Wednesday 25 / December / 2024
MUSCAT: The State Council is moving to overhaul the country's economic landscape by introducing a groundbreaking "Draft Law on Special Economic Zones and Free Zones," which was deliberated in-depth yesterday during its 5th session of the second regular sitting of the Eighth Term.
Chaired by Sheikh Abdulmalik Abdullah Al Khalili, the session focused on a series of reforms aimed at transforming Oman's economic zones into hubs for strategic, high-impact investments.
At the heart of the proposed changes is a more flexible and streamlined framework for the Public Authority for Special Economic Zones and Free Zones, empowering it to manage the growth and expansion of these zones more effectively.
The draft law aims to simplify the regulatory processes, enhance transparency, and improve the overall investment climate in Oman, simplifying the process for obtaining licenses, and giving investors greater confidence in the ease of doing business in Oman.
A standout feature of the draft law is its bold approach to tax exemptions, offering a maximum 10-year tax-free period with the possibility of extending this by up to 20 years for qualifying projects.
This significant adjustment aims to position Oman as a prime destination for long-term, strategic investments, providing companies with attractive incentives to set up in the country.
In addition to tax changes, the draft law seeks to unify the benefits, guarantees, and exemptions available across all special and free zones. While the law aims for consistency, it also allows for flexibility, tailoring certain provisions to meet the unique needs of specific zones and projects.
These sweeping reforms signal a new era for Oman's special economic zones, positioning them as key drivers of the country’s economic diversification strategy. By focusing on reducing barriers to investment and ensuring that incentives align with project scale and value, the draft law could attract international businesses and fuel Oman’s growth in the years to come.
