Investment in Oman's economic and free zones soars by 10% to $54bln
Muscat: The Public Authority for Special Economic Zones and Free Zones (Opaz) announced that the total investment in the special economic, free zones and industrial cities reached approximately OMR21 billion by the end of 2024, marking a 10% increase.
During its third annual media briefing held on Monday, Opaz revealed that the results of an economic survey focused on enterprises operating in the zones, conducted in mid-2024 in coordination with the National Centre for Statistics and Information (NCSI) showed that these zones contributed 7.5% to the gross domestic product (GDP) in 2022. This figure represents 11.6% of the non-oil economic activities for that year. The value of exports from the zones exceeded OMR4.5 billion, accounting for 17.9% of Oman's total exports and 38% of the country's non-oil exports in 2022.
In his opening remarks, Sheikh Dr. Ali Masoud Al Sunaidy, Chairman of Opaz, stated that 2024 witnessed a notable increase in committed local and foreign investments. Infrastructure projects across the various zones were expanded, and new initiatives were launched to promote innovation, sustainability and the transition to renewable energy.
He added that the Authority also focused on developing digital services, contributing to faster licensing procedures and an improved business environment. The Authority continues to strengthen integration among special economic zones, free zones and industrial cities to support economic diversification and sustainable growth.
The Chairman of Opaz also noted that the number of projects under negotiation rose last year to 180 across various sectors, including medical and pharmaceutical industries, food and fisheries, renewable energy-related industries, and petrochemicals. Of these, 12% are being pursued in partnership with the Invest Oman Lounge and the National Negotiation Team.
He also praised the contribution of all zones under the Authority's supervision in promoting local and foreign investment in the Sultanate of Oman and in advancing the goals of Oman Vision 2040.
He affirmed that Oman's economic policies, its efforts to provide a safe and stable investment environment, and the continuous review of investment incentives have driven foreign investment upward, contributed to localising various projects in the zones, and created new job opportunities for Omani youth.
Regarding the priority of economic diversification and fiscal sustainability, the Opaz Chairman stated that the Authority continues to develop new special economic zones, free zones and industrial cities with a focus on diversification. In 2024, construction work began on the first phase of the Muscat Airport Free Zone. Additionally, the consultancy contract for the detailed design and supervision of infrastructure facilities for Phase One of the Integrated Economic Zone in Al Dhahirah Governorate was awarded.
As for existing industrial cities, joint efforts with the Ministry of Housing and Urban Planning led to the expansion of Raysut Industrial City, which had recorded high occupancy rates. The total area has now reached over 9 million square metres, an increase of approximately 5 million square metres. The design of the new areas is scheduled to begin this year.
Al Sunaidy addressed the Authority's achievements under the priority of labour market and employment, affirming its strong focus on raising employment rates within the special economic zones, free zones and industrial cities. In 2024, a total of 3,597 Omani citizens were employed in projects operating in these zones, bringing the total number of Omani workers to over 29,000, with an Omanisation rate of 37%.
He also addressed the Authority's role under the priority of environment and natural resources, noting that last year it completed the consultancy study for the development of the renewable energy zone in Sezad. Additionally, Sur Industrial City adopted the Green Belt Project aimed at creating green spaces to help reduce carbon emissions. A sustainability plan was also implemented in the Sohar Free Zone, including the establishment of an air quality monitoring network.
Al Sunaidy affirmed the Authority's commitment to the priority of governance within the state administrative apparatus, resources, and projects. In line with the Royal directives, the Authority initiated the unification of investor services through electronic integration with relevant government entities, aiming to streamline procedures and enhance transparency. Rental rates for heavy and medium industrial land were reduced.
The Authority also introduced several initiatives to improve investor services, including shortening of the project licensing period, reengineering import and export procedures, and offering additional incentives such as reduced rental rates for several years for new projects in Ibri Industrial City, Sur Industrial City and Mahas Industrial City. Rental discounts and exemptions were also offered in the initial years for new projects in upcoming industrial cities in Mudhaibi, Suwaiq and Madha.
Regarding the priority of developing sustainable cities and governorates, Sheikh Dr. Ali Masoud Al Sunaidy stated that the Authority has continued its efforts to enhance the quality of life in Sezad. This includes greening initiatives and expanding green spaces. Over 90% of development in the new Saay Commercial District has been completed, with full supporting services in place, making it one of the most modern commercial hubs in the country.
As part of the Authority's responsibility for municipal services in areas no longer designated for public use, detailed designs were completed for the first phase of the primary and secondary road network. A consultancy tender was also issued for preparing the detailed masterplan for the tourism zone, aimed at developing a leisure complex that offers diverse experiences for residents and visitors. Meanwhile, schools in Duqm recorded a 47% increase in student enrolment over the past three years, indicating a growing number of families relocating to the area.
In conclusion, he reaffirmed the Authority's ongoing efforts to realise its vision of making economic zones, free zones and industrial cities the 'preferred destination for investment,' while continuing its institutional transformation strategy.
The third annual media gathering of OPAZ featured visual presentations highlighting the outcomes of institutional transformation and key performance indicators across the zones under the Authority's supervision. The Authority achieved a digital transformation score of 86% and a 95% score in government compliance, while its institutional excellence rating rose to 97.5% for the year 2024.
The media gathering also included presentations on Philex Pharmaceutical Industries in the Salalah Free Zone and the International Seafood Company (Simak) in Sezad. United Solar Polysilicon, based in the Sohar Free Zone, gave an update on its project, which has reached 80% completion.
© Muscat Media Group Provided by SyndiGate Media Inc. (Syndigate.info).
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