Oman Free Zone FAQ

What is a free zone in Oman?

A free zone is a designated geographical area where businesses operate under special regulations offering incentives including 100 percent foreign ownership, tax exemptions, customs duty relief, and simplified procedures. Free zones are designed to attract foreign investment and promote export-oriented activities.

What free zones are available in Oman?

Oman has four major free zones: Sohar Freezone (industrial and logistics), Salalah Free Zone (trade and manufacturing), the Special Economic Zone at Duqm (multi-sector), and Al Mazunah Free Zone (border trade). Each zone targets different sectors and offers distinct advantages.

What are the main benefits of operating in a free zone?

Benefits include 100 percent foreign ownership, corporate tax exemptions for up to 30 years, customs duty exemptions on imports and re-exports, no currency restrictions, full repatriation of profits and capital, simplified visa and labour procedures, and ready-built infrastructure.

How do I set up a company in a free zone?

The setup process involves selecting the appropriate free zone, choosing a licence type (industrial, trading, services, or logistics), submitting an application with business plan and required documents, leasing or purchasing premises, and obtaining the free zone licence. Each zone has its own application portal.

What types of licences are available?

Free zone licences include industrial licences (manufacturing and processing), trading licences (import, export, and re-export), services licences (professional and technical services), logistics licences (warehousing and distribution), and general trading licences.

Can free zone companies sell to the Oman domestic market?

Yes, free zone companies can sell to the domestic Omani market subject to paying applicable customs duties and VAT on goods entering the domestic customs territory. Some free zones have simplified procedures for dual-market operations.

What infrastructure is available?

Free zones provide pre-built warehouses, office spaces, industrial plots, worker accommodation, roads, utilities (water, electricity, telecommunications), and shared facilities. Some zones offer built-to-suit options for specialised requirements.

What are the typical costs?

Costs vary by zone and facility type. Industrial land leases range from OMR 0.5 to 2 per square metre per year. Pre-built warehouses lease from OMR 2 to 5 per square metre per month. Licence fees range from OMR 500 to OMR 5,000 depending on the zone and activity type.

Are there Omanisation requirements in free zones?

Free zones have their own Omanisation policies, which are generally more flexible than mainland requirements. However, companies are still expected to employ and develop Omani nationals. Training and development programmes are available through free zone authorities.

Can I operate multiple activities from one free zone entity?

Yes, most free zones allow companies to conduct multiple related activities under a single licence. Combined industrial-trading or services-logistics licences are common. Additional activity endorsements can be added to existing licences for a nominal fee.