The first phase of Oman’s Sohar Freezone is open for business, with almost 40 per cent of the area to be handed to new companies by the end of the year.

“The first 500 [0.5 square kilometres] hectares are ready for business and we hope that before the end of the year we have signed up business for 185 hectares,” said Andre Toet, chief executive officer of the Port of Sohar, speaking to delegates at SeaTrade’s Middle East Maritime conference in Dubai.

The freezone is designed to support the expanding Port of Sohar and will be constructed in four phases, eventually covering 4,500 hectares of land.

The first 500-hectare phase is targeting downstream industrial and petrochemical ventures, as well as warehousing and logistics services.

In November, Omani company Al-Siraj Investment Holding signed an agreement with the freezone to develop a logistics park to be used for general warehousing. Construction will begin next year.

A similar agreement was signed the same month with car dealerships Suhail Bahwan Automotive and OTE to develop a logistics park to support both companies’ businesses.

The Freezone Sohar is an initiative being led by the Sohar Industrial Development Company, a joint venture of the Omani government, the Port of Rotterdam in the Netherlands and the Indian firm SKIL infrastructure.