Free zones in Oman

Who runs Oman's free zones?

Since 2020 Oman's economic zones have been overseen by the Public Authority for Special Economic Zones and Free Zones (OPAZ). OPAZ supervises the Special Economic Zone at Duqm and the free zones at Sohar, Salalah and Al Mazunah, and works alongside Madayn, the public establishment for industrial estates, which runs the industrial estates and the Knowledge Oasis Muscat technology park. Khazaen Economic City in Barka is a newer integrated economic city with its own dry port.

Oman free zone company: how it works

An Oman free zone company is registered with a zone authority instead of the ministry's mainland register. It can be 100% foreign-owned, import and re-export duty-free inside the zone and enjoy tax holidays for qualifying projects, but it sells into the rest of Oman through customs. The main free zones in Oman are listed below; compare them with mainland vs free zone and the free zone setup costs.

Zones at a glance

Not a free zone, but often compared: Knowledge Oasis Muscat, a technology park, and the Madayn industrial estates, for mainland industrial land.

Typical free zone benefits

• 100% foreign ownership, with no Omani partner
• Income-tax holidays that can run for many years, depending on the zone and the investment agreement; Duqm and Salalah have advertised exemptions of up to 30 years
• Customs-duty exemption on goods imported into, and re-exported from, the zone
• No minimum capital in most zones
• Lower Omanisation targets than the mainland, set by each zone
• Repatriation of capital and profits
• One-stop shops for licensing, land leases, labour and visas

Incentives are set by each zone's regulations and can depend on the size and nature of your investment. We confirm the current package before you commit.

Limitations to understand

• Selling into Oman. Goods moving from a free zone into the rest of Oman pass through customs and pay duty. Selling services to mainland customers may need a mainland presence.
• Location. Zones are tied to their ports. Duqm, Salalah and Al Mazunah are far from Muscat.
• Premises. Most zones expect you to lease land, a warehouse or an office inside the zone.

Read the full comparison: mainland vs free zone in Oman.

How to set up a free zone company

1. Shortlist zones based on your activity, logistics and target market.
2. Submit an application to the zone authority with the investor documents and a project summary or business plan.
3. Initial approval and agreement of land, warehouse or office terms.
4. Company registration and licence, issued through the zone's one-stop shop, with registration in the Commercial Register.
5. Lease, permits and construction approvals if you are building.
6. Labour and visas through the zone's channels, under the zone's Omanisation rules.
7. Bank account and customs registration to start importing.

Setup can take from a few weeks for an office or warehouse lease to several months for projects that need land allocation and building permits. Costs are set out in our free zone cost guide.

Frequently asked questions

How many free zones are there in Oman?

Oman has the Special Economic Zone at Duqm, free zones at Sohar, Salalah and Al Mazunah, and the Khazaen Economic City, alongside a network of Madayn industrial estates and the Knowledge Oasis Muscat technology park.

Which free zone in Oman is best?

It depends on your activity. Sohar suits metals, manufacturing and food. Salalah suits chemicals and transshipment. Duqm suits large industrial and energy projects. Al Mazunah suits trade with Yemen. Khazaen suits logistics close to Muscat.

Are free zone companies tax-free in Oman?

Many qualify for long income-tax holidays, subject to the zone's regulations and conditions. VAT rules for free zones are set by the Oman Tax Authority and depend on the transaction.

Can a free zone company trade in mainland Oman?

Goods can enter the mainland after customs clearance and duty. For ongoing local sales or services, many investors add a mainland company or appoint a local distributor.

Can I get a residence visa through a free zone company?

Yes. Free zone companies can sponsor investor and employee residence visas through the zone's procedures.

Official sources

Requirements and fees change, so confirm current details with the authority concerned. This page is general guidance, not legal advice.

• Ministry of Commerce, Industry and Investment Promotion (MOCIIP) – licensing, commercial registration policy and the list of restricted activities.
• Invest Easy – the government portal for registering companies and licences.
• Oman Customs – customs registration for import and export.