Dhofar · Yemen border
Al Mazunah Free Zone company setup
Al Mazunah Free Zone is a land-border zone designed for trade between Oman and Yemen, with free zone incentives and a customs gateway on site.
Last reviewed 13 October 2026Free first consultation · reply within one business day
About Al Mazunah
Al Mazunah Free Zone (also written Al Mazyunah) lies in the Dhofar governorate, next to the land border crossing with Yemen. It operates under the OPAZ framework. The zone is designed for trading companies, wholesalers and light industry that serve Yemeni and regional markets by road.
Incentives
- 100% foreign ownership
- Long income-tax holidays for qualifying projects
- Customs-duty exemption on goods imported into the zone and re-exported
- No minimum capital
- Reduced Omanisation requirement
- Facilities for traders crossing the border, including customs clearance at the zone
Who it suits
- General trading and wholesale companies supplying Yemen
- Distributors of food, building materials, consumer goods and vehicles and spare parts
- Light assembly and packaging for cross-border markets
Traders should check current border, customs and sanctions requirements for each shipment. We advise on licensing and set-up, and recommend specialist trade-compliance advice where needed.
Setup steps
- Confirm the activity and the zone's current eligibility criteria.
- Submit the application with investor documents.
- Lease a showroom, warehouse or office in the zone.
- Company registration and licence.
- Labour approvals and visas.
- Customs registration and bank account.
Location and logistics
Al Mazunah is in the far west of Dhofar, a long drive inland from Salalah. Goods typically arrive through the Port of Salalah or by road from northern Oman and the UAE, are stored or packed in the zone, and cross into Yemen through the border post. Companies often keep a sales office in Salalah or Muscat and use the zone as their warehouse and customs point.
Al Mazunah vs other options
| Al Mazunah Free Zone | Salalah Free Zone | Mainland company | |
|---|---|---|---|
| Main market | Yemen (land border) | Global, by sea | Oman |
| Customs | Duty-free in zone; border clearance on site | Duty-free in zone; port access | Standard GCC duty |
| Typical users | Traders and distributors | Manufacturers, logistics | All sectors |
Documents you will need
- Shareholder and company documents (checklist)
- Business plan with products, volumes and target markets
- Warehouse or plot requirements
- Details of the manager and authorised signatories
Costs
Budgets are driven by the warehouse or plot lease, zone registration fees and visas. See free zone setup costs for the structure and ask us for current zone fees.
Common mistakes
- Underestimating trade-compliance checks for each consignment.
- Choosing Al Mazunah when most sales are inside Oman, which a mainland company handles better.
How we help
We prepare the zone application, arrange the lease and visas, and set up customs registration, banking and accounting. Read our guide on Al Mazunah Free Zone company formation.
Frequently asked questions
Where is Al Mazunah Free Zone?
In the Dhofar governorate of southern Oman, at the land border with Yemen, several hours' drive from Salalah.
What can I do in Al Mazunah Free Zone?
Mainly trading, wholesale, re-export and light industrial activities serving cross-border markets. The zone confirms the eligible activities during the application.
Does Al Mazunah offer tax exemptions?
Yes. Qualifying companies benefit from income-tax holidays and customs exemptions under the zone's regulations.
Can an Al Mazunah company sell into Oman?
Yes, but goods entering the Omani market pass through customs with duty. Companies with significant local sales usually add a mainland company.
Next steps
Related services and guides
- 01SalalahStart a business in Salalah, Oman: Salalah Free Zone, Raysut industrial estate or a mainland company in Dhofar. Sectors, licences, steps, costs and visas.
- 02Salalah Free ZoneSet up in Salalah Free Zone beside the Port of Salalah. Tax holidays, duty-free trade, transshipment access, target sectors, costs and setup steps.
- 03Trading LicenceGet a trading licence in Oman for general trading, import/export, wholesale or retail. Activities, customs registration, premises, foreign ownership and steps.
- 04Free Zone CostsWhat it costs to set up in an Oman free zone: registration and licence fees, office, warehouse and land lease rates, building costs, visas and annual renewals.
- 05Khazaen Economic CitySet up in Khazaen Economic City in Barka, near Muscat. Dry port, logistics and light industry, incentives, who it suits and how to establish your company there.
- 06Duqm SEZSet up a business in the Special Economic Zone at Duqm. Port, dry dock and refinery access, tax holidays, target sectors, land options and registration steps.
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