Suhar is a rapidly growing city and an important economic centre in the country. The city is known for its strategic location, world-class infrastructure connecting GCC and other expanding economies as well as its large port. Suhar was historically the capital of Oman and port of Suhar was the main hub of the region with high traffic.
The city's deep-sea port is one of the largest in the region, capable of handling large cargo vessels. The port is connected to major road networks, making it an ideal location for businesses that require easy access to transportation and with the upcoming development of the railway project connecting Oman and UAE through Suhar adds more potential as a prime logistic hub.
SOHAR Port, is a key gateway to the Gulf region and beyond having witnessed a significant increase in cargo throughput, flow of trade and foreign investments, this growth trend will continue to increase coupled with major expansions in infrastructures, including the development of a new liquid bulk terminal and a dedicated terminal for handling livestock.
The city's tourism sector is also expected to grow, with plans for the development of several tourist attractions, including the Suhar Corniche and the Suhar Heritage Village. In addition, it is home to a range of commercial and residential real estate projects.
Suhar has also experienced significant economic growth in recent years, driven by the development of its industrial sector which hosts a range of industries including petrochemicals, metals, and logistics. The Suhar Industrial Estate, covers an area of 19 million square meters, is a prime location for Local and foreign investors looking to set up manufacturing facilities.
Additionally, SOHAR Freezone is a designated area for international companies to set up their businesses and benefit from various incentives and tax exemptions. The freezone covers an area of over 4,500 hectares and is home to over 200 companies from 49 countries with more untapped potential.
Potential opportunities in Suhar currently in the following sectors:
- The logistics sector is a result of the growing surrounding markets of Africa, Asia, and the Middle East. With the capacity of the SOHAR Freezone, opportunities are present in operating warehousing, cold storage units and support services. With the existing extensive infrastructure facilities, transport activities from Suhar to Muscat and Dubai are of ease.
- Minerals and Metals provides great access to international markets of Middle East, China, and Europe as a result of its rich resource levels, incentives packages and cost-effective utility prices allowing Sohar to offer competitive pricing to steel, aluminum and iron manufactures.
- Petrochemical Cluster provides an abundance of resources for use in plastics, cutting costs and saving time for investors. It brings suppliers of raw materials and consumers of the final goods together in one place.
- Food being an upcoming cluster in SOHAR Freezone with the regions dedicated Agri bulk terminal with integrated facilities for manufacturing and packaging. A few of the facilities include Sugar Mills, Flour Mills as well as soya bean-crushing facility. With the growing population in the country and region this presents immense potential.
- Renewable Energy: Oman has set a target of producing 30% of its energy from renewable sources by 2030. Suhar has several ongoing renewable energy projects, including solar and Green Energy which will be game changer.
Sohar hence offers a range of investment opportunities for foreign, local, and regional investors. The city's historically landscape, strategic location, world-class infrastructure, and access to a large port make it an attractive destination for businesses looking to establish a presence in Oman and the wider region. The government of Oman along with other stake holder OPAZ, OIA & ASYAD has created a favorable investment environment by providing a range of incentives for foreign investors, with initiatives implemented by the OIA and the Omani government to attract investment in the city, Suhar is set to continue its growth trajectory in the coming years. While the city's industrial sector, real estate, and tourism present opportunities for investors across various sectors.
Dr Yousuf Hamed al Balushi
yousufh@omaninvestgateway.com
www.omaninvestgateway.com
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