Overview
The Khazaen Economic City project represents a new model for integrated economic zone development in Oman, combining logistics, light manufacturing, commercial, and residential areas within a master-planned environment near the capital. Strategically located between Muscat and Sohar with access to the national highway network and proximity to Muscat International Airport, Khazaen is designed to attract domestic and international businesses seeking modern, efficient facilities in a prime location.
Key Points
The development spans a large area with zones designated for logistics and warehousing, light industry and manufacturing, commercial offices and retail, and worker accommodation. Infrastructure includes modern roads, utilities, telecommunications, and green spaces. A one-stop-shop regulatory office simplifies business setup and compliance. Investment incentives include competitive lease rates, customs facilitation, and flexible labour regulations. The development incorporates sustainability features including solar energy, water recycling, and green building standards.
Current Status
Initial phases of infrastructure development have been completed, with the first tenants occupying logistics and industrial facilities. Major logistics companies and manufacturers have committed to establishing operations in the zone. The development is attracting interest from businesses seeking alternatives to congested urban industrial areas. Residential blocks for workers are under construction, providing a controlled, comfortable living environment. The management company has established partnerships with international logistics operators.
Vision 2040 Context
Khazaen embodies Vision 2040’s approach to economic development: modern, sustainable, and private-sector led. The project creates an environment where businesses can operate efficiently and competitively, generating employment and economic value close to population centres. By developing integrated economic zones, Oman provides the physical infrastructure that supports its ambition to become a regional business and logistics hub.