Duqm Special Economic Zone (SEZAD): Company Setup & Incentives

The Special Economic Zone at Duqm (SEZAD) is Oman's largest economic zone, covering about 2,000 km² on the Arabian Sea in Al Wusta Governorate. It has its own deep-water port, a ship repair dry dock, a refinery, an airport and a new town. Foreign investors can own 100% of their company, need no minimum capital, import without customs duty and get long income tax exemptions. Duqm suits large industrial, energy, logistics and fisheries projects that need space and sea access. It is less suited to small trading or service businesses that need to be close to customers in Muscat.

What and where is the Duqm Special Economic Zone?

The zone covers the Wilayat of Duqm in Al Wusta Governorate, in central Oman, about 550 km south of Muscat by road. It was created by Royal Decree 119/2011 and has about 90 km of coastline facing the Indian Ocean, outside the Strait of Hormuz. The master plan divides the land into areas for heavy, medium and light industry, minerals and mining, fisheries, logistics and warehousing, a crude oil terminal, green energy, tourism and the residential town of New Duqm.

Key infrastructure inside or next to the zone:

• Port of Duqm. A multi-purpose commercial port run by Duqm Port Company, a 50/50 venture between Asyad and a Belgian consortium (Port of Antwerp and DEME).
• Dry dock for ship repair, plus a fishing port.
• Duqm Refinery. 230,000 barrels per day, a joint venture of OQ and Kuwait Petroleum International.
• Ras Markaz crude oil storage terminal.
• Duqm Airport and a highway network linking to Muscat and Dhofar.

SEZAD reports more than 260 businesses from 34 countries in the zone (2025).

Who manages Duqm SEZ?

The zone was originally run by the Special Economic Zone Authority at Duqm (SEZAD). Since 2020, the Public Authority for Special Economic Zones and Free Zones (OPAZ) has been the regulator for all of Oman's zones, including Duqm, and the SEZAD name and one-stop shop are still used for investor services. Applications, land allocation, registration and licences are handled through the zone's investor services and one-stop shop.

Who is Duqm best for?

• Heavy and medium industry (metals, building materials, petrochemicals, chemicals)
• Green hydrogen, ammonia, solar and wind projects
• Oil and gas services, storage and refining-related businesses
• Logistics, warehousing and port-based distribution
• Fisheries, aquaculture and seafood processing
• Tourism, real estate and services for the growing town

What incentives does Duqm SEZ offer?

Which tax exemption applies to a new Duqm company?

Royal Decree 38/2025 replaced the separate Duqm SEZ law (Royal Decree 119/2011) and the old Free Zones Law with one unified framework. New qualifying enterprises receive a 10-year income tax exemption from the start of operations, extendable for two further periods for activities with high added value. Banks, insurers, telecoms, contracting and land or sea transport companies are excluded. The Executive Regulations (OPAZ Decision 81/2026), issued in September 2026, also cover freehold sales to foreigners in approved real estate projects and residency for investors and owners. Companies already established in Duqm keep their existing incentives until those periods expire.

Which company types are available?

Duqm's registration regulation allows limited liability companies, joint stock companies, general partnerships and limited partnerships, as well as branches of companies based outside the zone. In practice, most foreign investors choose an LLC or a foreign company branch. Registration is renewed every 5 years, and changes must be reported within 30 days.

How do you register a company in Duqm SEZ?

1. Investment application. Submit the application form and documents for your legal structure to the investor services department.
2. Evaluation and preliminary approval. The zone reviews the project and you pay the applicable fee.
3. Plot allocation. You receive an allocation notice with plot coordinates and a draft usufruct agreement.
4. Site visit and signing. You have 3 months to inspect the site and sign the usufruct agreement, or the request lapses.
5. Commercial registration. A decision is due within 5 working days of a complete application.
6. Licences and permits. Get activity licences, building and environmental permits from the zone or the relevant authorities.
7. Visas and bank account. Apply for investor and staff visas and open a corporate bank account.

For more detail, see our guide to procedures and documents for company registration in Duqm.

What documents are typically required?

• Investment application form and project profile (activity, investment, jobs, land and utilities)
• Passport copies of shareholders and managers
• For corporate shareholders: incorporation certificate, memorandum and articles, board resolution and power of attorney, legalised and translated into Arabic where required
• Financial capability evidence for large projects
• Technical and environmental studies for industrial projects

How much does it cost to set up in Duqm?

SEZAD states that fees and land rates depend on the activity and type of use, and does not publish a single all-in price. Plan for these components:

• application and registration fees;
• Chamber of Commerce membership;
• annual usufruct rent per m², which varies by zone and use;
• infrastructure and utility connection charges;
• design, construction and environmental studies;
• visas and labour clearances;
• accounting, audit and tax filing (even during an exemption).

See company registration costs in Duqm for a breakdown of cost items, and confirm current rates with the zone before you budget.

What are the pros and limitations?

Pros

• Very large land supply for mega-projects and expansion
• Port, dry dock, refinery and energy cluster in one place
• Outside the Strait of Hormuz, on major east–west shipping lanes

Limitations

• Remote, so staff housing and travel need planning
• Goods sold into mainland Oman generally pay duty like imports
• New entrants get the 10-year exemption, not the legacy 30-year one

How does Duqm compare with other zones?

• Duqm Industrial City (the Customs Zone): a site inside Duqm treated as mainland customs territory, for factories selling into Oman and the GCC.
• Sohar Free Zone: a smaller zone, closer to Muscat and the UAE.
• Salalah Free Zone: a port-based zone in the south, with ready units available.

See Duqm vs Sohar vs Salalah, the laws on company registration and activities in Duqm, or the free zones hub.

How Oman Register helps

Oman Register prepares the investment application and project profile, follows up with the zone on land allocation and the usufruct agreement, and handles registration, Chamber membership, visas and bank account support. We also help you weigh the regular SEZ regime against the customs-territory site in Duqm based on where your customers are.