Oman Free Zones & Special Economic Zones: Complete Guide

Oman has ten free zones, economic city free zones and special economic zones (SEZs), all supervised by the Public Authority for Special Economic Zones and Free Zones (OPAZ). Every zone allows up to 100% foreign ownership, duty-free imports and exports, and an income tax exemption, which is 10 years for new enterprises under the 2025 zones law. The right zone depends on your port or border, your sector and where your customers are. Sohar suits UAE-facing industry, Salalah and Duqm suit Indian Ocean shipping and heavy industry, and Khazaen and the airport zone suit businesses near Muscat.

Which free zones and SEZs are there in Oman?

Al Dhahirah and Al Rawdah were established by royal decrees in October 2025 and are still in their first development phase. Check the status before you plan to start operations there.

What changed under the 2025 Special Economic Zones and Free Zones Law?

Royal Decree 38/2025, in force since 14 April 2025, replaced both the 2002 Free Zones Law and the separate Duqm SEZ law with one framework. The main points:

• Tax: new qualifying enterprises receive a 10-year income tax exemption from the start of operations, extendable for two further periods for high value-added activities. Banks, insurers, telecoms, contracting and land or sea transport companies are excluded.
• Customs: goods imported into and exported from the zones are not subject to customs duty.
• Ownership and capital: up to 100% foreign ownership, with minimum capital waivable subject to approval.
• Real estate: licensed developers may sell units to foreigners on a freehold basis.
• Existing companies keep their earlier incentives (up to 25–30 years) until those periods expire.

OPAZ issued the Executive Regulations (Decision 81/2026) in September 2026. They cover the one-stop shop, electronic licensing, strategic projects, off-plan sales with escrow accounts, and residency for investors and property owners and their families. Large multinational groups should also check how Oman's domestic minimum top-up tax affects the value of any exemption.

Free zone vs SEZ vs mainland: what is the difference?

A mainland company is usually better for services, consulting and selling to Omani customers. Madayn industrial cities sit inside the customs territory and suit factories that mainly sell in Oman and the GCC.

How do you choose the right Oman free zone?

1. Follow your goods. Choose the zone next to the port, airport or border your cargo actually uses: Sohar or Al Rawdah for the UAE, Al Dhahirah for Saudi Arabia, Salalah or Duqm for ocean shipping, Al Mazunah for Yemen, the airport zone for air freight.
2. Check where you sell. If most sales are in Oman, the customs duty on zone-to-mainland sales can cancel out the zone benefits.
3. Match the sector. Each zone targets particular clusters, and some activities, such as holding-only companies, are generally not licensed in zones.
4. Compare premises. Ready warehouses and offices speed up setup. Bare land suits large factories.
5. Confirm the incentives in writing. Ask the operator for the exact tax exemption, Omanisation rate and lease terms that apply to your licence date.

Our Duqm vs Sohar vs Salalah comparison and the Oman free zone company registration guide go into more detail.

What are the general steps to set up in an Oman free zone?

1. Project profile and enquiry. Describe the activity, investment, jobs, space and utilities.
2. Application and initial approval from the zone operator or OPAZ one-stop shop.
3. Land or facility allocation and signing of the usufruct or lease agreement.
4. Company registration and activity licence. Usually an LLC, a single-owner company or a branch.
5. Permits. Building, environmental and civil defence permits for industrial projects.
6. Chamber membership, tax registration, visas and bank account.

Typical documents are shareholder passports, a business plan, and corporate shareholder documents (incorporation certificate, articles, board resolution, power of attorney), legalised and translated where required. Zones rarely publish all-in prices. Expect registration and licence fees, Chamber membership, rent per m² per year, utility charges, and visa costs, all quoted case by case.

How Oman Register helps

Oman Register compares zones, industrial cities and mainland options for your specific activity. We obtain written offers from the operators, then handle the application, registration, visas and bank account support from our Muscat office. Start with our overview of company registration options in Oman.