The Salalah Free Zone in Oman has experienced notable growth in investment, amassing a total exceeding OMR4.6 billion ($11.95 billion) by the close of June 2024.
Dr. Ali bin Mohammed Tabuk, CEO of the Salalah Free Zone, reported that the first half of the year saw investment surpassing OMR68 million ($176 million).
Currently, the Salalah Free Zone hosts 143 companies and 64 active projects, with industrial initiatives making up 57 percent, logistics projects at 15 percent, and commercial ventures comprising 28 percent. Additionally, its strategic location and various incentives have rendered it an appealing choice for investors, the Oman News Agency (ONA) reported.
Strategic advantages
Dr. Tabuk highlighted the region’s strong attractiveness, noting its capability to minimize distances, cut down on time and costs, and provide access to vital markets in the Middle East, Indian subcontinent, and East Africa.
Read more: Oman’s Nizwa: A thriving industrial hub with $1.23 billion investment, 173 projects
Countries establish free economic zones (FEZs) to drive economic growth by offering businesses numerous incentives, including tax exemptions, simplified customs processes, and reduced regulatory requirements. These zones draw both domestic and international investments, creating an environment that encourages innovation and efficiency, allowing companies to operate more cost-effectively and flexibly.
New projects and developments
In the first half of 2024, the Salalah Free Zone welcomed 13 new projects, encompassing areas such as frankincense derivatives, packaging, air conditioning manufacturing, and textile production. Furthermore, existing projects in the zone span petrochemical and mineral processing, food and pharmaceutical manufacturing, logistics, and storage, as noted by Dr. Ali bin Mohammed Tabuk. The zone’s expanding activities are attributed to its proximity to the Port of Salalah, a key regional port.
Support services for investors
Moreover, Dr. Tabuk mentioned that the Salalah Free Zone provides a variety of services and facilities to assist investors, including land and warehouse leasing, one-stop services, and the ‘Invest Easy’ platform. Together with other free and economic zones under the Asyad Group, the Salalah Free Zone plays a vital role in attracting foreign direct investment and facilitating access to international markets, he noted.
For more news on industry, click here.
