# Duqm Industrial City (Customs Zone): What It Is and Who It Suits

> Duqm Industrial City (the Customs Zone) is a designated industrial site inside the Duqm SEZ that is treated as part of Oman's customs territory, so licensed manufacturers trade freely with mainland Oman and the GCC instead of taking the SEZ's customs and tax exemptions.

URL: https://omanregister.com/free-zones/duqm-industrial-city-customs-zone/
Updated: 2026-10-24
Publisher: Oman Register (omanregister.com) — company registration and residency services in Oman. Contact: +968 7733 3556, info@omanregister.com

## At a glance

- **Authority:** OPAZ (formerly SEZAD)
- **Location:** Inside the Special Economic Zone at Duqm, Al Wusta Governorate
- **Legal basis:** SEZAD Decision 30/2017 (licensing at the customs-territory site)
- **Customs status:** Part of Oman's customs territory, unlike the rest of the SEZ
- **Goods movement:** Free and duty-free to and from mainland Oman
- **Who can use it:** Licensed industrial companies exporting to GCC and Arab markets
- **Requirements:** Valid commercial registration and Oman Chamber membership
- **Nearest port:** Port of Duqm

Duqm Industrial City (the Customs Zone) is a designated industrial site inside the Special Economic Zone at Duqm that is legally treated as part of Oman's customs territory. The rest of the SEZ is outside the customs territory. Factories licensed at this site can move goods to and from mainland Oman without customs duty and are treated like Omani mainland manufacturers for export to GCC and Arab markets. In return, they give up the SEZ's own customs and tax exemptions. It suits manufacturers whose main customers are in Oman and the GCC.

## What is Duqm Industrial City (the Customs Zone)?

The Oman Business Platform lists "Duqm Industrial City (the Customs Zone)" as a separate location for setting up a business. Its legal basis is **SEZAD Decision 30/2017**, a regulation on licensing and operating at the site that belongs to the customs territory within the Duqm SEZ. The regulation lets the authority designate one or more locations inside the SEZ for licensed industrial companies and treats those locations as part of Oman's customs territory.

To see why this matters, start with the basic rule. Oman's customs regulations define the customs territory as every place inside the country **except** free zones and special economic zones. The wider [Duqm Special Economic Zone](https://omanregister.com/free-zones/duqm-special-economic-zone/) is therefore "offshore" for customs purposes. Imports into it are duty-free, but anything moved into mainland Oman is treated as a foreign import and pays duty. The customs-territory site removes that border for the companies licensed there.

## How does it differ from the wider Duqm SEZ?

| Point | Duqm SEZ (main regime) | Duqm Industrial City (Customs Zone) |
|---|---|---|
| Customs status | Outside Oman's customs territory | Part of Oman's customs territory |
| Imports from abroad | Duty-exempt for registered enterprises | Treated as mainland imports, so normal customs rules and any industrial exemptions apply |
| Sales into mainland Oman | Must be declared; duty payable; goods treated as foreign | Free movement with no customs duty |
| SEZ income tax exemption | Yes (legacy 30 years; 10 years for new enterprises under Royal Decree 38/2025) | No. Mainland industrial incentives apply instead, if eligible |
| Certificate of origin | Zone products treated as local when exported abroad | Issued by the ministry in charge of commerce and industry, as for mainland factories |
| Main target | Export-oriented and mega-projects | Manufacturers selling to Oman, the GCC and Arab FTA markets |

In short, the Customs Zone trades the SEZ's tax and duty exemptions for easier market access to Oman and the region, while keeping Duqm's location, port and land.

## Who is the Customs Zone best for?

- Factories selling a large share of output in mainland Oman, such as building materials, food and packaging
- Manufacturers exporting to GCC and Arab countries under Oman's trade agreements, where being treated as a customs-territory producer helps on duties and origin
- Companies using Omani raw materials that would otherwise cross a customs border twice

If you mainly import, process and re-export outside the region, the standard [SEZ regime](https://omanregister.com/free-zones/duqm-special-economic-zone/) is usually more attractive.

## What are the requirements and incentives?

Under Decision 30/2017:

- the company must hold a **valid commercial registration** and **valid Oman Chamber of Commerce and Industry membership**;
- licensing, appeals and cancellation follow Duqm's investment environment regulation;
- licensed companies are treated like industrial companies in the customs territory and may receive the **tax, customs and other incentives available to mainland industry** if they meet the legal conditions;
- they are **excluded** from the SEZ-specific incentives in the Duqm SEZ law and its regulation;
- goods (machinery, materials, products, spare parts, fuel and similar items) move between the site and the rest of Oman **without restriction or customs duty**, subject to the zone's customs administration rules.

Foreign ownership follows the zone's investment rules. Confirm the permitted ownership structure for your activity when you apply.

