MUSCAT: Oman’s special economic zones, free zones and industrial cities are drawing significant investor interest, driven by strategic infrastructure projects, streamlined regulations and robust investment incentives. By the end of June 2024, cumulative investments across these zones, overseen by the Public Authority for Special Economic Zones and Free Zones (OPAZ), reached an impressive RO 20.1 billion, marking a 20% increase from RO 16.7 billion in June 2023.
This remarkable growth underscores Oman’s appeal as an investment destination and highlights the efforts of OPAZ and its subsidiaries in attracting local and international investments. During the first half of 2024 alone, these zones secured over RO 1.05 billion in new investments, with Sohar Free Zone leading the way, contributing RO 711.4 million. The industrial cities added RO 175.2 million, followed by the Salalah Free Zone with RO 131.8 million.
Oman’s 15 economic and industrial zones offer a range of benefits, including tax exemptions, 100% foreign ownership, and user-friendly electronic services like land selection. Among the standout performers:
Duqm Special Economic Zone: RO 6 billion in investments, hosting major projects like the Duqm Refinery (RO 3.5 billion), green hydrogen initiatives, and iron factories by Vulcan Green Iron and Japanese firms.
Salalah Free Zone: RO 4.7 billion in investments, with new factories such as Al Namariq Mining (RO 10 million) and Integrated Food Factory (RO 9.6 million).
Sohar Free Zone: RO 1.3 billion in investments, including a polysilicon factory worth RO 600 million and advancements in ferroalloy, chemical and solar energy sectors.
Khazaen Economic City: RO 459.5 million in investments, recently opening a central vegetable and fruit market to boost wholesale trade and agricultural exports.
In addition to ongoing investments, Oman is developing eight new zones, including Al Dhahirah Integrated Economic Zone in partnership with Saudi Arabia and the Muscat International Airport Free Zone managed by ASYAD Group.
Key openings in the first half of 2024 include Duqm’s multi-purpose fishing port, protection dams and shipping facilities. In Al Mazunah Free Zone, strategically located near the Omani-Yemeni border, investments have focused on import-export facilities and cold storage for fish.
Meanwhile, Madayn’s industrial cities recorded a 30% growth in investment applications, reaching 184 by June, with cumulative investments totalling RO 7.6 billion across over 2,300 contracts.
Oman’s zones are at the forefront of green energy initiatives. In Duqm, Acme Group achieved a global milestone by producing the first certified commercial green hydrogen and ammonia. Other projects include Duqm Hyport, a collaboration between OQ Group and Belgium’s DEME Concessions, and Vale’s green iron industrial complex.
Economic and free zones play a crucial role in job creation, employing over 25,550 Omanis, with an Omanisation rate of 35%. Total employment in these zones has reached 71,684 workers.
OPAZ’s continued efforts to enhance infrastructure, attract high-value project, and support renewable energy initiatives position the economic zones as vital contributors to Oman Vision 2040, fostering sustainable development and global investment appeal. — ONA
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