A GLANCE AT OMAN'S FREE ZONES AND INDUSTRIAL ESTATES
The vision to diversify Oman’s economy to non-oil and gas industries has resulted in the recent creation of 4 Special Economic Zones and 9 Industrial Estates that cover:
- Manufacturing
- Logistics
- Tourism
- Fisheries
- Mining
FREE ZONES
1. AL MAZUNAH
Al Mazunah free economic zone has recently seen bustling activity, commanding much more international investor attention than in years past. Situated in the south of the country in the Dhofar region it is located 4 km from the border with Yemen and 14 km from the Yemeni city of Shahn. It comprises approximately 3 million sq m, built at a cost of RO680m ($1.8bn).
Its concurrence to Yemen is especially significant due to one of the unique incentives offered to businesses that operate in Al Mazunah. Businesses are able to enter Al Mazunah without a visa or completing border procedures between Oman and Yemen. Hence it provides a great opportunity to all companies that would like to trade with Yemen and serves as a gateway to the millions of consumers in East Africa as well. In the first quarter of 2016, 21 different companies had signed investment deals in Al Mazunah, bringing the total number of multinational companies that signed agreements there to 75, with trade figures exceeding USD150 million.
Industries
- Industrial: factories, food, plastics, textiles and maintenance
- Commercial: trading and storage of goods, cars and spare parts, livestock, food, machinery, and equipment
- Supporting services: transport and logistics, distribution and clearing, handling and commercial correspondence
2. SOHAR
The Sohar Economic Zone is a giant within Oman. It is situated next to the Sohar port, which is part of the Sohar Industrial Port Company’s group, 220 kilometers North West of Muscat. The remarkable growth of Sohar stems from the fact that it now receives all the maritime cargo traffic previously destined for Muscat's Sultan Qaboos Port, which has now been structured to serve as a Tourism Hub. During 2016, Sohar Port handled a record 1 million tons of cargo per week.
The Sohar Free Zone stretches 4,500 ha and has attracted USD25 billion in investments together with the port. The free zone acts as a vehicle to spur development in Sohar because of its lucrative incentives and world-class infrastructure and processes that attract companies.
Industries
- Metals and steel
- Food
- Light manufacturing and assembly
- Logistics and trade
3. SALALAH
The Ministry of Transport and Communication reported that activity at the Port of Salalah, which is already the biggest port in Oman, has grown by a 70%. The Port has also signed an exciting MOU with the Port and Maritime Authority of Iran to foster growth in a variety of sectors of mutual interest, including logistics. Set to remain a vital player for years to come, a large-scale LPG plant is in the works in Salalah and will further develop Oman's downstream capabilities.
Incentives in the Salalah free zone are strong and include an exemption from all corporate taxes for 30 years and 100% foreign ownership opportunities. The zone is supporting the development of a new sea-air cargo corridor, in partnership with Oman Air and Salalah port.
The first phase of this free zone is complete, with further phases of development planned. The second phase, to be completed in 2015-20, which will focus on developing sectors within the zone, while the third phase, due to be finished in 2025, which will expand the zone’s infrastructure and facilities.
Industries
- General trading license: import-export, distribution, and storage
- General trading license: import,
- Trade license: import, export, distribution, and storage of specific items
- Industrial license: manufacturing, import of raw materials and export of finished products
- Service license: completion of specified services
4. DUQM SEZ
Duqum reigns supreme as the largest economic zone in Oman, with each passing day seemingly bringing new developments to the 1,745sqkm region that enjoys 70km of coastline. This zone is run by the Special Economic Zone Authority Duqum (SEZAD).The latest big investment in Duqum came from China in the form of a USD10 billion industrial park.
