Khazaen Economic City attracts $1.38 billion in investments
MUSCAT: Khazaen Economic City (Khazaen), a flagship integrated economic development zone in Oman, has recorded robust investment growth and milestone project completions in 2024, as revealed during the annual media forum organised by the Public Authority for Special Economic Zones and Free Zones (OPAZ) on April 14, 2025, under the auspices of Shaikh Dr Ali bin Masoud al Sunaidy, Chairman of OPAZ.
As of 2024, Khazaen has signed a total of 118 investment agreements with a cumulative value of $1.38 billion, attracting investors from more than 19 countries. The city continues to draw both foreign and domestic interest, with Foreign Direct Investments (FDI) amounting to $832 million, and Domestic Direct Investments (DDI) reaching $551 million. The development currently supports over 33 industrial and logistics projects under construction, spanning across six key economic sectors.
Several landmark developments were inaugurated this year, reflecting the city's accelerating growth and readiness to serve multiple sectors. Among the most notable was the opening of the 'Silal' Fruit and Vegetable Central Market, which aims to become a central hub for agro-logistics and food distribution in the Sultanate. Complementing this was the opening of the Flag Oman Logistics Centre, a state-of-the-art facility supporting freight handling and supply chain efficiency in the region. Khazaen also launched the Al Maskan Labour Village, a modern residential complex designed to accommodate the city's growing workforce while maintaining high standards for quality of life and safety.
In the pharmaceutical sector, Khazaen saw significant momentum with the launch of several initiatives and investment projects, most notably the Opal Biopharma Project, which is specialised in the production of human vaccines. This project underlines Oman's strategic ambition to develop a domestic biopharmaceutical capability while boosting health security and export potential. The total investments in the pharmaceutical sector now stand at $405 million.
The industrial sector also witnessed notable activity with the launch of manufacturing initiatives such as Al Watania Paper Products and Jana International Plastic Products. These projects are part of the $350 million investment channeled into Khazaen's industrial sector, supporting local manufacturing and import substitution strategies. Meanwhile, the food sector continues to be a strong contributor with $427 million in investments, and the logistics sector saw $130 million in funding, capitalising on Khazaen's access to Oman's multimodal transport corridors.
A key milestone in 2024 was the completion of the fit-out works for the One Stop Shop, Khazaen's centralised facility designed to streamline investor services and government approvals. The facility is expected to significantly improve the ease of doing business and reduce lead times for project implementation.
To date, more than 2,000 job opportunities have been created through various projects in the economic city, reflecting Khazaen's growing impact on the national employment landscape. OPAZ officials highlighted these developments as proof of Khazaen's success in attracting high-value investments and fostering a business-friendly ecosystem.
With continued support from the government, strategic infrastructure in place, and a steady pipeline of investment projects, Khazaen is poised to play an even greater role in Oman's long-term economic transformation. Its performance in 2024 stands as a testament to the city's emergence as a major hub for logistics, manufacturing, and innovation in the region.
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