Muscat International Airport Free Zone: Setup, Incentives & Status

Muscat International Airport Free Zone is Oman's first airport free zone, a site of about 1.7 million m² next to Muscat International Airport. Asyad Group develops and operates it under a concession from OPAZ. Asyad declared Phase 1 ready for investors in May 2026. The zone targets e-commerce, express cargo, pharmaceuticals, precious metals and aviation services, with 100% foreign ownership and duty-free import and re-export.

What is the Muscat International Airport Free Zone?

OPAZ decided in 2023 to set up a free zone on airport land in Muscat. In July 2023 its board approved a 50-year renewable concession for the project. Asyad Group, Oman's state logistics group, signed the concession agreement with OPAZ in December 2023 to develop, manage and operate it.

What is the current status?

The zone is new, so it helps to separate what is built from what is planned:

• End of 2025: OPAZ reported that about 72% of Phase 1 roads and basic infrastructure were complete, and that work on customs buildings, gates and the security fence was progressing.
• May 2026: Asyad announced operational readiness of Phase 1. Internal roads, water, power, telecoms and a service building for investor procedures were in place, and the first usufruct contract was signed for a business park with smart offices.
• Still to come: more plots, ready warehouses and later phases. Ask for current availability rather than assuming a ready unit exists.

Who is the airport free zone best for?

• E-commerce and fulfilment that ships by air to GCC and international customers
• Express and courier operators, plus transshipment and multimodal logistics
• Pharmaceuticals and medical products that need fast, temperature-controlled air cargo
• Precious metals, jewellery and high-value goods, where air freight and secure storage matter
• Light, value-adding industry: kitting, labelling, repackaging or assembling imports before re-export
• Aviation-related services

It suits you less for bulky or heavy cargo moved in containers by sea. For that, compare Sohar Free Zone or Khazaen Free Zone, about 30 minutes away by road.

What incentives does the Muscat Airport Free Zone offer?

Incentives come from the Special Economic Zones and Free Zones Law (Royal Decree 38/2025) and its September 2026 Executive Regulations:

• 100% foreign ownership of the company
• Customs: no duty on goods imported into the zone or exported from it. Goods released into the Omani market pay normal import duty.
• Income tax: 10-year exemption from start of operations for qualifying activities, extendable twice. The December 2023 launch announcement mentioned "up to 15 years", so confirm the terms that apply to you in writing.
• No minimum capital requirement, subject to approval
• One-stop shop for licences, permits and approvals, run by the operator

Omanisation percentages for this zone have not been published. Expect a requirement that depends on the activity. Multinational groups with worldwide revenue of EUR 750 million or more also fall under Oman's 15% domestic minimum top-up tax.

How do you set up a company in the airport free zone?

1. Describe the project. Set out the activity, the space needed (office, warehouse or plot), cargo volumes and staffing.
2. Contact Asyad's airport free zone team to confirm the activity fits and check what space is available.
3. Register the company on the Oman Business Platform, usually as an LLC or SPC, selecting the airport free zone where it is offered.
4. Pay government fees for commercial registration and Oman Chamber of Commerce and Industry membership.
5. Sign the lease or usufruct contract, and get approval for any fit-out or construction.
6. Get the activity licence and any sector permits. Pharma, precious metals and food each have their own regulators.
7. Arrange customs registration, then visas and labour approvals for staff.
8. Apply for the tax exemption once you are operating.

Which documents are typically required?

• Passports of shareholders and managers
• For corporate shareholders: the parent's registration certificate, articles of association and a board resolution, notarised and attested by the Omani embassy
• A business plan with projected cargo volumes and investment
• Sector approvals where relevant, such as Ministry of Health pharma licensing
• A power of attorney for the filing agent

What does it cost to set up in the Muscat Airport Free Zone?

No official tariff for licences, land or offices has been published yet. Budget for these items and get a written quote:

• Commercial registration and OCCI fees
• Zone licence and administration fees
• Office, warehouse or land rent per m², plus service charges
• Fit-out, security and IT for bonded or high-value storage
• Visas, labour cards and medical tests
• Customs bonds or guarantees where required
• Accounting, audit and annual licence renewal

Rents next to an airport are usually higher than in industrial zones further out. Test the numbers against your cargo volume.

Pros and limitations

Pros

• Direct access to Oman's main passenger and cargo airport
• Customs facilities inside the zone
• Run by Asyad, which also manages ports, rail and trucking
• Close to Muscat's offices, banks and labour market

Limitations

• Very new, with only part of Phase 1 ready so far
• No published fee schedule
• Limited land, so it is not suited to large or heavy industry
• Some rules, including Omanisation, are still being set

How does it compare with nearby alternatives?

For the full picture, see our free zones hub and the Oman free zone registration guide.

How Oman Register helps

Oman Register checks whether your activity is accepted in the airport free zone and compares it with Khazaen and mainland options. We then handle registration, document attestation, licences and visas, and keep in touch with the operator as new space is released.