MUSCAT: Oman’s vast network of special economic zones (SEZ), free zones and industrial cities are gearing up for a new phase of growth during 2023, on the back of positive developments in 2022, supported by a package of benefits, facilities, and tax and customs exemptions.
Statistics indicate that the total investments in the hubs supervised by the Public Authority for Special Economic Zones and Free Zones (OPAZ) amount to more than RO 14.3 billion, including RO 3.650 billion in the Special Economic Zone at Duqm, RO 3.407 billion in Salalah Free Zone, RO 415 million in Freezone Sohar, RO 135 million in Al Mazunah free zone, and RO 6.7 billion in the industrial cities managed by the Public Establishment for Industrial Estates (Madayn). These figures do not include the investments located within Sohar Port, estimated at about RO 9 billion.
Clusters managed by OPAZ continued to witness good interest from investors due to their ability to embrace a variety of projects. The implementation of new container cranes operating on 5G technology is a key attraction as well.
OPAZ has also completed the construction of the multi-purpose fishing port at Duqm and handed over to a local and international consortium led by the Omani Investment Authority to operate it. Last year also witnessed the operation of the integrated power and water station that supplies the Duqm refinery with electricity and industrial water. The facility also provides power to the oil storage terminal in Ras Markaz, which received the first shipments of crude oil at the beginning of this year. Additionally, the fish and food industries area was connected to the grid, while a grid station now provides electricity to the Industrial Fisheries Zone, AI Experiments area, and the fishing port.
The AI Zone witnessed interest from investors that are trialling their drone projects. A usufruct contract was also signed to establish a center that simulates a space settlement for educational purposes. OPAZ’s Board has also approved the construction of modern buildings using 3D-printing technologies.
During the past two years, the authority has introduced one-stop shops to facilitate the completion of investor transactions electronically and connects the authority's headquarters in Muscat, the free zones in Sohar, Salalah, Al Mazunah and the Special Economic Zone in Duqm.
According to the authority's plan to convert all transactions from paper to electronic, the period for obtaining approvals and licenses has been reduced to the lowest possible period, which has contributed to increasing investors' interest in investing in these zones. Work is currently underway to establish a system to facilitate the entry of trucks and goods between the economic zones and free zones, and industrial zones and provide a unified database for import and export operations.
Last year Royal Decree 10/2022 was issued establishing free zones at Muscat International Airport and the airports of Sohar and Salalah. Royal Decree 53/2022 also transferred the affiliation of Madayn industrial cities to OPAZ. The transfer enables OPAZ to tap the considerable expertise of Madayn in planning and managing industrial zones and the joint use of various information systems and software, rules for storing and processing data and backup devices available in different regions. This transfer also provides new investment options for local and international companies. The Authority is currently setting rules for integration between these zones so that the advantages available in the economic, free and industrial zones are presented under one umbrella in a way that enables the investor to choose the appropriate location for his investments.
Also last year, the Authority took many practical to support the growth of the green hydrogen industry in the SEZ at Duqm, thereby attracting more investments in the field of renewable energy in the free zones. Duqm has huge potential to attract clean hydrogen and renewable energy projects, and the Free Zone in Sohar has similar potential.
The Duqm Special Economic Zone administration is currently working on developing the master plan to ensure the provision of corridors and making them available to various companies and factories with the aim of transmitting electric power on one hand and transporting liquid hydrogen on the other hand, in addition to providing pipelines for transporting carbon dioxide from the production areas in Duqm to storage sites in abandoned reservoirs. These steps are in line with Oman's drive to reach carbon neutrality by the end of 2050. — ONA
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