MUSCAT: The Public Authority for Special Economic Zones and Free Zones (OPAZ) has launched a major initiative to develop new industrial cities across Oman, aiming to attract investments, strengthen the country’s industrial sector and generate job opportunities for Omani youth.
As part of this strategy, OPAZ is working closely with the Public Establishment for Industrial Estates (Madayn) to establish several new industrial areas. Key projects include the Mahas Industrial City in Khasab, Musandam Governorate, where a road and infrastructure development agreement was signed in October last year. Additionally, Al Mudhaibi Industrial City has seen the localisation of its first investment projects, with the tender for its first-phase infrastructure work open to companies from both Oman and Saudi Arabia.
Further progress has been made on other industrial zones:
- Thamrait Industrial City in Dhofar Governorate has completed consultancy services for design and construction supervision.
- Seeh Al Sarya Industrial City has finalised its master plan.
- Madha Industrial City (Seih Al Wasat) has awarded a consultancy services contract for its master plan and detailed design.
- Al Suwaiq Industrial City has a consultancy tender in progress, while plans for Al Wadi Al Kabir Industrial City are under review.
- Land allocation discussions for Shinas Industrial City are also ongoing.
INDUSTRIAL GROWTH ON THE RISE
The development of new industrial cities comes at a time of strong growth in Oman’s special economic zones and free zones. By the end of 2024, industrial licenses had surged to 183, with 125 licenses issued in industrial cities alone, accounting for 68 per cent of the total under OPAZ’s supervision.
This reflects Oman’s increasing focus on industrial expansion, supported by government incentives and investment-friendly policies. The Industrial Strategy 2040, approved by the Council of Ministers, aims to diversify the economy, enhance the quality of Omani industrial products and build a modern manufacturing sector driven by technology.
Oman’s special economic zones and free zones offer investment-ready land, access to natural gas, tax and customs exemptions, and connectivity to ports and airports, enabling easy import of raw materials and export of finished goods. These zones cater to heavy, medium and light industries, providing world-class infrastructure and incentives that have attracted both local and international investors.
STRENGTHENING LOCAL INDUSTRY
Currently, 2,012 industrial establishments operate across OPAZ-supervised zones, covering a diverse range of sectors, including food production, bus manufacturing, pharmaceuticals, textiles, ceramics, petrochemicals and metal industries. Micro-enterprises make up 65 per cent of all establishments, while total employment in the sector exceeds 42,000 workers, with 24 per cent Omanisation.
Several key industrial zones continue to drive investment:
- Special Economic Zone at Duqm (SEZAD) hosts major projects such as the Duqm Refinery, crude oil storage terminal, and emerging green industries.
- Al Mazunah Free Zone, near Yemen, focuses on import-export activities, food industries and packaging.
- Salalah Free Zone has attracted investments in pharmaceuticals, petrochemicals and mining.
- Sohar Free Zone has become a hub for mining, veterinary products, ceramics and construction materials.
Madayn continues to play a key role in developing Oman’s industrial sector, attracting investments in building materials, food industries, chemicals, pharmaceuticals and plastic manufacturing across its various industrial cities.
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