Definition
A Special Economic Zone (SEZ) is a designated area within a country that operates under different economic regulations from the rest of the national territory. SEZs typically combine features of free zones, industrial parks, and logistics hubs with additional privileges such as separate customs territories, distinct labour regulations, independent governance structures, and large-scale infrastructure investment. SEZs are more comprehensive than standard free zones and are designed to drive transformative industrial development.
Context in Oman
The Special Economic Zone at Duqm (SEZAD) is Oman flagship SEZ project, covering an area of approximately 2,000 square kilometres along the Arabian Sea coast in the Al Wusta governorate. SEZAD incorporates a deep-water port, a dry dock, an oil refinery, a fisheries harbour, an airport, hotels, and residential areas. It is governed by the Special Economic Zone Authority at Duqm, which operates with significant autonomy. The zone targets heavy industry, petrochemicals, renewable energy (particularly green hydrogen), logistics, and tourism. Major investors include Oman Oil Company, Duqm Refinery (an Oman-Kuwait joint venture), and several Chinese industrial consortia.
Key Data Points
| Metric | Value |
|---|---|
| SEZAD total area | ~2,000 sq km |
| Location | Al Wusta governorate, Arabian Sea coast |
| Key infrastructure | Port, refinery, dry dock, airport |
| Tax holiday | Up to 30 years |
| Major investors | OQ, Kuwait Petroleum, Chinese firms |
Vision 2040 Connection
Duqm SEZ is one of the most strategically important projects under Vision 2040. The strategy envisions Duqm as a new economic city and industrial centre that can rival established Gulf hubs. Success at Duqm would demonstrate Oman capacity to build world-class industrial infrastructure and diversify the economy beyond the Muscat metropolitan area.
Further Reading
- [[What is a Free Zone]]
- [[What is FDI]]
- [[What is Duqm Refinery]]