# Oman Signs OMR 304m in Zone Deals: What It Means for Investors

> On 28 October 2026 Oman signed 28 investment agreements worth more than OMR 304 million across its industrial cities, free zones and the Duqm SEZ. Here is where the money went, which sectors are winning, and what it means if you plan to set up in one of these zones.

URL: https://omanregister.com/oman-free-zone-investment-deals/
Updated: 2026-10-30
Publisher: Oman Register (omanregister.com) — company registration and residency services in Oman. Contact: +968 7733 3556, info@omanregister.com

## At a glance

- **Agreements signed:** 28 (28 October 2026)
- **Total value:** Over OMR 304 million (≈ USD 790m)
- **Largest share:** Madayn industrial cities — OMR 147.6m
- **Biggest single project:** Steel plant, Sohar Industrial City — OMR 112m+
- **Committed investment in all zones:** OMR 22.4bn (end of 2025)
- **Regulator:** OPAZ (zones) and Madayn (industrial cities)

On **28 October 2026** Oman signed **28 investment agreements worth more than OMR 304 million (about USD 790 million)** for new factories, food plants, logistics hubs and expansions across its **Madayn industrial cities, Sohar and Salalah free zones, the Special Economic Zone at Duqm and Khazaen Economic City**. The deals cover more than two million square metres and are concentrated in manufacturing — a clear signal of where Oman wants foreign capital to go, and of where new suppliers, contractors and service companies will be needed next.

Below we break down where the money went, why it matters, and how to use these zones if you are planning to [register a company in Oman](https://omanregister.com/register-company-in-oman/).

## Where the OMR 304 million went

The signing was overseen by the Public Authority for Special Economic Zones and Free Zones (OPAZ). The split by location, as reported on the day:

| Zone | Value (OMR) | Headline projects |
|---|---|---|
| Madayn industrial cities (Sohar, Raysut, Ibri, Nizwa) | ≈ 147.6m | Steel and iron products plant in [Sohar Industrial City](https://omanregister.com/industrial-cities/sohar-industrial-city/), 112m+ on 440,000 m² |
| [Sohar Freezone](https://omanregister.com/free-zones/sohar-free-zone/) | 58.5m | Automotive manufacturing and assembly complex (38m, 317,000 m²); transformer factory (15m); medical devices expansion (1.5m); warehousing and re-export |
| [Duqm SEZ](https://omanregister.com/free-zones/duqm-special-economic-zone/) | ≈ 55.08m | Shrimp-feed plant (40m); fish canning (5.36m); tuna and squid processing (3.6m); livestock quarantine (4m); used-oil recycling (1.92m) |
| [Salalah Free Zone](https://omanregister.com/free-zones/salalah-free-zone/) | 32.95m | Steel structures factory (19.25m); gypsum products (7.7m); cheese and dairy (6m) |
| [Khazaen Economic City](https://omanregister.com/free-zones/khazaen-economic-city/) | 10.4m+ | EV charger and components factory (3.4m+); precast concrete (2.5m); building materials, logistics, light industry |

OPAZ also announced the start of the **[Khazaen Free Zone](https://omanregister.com/free-zones/khazaen-free-zone/)** with its first two agreements — a new option for companies that want free-zone status next to Muscat.

## Why this matters: the bigger picture

This round is not a one-off. It follows a **OMR 200 million round in April 2026** (Duqm, Salalah and Khazaen) and a record year in 2025. According to OPAZ:

- **Committed investment** in all zones and industrial cities reached **OMR 22.4 billion** at the end of 2025, up 6.8% on 2024.
- **New investment in 2025** exceeded **OMR 1.4 billion**, about 97% of it in industry; 325 agreements were signed.
- The zones' one-stop shops issued **2,605 commercial registrations, 419 investor visas and 7,114 work permits** in 2025.
- **4,774 SMEs** were operating in the zones, alongside the large projects.

The deals also support Oman's **11th Five-Year Development Plan (2026–2030)**, which aims to grow private investment and non-oil exports. For investors, the message is consistent: industrial projects, food security, logistics and export-oriented manufacturing get priority — and the government is backing them with land, infrastructure and faster services.

## Which sectors are winning — and the opportunities around them

The October projects fall into five groups. Each creates room for smaller companies, not just the headline investors:

1. **Steel and building materials** (Sohar, Salalah, Khazaen) — demand for raw-material traders, transport, scaffolding, maintenance and engineering services.
2. **Automotive and electrical equipment** (Sohar Freezone, Khazaen) — component suppliers, spare-parts trading, EV-charging installation and after-sales service.
3. **Food and fisheries** (Duqm, Salalah) — cold-chain logistics, packaging, feed and ingredient trading, quality testing.
4. **Recycling and environmental services** (Duqm) — waste collection, oil-recovery and environmental consultancy.
5. **Warehousing and re-export** (Sohar, Khazaen) — freight forwarding, customs clearance, e-commerce fulfilment and regional trading.

If your business fits one of these value chains, setting up close to the projects — in the same zone or a nearby industrial city — can shorten delivery times and make you easier to choose as a local supplier. You can check whether your planned activities are open to foreign owners with our [business activities search](https://omanregister.com/oman-business-activities/).

