Guide to economic zones in Oman
There are four operational free zones in Oman: at the northern industrial city of Sohar; next to the southern port of Salalah; at Duqm in the central coastal area; and at Mazunah, close to the Yemen border. In 2012, the Free Trade Zones Authority announced it would invest $450m in extending the countrys free zones. This will include expanding land plots, constructing warehouses, offices, roads and staff accommodation, and providing space for storage units.
Freezone Sohar has attracted 14 foreign companies, which have invested in metals, minerals and logistics. Other sectors covered include oil and gas, light manufacturing, chemicals and food processing. In May 2013, the zone announced it was expecting $450m in investments over the next year, including $250m from India.
Al-Mazunah Free Zone was set up in 1999 and facilitates the transport of cargo between Oman and Yemen. Salalah Free Zone was ranked 17th in the Top 50 Free Zones of the Future 2012/13 by the UKs FDI Magazine, and fifth-best port zone, while Salalah Airport Zone came joint fifth in the ranking of best airport zones.
Plots of land for the under-construction Duqm Special Economic Zone were allocated in February 2013.
Across Oman, the Public Establishment for Industrial Estates also runs nine industrial estates, catering to various sectors.
Freezone Sohar
Industries
- Metals
- Food
- Light manufacturing and assembly
- Logistics and trade
Key contact
Freezone Sohar
PO Box 777, PC 116,
Mina al-Fahal, Oman
Tel: (+968) 2 685 2700
Fax: (+968) 2 685 2701
Salalah Free Zone
Industries
- General trading licence: import, export, distribution and storage
- Trade licence: import, export, distribution and storage of specific items
- Industrial licence: manufacturing, import of raw materials and export of finished products
- Service licence: completion of specified services
Key contact
Salalah Free Zone
PO Box 87, PC 217
Al-Awqadain, Oman
Tel: (+968) 2 321 2999
Fax: (+968) 2 321 2998
Email: info@sfzco.com
Web: www.sfzco.com
Duqm economic zone
Industries
- Industrial estates
- Warehousing and logistics villages
- Tourist villages and resorts
- Commercial, office and residential complexes
Duqm land lease rates
Industrial
From $2.50/sq m a year
Residential
From RO 0.2/sq m a year
Commercial
From RO 0.3/sq m a year
Tourism
From RO 0.15/sq m a year
Electricity
From RO 0.01/kWh
Key contact
Special Economic Zone Authority at Duqm
PO Box 25, PC 103, Bareeq al-Shatti, Oman
Tel: (+968) 2 200 0088
Fax: (+968) 2 200 0099
Email: info@duqm.com
Web: www.duqm.gov.om
Key contact
Special Economic Zone Authority at Duqm
PO Box 25, PC 103, Bareeq al-Shatti, Oman
Tel: (+968) 2 200 0088
Fax: (+968) 2 200 0099
Email: info@duqm.com
Web: www.duqm.gov.om
Al-Mazunah Free Zone
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
Key contact
Public Establishment for Industrial Estates
PO Box 200, PC124 Rusayl, Oman
Tel: (+968) 2 415 5100
Fax: (+968) 2 444 9095
Email: info@peie.com
Web: www.peie.om
Industrial estates costs
Electricity
From RO 0.012/kWh
Water
From RO 0.003/gallon
Gas
From RO 0.0205/cubic metre
Industrial estates minimum rents
Rusayl
From RO 0.25/sq m a year
Sohar
From RO 0.25/sq m a year
Raysut
From RO 0.25/sq m a year
Sur
From RO 0.15/sq m a year
Nizwa
From RO 0.25/sq m a year
Buraimi
From RO 0.25/sq m a year
Key contact
Knowledge Oasis Muscat
PO Box 200, PC124 Rusayl, Oman
Tel: (+968) 2 417 0700/ 415 5100
Fax: (+968) 2 444 9095
Email: info@kom.om
Web: www.kom.om
Industrial Estates
Oman is home to nine industrial estates operated by the Public Establishment for Industrial Estates (PEIE). The first, at Rusayl, was opened in 1983 and inaugurated in 1985. The estates cover a combined area of about 88,300 million sq m. 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, and convenience and retail stores.
Incentives include 100 per cent foreign share capital, a five-year tax holiday and no personal income tax, exemption from customs duties, special loan terms for joint government projects in agriculture, fisheries, health and traditional handicrafts, and export credit insurance.
Rusayl
Location: 45km from Muscat
Facilities: 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. Factories in Rusayl produce consumer goods, fibre optics, food, textiles and garments, stationery and industrial products such as chemicals, batteries and electrical, and building materials.
Sohar
Location: 200km from Muscat and 180km from Dubai
Facilities: 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. Goods produced at Sohar include marble, food, detergents, household goods, leather, furniture, resins, glass, steel bars and engine oil.
Raysut
Location: 200km from Salalah in the southern Dhofar region
Facilities: Raysut industrial estate is spread over 270 hectares, with warehouse facilities across 30 hectares. Some 63 hectares have been developed to date, sub-divided into plots of 1,350-11,000 sq m. Goods produced include paper products, frozen foods, PVC pipes, steel fabrication, medical supplies, solar heaters, fertilisers and vegetable oils.
Sur
Location: 300km from Muscat in the Al-Sharqia region
Facilities: This estate covers 3,610 hectares and includes a deep-water harbour. Sectors in operation at Sur include liquefied natural gas, natural gas and fertiliser production.
Nizwa
Location: 180km inland from Muscat
Facilities: Nizwa industrial estate comprises 214 hectares, with 24 hectares developed to date. This area contains 80 plots covering 1,200-8,000 sq m. Sectors operating at Nizwa include manufacturing, ceramics, plastics, medical products, plywood, packaging, water tank production, ferrous casting, oil services and foods.
Buraimi
Location: Western Oman on the border with the UAE
Facilities: Buraimi industrial estate stretches across 550 hectares. To date, 25 hectares have been divided into plots of 500-6,000 sq m. Other plots range from 5,000-33,000 sq m in size. In 2012, 15 new projects launched, leasing 111,413 sq m. Companies operating at this facility are mainly involved in manufacturing, warehousing and services.
Al-Mazunah
Location: 260km from Salalah in the southern Dhofar region
Facilities: This estate sits inside the Al-Mazunah Free Zone, near the border with Yemen. Yemeni employees can work in the zone without a visa, and workers can cross into the estate without the usual border procedures. Al-Mazunah assists with trading and warehouse facilities.
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.
Knowledge Oasis Muscat
Location: Muscat, near Sultan Qaboos University
Facilities: Knowledge Oasis Muscat (KOM) opened in 2003 as Omans flagship technology park. Multinational corporations, small and medium-sized enterprises, start-up businesses and technical colleges all operate in this estate. Sectors covered include digital and mobile media, environmental science, telecommunications, hi-tech engineering and oftware development, internet services and call centres.
National Business Centre
Location: Within KOM
Facilities: The PEIE announced this project in late 2012. When complete, the centre will offer training, facilities support, entrepreneurship development programmes, coaching and mentoring.
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