# Salalah Free Zone Company Setup: Incentives, Steps & Costs > Salalah Free Zone is a port-linked free zone in Dhofar, operated by Salalah Free Zone Company (SFZCO, part of Asyad) under OPAZ, aimed at manufacturing, food, pharma, petrochemicals and logistics businesses using the Port of Salalah. URL: https://omanregister.com/free-zones/salalah-free-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 (regulator); Salalah Free Zone Company – SFZCO (operator, Asyad Group) - **Location:** Salalah, Dhofar Governorate - **Established:** Royal Decree 62/2006 - **Area:** About 21.6 km² (OPAZ, 2022) - **Ownership:** Up to 100% foreign - **Tax incentive:** Legacy up to 30 years; 10 years (extendable) under the 2025 zones law - **Best for:** Food processing, pharma, petrochemicals, minerals, logistics - **Nearest port:** Port of Salalah; Salalah International Airport Salalah Free Zone is an industrial and logistics free zone in Dhofar, in southern Oman. It sits beside the Port of Salalah, one of the region's main transshipment hubs on the Arabian Sea. Investors can own 100% of the company, need no minimum capital, pay no customs duty on imports and exports, and get a long income tax exemption. It suits manufacturers and logistics companies serving the Indian Ocean, East Africa and the Gulf. ## What and where is Salalah Free Zone? Salalah Free Zone (SFZ) is in the Salalah area of Dhofar Governorate, close to the Port of Salalah and Salalah International Airport. It was established by Royal Decree 62/2006. OPAZ figures from 2022 put it at about 21.6 km², with 73% of land leased and committed investment of about USD 8.7 billion. Its position on the Arabian Sea puts it close to the main east–west shipping lanes, away from the Strait of Hormuz. ## Who manages Salalah Free Zone? - **OPAZ** regulates the zone under the national Special Economic Zones and Free Zones Law. - **Salalah Free Zone Company (SFZCO)**, part of Oman's Asyad Group, runs the zone. It handles investor enquiries, land and facility leases, registration and the one-stop-shop services. SFZ cooperates closely with the Port of Salalah, which is also part of Asyad, but the two are separate entities. ## Who is Salalah Free Zone best for? SFZCO targets these sectors: - food processing and food logistics; - pharmaceuticals and medical products; - petrochemicals and chemicals; - mining and mineral processing; - logistics, supply chain, packaging and assembly; - high-tech manufacturing. It works well if your raw materials or customers are in India, East Africa, the Red Sea region or Yemen, or if you rely on large container lines calling at Salalah. For businesses selling mainly to Muscat or the UAE, [Sohar Free Zone](https://omanregister.com/free-zones/sohar-free-zone/) or [Khazaen Free Zone](https://omanregister.com/free-zones/khazaen-free-zone/) is usually closer to the customer. ## What incentives does Salalah Free Zone offer? | Incentive | Detail | |---|---| | Ownership | 100% foreign ownership allowed | | Capital | No minimum capital | | Customs | No customs duties on imports and exports | | Income tax | Legacy promotion: up to 30 years (reviewed every 10 years). New enterprises: 10 years under Royal Decree 38/2025, extendable for qualifying activities | | Personal tax | No personal income tax | | Repatriation | No restrictions on moving capital and profits | | Omanisation | About 20% (SFZCO) | | Land | Usufruct up to 30 years, renewable | ### Which tax holiday applies to a new company? The 2025 zones law (Royal Decree 38/2025) unified incentives across Oman's zones. New qualifying enterprises receive a **10-year exemption** from the start of operations, which can be extended for activities with high added value. Banks, insurers, telecoms, contracting and transport companies are excluded. The Executive Regulations (OPAZ Decision 81/2026) were issued in September 2026. Companies already licensed keep their previous incentives until those periods expire. ## Which company types and licences are available? - **Free Zone Company (FZC):** a limited liability company with one or more shareholders. - **Free Zone Establishment (FZE):** a single-owner company. - **Branch of a foreign company:** possible for established groups, subject to approval. Licences follow the activity (industrial, logistics, trading, services). Projects with environmental impact need an environmental permit. That usually applies to manufacturing, processing, recycling and chemicals, but not to offices, trading or warehousing. Any building work needs a construction permit before work starts. ## How do you set up a company in Salalah Free Zone? 1. **Investor enquiry.** Send SFZCO's investor inquiry sheet describing the activity, space and investment. 2. **Initial approval.** SFZCO reviews the project and issues initial approval. 3. **Registration application.** Submit the application with shareholder and company documents. 4. **Licences and approvals.