Special Economic Zones of Oman

Oman's strategic location, with direct access to major shipping routes and advantageous port positions, makes it a unique logistics hub in the Middle East. Unlike its neighbors, which boast numerous free zones, Oman offers a limited number of specialized free zones designed to support targeted industries.

Special economic zones in Oman are designed to boost economic activity in sectors such as logistics, manufacturing, and others, offering significant advantages for businesses in the Sultanate, including 100% foreign ownership, no customs duties or income taxes, and easy access to regional markets thanks to well-established trade agreements and developed infrastructure in the maritime, aviation, road, and rail sectors.

The Authority for Special Economic Zones and Free Zones (OPAZ) oversees the special economic zones in Duqm, the free zones of Al Mazuna, Salalah, Sohar, and any other special or free zones in Oman, complementing its port development projects in Duqm, Salalah, and Sohar.

Sohar Free Zone

The Sohar Free Zone was established in 2010 by Royal Decree No. 123/2010, covering a total area of ​​45 square kilometers, is advantageously located in both regional and global markets, with access to international shipping routes and major ports located nearby. Sohar provides quick access to the growing markets of the Middle East, India, and East Africa.

Sohar Free Zone Benefits:

• 100% foreign ownership.
• Corporate tax incentives for up to 25 years.
• One-stop shop for all necessary customs procedures.
• 0% import or re-export duties.
• 0% personal income tax.
• Low capital investment.
• Reduced level of Omanization.
• Free trade agreements with the United States and Singapore.

Industrial Zones (MADAYN)

The government agency for the management of industrial zones, known today as Madayn, was established in 1993, continuing the industrial development that began in the Sultanate with the establishment of the industrial city of Rusail in 1983. The success of the Rusayl Industrial City led to the creation of MADAYN, which today manages and operates (10) industrial cities in Sur, Suhar, Raisut, Nizwa, Buraimi, Rusayl, Samail, Ibri, Al Mudaibi, Mahasa, as well as Knowledge Oasis Muscat (KOM) and the Al Mazuna Free Zone.

Industrial Zones Development Incentive Program (MADAYN):

• The lease term for land and facilities is up to 30 years, with the possibility of renewal for the same period.
• The right to cancel the lease for the remainder of the lease.
• The right to sell structures and buildings located on the leased land.
• The right to lease buildings and structures constructed by investors on the leased land.
• The right to attract new partners to participate in a lease agreement.
• Fair valuation of buildings and structures upon lease termination.
• Rent is 1 Omani Rial per year per square meter for the first 5 years for industrial use.
• Net profit tax exemption for 5 years for industrial projects.
• Exemption from customs duties and taxes on production raw materials.
• Income tax at a fixed rate of 15% per annum and fixed customs duties of 5%.
• Basic utilities (water, electricity, telecommunications, roads) are developed and provided.
• Transparent legal framework illustrating rights and responsibilities.
• Punctuality in the provision of services.
• Freedom to work 24/7.
• 100% foreign ownership in all industrial cities.
• Projects can be fully transferred to foreign ownership.
• Participation in domestic and international exhibitions of Omani products as part of the "Made in Oman" campaign.
• Participation in master classes, seminars, and exhibitions organized by Madayn.
• Workers' settlements equipped with a variety of services.

Duqm Special Economic Zone.

Established in 2011, the 2,000 sq. km Duqm Special Economic Zone (SEZ) offers numerous advantages, making it one of the most attractive investment destinations regionally and internationally. With its favorable geographic location overlooking the Arabian Sea and Indian Ocean, as well as its proximity to global shipping routes, Duqm attracts the attention of many companies from around the world as an ideal investment destination.

The Duqm Special Economic Zone (SEZ) also stands out for its ability to implement projects not only in the industrial sector, but also in tourism, trade, logistics, and real estate development. Furthermore, the SEZ can provide investors with the necessary land for the construction of their projects.

Incentives for the Duqm Special Economic Zone:

• 100% foreign ownership
• No currency restrictions
• No minimum capital requirement
• Tax exemption for up to 30 years from the date of commencement of operations, renewable for an additional 30 years.
• 100% repatriation of capital and profits is permitted.
• Use agreements for up to 50 years, renewable for similar periods.

Salalah Free Zone

The Salalah Free Zone was established in 2006 by Royal Decree No. 62/2006 of 20 June 2006. Salalah is strategically located on the only part of the Arabian Peninsula bordering the Indian Ocean, making it a major regional and global port for trade and logistics.

Salalah Free Zone Benefits:

• 100% foreign ownership.
• No customs duties on imports and exports.
• No minimum capital investment requirements.
• No taxes on profits and dividends for 30 years.
• No personal income tax.
• No restrictions on the repatriation of capital, profits, and investments.
• Flexible customs procedures.
• Comprehensive services.
• Excellent utility supply.
• The best-located port in the Middle East and World-class infrastructure.
• Free trade agreements with the United States and Singapore.

Al Mazuna Free Zone

Located in the southern province of Dhofar, the Al Mazuna Free Zone is a pioneer in facilitating business operations in Yemen and Africa. The zone's proximity to raw materials and markets, along with 30-year tax incentives and no mandatory capital requirements, make it financially attractive and ideal for the commercial, light manufacturing, and service sectors. Furthermore, well-developed transportation infrastructure and essential support services ensure efficient and effective business operations.

Muscat Special Economic Zone

Knowledge Oasis Muscat (KOM), located in the capital, is specifically designed to support science, information technology, and enterprise. This zone encourages innovation by offering a reduced Omanization rate of 25%, allowing it to attract more international talent while preserving employment opportunities for locals. Companies opening branches in the KOM must meet a minimum authorized capital requirement of OMR 20,000 to demonstrate they have the necessary economic capacity to operate in this specialized economic zone.