## Free zone, SEZ, industrial city or mainland?

The zones in this round work under different rules. A quick comparison:

| Option | Best for | Key points |
|---|---|---|
| Free zones (Sohar, Salalah, Khazaen FZ, Al Mazunah) | Manufacturing, re-export, port-linked logistics | 100% foreign ownership; customs advantages for goods moving in and out of the zone; leased plots, warehouses and offices |
| [Special economic zones](https://omanregister.com/free-zones/) (Duqm, Khazaen Economic City) | Large industrial, energy, food and logistics projects | Own regulator and one-stop shop; land under long-term usufruct; tax incentives for new enterprises under RD 38/2025 |
| [Madayn industrial cities](https://omanregister.com/industrial-cities/) | Factories serving the Omani and GCC market | Serviced industrial land in many governorates; close to mainland customers and workforce |
| [Mainland](https://omanregister.com/mainland-company-registration-oman/) | Trading, services and selling across Oman | Registered on the Oman Business Platform; 100% foreign ownership for most activities; simplest for local sales |

Under the **Special Economic Zones and Free Zones Law (Royal Decree 38/2025)**, new enterprises in the zones can receive a **10-year income tax exemption**, extendable for qualifying activities, while the standard corporate tax rate outside the incentives is 15%. Incentives depend on the zone, the activity and the zone's approval, so confirm them for your project before you commit.

## How to set up a company in an Omani zone

The route is similar in every zone, although each authority has its own forms and fees:

1. **Choose the zone and activities.** Match your activity, customers and logistics to the zone — port access for re-export, land size for factories, distance to Muscat for services.
2. **Apply to the zone authority.** Submit a short business plan, shareholder documents (passports, or attested corporate documents for company shareholders) and the activities you want.
3. **Secure premises.** Lease an office, warehouse or plot; industrial projects also need building and environmental permits.
4. **Register the company.** The zone's one-stop shop issues the commercial registration and activity licences.
5. **Apply for visas and open a bank account.** Investor visas and work permits are processed through the zone, then you open a corporate bank account.

Choosing the right [company type](https://omanregister.com/company-types/) — usually an [LLC](https://omanregister.com/company-types/limited-liability-company-llc/) or a [branch of a foreign company](https://omanregister.com/company-types/foreign-company-branch/) — is part of the same decision. Our [complete free zone registration guide](https://omanregister.com/oman-free-zone-company-registration-the-2026-complete-guide/) covers each step in detail, and our [Duqm vs Sohar vs Salalah comparison](https://omanregister.com/comparison-duqm-vs-sohar-vs-salalah-freezone-2026-guide/) helps you pick a location.

## Practical tips before you commit

- **Start with the customer, not the incentive.** A tax holiday is worth little if your buyers are in Muscat and your plot is 500 km away.
- **Check activity approvals early.** Some activities need sign-off from a ministry (environment, health, food safety) as well as the zone.
- **Budget for premises.** Most zones require a physical office, warehouse or plot; virtual offices are not accepted everywhere.
- **Plan Omanisation.** Zones set Omani hiring ratios by activity; the zones employed 30,780 Omanis out of about 85,000 workers in 2025.
- **Keep the incentives in writing.** Ask for the tax exemption, customs treatment and land terms that apply to your licence before signing a lease.

If you are weighing a zone against the mainland, or want to supply one of the new projects, [contact Oman Register](https://omanregister.com/contact-us/) — we will compare the options for your activities and handle the registration from start to finish.

## FAQ

**How much investment did Oman sign in its zones in October 2026?**

On 28 October 2026 the Public Authority for Special Economic Zones and Free Zones (OPAZ) oversaw the signing of 28 agreements worth more than OMR 304 million (about USD 790 million), covering more than two million square metres across industrial cities, the Duqm SEZ, Sohar and Salalah free zones and Khazaen Economic City.

**Which zone received the most investment?**

The industrial cities run by Madayn took the largest share at about OMR 147.6 million, led by a steel products plant in Sohar Industrial City worth more than OMR 112 million. Sohar Freezone followed with OMR 58.5 million and the Duqm SEZ with about OMR 55.08 million.

**Can a small company or SME set up in an Omani free zone?**

Yes. OPAZ reported 4,774 SMEs operating in its zones at the end of 2025. Zones offer leased offices, warehouses and plots, and many SMEs set up to supply, service or trade around the large industrial projects.

**Can foreigners own 100% of a company in an Omani free zone?**

Yes. Companies in Oman's special economic zones and free zones can be fully foreign-owned under the Special Economic Zones and Free Zones Law (Royal Decree 38/2025), subject to the zone's licensing approval for the activity.

**Is a free zone better than the mainland for my company?**

It depends on what you do. Free zones and SEZs suit manufacturing, logistics, re-export and port-linked businesses. If you mainly sell to customers inside Oman or need to work across many governorates, a mainland company is usually simpler. We compare both before you apply.

**How long does it take to set up a company in a free zone?**

For a standard trading, service or logistics company with a leased office or warehouse, setup typically takes a few weeks once documents are ready. Manufacturing projects that need land, building permits and environmental approvals take longer.

## Sources

- [Asharq Al-Awsat — Oman Signs 28 Investment Agreements Worth $790 Million (28 Oct 2026)](https://english.aawsat.com/business/5334779-oman-signs-28-investment-agreements-worth-790-million)
- [Arab News — Oman signs $790m in investment deals across industrial zones](https://arabnews.com/business/oman-signs-790m-in-investment-deals-across-industrial-zones-3008705)
- [OPAZ — Total committed investment in economic, free and industrial zones reached OMR 22.4 billion](https://opaz.gov.om/en/media-center/news/2026/total-committed-investment-in-economic-free-and-industrial-zones-reached-omr-22-4-billion)
- [OPAZ — New industrial projects worth RO 200 million in free and economic zones (April 2026)](https://www.opaz.gov.om/en/media-center/news/2026/a-group-of-new-projects-industrial-projects-worth-ro-200-million-in-free-zones-economic-zones)
- [KPMG — Oman issues Law for Special Economic Zones and Free Zones](https://kpmg.com/om/en/home/insights/2025/06/oman-issues-law-for-special-economic-zones-and-free-zones.html)