The Oman Special Economic Zones’ favorable investment climate drives significant growth from international investors.
Oman’s special economic zones and industrial cities are experiencing a surge in investments, reaching a remarkable $43.16 billion in the first six months of 2023.
Oman’s Special Economic Zones – A surge in investment
Oman special economic zones (SEZs) and industrial cities are witnessing a remarkable surge in investments, reaching an impressive USD 43.16 billion in the first half of 2023. This exceptional growth is attributed to the nation’s favorable investment climate, which has attracted pioneering projects across various sectors.
Existing industrial cities received investments worth 7.3 billion rials ($19 billion), according to reports from Arab News. The Salalah Free Zone attracted investments of 4.5 billion rials. The Duqm SEZ secured over 3.8 billion rials in investments.
The Sohar Free Zone and the Al-Mazunah Free Zone attracted investments of 570 million rials and 139 million rials, respectively.
Drivers of growth
The Public Authority for Special Economic Zones and Free Zones (SEZ Authority) has played a pivotal role in attracting investments by providing a conducive environment for businesses to thrive.
The Authority’s efforts include streamlining investment procedures and reducing service fees, providing vast tracts of land for investment opportunities and ensuring the availability of solar and wind energy resources. In addition, the Authority has also worked to establish logistical infrastructure to support industrial projects and to offer attractive incentives and investment-friendly legislation.
Recent developments and future prospects
In September 2023, the SEZ Authority announced the tender for the Integrated Economic Zone in Ad Dhahirah, inviting Omani and Saudi companies to provide consulting services related to infrastructure design and supervision. This project is expected to further boost investment opportunities in the region.
The SEZ Authority is actively pursuing leading projects in various sectors, including renewable energy, green hydrogen, and iron. The authority’s commitment to providing a supportive business environment and its focus on attracting strategic investments position Oman’s SEZs as a key driver of economic growth and diversification.