In recent years, establishing a business in Oman’s Free Zones has emerged as one of the most compelling investment pathways for both regional and international entrepreneurs. In 2023 alone, over 1,800 new companies were registered in these zones a 25% year-on-year growth. However, with the full implementation of Royal Decree 38/2025, the momentum in 2026 has accelerated even further through the unification of incentives and the elimination of overlapping bureaucracies.
Registering a company in an Omani Free Zone offers a strategic foothold in the global market, characterized by simplified procedures, 100% foreign ownership, and a seamless digital experience via the national Invest Easy portal. Within the framework of Oman Vision 2040, these zones have been transformed into world-class export and logistics hubs, spearheading the Sultanate’s economic diversification.
Key Benefits of Registering in Oman Free Zones
The Free Zones provide a unique competitive edge for international investors:
- 100% Foreign Ownership: Complete control of your business without the requirement of a local partner or sponsor.
- Investor Residency Program: Company registration now facilitates a direct path to 5-year and 10-year Golden Residencies for investors and their families.
- Extensive Tax Exemptions: Corporate tax holidays for up to 30 years and zero personal income tax.
- VAT Advantages: While the standard VAT rate in Oman is 5%, transactions between Free Zones (Free Zone to Free Zone) are subject to a 0% tax rate, significantly optimizing supply chain costs.
- Full Financial Freedom: Unlimited repatriation of profits and capital with no foreign exchange restrictions.
- Rapid Corporate Banking: Streamlined protocols now allow for corporate bank account openings in less than a week.
Overview of Free Zones & Special Economic Zones (2026 Focus)
| Zone Name | Location | Industrial Focus (2026 Update) | Key Advantages |
| Sohar Freezone | North Oman | Logistics, Petrochemicals, Metals, and Automotive | Proximity to Sohar Port and GCC markets |
| Salalah Freezone | South Oman | Pharmaceuticals, Food Processing, and Green Hydrogen | 30-year tax holiday; gateway to the Indian Ocean |
| Al Mazunah Freezone | Yemen Border | General Trade and Light Industries | Strategic gateway to Yemeni and East African markets |
| SEZAD (Duqm) | East Oman | Global Green Energy & Green Hydrogen Hub | The largest SEZ in the MENA region with ultra-modern infrastructure |
| Knowledge Oasis Muscat (KOM) | Muscat (Capital) | IT, Artificial Intelligence, and Digital Economy | Ideal for startups and technology-driven enterprises |
Step-by-Step Registration Process
As of 2026, the registration process is fully digitized:
1. Selecting the Zone and Activity
With the unification of regulations under the 2025 decree, investors should choose a zone based on supply chain proximity (e.g., Duqm for energy, Sohar for manufacturing).
2. Digital Registration (Invest Easy Portal)
All stages including company name reservation and document submission are now handled through the Invest Easy national portal, ensuring maximum transparency and speed.
3. Document Preparation
- Digital copies of passports for shareholders and directors.
- An updated Business Plan.
- Articles of Association and Memorandum of Association (MOA/AOA).
4. Leasing and Licensing
Upon initial approval, the investor secures an office, warehouse, or industrial plot (typically a minimum 5-year lease). Commercial, industrial, or service licenses are then issued under a unified protocol as per Royal Decree 38/2025.
5. Banking and Visas
With the Commercial Registration (CR) in hand, the corporate bank account is activated, and the process for labor visas and residency permits begins.
Permitted Activities and Emerging Opportunities
Beyond traditional trade and manufacturing, 2026 has opened high-priority sectors including:
- Green Technologies: Manufacturing of solar and wind energy components.
- Hydrogen Supply Chain: High demand for technical service firms supporting Oman’s green hydrogen transition.
- Food & Pharma Security: Special incentives for companies contributing to regional food security.
Conclusion
Registering a company in Oman’s Free Zones in 2026 is more than just a tax-saving strategy; it is a move toward political stability, long-term residency, and global market access. Through one of the most modern administrative systems in the Middle East and the direct backing of Oman Vision 2040, these zones represent the safest and smartest environment for international business growth.
