Market Overview
Oman operates four major free zones offering distinct value propositions: the Special Economic Zone at Duqm (SEZAD), Sohar Free Zone, Salalah Free Zone, and Al Mazunah Free Zone. Collectively, these zones have attracted over OMR 20 billion in committed investment and host over 500 operational companies.
Free zones offer 100% foreign ownership, extended tax holidays, customs exemptions, and streamlined regulatory processes.
Zone Comparison
| Zone | Focus | Tax Holiday | Min Investment | Companies |
|---|---|---|---|---|
| SEZAD (Duqm) | Heavy industry | 30 years | OMR 250,000 | 120+ |
| Sohar Free Zone | Petrochemicals, metals | 25 years | OMR 100,000 | 200+ |
| Salalah Free Zone | Light industry, logistics | 25 years | OMR 50,000 | 150+ |
| Al Mazunah | Border trade, SMEs | 20 years | OMR 25,000 | 80+ |
Risk Factors
Incentive sustainability beyond initial tax holiday periods. Infrastructure completion timelines in newer zones. Labour availability in remote locations. Regulatory changes affecting free zone privileges.
Entry Strategy
Zone selection should align with sector focus, scale of investment, and market access requirements. Pre-application engagement with zone authorities is recommended. Legal structuring should consider future mainland expansion options.
Vision 2040 Alignment
Free zones are cornerstone instruments of Vision 2040’s FDI attraction strategy, with ongoing investment in zone infrastructure, regulatory enhancement, and international marketing to position Oman as a regional manufacturing and logistics hub.