Industrial and economic hubs power Oman's Vision 2040 goals
Muscat: Oman's free economic zones are emerging as key engines of growth, aligning closely with the national development objectives outlined in Oman Vision 2040. With a strong focus on economic diversification, sustainability, and employment generation, these zones are helping reshape the Sultanate's future economy beyond oil dependence.
According to the Public Authority for Special Economic Zones and Free Zones (OPAZ), total committed investments across special economic zones, free zones, and industrial cities reached RO 21 billion by the end of 2024, a 10 per cent increase over the previous year. These figures underscore the strategic role the zones play in attracting both local and foreign investment into high-priority sectors.
Speaking at OPAZ's annual media meeting, Shaikh Dr Ali bin Masoud al Sunaidy, Chairman, highlighted that the zones now contribute 7.5 per cent to Oman's GDP and 11.6 per cent to non-oil activities, with exports exceeding RO 4.5 billion, accounting for 38 per cent of the Sultanate's non-oil exports.
These zones are channelling investment into industries vital to Oman Vision 2040, including pharmaceuticals, food processing, fisheries, renewable energy, and petrochemicals. In 2024, 180 projects were under negotiation, with 12 per cent being advanced in partnership with Invest Oman and the National Negotiation Team.
Environmental sustainability, a core pillar of Oman Vision 2040, is also being prioritised. The Special Economic Zone at Duqm (SEZAD) is establishing a renewable energy cluster, while Sur Industrial City is developing green areas under its Green Belt Project. In Sohar Free Zone, an air quality monitoring system has been launched as part of a broader environmental plan.
Job creation remains a fundamental outcome. In 2024, 3,597 Omanis were employed in projects across the zones, raising the national workforce to over 29,000, with an Omanisation rate of 37 per cent. This directly supports Vision 2040's emphasis on developing a skilled, competitive local workforce.
To enhance the business environment, OPAZ has implemented investor-friendly reforms including reduced lease rates, streamlined licensing, and digital integration with government entities aimed at improving transparency and reducing red tape.
Quality improvements are also being realised in areas such as Duqm. The Saay Commercial District is over 90 per cent complete, while the number of students in local schools has increased by 47 per cent in three years. Plans are also under way to expand green spaces and develop tourism infrastructure.
As Oman accelerates towards its 2040 aspirations, free and economic zones remain central to national progress. Under the leadership of His Majesty Sultan Haitham bin Tarik and with OPAZ at the helm, these zones are laying the groundwork for a resilient, inclusive, and sustainable economy turning Vision 2040 into a living reality.
Caption:
Site of the expansive United Solar Polysilicon project in Sohar Freezone
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