Overview
The Public Authority for Special Economic Zones and Free Zones (OPAZ) was established by Royal Decree 43/2021 to consolidate oversight and promotion of Oman’s economic zones under a single authority. Before OPAZ, the Duqm SEZ (managed by SEZAD), Salalah Free Zone (managed separately), and Sohar Free Zone (managed by SFZCO) operated under different regulatory frameworks and reporting lines.
OPAZ provides a unified regulatory and promotional framework, enabling investors to engage with a single authority for zone selection and initial approvals, while individual zone authorities retain operational management.
Economic Zones Under OPAZ
Duqm Special Economic Zone (Duqm SEZ/SEZAD): Located on Oman’s central coast at Al Wusta Governorate, Duqm is Oman’s most ambitious industrial development — a greenfield SEZ covering approximately 2,000 square kilometres. Key assets:
- Port of Duqm (deep-water, outside Hormuz)
- Oman Drydock Company
- Duqm Refinery (OQ-Aramco JV, 230,000 bpd)
- Logistics and manufacturing zones
- Planned green hydrogen industrial cluster
Duqm benefits from the Duqm-Muscat railway (under development), which would connect the SEZ to the capital and Sohar port.
Salalah Free Zone: Adjacent to the Port of Salalah, the Salalah Free Zone focuses on light manufacturing, logistics, and trade services leveraging the port’s transhipment position. Key tenants include pharmaceuticals, fast-moving consumer goods, and food processing.
Sohar Free Zone (SFZCO): Integrated with the Sohar Industrial Port Complex, the Sohar Free Zone hosts energy-intensive industries including aluminium smelting, steel manufacturing, and fertiliser production. The zone benefits from Sohar’s port connectivity and established industrial cluster.
Al Mazunah Free Zone: A smaller zone at the Yemeni border — primarily focused on cross-border trade facilitation. Its development has been constrained by the Yemen conflict.
Investment Incentives
OPAZ zones offer standard free zone incentives:
- 100% foreign ownership
- Corporate and personal income tax exemptions (typically 25-30 years)
- Duty-free import of inputs
- No restrictions on capital or profit repatriation
- Streamlined licensing and permitting processes
The Invest in Oman hall, activated in 2024, provides integrated investor services with a physical interface for investors navigating Oman’s investment landscape.