SOHAR -- Sohar Free Zone (SFZ) is one of the free zones on which the Sultanate's government depends on attracting local and foreign investment due to the incentives and facilities provided to investors, according to a report published as part of FANA Economic File. It is also expected to contribute in increasing trade exchange and investments in the different economic sectors and developing the nearby areas by availing job opportunities and providing both services and infrastructure. SFZ, which stretches over 4,500 hectares, was set up as per the Royal Decree No 123/2010 on December 20, 2010 and is managed by Sohar Free Zone Company and Rotterdam Port.
Jamal bin Aziz Tawfiq, CEO of SFZ, said that Sohar Port's strategic location qualifies it to become a shipping hub due to easy access to the different markets. The port is in line with the government policy to build free zone in Sohar, besides Sohar Industrial Port and Sohar Airport. This will increase the investments in the manufacturing industries, warehousing complexes, assembly and distribution, which will result in increasing the shipping services to the regional and world markets. He said in a statement to Oman News Agency (ONA) that 2014 is the year of logistic services in Sohar due to transfer of all maritime business activities from Sultan Qaboos Port to Sohar Port. This will attract a number of maritime shipping projects to SFZ.
Sohar Port has a number of terminals for handling goods. These terminals are managed by international companies, such as Hutchison, the biggest independent world operator for container terminal in the world. The port capacity is not less than 1.5 million container as of now. It can also receive the biggest container vessels due to 18-metre deep berth. It has also facilities for storing goods. The CEO also said that lease agreements for 22 projects at SFZ were signed with local, Gulf and foreign investors, especially from India. The total value of these projects, which will stretch over 80 per cent of land in the first stage (about 5 square kilometre), is more than 0.5 hectares. These investments come in addition to the current investments worth about $15 billion.
He added that over the past few months, the zone witnessed the signing of lease contracts with Saud Bahwan Group as per which the Group will shift to SFZ and focus its auto businesses there (over about 40 hectares of land). SFZ earlier signed an agreement with Suhail Bahwan Group over 50 hectares. The major projects in the SFZ now include a group of five smelters for fibre chrome. The operation stage for the first smelter already started. The projects will add value to Oman resources with relation to chrome. He also affirmed that the expansion of the infrastructure projects, such as the construction of the express road, railway stations and Sohar Airport will enhance the growth in Sohar Port and SFZ, as they will help in attracting foreign investments to Sohar. They will also avail energy and raw materials, such as petrochemicals, steel, iron and aluminium.
© Oman Daily Observer 2014
