Latest news with #IntegratedEconomicZone
Zawya
24-04-2025
- Business
- Zawya
New zones to redefine investment flow in Oman
MUSCAT: The Sultanate of Oman is accelerating its strategy to attract high-value investments by rolling out two dynamic new zones—the Muscat Airport Free Zone and the Integrated Economic Zone in Al Dhahirah—each positioned to offer unique advantages to global investors. According to Dr Ali bin Masoud al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), these new hubs are part of a coordinated national ecosystem that unlocks fresh potential in logistics, e-commerce, and cross-border trade. 'All the free zones and economic zones in the country are working within an ecosystem that enables each to focus on specific sectors and unique selling points,' Dr Al Sunaidy explained in an interview with Observer, during the OPAZ media briefing held recently. 'The airport free zone, for instance, is a new concept in Oman designed to leverage our aviation infrastructure, which has so far been underutilised in terms of air logistics.' AVIATION-DRIVEN VALUE CREATION The Muscat Airport Free Zone is positioned as a game-changer in air cargo logistics, building on Oman's strategic investments in airports in Muscat, Salalah, and beyond. While seaports have long been the backbone of Oman's logistics sector, the integration of air transport through this new zone opens a 'new horizon' for the country. Dr Al Sunaidy emphasised that the zone will cater to sectors where air logistics is critical, such as pharmaceuticals, e-commerce, and high-value components. 'Having a free zone next to the airport allows for value-added processes like repackaging, assembling, or modifying goods—activities that are not allowed under traditional bonded storage rules,' he noted. This means goods such as watches or pharmaceuticals can now be imported in parts, assembled or customised within the free zone, and then exported again without incurring customs duties or VAT until they enter the Omani market. This assembly-based value creation transforms Oman from a transshipment stop into a production and logistics hub, particularly attractive for firms with regional distribution needs. 'It's not about making it in Oman, but assembling and customising it in Oman,' said Dr Al Sunaidy, highlighting the zone's ability to provide flexible operations for businesses focused on just-in-time delivery models. AL DHAHIRAH: OMAN'S NEW GATEWAY TO SAUDI ARABIA AND BEYOND In the northwest, the Integrated Economic Zone in Al Dhahirah (Ibri) aims to become a key logistics and commercial bridge with Saudi Arabia, situated just 20 kilometres from the border. According to Dr Al Sunaidy, the zone was born out of a shared vision between Oman and Saudi Arabia's leadership to strengthen bilateral and regional trade ties. 'The zone can act as a consolidator of cargo destined for various locations inside Saudi Arabia and even further—to Egypt, Iraq, and Kuwait,' he explained. 'It also provides a platform for Saudi companies to reach Oman, Africa, and Asian markets through our ports.' The zone is envisioned not as an industrial cluster but as a trade facilitation hub, housing dry ports, warehouses, hotels, truck maintenance facilities, and possibly Potash-related manufacturing, given the mineral's abundance in the area. Oman's regulatory framework promotes seamless movement of goods between Oman's free and economic zones. As Dr Al Sunaidy pointed out, the regulations ensure minimal rechecking of cargo once it's cleared at the entry point, thereby enhancing operational efficiency across zones. STRATEGIC AND SOCIAL SYNERGIES Beyond commercial benefits, the Al Dhahirah zone is expected to support religious tourism and cross-border mobility. 'Omani pilgrims heading to Hajj will face fewer border challenges, and Saudi tourists visiting Salalah or Muscat could benefit from a smoother travel route,' Dr Al Sunaidy added. As Oman positions itself as a multi-modal logistics hub, both zones reflect a forward-thinking economic diversification strategy. By unlocking underutilised infrastructure and deepening regional integration, these zones are not just real estate developments—they are critical instruments in Oman's broader vision for 2040. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
