MUSCAT, APRIL 26
The Public Authority for Special Economic Zones and Free Zones (OPAZ) has signed investment agreements exceeding RO 200 million to establish a portfolio of industrial projects across the Special Economic Zone at Duqm (SEZAD), Salalah Free Zone and Khazaen Economic City, reinforcing the Sultanate of Oman’s push to deepen industrial diversification and localise high-value manufacturing.
The agreements span a broad range of sectors, including electric vehicle (EV) battery materials, specialised steel production, cement and infrastructure products, plastic pipe manufacturing, adhesives, tile processing, and pharmaceutical logistics, reflecting a coordinated effort to strengthen domestic value chains and reduce reliance on imports.
Qais bin Mohammed al Yousef, Chairman of OPAZ, said the scale and diversity of the investments signal growing confidence in Oman’s economic zones.
“The signing of these agreements, with a total investment value exceeding RO 200 million, represents an important step toward enhancing economic diversification across the governorates and reinforcing Oman’s position as a regional hub for high-quality investments,” he said.
He added that the spread of projects across multiple zones highlights the competitiveness of Oman’s investment ecosystem. “These projects reflect the confidence of both local and international investors in the competitive investment environment offered by our economic and free zones,” he noted.
Al Yousef said OPAZ continues to strengthen its investment framework through incentives, regulatory flexibility and infrastructure development.
“We are developing an integrated system of incentives, flexible regulations and modern infrastructure that enhances industrial value addition, supports the localisation of advanced technologies and creates sustainable business opportunities, in line with Oman Vision 2040,” he said. He also indicated that the next phase will see faster implementation of high-impact projects supported by stronger strategic partnerships.
Dr Said bin Khalifa al Quraini, Director General of Investment Development at OPAZ, underlined the growing role of economic zones as key enablers of investment. “The zones have become among the key economic enablers, driven by flexible regulations, attractive incentives and ease of doing business, supported by continuous services to investors across all stages, including aftercare,” he said.
He added that investment momentum continues to build, with total investment in the zones reaching RO 22.4 billion by the end of last year, marking a 6.8 per cent increase compared to 2024.
DUQM ANCHORS METALS EXPANSION
A key project within the package is a RO 41 million steel mould manufacturing plant to be established by Alshaya Group in SEZAD, with an initial production capacity of around 306,000 tonnes annually.
Eng Ahmed bin Ali Akaak, CEO of SEZAD, said the project will enhance the zone’s industrial ecosystem. “This project represents a qualitative addition to steel-related industries in the zone and will support downstream industries and value chains, contributing to industrial diversification and reducing reliance on imports,” he said.
The facility, allocated approximately 107,000 square metres, is expected to begin commercial production in 2028, with output projected to reach 342,000 tonnes annually by 2030.
Abdul Latif Mohammed Alshaya, Chairman of Alshaya Group, highlighted Duqm’s strategic advantages. “Duqm offers a strategic location as a multi-sector industrial hub connected to a major port, along with integrated infrastructure and attractive incentives that provide logistical flexibility and cost advantages,” he said.
He added that the plant will adopt Electric Arc Furnace (EAF) technology, which has lower carbon intensity compared to conventional steelmaking, positioning it to benefit from future green hydrogen developments.
SALALAH ADVANCES EV SUPPLY CHAIN
In Salalah Free Zone, a RO 35 million investment by GFCL EV Advanced Materials will establish a facility to produce active anode materials used in lithium batteries for electric vehicles, marking the company’s second project in the zone.
Dr Ali bin Mohammed Tabouk, CEO of Salalah Free Zone, said the agreement strengthens the zone’s positioning in advanced industries. “This agreement represents a qualitative strategic step that strengthens the position of Salalah Free Zone as a regional hub for advanced industries, particularly in clean energy and electric vehicle technologies,” he said.
He noted that the scale of the project reflects increasing global confidence in the zone’s capabilities. “Attracting a project of this scale demonstrates our ability to compete globally and reflects investor confidence in the efficiency of the investment environment and the integration of infrastructure,” he added.
Industrial projects account for around 93 per cent of total investments in Salalah Free Zone, where cumulative investments have reached approximately RO 4.5 billion, underscoring its focus on building a robust industrial base.
KHAZAEN BROADENS INDUSTRIAL BASE
Khazaen Economic City secured four investment agreements worth over RO 12.8 million, covering manufacturing and pharmaceutical activities.
The projects include a RO 6 million investment by Al Fadan International to establish a glue production plant and tile processing facility, a RO 5 million factory for infrastructure and cement products by Al SUMMITS for Trading and Industry, a RO 1.2 million pharmaceutical warehouse by Overseas Investment, and a RO 600,000 plastic pipe manufacturing plant by Virgent Forest Trading.
Eng Salim bin Suleiman al Thuhli, CEO of Khazaen Economic City, said the agreements reinforce the city’s role as a key industrial destination.
“These agreements enhance our position as an integrated business environment, adding value through diversified economic activities, stronger supply chains and increased industrial value addition,” he said.
He added that the steady pipeline of projects reflects growing investor confidence and supports sustainable industrial development.
PIPELINE EXPANDS WITH NEW COOPERATION
In parallel, OPAZ signed a memorandum of cooperation with Majan Gulf Investment to structure three projects valued at more than RO 110 million across economic and free zones.
The agreement focuses on identifying investment opportunities, assessing project requirements and allocating suitable land, while also facilitating collaboration with international investors, including from China.
The latest agreements underscore Oman’s continued progress in building an industry-led, diversified economy, anchored by competitive economic zones and a growing pipeline of strategic investments.
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