MUSCAT, OCT 22
Oman is placing greater emphasis on local content, domestic value addition and the long-term economic contribution of investments in its special economic zones and free zones, under a new regulatory framework designed to attract high-quality projects that support the Sultanate's economic diversification ambitions.
The approach is reflected in the Executive Regulation of the Law of Special Economic Zones and Free Zones, issued under Decision 81/2026 by the Public Authority for Special Economic Zones and Free Zones (OPAZ), implementing the provisions of Royal Decree 38/2025.
A central feature of the framework is its emphasis on directing investment towards activities that generate wider benefits for the national economy, particularly through technology transfer, industrial development, stronger domestic supply chains and increased export capabilities.
The regulations build on the underlying law's approach of linking investment advantages to economic outcomes, providing clearer procedures for identifying, approving and monitoring projects whose activities contribute to national development priorities.
This approach is particularly relevant to Oman's ambitions to develop competitive manufacturing industries, expand downstream processing, strengthen food and economic security, and establish a larger presence in emerging sectors such as renewable energy, green hydrogen, advanced technologies and biotechnology.
Importantly, the regulations establish mechanisms for assessing the economic substance of proposed investments. Applications for land allocation must be supported by feasibility studies outlining the nature of the project, investment size, financing sources and implementation schedules, alongside evidence of the investor's financial capacity.
The framework also strengthens regulatory oversight through an integrated investment register maintained by OPAZ. This records project activities, capital investment, employment, land allocations, licences and incentives, including the conditions and duration of benefits granted to individual enterprises.
Investors are additionally required to provide information on actual investment expenditure, financing sources, operational performance, workforce composition and Omanisation levels, enabling the authority to monitor implementation and compliance with approved project commitments.
Another significant feature is the strengthening of the One-Stop Shop as the principal channel for investor services. Integrated electronic systems will facilitate applications, approvals, payments and coordination with government and non-government entities, reducing administrative complexity for businesses establishing operations in the zones.
The regulations also introduce clearer licensing timelines, requiring decisions on complete applications within seven working days, with applications deemed approved where no response is issued within that period.
For investors, the measures offer greater procedural clarity and predictability, while giving OPAZ stronger mechanisms to assess whether projects deliver their intended economic benefits.
The broader objective is to ensure that investment in Oman's economic zones translates into more than capital inflows, contributing instead to domestic industrial capabilities, opportunities for local businesses, skilled employment, export growth and sustainable economic diversification.
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