23-04-2025
- Business
- Observer
New zones to redefine investment flow in Oman
MUSCAT, APRIL 23 The Sultanate of Oman is accelerating its strategy to attract high-value investments by rolling out two dynamic new zones—the Muscat Airport Free Zone and the Integrated Economic Zone in Al Dhahirah—each positioned to offer unique advantages to global investors. According to Dr Ali bin Masoud al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), these new hubs are part of a coordinated national ecosystem that unlocks fresh potential in logistics, e-commerce, and cross-border trade. 'All the free zones and economic zones in the country are working within an ecosystem that enables each to focus on specific sectors and unique selling points,' Dr Al Sunaidy explained in an interview with Observer, during the OPAZ media briefing held recently. 'The airport free zone, for instance, is a new concept in Oman designed to leverage our aviation infrastructure, which has so far been underutilised in terms of air logistics.' AVIATION-DRIVEN VALUE CREATION The Muscat Airport Free Zone is positioned as a game-changer in air cargo logistics, building on Oman's strategic investments in airports in Muscat, Salalah, and beyond. While seaports have long been the backbone of Oman's logistics sector, the integration of air transport through this new zone opens a 'new horizon' for the country. Dr Al Sunaidy emphasised that the zone will cater to sectors where air logistics is critical, such as pharmaceuticals, e-commerce, and high-value components. 'Having a free zone next to the airport allows for value-added processes like repackaging, assembling, or modifying goods—activities that are not allowed under traditional bonded storage rules,' he noted. This means goods such as watches or pharmaceuticals can now be imported in parts, assembled or customised within the free zone, and then exported again without incurring customs duties or VAT until they enter the Omani market. This assembly-based value creation transforms Oman from a transshipment stop into a production and logistics hub, particularly attractive for firms with regional distribution needs. 'It's not about making it in Oman, but assembling and customising it in Oman,' said Dr Al Sunaidy, highlighting the zone's ability to provide flexible operations for businesses focused on just-in-time delivery models. AL DHAHIRAH: OMAN'S NEW GATEWAY TO SAUDI ARABIA AND BEYOND In the northwest, the Integrated Economic Zone in Al Dhahirah (Ibri) aims to become a key logistics and commercial bridge with Saudi Arabia, situated just 20 kilometres from the border. According to Dr Al Sunaidy, the zone was born out of a shared vision between Oman and Saudi Arabia's leadership to strengthen bilateral and regional trade ties. 'The zone can act as a consolidator of cargo destined for various locations inside Saudi Arabia and even further—to Egypt, Iraq, and Kuwait,' he explained. 'It also provides a platform for Saudi companies to reach Oman, Africa, and Asian markets through our ports.' The zone is envisioned not as an industrial cluster but as a trade facilitation hub, housing dry ports, warehouses, hotels, truck maintenance facilities, and possibly Potash-related manufacturing, given the mineral's abundance in the area. Oman's regulatory framework promotes seamless movement of goods between Oman's free and economic zones. As Dr Al Sunaidy pointed out, the regulations ensure minimal rechecking of cargo once it's cleared at the entry point, thereby enhancing operational efficiency across zones. STRATEGIC AND SOCIAL SYNERGIES Beyond commercial benefits, the Al Dhahirah zone is expected to support religious tourism and cross-border mobility. 'Omani pilgrims heading to Hajj will face fewer border challenges, and Saudi tourists visiting Salalah or Muscat could benefit from a smoother travel route,' Dr Al Sunaidy added. As Oman positions itself as a multi-modal logistics hub, both zones reflect a forward-thinking economic diversification strategy. By unlocking underutilised infrastructure and deepening regional integration, these zones are not just real estate developments—they are critical instruments in Oman's broader vision for 2040.
