This guide gives you a full and useful look at Oman’s Free Zones and Special Economic Zones. It compares them and explains how you can get the most out of each one.
Required Documents
- listed below
Conditions
- It has no prerequisites
- No need for a partner and alone
In today’s competitive world economy, choosing the best place for international investment is very important. The Sultanate of Oman has smart economic plans and has created several Free Zones and Special Economic Zones to bring in foreign money and help international businesses grow.
Oman’s Free Zones give investors special benefits. These include full foreign ownership, no taxes, no customs duties, the ability to send all profits back home, and modern infrastructure. This makes them great places to start or grow a global business. Each zone — from the important Sohar Port to the large Duqm Special Economic Zone (SEZAD) — has its own strengths and focuses on different industries.
This guide gives you a full and useful look at Oman’s Free Zones and Special Economic Zones. It compares them and explains how you can get the most out of each one. If you want a safe, profitable, and growing place to start or expand your international business, this guide will help you choose the right path to success.
Benefits of Oman Free Zones
Why are Oman’s Free Zones considered top investment destinations in the region?
The answer is simple: they offer special advantages and government support that make them attractive for international businesses.
Here are the key benefits, listed in a simple format:
- 100% Foreign Ownership
In Oman’s free zones, investors can fully own their companies without the need for a local partner. This advantage is rare among countries in the region. - Full Tax Exemption
Companies enjoy exemption from income tax, profit tax, and import/export taxes — in some zones for up to 30 years. - Customs Duty Exemption
Imports of equipment, machinery, and raw materials are fully exempt from customs duties — a significant help for a fast business launch. - Profit and Capital Repatriation
There are no restrictions on transferring profits or capital abroad — ensuring investment security. - Strategic Infrastructure
Proximity to ports, airports, and export highways makes these zones ideal for logistics and international trade. - Access to Regional Markets
Oman’s strategic location enables low-cost exports to the Middle East, East Africa, and South Asia. - Simple Setup Process
The procedures for company registration and licensing in free zones are fast and transparent — businesses can launch operations within a few weeks.
Oman’s Free Zones are strategically positioned to connect global markets across Asia, Africa, and Europe.
Introduction to Oman’s Free Zones and Special Economic Areas
With a smart economic plan, Oman has built several Free Zones and Special Economic Zones in important parts of the country. Each zone has its own infrastructure, special benefits, and strategic location to support local and international investors.
In this section, we will look closely at five main zones in Oman:
- Duqm Special Economic Zone (SEZAD)
- Salalah Free Zone
- Sohar Free Zone
- Al Mazunah Free Zone
- Khazaen Economic City
For each zone, we will explain its business focus, special facilities, how to register a company, legal benefits, location, and growth potential — in a clear and easy-to-read format.
Our goal is to give investors the right information so they can choose the best zone for their business in Oman.
Strategically located on the Indian Ocean, Duqm SEZ offers world-class infrastructure for heavy industry, logistics, and global export.
Special Economic Zone at Duqm (SEZAD)
| Advantage | Description |
|---|---|
| Strategic Location | Located on the Indian Ocean coast, outside the Strait of Hormuz — ideal for bypassing Gulf maritime traffic and creating direct trade routes to East Asia, Africa, and Europe. |
| Zone Size | Over 2,000 square kilometers, including port, airport, industrial area, commercial zone, residential and tourism districts. |
| Key Infrastructure | Duqm deep-sea port, Duqm International Airport, shipyard (Dry Dock), modern roads, energy zone, and oil pipeline to port. |
| Industrial Focus | Heavy industries, petrochemicals, renewable energy, logistics, construction, fisheries, and tourism. |
| Investment Incentives | Long-term tax exemptions, 100% foreign ownership, customs duty exemption, free repatriation of capital and profits, simple registration process. |
| One-Stop Shop Services | All registration, licensing, residency, and operational services are provided through a centralized portal — streamlining government interactions. |
| Estimated Company Setup Time | Company registration and operations can begin in less than 4 weeks. |
| Regulatory Authority | Duqm Special Economic Zone Authority under OPAZ — with an independent and facilitative legal framework. |
| Suitable for Which Businesses? | Large industrial investors, logistics and maritime companies, exporters, infrastructure developers, energy sector operators, tourism and hospitality firms. |
| Key Active Projects | Duqm Refinery, shipyard, Duqm Port, residential developments, energy zone, tourism zone. |
| Competitive Advantage | Modern infrastructure, geopolitical location, lower costs compared to competitors, access to global markets with low tariffs. |
| Official Website of the Special Economic Zone at Duqm (SEZAD) | https://duqm.gov.om/en |
Located near one of the region’s largest ports, Salalah Free Zone offers unmatched advantages for export-driven industries.
Salalah Free Zone
Salalah Free Zone is one of the most important business areas in southern Oman. Because it is close to Salalah Port and major international shipping routes, it has become a key place for export businesses, logistics, medicine production, and the food industry.
