MUSCAT: Investments totaling around RO 1.275 billion — spanning the industrial, petrochemical, green energy, food processing and logistics sectors — are currently under development in Salalah Free Zone, underscoring the enduring investment appeal of one of Oman’s oldest and most established economic hubs.
According to Dr Ali Mohammed Tabouk, CEO, these investments — secured during 2025 and initiated in previous years — have increased the free zone’s cumulative investment value to RO 5.1 billion by Q3 2025, up from RO 4.7 billion at the end of 2024. He attributed this inflow — dominated by foreign direct investment — to Salalah Free Zone’s “competitive environment”, which offers full foreign ownership, tax and customs exemptions; and integrated logistics via the Port of Salalah and Salalah Airport, positioning it as one of the region’s most attractive investment destinations.
In an interview with Duqm Economist, Dr Tabouk noted that the free zone hosts 106 active industrial tenants and service providers, supported by a sizable portfolio of relatively new projects currently in various stages of planning and development. Notable among the 18 projects under development is Al Baleed Petrochemical, backed by Türkiye-based promoters who are developing a large petrochemicals park designed to host multiple processing units, including propane dehydrogenation (PDH) and maleic anhydride production, reinforcing Oman’s position in the regional petrochemical sector.
Also under development is a RO 189 million battery materials project by GFCL India, focusing on advanced materials for electric vehicle (EV) batteries and positioning the zone as a hub for clean-energy supply chains. The facility is expected to serve regional and international EV markets, attract downstream manufacturing activity and support Oman’s broader energy transition and green industrial objectives.
Salalah Petroleum Company (SPCO) is investing RO 33.8 million in a downstream complex for oil and petroleum products, expanding the zone’s energy and petrochemical capabilities, while wholly state-owned integrated energy group OQ is developing strategic fuel storage capacity at a cost of RO 48 million to strengthen Oman’s energy security and logistics infrastructure.
In the food sector, International Industries is investing RO 173 million in an integrated food complex, a cornerstone agro-processing project that brings together multiple stages of food production, processing, packaging and distribution within a single industrial ecosystem, supporting domestic production and export potential. Likewise, Al Ittihad for Industry and Trade is establishing a RO 3.8 million tahini production facility, while Chinese investor Petideal is setting up a pet food plant. Other notable projects under development include Good Detergents (RO 38.5 million), Al Rabie Food Industries (RO 18.4 million) and Industrial Metals Company (RO 7.7 million).
In addition, new projects from Türkiye, Malaysia and Oman in packaging and logistics services are expected to enhance the zone’s supporting infrastructure, improving supply-chain efficiency, value-added services and connectivity for manufacturers operating within the industrial ecosystem, Dr Tabouk added.
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