Economic, free zones in Oman cement their status as premier investment destinations

Business Sunday 16/November/2025 20:25 PM
By: ONA
Economic, free zones in Oman cement their status as premier investment destinations

Muscat: The Public Authority for Special Economic Zones and Free Zones (Opaz) is striving, within its strategy, to diversify its investment base and attract projects in the sectors of manufacturing, renewable energy, advanced technologies, food and pharmaceutical industries, in addition to logistics and tourism activities.

The Authority is also developing specialized industrial clusters supported by integrated facilities that provide raw materials, real estate, and financial solutions. This enhances the integration of projects within supply chains and adds value. Furthermore, in cooperation with the Ministry of Economy, it is developing the Aluminum Industrial Cluster in Sohar, the Cold Chain Cluster in Duqm, and the Gypsum Industrial Cluster in Shaleem.

Eng. Ahmed Hassan Al Dheeb, Vice Chairman of the Public Authority for Special Economic Zones and Free Zones, affirmed that the Authority is working to attract local and foreign investments in the zones it supervises—whether special economic zones, free zones, or industrial areas—by establishing the essential infrastructure to develop these zones and create an attractive investment environment to enable the establishment of these factories and projects.

He clarified that the volume of investment in special economic zones, free zones, and industrial cities has doubled over the past five years, from OMR14.12 billion to reach OMR22 billion by mid-2025. Meanwhile, the workforce in these zones and cities has risen to approximately 80,000 workers, with about 39% being Omani nationals.

In a statement to Oman News Agency (ONA), he said that 138 new investment contracts worth OMR1.049 billion were signed, with the industrial sector accounting for 97% of the total added investment volume in the first half of 2025.

He added that the economic and free zones will witness qualitative projects in several sectors in the coming period, such as mining, metal industries, and green hydrogen, for which the Special Economic Zone at Duqm is a promising area.

He explained that the establishment of new zones, such as the Al Dhahirah Special Economic Zone in the Wilayat of Ibri and the Al Rawdah Special Economic Zone in the Wilayat of Mahadha in Al Buraimi Governorate, will enhance trade growth between the Sultanate of Oman, the Kingdom of Saudi Arabia, and the United Arab Emirates. Each zone will contribute to supporting productive and service sectors, providing job opportunities for citizens, and stimulating commercial and logistical movement, thereby contributing to achieving the targets of Oman Vision 2040, he affirmed.

Al Dheeb indicated that regarding A’Dhahirah Special Economic Zone, the Authority has floated two tenders: the first for road construction in the first phase, and the second for establishing the dry port and its supporting services.

As for Al Rawdah Free Zone, he stated that the Authority has floated a tender related to the external services for the zone, aimed at rainwater drainage. He noted that the operator for the A’Dhahirah zone will be Asyad, in cooperation with a company from the Kingdom of Saudi Arabia, and the operator for the Al Rawdah zone will be Mahadha Development, which is a strategic partnership with DP World.

Regarding the Free Zone at Muscat International Airport, he clarified that the operation of this zone has been assigned to Asyad, which is currently working on providing the infrastructure, including land leveling, roads, and essential services for establishing projects in the area.

He affirmed that the total investments at the time of the first Duqm Economic Forum in 2023 were OMR3.6 billion, and this volume increased after the second forum held last October to OMR6.3 billion. This, he affirmed, indicates that the Special Economic Zone at Duqm is witnessing growth and attracting more projects, whether currently under implementation or in the final stages of approval. He pointed out that there is continuous evaluation of all incoming projects to the zone in terms of added value and the number of jobs they will provide.

In response to a question about the Duqm Petrochemical Complex, Al Dheeb explained that the economic study for the complex, which is a partnership between OQ Group and its partners from the State of Kuwait, is currently underway.