As of January 2026, the investment landscape in Oman has entered a high-growth phase. Driven by the newly launched Eleventh Five-Year Development Plan (2026-2030) and the landmark Royal Decree 38/2025, the Sultanate has harmonized its business laws to offer a unified, investor-friendly ecosystem.
If you are looking for the best city to anchor your project, 2026 offers specialized hubs that cater to everything from Green Hydrogen to AI-driven Logistics. This comprehensive guide explores the unique strengths and incentives of Oman’s top five investment destinations.
Top Cities to Invest in Oman
Muscat: The Digital and Innovation Capital
Muscat remains the financial heart of the nation. In 2026, the city has successfully pivoted toward the Digital Economy and High-Tech Services.
- Knowledge Oasis Muscat (KOM): Now a mature hub for cybersecurity, cloud computing, and AI startups.
- Muscat Airport Free Zone (MAFZ): Strategically launched to facilitate Air-Sea-Road logistics, making it the premier choice for e-commerce and pharmaceutical distribution.
- Real Estate: High demand for Integrated Tourism Complexes (ITCs) like Al Mouj and Yiti, where foreign investors can secure Golden Residency through property ownership.
2. Sohar: The Industrial and Agri-Food Powerhouse
Located in Northern Oman near the UAE border, Sohar is the engine of Oman’s manufacturing sector.
- Strategic Metals & Renewables: In early 2026, the United Solar Polysilicon plant became a cornerstone of the regional solar supply chain.
- Food Security Cluster: Home to the region’s first dedicated Agro-Terminal, ideal for large-scale food processing, sugar refining, and grain storage.
- 2026 Milestone: The Oman-Etihad Rail link is nearing completion, promising to connect Sohar to regional GCC markets with unprecedented speed.
3. Salalah: The Global Pharmaceutical and Transshipment Hub
Salalah leverages its direct access to the Indian Ocean to bypass the Strait of Hormuz, making it a “safe-haven” for global trade.
- Pharma City: By 2026, Salalah Free Zone has attracted over $1 billion in pharmaceutical manufacturing, focusing on localized medicine production for Africa and Asia.
- Tourism & Logistics: The city capitalizes on its unique climate for Agri-Tech and high-end eco-tourism, alongside its world-class transshipment port.
- New Industrial Gains: Recent operations include specialized factories for electronics and air conditioning units targeting the global export market.
4. Duqm: The Green Energy Frontier
Duqm is no longer a “future” project it is Oman’s active energy capital.
- Green Hydrogen Corridor: In Q4 2026, phase 1 of the ACME Green Hydrogen project is slated for commissioning, marking Oman’s first commercial-scale green molecule production.
- Mega Infrastructure: The OQ8 Refinery and the Duqm Dry Dock are fully operational, supporting heavy industries, shipbuilding, and petrochemical downstream projects.
- Investment Incentives: Under the 2026 framework, Duqm offers the most extensive tax holidays (up to 30 years) and competitive land lease rates for mega-projects.
5. Nizwa & Khazaen: The Emerging SME and Logistics Gateways
While Nizwa holds historical weight, the focus has shifted toward the Khazaen Economic City (located between Muscat and Sohar).
- Khazaen Dry Port: The first of its kind in Oman, perfect for SMEs involved in distribution, light manufacturing, and dry-cargo logistics.
- Nizwa’s Growth: Under the 2026 Decentralization Policy, Nizwa has received increased funding for AgriTech and local manufacturing, offering a cost-effective alternative to the coastal cities.
| Feature (2026) | Muscat | Sohar | Salalah | Duqm |
| Primary Sector | Tech, Finance, Aviation | Metals, Food, Industry | Pharma, Logistics | Energy, Heavy Industry |
| Logistics Advantage | International Airport | GCC Road & Rail | Indian Ocean Port | Central “Deep Sea” Hub |
| Tax Incentives | 15-20 Years (FZ) | 10-25 Years | 30 Years | +30 Years |
| Key Attraction | Golden Residency | UAE Market Access | Africa & US Gateway | Green Hydrogen Capital |
Why Invest in Oman in 2026?
The 11th Five-Year Plan (2026-2030) has introduced specific catalysts to ensure high ROI:
- 100% Foreign Ownership: Now standard across all economic zones without any local partner requirements.
- Royal Decree 38/2025: Unified the legal system for all free zones, ensuring that a license in Duqm or Sohar follows the same transparent, digital process.
- Capital Grants: High-tech projects in 2026 may qualify for government grants under the Digital Economy Transformation program.
How to Start Your Investment Journey
Select Your Structure: Decide between an LLC (Mainland) or a Free Zone Company (FZC) based on your target market.
Use the One-Stop-Shop (OSS): All permits are now processed digitally. Most licenses are issued within 48 to 72 hours.
Prepare Your Feasibility Study: For large industrial plots in Duqm or Sohar, a project summary is required to secure land allocation.
Partner with Experts: Given the rapid regulatory updates of 2026, working with a local consultant like Flamingo Holding ensures your setup is compliant with the latest Omanisation and tax laws.
Conclusion: Choosing the Best City for You
In 2026, Oman offers a diverse “menu” of locations. Choose Muscat for tech and high-end services, Sohar for industrial proximity to the GCC, Salalah for pharmaceutical and global trade, and Duqm if you aim to lead in the energy transition.
