The Public Authority for Special Economic Zones and Free Zones (OPAZ) is preparing to commission a key study that seeks to boost the competitiveness of the industrial, economic and manufacturing hubs distributed across the Sultanate of Oman and currently operating under this broad remit.
The move, aimed at reinforcing Oman’s positioning as the ‘Investment Destination of Choice’, comes as the Authority embarks on a new phase of growth that will see vast new tracts of acreage brought under its umbrella for investment and development.
It includes plans for the establishment of an Integrated Economic Zone in Al Dhahirah Governorate (EZAD) – a mammoth hub covering an area of 388 sq km. Also on the anvil is a Special Economic Zone at Al Rawdha and a first-ever Airport Freezone at Muscat International Airport. Besides, OPAZ-affiliate Madayn plans to add new industrial cities at Mahas, Ibri, Seih Saraya, Al Mudhaibi and Thamrait, effectively bringing several hundred square kilometres of new acreage under OPAZ’s administrative auspices.
The competitiveness study aims to “evaluate and analyse the incentives and benefits of SEZs and Free Zones in the Sultanate of Oman and compare them with similar zones within the GCC and North Africa,” according to a brief overview on the initiative. Additionally, the study will identify the necessary enablers and indicators to build competitiveness, while also helping the Authority to achieve its target per Oman Vision 2040 guidelines, it stated.
A competitive tender for the selection of a suitably qualified consultant to undertake the study is currently under way. As part of the detailed study, the selected consultant will also be required to evaluate the incentives and advantages offered by various SEZs and free zones operating in Oman, assess the current reality of the economic sectors that they support, and compare these findings with those of economic hubs established elsewhere in the Gulf and North African regions.
The ultimate objective of the study is to recommend “measures to be taken to enhance the competitiveness of the regions to attract investments, including in terms of advantages, incentives, facilities and legal frameworks,” it noted.
Since it was established by Royal Decree in August 2020, OPAZ has focused on marketing the Sultanate of Oman, per se - and not individual hubs as has been the case in the past – as a destination for industrial and economic investments.
To this end, the Authority has sought to highlight Oman’s strategic geographical location at the East-West nexus connecting European, Asian and North American markets. Furthermore, its lengthy coastlines overlook multiple seas, including the Sea of Oman, Arabian Sea and Indian Ocean, opening up maritime access to the Middle East, Indian sub-continent and Africa.
Also auguring well for investment inflows is the country’s advanced port, transport and logistics infrastructure, business-friendly investment and taxation regimes, and measures that support 100 per cent foreign ownership, as well as capital and profit repatriation.
Cumulative investments in the hubs overseen by OPAZ, distributed across 2,200 sq kilometres, have totaled around RO 15.2 billion as of end-2022. As many as 3,250 projects are in operation in these hubs, employing in excess of 75,000 workers.
The deadline for submission of offers for OPAZ’s consultancy tender is 26 July 2023.
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