Free Zones in Oman
Free Zones in Oman
Established in the Special Economic Zones or Free Zones of Oman are eligible for tax exemptions and other incentives to commercial enterprises, like the possibility of 100 percent foreign ownership. Presently, Oman has three Free Zones (Salalah Free Zone, Sohar Free Zone, and Al Mazunah Free Zone) and two Special Economic Zones (the Duqm Special Economic Zone and Knowledge Oasis Muscat) in the hope of attracting various types of companies to Oman. Each Zone is a different incentive program.
Salalah Free Zone
A business in the Salalah Free Zone in Oman has many advantages. The area offers tax exemptions of at least thirty years. Business owners can set up direct and target associations, ensuring greater business exposure and monetary benefits for sponsors and benefactors. The Salalah Free Zone is also home to numerous services, including transportation, utilities, labor, and infrastructure. Before applying for a business permit, investors should consider the Salalah Free Zone’s permits.
The Salalah Free Zone Administrative HQ is a state-of-the-art operational building located east of the Port of Oman. The facility includes an atrium, a restaurant, a cafe, and gardens, which give it a friendly, inviting feel. The building’s name comes from its open arms, a hallmark of this free Zone’s social environment. The company has a long history of working in the region and has built its brand on its reputation as a leader in the field.
A Salalah Free Zone offers businesses the perfect environment to set up their businesses. The economic incentives that it provides are unbeatable. In addition to tax exemptions, investors can enjoy full ownership of their projects. Salalah’s prime location offers easy access to East-West trade lanes and markets and is adjacent to the Port of Salalah. Its proximity to the Salalah Port and airport means businesses in the Salalah Free Zone can take advantage of a great location.
Before registering a business in the Salalah Free Zone, investors should fill out an application form. This form should include information on the company’s essentials, including the NOC letter. Once all the documents are in place, they can proceed with the company formation process. They will also require a registration certificate from the Sultanate of Oman. Once all these documents have been verified, the business can proceed.
Sohar Free Zone
The SOHAR Port and Freezone in Oman is the largest industrial project in the Sultanate, and it has received the US $27 billion in investments since its establishment. The Freezone has been instrumental in the Sultanate’s development goals and economic diversification efforts and has pioneered the creation of jobs in the local area. Various incentives have been announced to attract more companies to the Freezone. This article explores some of the incentives available in Oman’s SOHAR Port and Freezone.
The Sohar Port and Freezone has partnered with the Federation of Indian Chambers of Commerce and Industry (FICCI) to develop a five-part online webinar series to highlight the opportunities for Indian companies. The partnership will also highlight the benefits of the Freezone’s strategic location and world-class infrastructure for Indian companies. The webinars will feature presentations by SOHAR executives and their success stories. One of the benefits of the SOHAR Freezone is the ability to create value through utility prices, available raw material supply, and lucrative incentives. In addition, qualifying products can be imported duty-free into the Freezone.
The Sohar Freezone is also home to a one-stop-shop for business services. The free Zone will act as a window for Indian companies looking to establish a presence in the Sultanate. Once a company has decided to invest in Oman, it can complete the incorporation process in the country. It is a simple and fast process and offers access to a worldwide market. It is a good opportunity for investors and companies seeking to expand operations in the Middle East.
Sohar Free Zone in Oman has various benefits, including tax holidays, free manpower and utilities, and an international airport. Its competitive land lease rates and ease of obtaining permits make it a desirable location for investment. And, with a tax holiday of 30 years, it is a great place for foreign investors to locate their businesses. You can also invest in Sohar Free Zone and benefit from the tax benefits.
Al Mazunah Free Zone
The Al Mazunah Free Zone in Oman was established in 1999. It is located in southwestern Oman, near the border with Yemen. The free Zone is a hub for the manufacturing industry, with facilities ranging from steel mills to refineries. The free Zone also hosts various international events and allows companies to conduct their business with utmost security and ease. To learn more about this growing global business hub, read on.
Facilities built within the free Zone include a cargo gate management system and a warehouse for storing goods. Companies looking to expand their operations in the area will find all the necessary facilities and services in the free Zone. These facilities and services will help investors, business owners, and clients operate more efficiently and successfully. In addition, the free Zone plans to implement new technologies and improve its security measures. For instance, it plans to install electronic surveillance systems and provide additional security measures.
