

40 Post Panamax gantry cranes +2 MHC

900,000 m2 / 90 ha / 222 acres

67,500 yard slots

2,500 reefer slots

9 Million TEU

CFS with 9,000 m2 warehouse

Container M&R

Bunkering, via underground piping (BP)

Facts and Figures - General Cargo Terminal

Summary

✓ The Port of Salalah is a prime hub✓ Right at the main east/west shipping lanes with

easy access to Gulf, East Africa, Red Sea and IOR

✓ Water depth and equipment to service any container vessel on earth

✓ High Productivity✓ Expansion ensures capacity to cater for current

and future volumes✓ The best trained and educated people in the

Region✓ The Safest Port of call in the region.

Duqm Port and Dry Dock

The Port of Duqm a strategic projects, task, and consists of two breakwater with lengths of (8.7) kilome-ters and commercial berths length (2250 meters) and depth (18 meters) and berths to government & services are as long as (980 meters) and depth (10 meters). The project is expected to be completed at the end of 2012.

During the same time, a dry dock is created in the port for maintenance and repair of ships of various sizes, including vessels of oil and gas giant which has a capacity to (600,000 tons), The project consists of the dry basins length (410 meters), display (95) m and ( 80) meters; high (14 meters) and depth (10 meters) and length of berth is 2,800 meters, in addition to the creation of buildings, workshops and service facilities required for operation.

Also be performed (17) projects, the superstructure of the basin include the dry plant and equipment and mechanisms necessary for the operation.

Safest Port in the Region

We provide a secure environment in the port and the surrounding area.

✓ Hub for the anti-piracy task force✓ US government’s Secure Freight Initiative charter

port and Pilot site✓ Participation in international programs such as

CSI & ISPS✓ Safe and fast vessel movement within the port✓ Marine environnemental protection✓ Marine Services✓ Located outside the politically sensitive Upper

Gulf and the oil lanes of the Straights of Hormuz

Berth

21, 22, 23

24

25

26, 27

28

29

30

Oil Pier

Total Area

Warehouses

Usage

Multi-purpose + cable vessel

General

Launches (dhows) and port use

Launches (dhows) and gov’t use

Launches (dhows) and gov’t use

Launches (dhows) / fishing

Bulk, multi-purpose, oil tanker

Oil tanker (max 35,000 DWT)

200,000 m2

Equipment and Facilities

2 x 30 mt mobile harbor crane

2x100mt mobile harbor crane

2 x 50 mt telescopic truck crane

1 x 70 mt heavy lift crane

15 x 3-15 mt forklift

9 x 50 mt low bed trailer

2 x 6 m3 hydraulic grab

4 x fuel manifold, 800 mt/hr*1 x Panmax vacuvator, 200 mt/hr*

2 x marine loading arm, 300 m3/hr

Length

520

200

115

230

115

260

300

190

1,930

Draft

9.0

6.8

4.3

4.1

2.6

2.6

16

10

-

Dimension (m)

4 x 3,000 m2

Container berth & General cargo berth

Dry dock berth

Service berth & Government berth

Total

Land area (km2)

Sea area (km2)

Total area (km2)

Length break water (m)

Depth approach channel (m)

Number

8

6

4

18

Length (m)

2250

2800

980

6030

Depth (m)

- 18

- 10

- 10

60

75

135

8700

- 19

DataDuqm Port

FREE ZONES ✓ No minimum capital requirements ✓ Flexibility to manpower needs✓ All permits and consents to be granted by

One-Stop-Shop operated by the Free zone Sohar authority

Making business easy

The One Stop Shop team takes care of major administrative obligations related to the start-up of a company at Free zone Sohar. Offering ease, speed and transparency, the one stop shop serves as a pivotal intermediary between the company and government agencies. The services include;

✓ Organizing the legalities of company establishment and arranging the specific permits required

✓ Identifying, planning and executing the relevant important governmental obligations so that set-up can proceed smoothly.