Zawya
15-04-2025
- Business
- Zawya
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. (
Observer
14-04-2025
- Business
- Observer
Investments in OPAZ zones reach RO 21 billion
MUSCAT: Total investments in Oman's special economic zones, free zones and industrial cities surged to approximately RO 21 billion by the end of 2024, according to the Public Authority for Special Economic Zones and Free Zones (OPAZ). This marks a 10 per cent increase over the previous year, reflecting growing investor confidence and the effectiveness of national economic policies aimed at attracting local and foreign capital. During its third annual media briefing held on April 14, 2025, OPAZ shared the results of a mid-2024 economic survey conducted in partnership with the National Centre for Statistics and Information (NCSI), which revealed that the zones under its supervision contributed 7.5 per cent to Oman's GDP in 2022. These zones also accounted for 11.6 per cent of non-oil economic activities that year. Export value from these zones surpassed RO 4.5 billion, representing 17.9 per cent of the country's total exports and 38 per cent of non-oil exports in 2022. Shaikh Dr Ali bin Masoud al Sunaidy, Chairman of OPAZ, highlighted several key achievements for 2024, including increased investments, expansion of infrastructure, and the rollout of new initiatives supporting innovation, sustainability and the shift to renewable energy. The Authority has also advanced its digital transformation agenda, enhancing electronic services to streamline investor licensing and improve the overall business environment. Moreover, OPAZ continues to promote greater integration among special economic zones, free zones and industrial cities to support Oman's broader economic diversification goals. Shaikh Dr Ali bin Masoud al Sunaidy, Chairman of OPAZ. Committed investment in the Special Economic Zone at Duqm (SEZAD) rose to RO 6.3 billion by the end of December 2024, up 5 per cent from the previous year. Free zones attracted RO 6.6 billion in committed investments, while industrial cities reached approximately RO 7.6 billion. Khazaen Economic City witnessed notable growth, with investment levels increasing by 18.8 per cent to exceed RO 500 million by year's end. These trends reflect the effectiveness of Oman's economic strategies under the framework of Vision 2040, particularly in supporting private sector-led growth and international cooperation. Significant progress was also made in infrastructure development. Construction commenced on the first phase of the Muscat Airport Free Zone, while consultancy contracts were awarded for the detailed design and supervision of the Integrated Economic Zone in Al Dhahirah Governorate. The expansion of Raysut Industrial City in partnership with the Ministry of Housing and Urban Planning brought its total area to over 9 million square metres, an increase of around 5 million square metres. The expansion is expected to attract new investors, supported by infrastructure readiness and ongoing planning. Shaikh Dr Ali bin Masoud al Sunaidy, Chairman of OPAZ, highlighted several key achievements for 2024. OPAZ continues to focus on employment and labour market development within its zones. In 2024, a total of 3,597 Omanis were newly employed, bringing the total number of Omani workers in these zones to more than 29,000. This represents an Omanisation rate of 37 per cent, with industrial cities recording the highest share of Omani employees at over 40 per cent. The overall workforce across the zones reached around 78,000 by the end of the year. On the environmental front, a consultancy study was completed for developing a renewable energy zone in Duqm. Sur Industrial City initiated the Green Belt Project to expand green spaces and reduce carbon emissions, while the Sohar Free Zone implemented a sustainability plan that included an air quality monitoring network. These initiatives align with Oman's broader goals of environmental stewardship and sustainable resource use. Shaikh Dr Ali bin Masoud al Sunaidy, Chairman of OPAZ, highlighted several key achievements for 2024 To improve the ease of doing business, OPAZ introduced several investor-friendly initiatives. These included reducing land rental rates for heavy and medium industries to between 250 and 500 baisas per square metre annually and reengineering import-export procedures. Additionally, new projects in Ibri, Sur, and Mahas Industrial Cities were offered rental discounts for several years. Upcoming industrial cities in Mudhaibi, Suwaiq and Madha were granted similar incentives to attract early-stage investors. In Duqm, efforts to improve the quality of life continued with green space initiatives, infrastructure upgrades and commercial development. Over 90 per cent of construction in the new Saay Commercial District was completed, positioning it as a major retail and service hub. A consultancy tender was floated for designing a masterplan for the tourism zone, and plans for an integrated leisure complex are underway. Meanwhile, a 47 per cent rise in student enrolment in Duqm schools over the past three years signals growing residential stability in the area. Closing the briefing, Shaikh Dr Al Sunaidy reaffirmed the Authority's commitment to transforming Oman's economic zones into the preferred investment destination. Backed by strong support from His Majesty Sultan Haitham bin Tarik, OPAZ aims to accelerate institutional transformation, enhance investor services, and continue contributing to Oman's sustainable development and economic diversification journey.
Times of Oman
14-04-2025
- Business
- Times of Oman
Investment in Oman's economic and free zones soars by 10% to OMR21bn
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.
