Oman boosts pharma investment via offtake, price deals

Oman is stepping up efforts to attract investment into pharmaceutical and medical device manufacturing by offering prospective producers preferential access to government procurement, tax and customs exemptions, full foreign ownership and other incentives, according to the Public Authority for Special Economic Zones and Free Zones (OPAZ).
At the heart of the package are advance purchase agreements covering up to 30 per cent of the Ministry of Health’s requirements for locally manufactured pharmaceutical products. As the Sultanate of Oman’s largest customer for medicines and pharmaceutical products, the Ministry of Health provides a potentially significant and predictable source of demand for investors establishing production capacity in Oman.
The government is also offering price-based incentives, including a price preference of up to 30 per cent for locally manufactured products and 20 per cent for products undergoing secondary packaging. The measures are designed to improve the competitiveness of Oman-made medicines in government procurement and encourage investors to move beyond importation towards domestic manufacturing.
OPAZ said the incentives form part of a broader effort to establish Oman as a regional centre for pharmaceutical and medical industries.
“Oman’s pharmaceutical industry is accelerating, powered by a business-friendly investment environment, competitive incentives and diverse investment opportunities”, OPAZ said.
The authority highlighted 13 pharmaceutical projects and manufacturing facilities already distributed across Oman’s special economic zones, free zones and industrial cities, spanning opportunities such as generic pharmaceutical manufacturing, research laboratories, active pharmaceutical ingredient (API) production, vaccines and biopharmaceuticals.
“13 pharmaceutical projects and manufacturing facilities across Oman’s Special Economic Zones, Free Zones and Industrial Cities — offering investors a strategic platform to scale and grow”, OPAZ said.
The investment proposition extends to medical devices, with opportunities in medical equipment, digital health solutions, surgical instruments and smart health-monitoring devices.
Financial incentives include tax exemptions for up to 30 years, customs exemptions on raw materials and equipment, no minimum capital requirement and permission for 100 per cent foreign ownership. OPAZ also highlights exemptions from personal income tax, value-added tax and capital gains tax.
Investors can additionally benefit from streamlined establishment and licensing procedures, work permits issued within 24 hours, long-term residency visas and freedom to transact in all currencies. Usufruct agreements can extend for up to 50 years and are renewable.
OPAZ said investors will have access to one-stop-shop services, dedicated investor-support teams, flexible regulatory procedures and accelerated customs clearance, alongside infrastructure and facilities tailored to their requirements.
“With the right infrastructure, strategic advantages and an enabling investment ecosystem, Oman is emerging as a regional hub for medical and pharmaceutical industries, creating new opportunities for investors and driving sustainable industrial growth”, OPAZ added.