✓ Arranging joint meetings with utility and service providers

Salalah Free ZoneOne Free Zone. Many Advantages

Vision

"To be the Global Leading Hub for Quality Industrial and Logistical Activities"

Mission

"To create a long term partnership with our clients by establishing a state-of-art infrastructure in a unique location with attractive incentives, secured environment and reliable services"

Offer:

✓ An array of business-friendly incentives ✓ Proximity to the Middle East’s fastest growing

seaport ✓ Considerable saving on lead-time to lucrative

markets ✓ Significant saving on shipping insurance ✓ Ideal base for distribution and transshipment

The key to unfettered access to over 1.6 billion consumers in the Middle East, East Africa and the Indian Ocean Rim - Salalah Free Zone offers investors an excellent opportunity to ensure maximum return on investment.

Besides access to the world’s fastest growing markets, Salalah Free Zone also delivers a whole host of other business advantages. Focused on creating vibrant communities, it is being developed in multiple phases over an area of 2000 hectares.

The zone offers a mix of industrial, manufacturing, warehousing, logistics, distribution, R&D and office facilities, retail outlets, resort, and residential space.

Phase One, which is now completed and fully occupied provides 200 hectares of distribution, logistics, freight forwarding and manufacturing facilities. This includes state of the art infrastructure like a road, power, water, sanitation and telecom networks in addition to other various services.

Phase two, which is currently under construction provides 400 hectares of facilities similar to phase one with a focus on light and medium industrial units.

The proximity to Salalah Port, which is having its capac-ity increased to 4.4 million TEU annually, is another advantage for investors

Facilities

Salalah Free Zone offers a variety of facilities to help meet the needs of diverse businesses.

Office buildings

High quality, spacious, pre-built offices are available on an annual rental basis. The offices are unfurnished and equipped with light fixtures. They have also been specifically designed to allow flexibility in accommodating a variety of requirements.

Light industrial units

High quality, thermally insulated, purpose-built units are available on an annual rental basis. The units are fitted with additional features that allow for the construction of offices. For convenience, two exits, one ramp for forklifts and loading dock for containers and trucks, are located at the rear of the units.

The units can be used in two ways: -

✓ As a warehouse for storage and distribution of products

✓ As a factory for assembly and light production

Sohar Free Zone 4500ha of business advantage

Free zone Sohar is spearheaded by Sohar Industrial Development Company LLC (SIDC), a joint venture between the Government of Oman, the Port of Rotter-dam in The Netherlands and SKIL Infrastructure in India.

Free zone Sohar, along with other initiatives, such as the expansion of the Port of Sohar and investments in a deepwater jetty (with 25 m draft) to support a huge iron ore palletizing plant by Brazilian mining giant Vale, will further accentuate the industrial port's importance as a driver of economic growth in the Batinah region.

Development of the 4,500-hectare zone is planned in four phases. The first phase (500ha) is launched and already from the start companies from many countries and areas have shown great interest to establish their business in Free zone Sohar. The area has been clustered for a number of downstream industrial and petrochemical ventures, warehousing and logistics services, and so-called 'soft' investments, such as educa-tional, medical and other service-related amenities.

Operating from a strategic location on the Arabian Peninsula, Free zone Sohar offers an ideal environment for business growth. The combination of wide market access, sound global logistics and attractive business incentives ensure that companies enjoy the ultimate freedom to do business. Together with the upcoming Sohar airport, the new expressway, the railway system and Sohar Industrial Estate the Port of Sohar and Free zone Sohar make the area, often named Gateway Sohar, into a preferred area for any kind of business.

Incentives for Business

Attractive incentives ensure that doing business at Free zone Sohar is both investor-friendly and lucrative. This includes;

✓ 100% foreign ownership ✓ Free repatriation of capital and profits ✓ Corporate Tax Holiday for 10 years, with possibility

to extend this period depending upon criteria based extension

✓ No personal income tax ✓ No currency restrictions ✓ No duty on imports and exports ✓ Sales to Omani market allowed on payment of

5% duty

✓ No minimum capital requirements ✓ Flexibility to manpower needs✓ All permits and consents to be granted by

One-Stop-Shop operated by the Free zone Sohar authority

Making business easy

The One Stop Shop team takes care of major administrative obligations related to the start-up of a company at Free zone Sohar. Offering ease, speed and transparency, the one stop shop serves as a pivotal intermediary between the company and government agencies. The services include;

✓ Organizing the legalities of company establishment and arranging the specific permits required

✓ Identifying, planning and executing the relevant important governmental obligations so that set-up can proceed smoothly.

