About Oman Free Zones
At present, there are three free trade zones in Oman:
1. Al Mazunah Free Zone – Hub for commercial, service and industrial sectors
In the southern Dhofar governorate lies Al Mazunah Free Zone, a pioneer in facilitating smooth business operations with Yemen and African markets. The free zone's proximity to raw materials and markets, coupled with its 30-year tax holiday and absence of mandatory capital requirements, makes it financially attractive and ideal for the commercial, light industrial, and assistance service sectors. Additionally, high-end connectivity and the provision of essential support services allow for efficient and agile business transactions.
2. Sohar Free Zone – Hub for plastics, metals, minerals, food, petrochemicals and service sectors
Sohar Free Zone, inaugurated in 2010, has rapidly grown to become one of the GCCs most influential industrial hubs. Anchored by the Sohar Port, the zone capitalises on its proximity to global trade arteries and major cities with Muscat, Dubai, and Abu Dhabi all linked by modern highways and Muscat Airport.
Strategically positioned near the Strait of Hormuz, Sohar Free Zone offers reduced freight and insurance costs and has become a hub for general trading, logistics, light manufacturing, as well as industrial and service providers.
It offers a One-Stop-Shop process which means that businesses can commence operations with ease and minimal delay. Its incentives include exemption from import and export duties, absence of minimum share capital requirements, and entitlement to full foreign ownership. It also offers a 25-year corporate tax holiday and a reduced Omanisation rate of 15% for the first ten years, easing the integration of foreign talent into the workforce.
3. Salalah Free Zone – Hub for chemical and material processing, manufacturing and assembly, logistics and distribution sectors
There are also two special economic zones:
1. Duqm Special Economic Zone – Hub for refineries, oil storage, transport, fish and food, logistics, warehousing, minerals, and tourism sectors
The Duqm Special Economic Zone (SEZ) is a central pillar in Oman's economic diversification strategy. Situated in the Al Wusta Governorate over an area of 2,000 square kilometers, it stands as the largest SEZ in the Middle East and North Africa region. This zone is strategically positioned away from Muscat, Oman's capital, yet integrated with a sophisticated multimodal transport system that includes a modern road network, a seaport, and an airport, providing seamless connectivity.
Duqm SEZ offers exemption from the usual constraints of minimum share capital requirements and custom duties coupled with an attractive 30-year income tax
exemption and a reduced Omanisation requirement, which ensures that a business can operate with a lower percentage of local hires while still benefiting from the zone's full suite of benefits.
The zone is organised into ten distinct sectors, each designed to bolster specific facets of industry and commerce, ranging from a crude oil terminal and fisheries to logistics and warehousing operations, as well as heavy and light industries. This deliberate segmentation paves the way for investors to tap into sector-specific advantages, ensuring that each enterprise can maximise its operational efficiency.
2. Knowledge Oasis Muscat Special Economic Zone – Hub for science, IT and knowledge-based sectors
Knowledge Oasis Muscat (KOM), located in the country’s capital, is specifically designed to support science, IT, and knowledge-based businesses. This zone encourages innovation by offering reduced Omanisation rates at 25%, allowing for a greater intake of international expertise while still providing opportunities for local employment. Businesses setting up in KOM must meet a minimum share capital requirement of OMR 20,000 (US$52,000) to demonstrate that they have the necessary economic base to operate within this specialised economic area.