The country is working hard to develop this area into a bustling area of economic activity and has plans to see its population increase to 100,000 over the next 10 years. Other recent news out of Duqum that harbors national importance includes a massive, recently built 200 million barrel oil storage facility; the first mineral exports took place out of the port in early 2016, and a tender was floated for the construction of a major fishery port there as well. It has set up a one-stop-shop to seamlessly facilitate investments from interested parties all over the globe
Industries
- Industrial estates
- Warehousing and logistics villages
- Tourist villages and resorts
- Commercial, office and residential complexes
INDUSTRIAL ESTATES
Oman is home to nine industrial estates operated by the Public Establishment for Industrial Estates (PEIE). The PEIE offers packaged facilities and services, including land and buildings for industrial development, nearby hotel accommodation for guests and staff, restaurant and banking facilities, telecommunications infrastructure, and convenience and retail stores.
The first, at Rusayl, was opened in 1983 and inaugurated in 1985. All nine estates cover an area of approximately 88,300 million sq m.
PEIE’s Corporate Objectives
- Recognize our employees' talents and contributions, and empowering them to achieve their full professional potential
- Develop industrial estates and high-tech office accommodations that meet the needs of today’s Knowledge-driven businesses;
- Assist the companies to prosper in the competitive world of the global marketplace
- Maintain sustainable business climate that attracts and generates investment
- Establish Oman as a vibrant business destination based on our abundant natural, cultural and human resources and create meaningful employment opportunities for nationals
Location: 45km from Muscat
Facilities: Factories in Rusayl produce consumer goods, fiber optics, food, textiles and garments, stationery and industrial products such as chemicals, batteries and electrical, and building materials.
A total of 154 factories are currently in operation, 13 are under construction and another 40 are planned. About 250 hectares of the 750-hectare site have been developed to date.
2. SOHAR
Location: 200km from Muscat and 180km from Dubai
Facilities: Goods produced at Sohar include marble, food, detergents, household goods, leather, furniture, resins, glass, steel bars and engine oil. A total of 10.7 million sq m of the 24.6-million-sq-m estate has been developed, comprising 226 plots. Currently, 60 businesses operate within the estate, 35 units are under construction and another 55 are planned.
3. SUR
Location: 300km from Muscat in the Al-Sharqia region
Facilities: Sectors in operation at Sur include liquefied natural gas, natural gas and fertilizer production. This estate covers 3,610 hectares and includes a deep-water harbor.
4. NIZWA
Location: 180km inland from Muscat
Facilities: Sectors operating at Nizwa include manufacturing, ceramics, plastics, medical products, plywood, packaging, water tank production, ferrous casting, oil services and foods.
Nizwa comprises 214 hectares, with 24 hectares developed to date. This area contains 80 plots covering 1,200-8,000 sq m.
5. BURAIMI
Location: Western Oman on the border with the UAE
Facilities: Companies operating at this facility are mainly involved in manufacturing, warehousing and services.
Buraimi industrial estate stretches across 550 hectares and Other plots range from 5,000-33,000 sq m in size.
6. SMAIL
Location: 45km from Muscat International airport
Facilities: Smail is 7.4 million sq m in size and currently has 130 investors. In 2012, the PEIE announced that RO30m ($77m) would be spent on developing the estate.
7. KNOWLEDGE OASIS MUSCAT (KOM)
Location: Muscat, near Sultan Qaboos University
Facilities: Sectors covered include digital and mobile media, environmental science, telecommunications, hi-tech engineering and software development, internet services and call centers.
KOM opened in 2003 as Oman’s flagship technology park.
Multinational corporations, small and medium-sized enterprises, start-up businesses and technical colleges all operate in this estate.
8. RAYSUT
Location: 200km from Salalah in the southern Dhofar region
Facilities: Goods produced at Raysut include paper products, frozen foods, PVC pipes, steel fabrication, medical supplies, solar heaters, flour, ice, fertilizers and vegetable oils. Raysut spreads over 270 hectares, with warehouse facilities across 30 hectares. A total of 63 hectares has been developed to date, sub-divided into plots of 1,350-11,000 sq m.
9. AL-MAZUNAH
Location: 260km from Salalah in the southern Dhofar region
Facilities: Al-Mazunah assists with trading and warehouse facilities. This estate sits inside the Al-Mazunah Free Zone, near the border with Yemen. The Yemeni employees can work in the zone without a visa, and they can cross into the estate without the usual border procedures.
