Which is cheaper to set up in: Duqm, Sohar or Salalah?

There is no single answer because each zone prices land, licences and rent differently and by activity. Duqm publishes some fees (for example OMR 1,000 for company establishment, with reduced fees for SMEs), while Sohar and Salalah quote licence and lease costs on application, so compare written quotes for your exact activity.

Which zone has the longest tax holiday?

Under their original terms, Duqm and Salalah advertise up to 30 years and Sohar up to 25 years. The 2025 zones law gives new enterprises a 10-year base exemption that can be extended for qualifying activities, so the period you actually receive must be confirmed with OPAZ or the zone.

Can I sell to customers in mainland Oman from these free zones?

Not directly as a local retailer. Goods leaving a free zone into Oman are treated as imports and customs duty applies; most companies use a mainland distributor or set up a mainland company alongside the zone company.

Do I need a minimum capital in Duqm, Sohar or Salalah?

None of the three sets a fixed legal minimum capital. Sohar may ask that the capital declared in your application is deposited in the company bank account, and banks will expect capital that matches your business plan.

Which zone is best for a small trading company?

For a small company re-exporting to the GCC, Sohar's general trade licence is usually the most practical. If you mainly sell inside Oman, a mainland company is usually a better fit than any free zone.

What are the Omanisation requirements in each zone?

Sohar's published schedule starts at 15% and rises to 25%, 35% and 50% over 25 years to keep the tax exemption. Salalah and Duqm set rates through their zone rules; figures published by law firms range roughly from 10% to 25%, so confirm the current rate for your activity.

Duqm vs Sohar vs Salalah Free Zone

Choose Sohar if you want to manufacture or trade into the UAE and GCC from an established port and industrial cluster; choose Salalah if your business depends on global shipping, re-export and routes to Africa and South Asia; choose Duqm if you need large land plots for heavy industry, energy or maritime projects. All three offer 100% foreign ownership, customs-free import and re-export, and long tax exemptions, so the decision usually comes down to location, land and your target market.

This comparison focuses on the differences that matter when you pick one zone over another. For a wider look at all of Oman's zones, see our free zones hub.

Quick comparison table

Factor	Duqm SEZ (SEZAD)	Sohar Freezone	Salalah Free Zone
Location	Central Arabian Sea coast, Al Wusta	North Al Batinah, near UAE border	Dhofar, next to Port of Salalah
Established	2011 (Royal Decree 119/2011)	2010 (Royal Decree 123/2010)	2006 (Royal Decree 62/2006)
Size	About 2,000 km²	About 45 km²	Not published on OPAZ page
Operator	SEZAD, under OPAZ	SOHAR Port and Freezone (Oman / Port of Rotterdam JV)	Salalah Free Zone Company, under OPAZ
Foreign ownership	100%	100%	100%
Advertised tax exemption (original terms)	Up to 30 years, renewable	Up to 25 years, linked to Omanisation	Up to 30 years
Customs	No duty on imports/re-exports	0% import and re-export duty	No duty on imports/exports
Minimum capital	None	No fixed minimum; declared capital may need depositing	None
Land	Usufruct up to 50 years, renewable	Lease/usufruct from the operator	Lease/usufruct from the operator
Typical sectors	Refining, petrochemicals, energy, fisheries, ship repair, logistics	Metals, petrochemicals, food, logistics, general trade	Logistics, re-export, assembly, food, pharmaceuticals

Important for new investors: the 2025 Special Economic Zones and Free Zones Law (Royal Decree 38/2025) sets a 10-year base income tax exemption from the start of operations for new enterprises, extendable for activities of a special nature, and excludes banks, insurers, telecoms, contracting and transport companies. Existing enterprises keep their original terms. Treat the "up to 25/30 years" figures above as the zones' published legacy incentives and confirm your own period in writing.

Location and market access

Sohar is the closest of the three to the UAE and is connected to the Gulf by road, with the Hafeet Rail link to Abu Dhabi expected to begin trials in late 2027. The free zone is linked to SOHAR Port by a bonded corridor, so goods move between port and zone without customs clearance.