** Get the activity licence plus any environmental or sector approvals. 5. **Lease land or a facility.** Sign the usufruct agreement for land, or a lease for a warehouse, office or industrial unit. 6. **Chamber, visas and bank.** Register with the Oman Chamber of Commerce and Industry, apply for visas and labour clearances, and open a bank account. ## What documents are typically required? - Completed investor inquiry sheet and application forms - Passport copies of shareholders, directors and the authorised signatory - A business plan or project profile with investment, jobs and space - For corporate shareholders: incorporation certificate, memorandum and articles, board resolution and power of attorney, legalised and translated where required - Technical and environmental information for industrial activities ## How much does it cost to set up in Salalah Free Zone? SFZCO does not publish fixed fee amounts and prepares a customised offer for each project. The cost components are: - business registration and commercial register fees; - Oman Chamber of Commerce and Industry membership; - land or facility lease, charged per m² per year; - utilities and service charges; - construction and fit-out for your own building; - visas, labour clearances and medicals. Ask for the offer in writing and compare it with [Duqm](https://omanregister.com/free-zones/duqm-special-economic-zone/) and [Sohar](https://omanregister.com/free-zones/sohar-free-zone/) before you sign. ## How long does setup take? Projects that take a ready warehouse or office can usually move from initial approval to licence in a few weeks once documents are complete. Projects that need land, design approval and environmental permits often take several months before operations start. ## What are the pros and limitations? **Pros** - Direct access to a major transshipment port and to shipping lanes outside the Gulf - Ready-built units available, as well as serviced land - No minimum capital and full foreign ownership **Limitations** - About 1,000 km from Muscat, so less practical for businesses focused on northern Oman or the UAE - Goods sold into mainland Oman generally pay customs duty like imports - New companies get the shorter 10-year exemption ## How does Salalah compare with nearby zones? - **[Al Mazunah Free Zone](https://omanregister.com/free-zones/al-mazunah-free-zone/):** also in Dhofar, on the Yemen border, focused on cross-border trade rather than port logistics. - **[Raysut Industrial City](https://omanregister.com/industrial-cities/raysut-industrial-city/):** a Madayn industrial city near the port for factories that mainly sell inside Oman. - **[Duqm Special Economic Zone](https://omanregister.com/free-zones/duqm-special-economic-zone/):** much larger, for heavy industry, energy and mega-projects. See our [Duqm vs Sohar vs Salalah comparison](https://omanregister.com/comparison-duqm-vs-sohar-vs-salalah-freezone-2026-guide/) and the [free zones hub](https://omanregister.com/free-zones/). ## How Oman Register helps Oman Register prepares your investor inquiry and project profile, coordinates with SFZCO on land or facility offers, and manages registration, Chamber membership, visas and bank account support. We also check whether a free zone, Raysut Industrial City or a mainland company gives you better access to your customers. ## FAQ **Who runs Salalah Free Zone?** The zone is operated by Salalah Free Zone Company (SFZCO), part of the Asyad Group, under the supervision of OPAZ. **What company types can I set up in Salalah Free Zone?** The main options are a Free Zone Company (FZC), a limited liability company with one or more shareholders, and a Free Zone Establishment (FZE), a single-owner company. **Is there a minimum capital in Salalah Free Zone?** No minimum capital is required, and 100% foreign ownership is allowed. **Can I buy land in Salalah Free Zone?** No. Land is leased under a usufruct agreement for up to 30 years, renewable. Ready warehouses, offices and industrial units are also available for lease. **What is the Omanisation rate in Salalah Free Zone?** SFZCO states an Omanisation rate of approximately 20%, which is lower than most mainland sector rates. **How long is the tax exemption in Salalah Free Zone?** Projects licensed under the old regime were promoted with up to 30 years. New enterprises under Royal Decree 38/2025 receive a 10-year exemption from the start of operations, extendable for qualifying activities. ## Sources - [OPAZ — Salalah Free Zone](https://opaz.gov.om/en/zones/salalah-free-zone) - [SFZCO — Business setup & legal framework FAQ](https://sfzco.com/faq) - [OPAZ presentation 2022 (via British Omani Society)](https://www.britishomani.org/uploads/OPAZ Presentation - Eng 2022.pdf) - [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) - [Times of Oman — Executive Regulations issued (2026)](https://timesofoman.com/article/177163-executive-regulations-issued-for-special-economic-zones-and-free-zones-law)