Oman’s special economic and free zones are entering a new phase of expansion, backed by rising investment inflows, strategic industrial clustering and a strengthened legislative framework aimed at accelerating economic diversification. According to the Public Authority for Special Economic Zones and Free Zones (OPAZ), total investments across these zones have surged from RO 14.12 billion to RO 22 billion over the past five years, underscoring their growing role as engines of national development.

As part of its long-term strategy, OPAZ aims to broaden the investment base by attracting projects in manufacturing, advanced technology, renewable energy, food and pharmaceutical production, logistics and tourism. The Authority is giving particular focus to the creation of specialised industrial clusters supported by modern infrastructure and integrated services — ranging from access to raw materials to real estate solutions and financing options. These clusters are expected to deepen supply chain linkages, promote value-added activity and enhance Oman’s position as a competitive industrial hub.

Among the flagship clusters under development are the Suhar Aluminium Industrial Cluster, the Al Duqm Cold Chain Cluster and the Shaleem Gypsum Industrial Cluster, all of which are being advanced in cooperation with the Ministry of Economy.

Engineer Ahmed bin Hassan al Dheeb, Vice Chairman of OPAZ, said the Authority is actively working to attract both domestic and foreign investors across all zones under its oversight. “Our priority is to establish the necessary infrastructure, streamline procedures and create an environment conducive to establishing factories and strategic projects”, he noted.

Al Dheeb confirmed that the workforce in these zones has now reached approximately 80,000 employees, with Omanis comprising around 39 per cent. He added that 138 new investment contracts worth RO 1.049 billion were signed in the first half of 2025 alone. The industrial sector dominated these additions, accounting for an estimated 97 per cent of total new investments.

Looking ahead, OPAZ expects accelerated activity in mining, metals manufacturing and green hydrogen — sectors seen as crucial to diversifying Oman’s economic base. The Duqm Special Economic Zone, with its vast land availability and strategic location, remains a focal point for major industrial and energy projects.

The establishment of new zones is also set to reshape regional trade flows. The Al Dhahirah Special Economic Zone in Ibri and the Al Rawdah Special Economic Zone in Mahadha are expected to boost cross-border commercial movement between Oman, Saudi Arabia and the United Arab Emirates. These zones will also support local job creation, stimulate logistics activity and contribute to the economic outcomes envisioned in Oman Vision 2040.

Al Dheeb outlined ongoing developments in these new zones. For Al Dhahirah Governorate, OPAZ has issued tenders for the construction of roads in phase one and for establishing the dry port and its associated services. ASYAD, in partnership with a Saudi company, will operate the zone. Meanwhile, at the Al Rawdah Free Economic Zone, a tender has been floated for external rainwater drainage works, and Mahdah Development — partnering strategically with DP World — will serve as its operator.

Work is also progressing at the Muscat International Airport Free Zone, now under the management of ASYAD. The company is currently developing essential infrastructure, including land preparation, roads and service networks for future investors.

Al Duqm continues to attract strong interest from global investors. Al Dheeb revealed that investments linked to the Duqm Economic Forum rose sharply from RO 3.6 billion in 2023 to RO 6.3 billion following the second forum in October 2024. This growth reflects the sustained demand for industrial, logistics and energy projects in the area, many of which are underway or awaiting final approvals. All prospective projects, he emphasised, are subject to assessments of their value-added contribution and employment generation potential.

Responding to queries on the Duqm petrochemical complex, Al Dheeb said that its economic feasibility study — being undertaken by OQ Group and its partners in Kuwait — is currently in progress.

A major milestone for the sector was the issuance of the Special Economic Zones and Free Zones Law under Royal Decree No 38/2025. Al Dheeb said the new law enhances the overall investment climate by establishing a clearer and more transparent regulatory environment, introducing simplified procedures through a one-stop shop system and offering a suite of incentives — including tax and customs exemptions. The law also introduces additional provisions for strategic projects and encourages quality investment in promising sectors, including real estate development under the freehold system.

These reforms, he said, position Oman’s economic and free zones as increasingly attractive destinations for global investors seeking stability, growth potential and access to regional and international markets.

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