27 May, 2016
Oman Wanfang LLC, a Chinese investment company, signed a usufruct—or long-term land use agreement—with Oman’s Special Economic Zone Authority at Duqm (SEZAD) for a 2,965-acre industrial park. Duane Morris LLP and its Oman partner Jeff Rodwell are legal counsel for Wanfang and assisted in drafting the usufruct.
In the park, some 300 miles south of Muscat on the Omani coast, SEZAD manages, regulates and develops all economic activities. Wanfang plans approximately $10 billion in investment in the industrial park from a range of Chinese companies over the next 10 years, which will be the largest development in Duqm, and is aiming to make it a major trade center for the China Silk Road project.
The signing ceremony was attended by the Oman Minister for SEZAD, His Excellency Yahya Said Abdullah al-Jabri; State Councilor of the People’s Republic of China, Wang Yong; Chairman of China-Arab Wanfang Investment Management Company Ltd, Xie Menglin; CEO of SEZAD, Lee Chee Khian; and CEO of Wanfang Oman, Ali Shah.
“The usufruct was a complex and challenging document with a wide range of land uses—including tourism, residential, commercial, light industrial and heavy industrial—and minimum development requirements,” said Rodwell. “It was subject to some months of negotiation, but SEZAD and Wanfang were very professional in dealing with the various issues.”
