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.
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.
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.
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.
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