## How do you set up in the Customs Zone?

1. **Confirm eligibility.** Check with OPAZ/SEZAD investor services that your industrial activity can be licensed at the customs-territory site.
2. **Investment application.** Submit the project profile and documents for your legal structure.
3. **Plot allocation and usufruct.** Receive the allocation notice and sign the usufruct agreement (Duqm allows 3 months to sign after allocation).
4. **Commercial registration and Chamber membership.** Both are required before you get the site licence.
5. **Site licence and permits.** Get the customs-territory site licence plus building and environmental permits.
6. **Customs and origin setup.** Arrange customs registration and certificate of origin procedures with the competent ministry.
7. **Visas and bank account.** Recruit staff and open a corporate bank account.

## What documents are typically required?

- Application form and industrial project profile (products, capacity, markets, investment, jobs)
- Passport copies of shareholders and managers
- Corporate shareholder documents, legalised and translated where required
- Technical and environmental information for the plant
- Evidence of export markets if you plan to rely on GCC or Arab FTA treatment

## How much does it cost?

No separate fee schedule for the Customs Zone has been published. Cost components are similar to the rest of Duqm: registration and licence fees, Chamber membership, usufruct rent per m², utility connections, construction and environmental studies, and visas. Without the SEZ tax exemption, also budget for **corporate income tax** at the standard mainland rate unless you qualify for an industrial exemption. See [company registration costs in Duqm](https://omanregister.com/company-registration-costs-in-duqm-free-zone-sezad/).

## What are the pros and limitations?

**Pros**
- No customs border between your factory and the Omani market
- Mainland-style origin treatment for GCC and Arab exports
- Access to Duqm's port, land and industrial cluster

**Limitations**
- No SEZ income tax holiday or SEZ customs exemption
- Limited to licensed industrial activities
- Little public detail. Terms are confirmed case by case with the authority

## How does it compare with other options?

- **[Duqm Special Economic Zone](https://omanregister.com/free-zones/duqm-special-economic-zone/):** full SEZ incentives, but a customs border with the mainland.
- **Madayn industrial cities**, such as [Sohar Industrial City](https://omanregister.com/industrial-cities/sohar-industrial-city/) and [Sur Industrial City](https://omanregister.com/industrial-cities/sur-industrial-city/): also inside the customs territory, closer to population centres, with their own incentives.
- **[Sohar Free Zone](https://omanregister.com/free-zones/sohar-free-zone/):** a free zone regime closer to the UAE.

Compare all locations on the [free zones hub](https://omanregister.com/free-zones/) and the [industrial cities hub](https://omanregister.com/industrial-cities/).

## How Oman Register helps

Oman Register checks whether your products and markets favour the Customs Zone, the main Duqm SEZ regime or a Madayn industrial city. We prepare the application, follow up with the authority on the site licence, and handle commercial registration, Chamber membership, visas and banking.

## FAQ

**How is the Duqm Customs Zone different from the rest of Duqm SEZ?**

The wider SEZ is outside Oman's customs territory, so goods entering the mainland pay duty. The customs-territory site is treated like mainland Oman, so goods move to and from the rest of Oman without customs duty, but the SEZ-specific exemptions do not apply.

**Do companies in the Duqm Customs Zone get the SEZ tax holiday?**

No. Under Decision 30/2017, licensed companies at the site are excluded from the SEZ incentives and instead receive the tax, customs and other incentives available to industrial companies in Oman's customs territory, if they qualify.

**Who issues certificates of origin for factories in the Customs Zone?**

Certificates of origin are issued by Oman's ministry responsible for commerce and industry, as for factories on the mainland, rather than by the zone.

**Why would a manufacturer choose the Customs Zone instead of the SEZ?**

It makes sense when most sales go to mainland Oman, the GCC or Arab markets under trade agreements, where being treated as an Omani customs-territory producer matters more than SEZ duty and tax exemptions.

**Is the Customs Zone still valid under the 2025 zones law?**

Royal Decree 38/2025 keeps existing regulations in force unless they conflict with the new law, so the arrangement continues. Confirm the current terms with OPAZ before you apply.

## Sources

- [Qanoon — SEZAD Decision 30/2017 on licensing at the customs-territory site in Duqm SEZ (Arabic)](https://qanoon.om/p/2017/sezad20170030/)
- [Qanoon — Customs Administration System for Duqm SEZ, Decision 9/2016 (Arabic)](https://qanoon.om/p/2016/sezad20160009/)
- [OPAZ — Special Economic Zone at Duqm](https://opaz.gov.om/en/zones/special-economic-zone-at-duqm)
- [SEZAD — Invest in Duqm](https://duqm.gov.om/en/invest)
- [EY — Oman issues law on special economic zones and free zones](https://www.ey.com/en_gl/technical/tax-alerts/oman-issues-law-on-special-economic-zones-and-free-zones)