The table below shows the main features, benefits, and useful details about Salalah Free Zone.
| Advantage | Description |
|---|---|
| Prime Geographic Location | Located near Salalah Port, one of the largest ports in the Middle East, with direct connections to Africa, India, Southeast Asia, and Europe. |
| Total Area | Over 2,500 hectares of developed land, including industrial, commercial, and logistics zones. |
| Industrial Focus | Chemical industries, pharmaceuticals, logistics, food production, and export-oriented manufacturing. |
| Investment Incentives | Tax exemption up to 30 years, 100% foreign ownership, free capital repatriation, customs exemptions, and simplified registration procedures. |
| One-Stop-Shop Services | Registration, licensing, residency, and customs services are provided through an integrated digital platform. |
| Estimated Company Setup Time | Company registration, licensing, and operations can begin in less than 2 weeks. |
| Regulatory Authority | Salalah Free Zone Authority under the supervision of OPAZ. |
| Suitable for Which Businesses? | Companies in logistics, pharmaceuticals, food production, goods export, and those requiring international port access. |
| Support Infrastructure | Direct access to Salalah Port, modern highways, cold storage facilities, and advanced logistics infrastructure. |
| Key Active Projects | Chemical and pharmaceutical projects, logistics center, food packaging factory, industrial park development. |
| Competitive Advantage | Strategic access to African and Indian markets, fast registration process, port and customs facilities, low logistics costs. |
Strategically located near the UAE border, Sohar Free Zone is ideal for heavy and light industries, import/export, and transit operations.
Sohar Free Zone
Sohar Free Zone is next to the important Port of Sohar and covers more than 45 square kilometers. It is one of the main places in Oman for industrial growth. Being close to a deep-water port, with easy access to roads and railway lines, makes it a great choice for importing, exporting, and manufacturing.
The table below shows the key advantages and features of the Sohar Free Zone.
| Advantage | Description |
|---|---|
| Strategic Geographic Location | Near Sohar Port and the UAE border; ideal for imports, exports, and transit operations. |
| Advanced Industrial Infrastructure | Proximity to Sohar Industrial City with access to energy, water, and gas facilities. |
| Comprehensive Investment Incentives | Long-term tax exemptions, 100% foreign ownership, customs exemptions, free repatriation of capital and profits, simplified registration process. |
| Fast and Simple Registration Process | Company registration and operations can begin in less than 4 weeks. |
| Direct Access to Rail and Transport Network | Rail connectivity to inland Oman and neighboring countries. |
| Suitable for Heavy and Light Industries | An industrial environment ready for factories and processing facilities. |
| Tax Exemption | Up to 25 years of corporate income tax exemption. |
| 100% Foreign Ownership | No local partner required. |
| Customs Exemption | No duties on the import and export of goods. |
| Access to Global Supply Chains | Via Sohar Port, located at the crossroads of trade routes linking Europe, Asia, and Africa. |
| Government Support & Major Industry Presence | More than 350 industrial companies operate in the zone, including leading global firms. |
Freight trucks lined up in Al Mazunah Free Zone near Oman’s border with Yemen
Al Mazunah Free Zone
Al Mazunah Free Zone is in the southwest of Oman, close to the Yemen border. It helps a lot with trade between Oman and the Horn of Africa. This zone is planned to be a main center for re-export, especially to Yemen, and is managed by OPAZ (Public Authority for Special Economic Zones and Free Zones).
With its focus on re-export, goods transit, logistics, warehousing, and light industry, Al Mazunah is a great option for businesses that want quick and easy access to nearby markets.
| Advantage | Description |
|---|---|
| Border Location | Located near the Yemeni border, ideal for international trade and re-export operations. |
| Focus on Re-export and Transit | Designed to facilitate logistics and warehousing operations with special customs advantages. |
| Easy Access to Yemen and the Horn of Africa | Strategically positioned for exports to neighboring countries and East Africa. |
| Tax and Customs Exemptions | Exemption from income tax and customs duties on imports and exports. |
| 100% Foreign Ownership | Companies can be registered without the need for an Omani partner. |
| Developing Infrastructure | Basic facilities are in place, and continuous development is ongoing. |
| Visa-Free Entry for Yemenis | Yemeni nationals can enter the zone without a visa, facilitating cross-border trade. |
| Fast and Simple Registration | Company registration is supported by OPAZ and completed in a short time frame. |
Strategically located near Muscat, Khazaen integrates a free zone, logistics park, and industrial city with multimodal transport access.
Khazaen Economic City
Khazaen Economic City is one of the newest and most modern development projects in Oman. It is being built near Muscat, the capital. This city brings together a free zone, a logistics area, and an industrial park, all in one place. The goal is to make it a main center for trade, transportation, and regional production.