The Al Mazunah Free Zone is in its second phase of development. It has received 10.8 million square meters of land for future expansion. It is estimated that this will make the free Zone’s future space 15,360,820 square meters. During the second development phase, the facility building design is expected to be completed by mid-2022. Phase Four expansion design project, which covers 3 million square meters, is also underway. It will feature new buildings for the commercial, exhibition, and service industries.
The government supports investors with various incentives. The government has developed an incentive package for investors, which includes 30 years of exemption from income tax and customs duties. The state guarantees 100 percent equity ownership and visa-free employment for Yemeni labor and reduces the recruitment rate to 10% of Omani labor. Additionally, the Al Mazunah Free Zone has been awarded the status of the World Trade Organization. And in Oman, you’ll have access to the deep-sea port and international airport.
Duqm Special Economic Zone
The Duqm Special Economic Zone (SEZAD) is an area of the Sultanate of Oman that consists of a port, an industrial zone, a town, and a fishing harbor. It has a land area of 1,777 square kilometers and an 80 km coastline. The free Zone has two docks of 410 meters and a 2.8 km quayside for ship repairs. It is located in a strategic location, within reach of Oman’s fast-growing markets.
The SEZ Authority of Duqm is responsible for guiding the development and administration of the Zone. The SEZ Authority of Duqm’s goals includes developing the region as a regional maritime hub, an important complex for export-oriented industries, and a popular tourism destination in the Arabian Sea. Investments in the SEZ can benefit from a relaxed Omanisation rate of 25 percent and a 30-year income tax exemption. There are many benefits of investing in the Duqm Special Economic Zone, and these are just a few.
The location of the SEZ in Duqm makes it an ideal place for international trade. You can reach the port within the Al Wusta region without crossing the Strait of Hormuz. In addition, the Al Wusta region contains large oil fields and vast mineral deposits. These factors make the Duqm SEZ an excellent choice for international business operations. There are many reasons why Oman should be a hub in the Middle East.
OPAZ was established by the Royal Decree No. 105/2020 and took effect on 18 August 2020. The Duqm SEZDA and its employees will be transferred to the OPAZ, which will report to the Council of Ministers. The OPAZ will be chaired by the previous Minister of Commerce and Industry, and its head office will be in Muscat.
Knowledge Oasis Muscat Economic Zone
Located near the Muscat International Airport, Knowledge Oasis Muscat is the Sultanate’s new 1 million square meter technology park. The Knowledge Oasis Muscat Economic Zone is adjacent to Rusayl Industrial Estate, the Sultanate’s largest industrial park, and the Sultan Qaboos University. The knowledge park is currently open for business. In addition to its high-tech business parks, Knowledge Oasis Muscat offers offices, laboratories, and a business park, making it an ideal location for new and existing companies.
The Technology Park is part of the Sultanate of Oman’s strategic plan to drive economic growth. It will also provide substantial opportunities to investors and influence the brand image of Muscat. It is a hub of innovation, where business ideas are exchanged and discussed. In response to the tender, the Knowledge Oasis Muscat Economic Zone has begun to develop a comprehensive strategy and a unique selling proposition for its tenants.
The Knowledge Oasis Muscat Economic Zone has a minimum capital investment of OMR 20,000. The Knowledge Oasis Muscat Economic Zone targets knowledge-based companies and attracts investors with expertise in IT services. The investment capital requirement is low; 20k OMR is the required minimum share capital. It offers a low Omanization rate of 25 percent. A minimum capital investment of OR20,000 ($51900) is required to establish a knowledge Oasis Muscat Economic Zone business.
Salalah Free Zone offers many benefits to business investors. It provides
- no mandatory minimum share capital,
- a tax holiday of up to 25 years, and
- full foreign ownership of companies.
Companies located in Salalah Free Zone can also take advantage of a 30-year tax holiday. The free Zone is close to the international airport and only a few miles from the Straits of Hormuz. You will also benefit from the proximity of local hotels, banks, and convenience stores.