SEZ (Special Economic Zone)
Definition
A special economic zone is a designated geographic area within a country that operates under different economic regulations than the rest of the national territory. SEZs typically offer incentives such as tax holidays, customs exemptions, simplified regulations, and enhanced foreign ownership rights.
Context
Oman has established several SEZs as key instruments of its diversification strategy. The Duqm Special Economic Zone is the flagship, complemented by zones in Sohar, Salalah, and Al Mazunah, each targeting different industries and trade corridors.
Example
A manufacturer establishing operations in the Duqm SEZ benefits from a thirty-year tax holiday, full foreign ownership, and duty-free import of raw materials, advantages not available to companies operating in standard commercial zones.