Salalah sits outside the Strait of Hormuz on the main Asia–Europe shipping lane. That makes it a natural base for transshipment, re-export and businesses shipping to East Africa, the Red Sea and South Asia.

Duqm lies roughly midway along Oman's coast on the Arabian Sea. It is the most remote from population centres but has a deep-water port, dry dock, airport and the largest land bank of any zone in Oman.

Setup process and speed

All three zones use a one-stop shop, and the September 2026 Executive Regulations allow licences to be issued and renewed automatically where data and documents pass digital checks.

Duqm: company registration through the SEZAD one-stop shop is fast (SEZAD states one working day for a new company), but projects needing land go through evaluation, plot allocation and a usufruct agreement, which takes longer. Industrial projects also need environmental approval.
Sohar: small trading and service companies can register a general trade licence electronically. Industrial tenants need a lease agreement and environmental permit, which can take from a few days (no environmental impact) up to about 90 days where a full environmental impact assessment is required.
Salalah: similar one-stop-shop model; timing depends mainly on whether you need land, a warehouse or just an office.

Read the zone-specific guides for full procedures: Duqm procedures and documents and Sohar steps and documents.

Costs: what is published and what is quoted

Set-up costs are not directly comparable because each zone publishes different items.

Duqm publishes several service fees: OMR 1,000 to establish a new company (OPAZ announced reduced fees of OMR 30–40 for SMEs in 2022), OMR 250 for a land usufruct application, and industrial activity licences of OMR 1,550 (light), OMR 1,650 (medium) and OMR 2,250 (heavy). Land rates depend on activity and location.
Sohar quotes licence fees, office rents and land rates on application. See our Sohar cost guide for the components.
Salalah also prices licences and leases per activity and facility.

In practice, Duqm tends to be most competitive for large plots, while Sohar and Salalah can be more economical for small companies needing only an office or shared space. Ask each zone for a written quote for the same activity and space before deciding.

Omanisation and staffing

	Duqm	Sohar	Salalah
Rule	Rate set by SEZAD Board	Published schedule tied to tax exemption	Set by zone rules
Typical figures	Published figures vary (around 10–25%); confirm	15% at start, 25% (years 11–15), 35% (16–20), 50% (21–25)	Around 20% according to law-firm guides
Labour market	Smaller local pool; housing needs planning	Large Batinah workforce nearby	Dhofar workforce; seasonal tourism demand

Expatriate work permits are issued through each zone's one-stop shop. See our work permit guide for the general rules.

Which free zone suits your business?

Heavy industry, energy, refining, petrochemicals: Duqm, or Sohar if you need an existing industrial cluster.
Manufacturing for UAE/GCC customers: Sohar.
Re-export and transshipment, Africa and South Asia trade: Salalah.
Ship repair, fisheries, maritime services: Duqm.
Small trading company re-exporting to the Gulf: Sohar general trade licence.
Selling mainly inside Oman: none of the three; consider a mainland company.
Long-term residency: all three can sponsor investor and employee visas; for 10-year residency see the Golden Visa.

Common mistakes when comparing zones

Comparing headline tax holidays only. Check whether your sector is excluded and which law governs your exemption.
Ignoring the local-sales restriction. Goods moving into mainland Oman are treated as imports.
Not budgeting for land development. In Duqm and Sohar you usually build on leased land, and building and environmental permits take time.
Assuming Omanisation is fixed. In Sohar the required rate rises over time to keep the exemption.

Bottom line

There is no single "best" free zone in Oman. Sohar wins on GCC access and an established ecosystem, Salalah on global shipping, and Duqm on land and long-term industrial scale. Oman Register can request quotes from the zones for your activity and prepare a side-by-side cost and timeline estimate before you commit.

This guide is general information, checked against official sources at the date shown. Rules and fees in Oman change; we confirm the current requirements for your case before you apply.