✓ Arranging joint meetings with utility and service providers

Salalah Free ZoneOne Free Zone. Many Advantages

Vision

"To be the Global Leading Hub for Quality Industrial and Logistical Activities"

Mission

"To create a long term partnership with our clients by establishing a state-of-art infrastructure in a unique location with attractive incentives, secured environment and reliable services"

Offer:

✓ An array of business-friendly incentives ✓ Proximity to the Middle East’s fastest growing

seaport ✓ Considerable saving on lead-time to lucrative

markets ✓ Significant saving on shipping insurance ✓ Ideal base for distribution and transshipment

The key to unfettered access to over 1.6 billion consumers in the Middle East, East Africa and the Indian Ocean Rim - Salalah Free Zone offers investors an excellent opportunity to ensure maximum return on investment.

Besides access to the world’s fastest growing markets, Salalah Free Zone also delivers a whole host of other business advantages. Focused on creating vibrant communities, it is being developed in multiple phases over an area of 2000 hectares.

The zone offers a mix of industrial, manufacturing, warehousing, logistics, distribution, R&D and office facilities, retail outlets, resort, and residential space.

Phase One, which is now completed and fully occupied provides 200 hectares of distribution, logistics, freight forwarding and manufacturing facilities. This includes state of the art infrastructure like a road, power, water, sanitation and telecom networks in addition to other various services.

Phase two, which is currently under construction provides 400 hectares of facilities similar to phase one with a focus on light and medium industrial units.

The proximity to Salalah Port, which is having its capac-ity increased to 4.4 million TEU annually, is another advantage for investors

Facilities

Salalah Free Zone offers a variety of facilities to help meet the needs of diverse businesses.

Office buildings

High quality, spacious, pre-built offices are available on an annual rental basis. The offices are unfurnished and equipped with light fixtures. They have also been specifically designed to allow flexibility in accommodating a variety of requirements.

Light industrial units

High quality, thermally insulated, purpose-built units are available on an annual rental basis. The units are fitted with additional features that allow for the construction of offices. For convenience, two exits, one ramp for forklifts and loading dock for containers and trucks, are located at the rear of the units.

The units can be used in two ways: -

✓ As a warehouse for storage and distribution of products

✓ As a factory for assembly and light production

Developed & Undeveloped Land sites

Salalah Free Zone provides plots of land of various sizes for long-term lease. These sites are ideal for the construction of warehouses and factories.SFZ Investment Incentives

Maximise Your Return On Investment

Beside the competitively low initial cost of setting up a business in SFZ. We offer our valuable investors a world class one-stop-shop arrangement for licenses, permits, visas, customs clearances, etc., in addition to a host of other investment-friendly incentives available to businesses operating at Salalah Free Zone.

The array of special investment incentives include:

✓ A lease for 50 years (renewable for another 50 years)

✓ 100% foreign company ownership ✓ Zero customs duties on imports and exports ✓ No minimum capital investment requirement ✓ No taxes on profits or dividends for 30 years ✓ No tax on personal incomes ✓ No restrictions on repatriation of capital, profits

and investments ✓ Omanisation requirement level of only 10%

(which is very low compared to registered companies operating out of SFZ boundaries)

✓ Flexible customs procedures

Businesses established at Salalah Free Zone are able to participate in existing export guarantee arrangements provided to Omani companies by Omani financial institutions.

AIRPORTS UPDATES

Muscat International and Salalah Airports

The Development works of Muscat International and Salalah Airports have been divided into eleven Main Contracts and they are as follows:

Main Contract One (MC1): This stage represents the main civil works for Muscat International Airport. Consolidated Contractors Company Oman Joint Venture with TAV

Main Contract Two (MC2): This stage represents the construction of a new Control Tower and Data Center at Muscat international Airport.

Main Contract Three (MC3): This stage represents construction works for the Passenger Terminal Building.

Sohar Free Zone 4500ha of business advantage

Free zone Sohar is spearheaded by Sohar Industrial Development Company LLC (SIDC), a joint venture between the Government of Oman, the Port of Rotter-dam in The Netherlands and SKIL Infrastructure in India.

Free zone Sohar, along with other initiatives, such as the expansion of the Port of Sohar and investments in a deepwater jetty (with 25 m draft) to support a huge iron ore palletizing plant by Brazilian mining giant Vale, will further accentuate the industrial port's importance as a driver of economic growth in the Batinah region.

