Total investment in Oman's economic and free zones reaches RO22bn

17/11/2025 04:45 AST

Total investment in Oman's special economic zones, free zones and industrial cities has risen to RO22bn by mid-2025, reflecting strong and sustained growth over the past five years, according to the Public Authority for Special Economic Zones and Free Zones (OPAZ).

According to H E Ahmed bin Hassan al Dheeb, Vice-Chairman of OPAZ, the sultanate's network of economic and free zones attracted RO1.05bn in new investments during the first half of 2025, underscoring their growing role as engines of industrial expansion and economic diversification. A total of 138 new investment contracts were signed between January and June 2025, with the industrial sector dominating activity and accounting for 97% of the new investments.

In a statement to Oman News Agency, H E Dheeb said the Authority continues to expand infrastructure and improve the business environment across the zones to attract both local and foreign investors. He confirmed that total cumulative investments in these zones reached RO22bn by mid-2025.

Employment across the zones has also increased to around 80,000 workers, of whom 39% are Omanis, he added.

As part of its strategy, OPAZ aims to diversify the investment base and attract projects in manufacturing, renewable energy, advanced technology, food and pharmaceutical industries, as well as logistics and tourism.

The Authority is also working to develop specialised industrial clusters supported by integrated facilities that provide raw materials, real estate solutions and financing, helping to strengthen supply chains and value-added activities. In cooperation with the Ministry of Economy, OPAZ is developing the Sohar Aluminium Industrial Cluster, the Duqm Cold Chain Cluster and the Shalim Gypsum Industrial Cluster.

H E Dheeb said Oman's economic and free zones are set to witness major projects in several sectors in the coming period, including mining, metals manufacturing and green hydrogen. He noted that the Special Economic Zone at Duqm (SEZAD) is a particularly promising area for such initiatives.

H E Dheeb confirmed that total investments in the Special Economic Zone at Duqm (SEZAD) amounted to RO3.6bn at the time of the first Duqm Economic Forum in 2023, rising to RO6.3bn following the second forum held in October 2025.

"This reflects SEZAD's growth and its success in attracting more projects, both those under implementation and those awaiting final approvals. All upcoming projects are being continually assessed based on their added value and the number of jobs they are expected to create," he said.

Commenting on the Duqm Petrochemical Complex, H E Dheeb said the economic feasibility study for the project - a partnership between OQ Group and its partners in Kuwait - is currently underway.

He emphasised that the issuance of the Special Economic Zones and Free Zones Law under Royal Decree No. 38/2025 represents a strategic step towards enhancing investment attractiveness in Oman, particularly in economic and free zones. The law establishes an advanced business environment based on clarity and transparency by simplifying procedures through a one-stop-shop system, granting incentives and offering tax and customs exemptions, alongside additional incentives for strategic projects.

H E Dheeb added that the law has also encouraged quality investments in promising sectors, particularly real estate development under the freehold system.

Muscat Daily