Khazaen focuses on diversifying the economy, growing non-oil exports, and attracting foreign investors. One special feature is its location — right at the meeting point of Oman’s road, air, and sea transport systems. This makes it a strong choice for international companies.
| Advantage | Description |
|---|---|
| Central Location in Oman | Near Muscat, connecting ports, international airport, and land crossings. |
| Integration of Free and Industrial Zones | Enables simultaneous activities in manufacturing, trade, and export. |
| Advanced and Modern Infrastructure | Includes logistics park, storage centers, smart warehouses, and an inland container terminal. |
| Multimodal Transport Connectivity | Access to land, air, and sea transportation simultaneously. |
| Investment Incentives | Up to 25 years of tax exemption, customs exemptions, and 100% foreign ownership. |
| Focus on Technology and Clean Industries | Priority given to tech-driven, green, and innovative projects. |
| Fast Registration Process | Business operations can begin in less than 4 weeks with OPAZ support. |
| High Potential for Re-Export | Ideal location for establishing distribution hubs and re-export centers to neighboring countries. |
Starting a company in Oman’s Free Zones involves 10 streamlined steps — from choosing the right zone to full operations in under a month.
How to Benefit from Oman’s Free Zones
Want to start a business in Oman’s Free Zones?
Here is a simple step-by-step guide to help you make the most of the great opportunities available for foreign investors.
Setting up in a Free Zone is not just a way to grow your international business — it can also be a big step in your investment strategy. But to succeed, you need to understand the process clearly.
Below are the main steps for starting your business in an Omani Free Zone. We’ll guide you through everything — from picking the right zone and legal setup to getting licenses, calculating costs, and planning your timeline.
Steps to Set Up a Business in Oman Free Zones
| Step | Description |
|---|---|
| 1. Choose the Right Free Zone | Based on the type of business activity, proximity to target markets, infrastructure access, and the specific advantages of each zone. |
| 2. Define the Legal Structure of the Company | Choose between an LLC, a foreign company branch, or a representative office — depending on your objectives and operational requirements. |
| 3. Reserve Trade Name and Obtain Initial Approval | Register your desired trade name in the free zone’s system and receive initial approval to proceed. |
| 4. Prepare Documents and Draft the Articles of Association | Gather necessary documents including passport copies, business plan (covering activity type, target market, staff count, and operational needs), and company’s Articles of Association for submission to the free zone authority. |
| 5. Obtain Business License | Secure the required licenses based on your business type (commercial, industrial, service, or logistics). In some zones, this process takes less than 4 weeks. |
| 6. Lease Office or Land in the Free Zone | Choose and rent office, industrial, or warehouse space suited to your business needs within the free zone. |
| 7. Open Corporate Bank Account | Open a corporate bank account in Oman for local and international financial transactions. |
| 8. Final Registration and Issuance of Documents | Receive the company registration certificate, investor card, and all official documents to start operations. |
| 9. Obtain Visas and Residency for Executives and Staff | Apply for work visas, residence permits, and ID cards for the CEO, investors, and key employees. |
| 10. Begin Commercial or Industrial Operations | Launch operations and benefit from incentives such as tax and customs exemptions and logistical support once all legal, financial, and administrative steps are complete. |
For complete information on the company registration process, please visit our “Company Registration in Oman” page.
Register Your Company in Oman
Frequently Asked Questions (FAQ)
In this section, you’ll find clear and useful answers to the most common questions that foreign investors usually ask when they look into doing business in Oman’s Free Zones.
| Question | Answer | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| How many free zones are there in Oman? | Oman has five active Free and Special Economic Zones: Duqm (SEZAD), Salalah, Sohar, Al Mazunah, and Khazaen. | |||||||||||||||
| Can I own 100% of my company? | Yes. Foreigners can own the whole company in Oman’s Free Zones. You don’t need an Omani partner. | |||||||||||||||
| What are the main differences between Duqm and Salalah? | Duqm has a large port and space for big industries and energy projects. Salalah is a hub for exports to Africa and Asia. Both offer tax breaks and easy setup services. | |||||||||||||||
| What are the tax exemption durations? | Most Free Zones offer tax-free periods up to 25 or 30 years, if the business follows the zone’s rules. | |||||||||||||||
| Is it easy to obtain visas for foreign employees? | Yes. Oman’s Free Zones have easy visa processes. Also, the Omanization rate is lower than in other parts of the country.
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Oman’s free zones offer ideal conditions for foreign investors — from tax benefits and ownership freedom to strategic logistics and expert support.
Conclusion & Next Steps
Oman is now one of the best places for foreign investors in the region. Thanks to its different free zones, friendly business rules, and special investment benefits, it’s a great choice for starting or growing a company.
You can enjoy many advantages in Oman’s Free Zones — like long-term tax breaks, full foreign ownership, strong logistics systems, and easy company registration.
Each Free Zone in Oman has its own focus. You can choose the one that best fits your business — whether you’re in manufacturing, re-exporting, logistics, tech, trade, or services.
✅ If you’re thinking about doing business in Oman, now is the right time.
Our expert team can help you at every step — from picking the best Free Zone to setting up and growing your company.
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