Development of the 4,500-hectare zone is planned in four phases. The first phase (500ha) is launched and already from the start companies from many countries and areas have shown great interest to establish their business in Free zone Sohar. The area has been clustered for a number of downstream industrial and petrochemical ventures, warehousing and logistics services, and so-called 'soft' investments, such as educa-tional, medical and other service-related amenities.

Operating from a strategic location on the Arabian Peninsula, Free zone Sohar offers an ideal environment for business growth. The combination of wide market access, sound global logistics and attractive business incentives ensure that companies enjoy the ultimate freedom to do business. Together with the upcoming Sohar airport, the new expressway, the railway system and Sohar Industrial Estate the Port of Sohar and Free zone Sohar make the area, often named Gateway Sohar, into a preferred area for any kind of business.

Incentives for Business

Attractive incentives ensure that doing business at Free zone Sohar is both investor-friendly and lucrative. This includes;

✓ 100% foreign ownership ✓ Free repatriation of capital and profits ✓ Corporate Tax Holiday for 10 years, with possibility

to extend this period depending upon criteria based extension

✓ No personal income tax ✓ No currency restrictions ✓ No duty on imports and exports ✓ Sales to Omani market allowed on payment of

5% duty

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Stage Four – Main Contract Four (MC4A): The project consists of construction of permanent offices of the Directorate General of Civil Aviation Affairs (MC 4A)

Main Contract Five (MC5): This stage represents the development works for Salalah Airport and consists of construction of a new terminal building, expanding the length of the runway, and other related works.

Main Contract Six (MC6): This stage represents the works related to Master Systems Integrator for Muscat International Airport & Salalah Airport.

Main Contract Seven (MC7): This stage represents the works related to Airport Operational Readiness.

Main Contract Eight (MC8): This stage represents the works related to the Baggage Handling System.

Standardization Nationwide Contract for Air Traffic Management (SNC9): This stage represents the works related to standardizing air traffic management systems.

Standardization Nationwide Contract for Navigational Aids Systems (SNC10): This stage represents the works related to standardizing Navigational Aids systems.

Standardization Nationwide Contract for Passenger Boarding Bridges (SNC11): This stage represents the works related to standardizing Passenger Boarding Bridges.

Sohar Airport Project

Construction works for this airport has been divided into three packages and they are as follows:

Package One: This package consists of civil works, road network, utilities, and Falaj protection work.

Package Two: This package includes construction works for the runway, taxiway, apron, and all other accessories.

Package Three: This package includes building construction works such as the PTB, cargo building, and all other buildings

Ad-Duqm Airport:

Construction works for this airport has been divided into three packages and they are as follows:

Package One: This package consists of airport road network and utilities.

Package Two: This package includes construction works for the runway, taxiway, apron, and all other accessories.

Package Three: This package includes building construction works such as the PTB, cargo building, and all other buildings.

Ras Al-Had Airport Project

Construction works for this airport has been divided into three packages and they are as follows:

Package One: This package consists of airport access road along with the ducting that is to be used for the utilities.

Package Two: This package includes construction works for the runway, taxiway, apron, and all other accessories.

Package Three: This package includes building construction works such as the PTB and other buildings.

Adam Airport

Construction works for this airport has been divided into three packages and they are as follows:

Package One: This package includes construction works for the runway, taxiway, apron, and all other accessories.

Package Two: This package includes the early open-ing of air port

Package Three: This package includes building construction works such as the PTB and other buildings.ROAD & RAIL INFRASTRUCTURE

Road Developments

The Sultanate has made ambitious investments in its road travel network in recent years and is now making headway in terms of intermodal freight transport and dual carriageways. In June 2009, the Government signed 17 contracts worth OR84.8m (US$220.3m) for future road development projects; the largest of these is the Southern Batinah Expressway, which will extend 275 km from Muscat to Oman’s northern border with the UAE, covering the length of the Batinah region, which has become an important industrial centre over the past five years.

Rail Network

With the country’s Al Batinah Railway development initially linking the industrial centre in Sohar with Barka, the Sultanate of Oman is optimistic of its potential of increasing intermodal cargo transport options particu-larly in the Sohar region. With these links, Oman is likely to play a key role in the inter-Gulf Cooperation Council rail network, a proposed OR5.39 billion (US$14 billion), 2000-km project that could link the six member states as soon as 2016.