Oman Cancels Damac’s Contract For Port Development
Oman has cancelled a major project with the United Arab Emirates worth billions of dollars, due to the growing tension between the two countries. Oman’s new Sultan, Haitham Bin Tariq Al-Said, is said to have issued an order to reduce Abu Dhabi’s grip on his country’s affairs. The recent termination of the contract between UAE-owned Damac International and Omran, the investment arm of Oman’s tourism ministry, led to speculation that Bin Tariq, who took over from his cousin in January following the death of Sultan Qaboos, is moving slowly away from a position of neutrality on regional geopolitical matters which was maintained carefully by his predecessor. Damac International oversaw a number of major projects in Oman, including the development of Sultan Qaboos Port. In 2017, the UAE firm was awarded the contract to turn the area into a tourism investment destination. Emirati companies will incur over $400 billion worth of losses for the cancellation of contracts. Such deals include the construction of major projects all over the Middle East. Damac’s failure to employ Omani workers, inability to compensate landowners and poor record in completing some projects were cited as reasons for the termination of the partnership between Oman and the UAE firm. It’s also been suggested that there are broader geopolitical factors at play. Tension between the Sultanate of Oman and the Emirates is said to be higher than it has been in recent years, pushing Muscat into the arms of Turkey.
Tags : INTERNATIONAL