OPERATION FREE ZONE
The economic zones of Oman and their adjoining free zones are dominating FDI and internal investment numbers and are also at the heart of Oman's diversification efforts.
Economic zones were created in Oman with the purpose of concentrating investments in a variety of different economic spheres. Central in the creation of these economic zones were the free zones that exist within them, each offering a wide array of favorable and attractive benefits and incentives for bringing business to these areas. Each of these zones in Oman is different in the industries and investment volumes they have attracted. Supported and marketed heavily by the Omani government, these economic zones are being utilized effectively as mediums through which the country can maneuver the tricky post-oil downturn macroeconomic situation and accomplish the ambitious goals set out in its various 2020 and 2040 master economic plans.
To begin, the Al Mazunah free economic zone has recently seen bustling activity, commanding much more international investor attention than in years past. Situated in the south of the country in the Dhofar region, this free zone is located close to Yemen. Its proximity to Yemen is especially significant due to one of the unique incentives offered to businesses that operate in Al Mazunah, namely that businesses are able to enter Al Mazunah without a visa or completing border procedures between Oman and Yemen. It thus provides a great opportunity to companies that would like to trade with Yemen and serves as a gateway to the millions of consumers in East Africa. In the first quarter of 2016 alone, 21 different companies have signed investment deals in Al Mazunah, bringing the total number of multinational companies that signed agreements there to 75, with trade figures exceeding USD150 million.
The Sohar economic zone is a giant within Oman. Part of the remarkable growth of Sohar stems from the fact that it is now receiving all the maritime cargo traffic previously destined for Muscat's Sultan Qaboos Port, which has been refashioned to serve as a tourism hub. Last year, Sohar Port handled a record 1 million tons of cargo per week. The Sohar free zone stretches 4,500ha and has attracted USD25 billion in investments together with the port. The free zone acts as a vehicle to spur development in Sohar because the incentives attract companies that can take advantage of the world-class infrastructure that is in place, which includes processes for the exporting and importing of new goods and utilizing upstream products as feedstock for downstream processes.
Duqm reigns supreme as the largest economic zone in Oman, with each passing day seemingly bringing new developments to the 1,745sqkm region that enjoys 70km of coastline. The latest big investment in Duqm came from China in the form of a USD10 billion industrial park. The country is working hard to develop this area into a bustling area of economic activity and has plans to see its population increase to 100,000 over the next 10 years. It has set up a one-stop-shop to seamlessly facilitate investments from interested parties all over the globe. Other recent news out of Duqm that harbors national importance includes a massive, recently built 200 million barrel oil storage facility; the first mineral exports took place out of the port in early 2016; and a tender was floated for the construction of a major fishery port there as well.
Again representing the south of the Sultanate, Salalah has a red hot free zone as well. The Ministry of Transport and Communication reported that activity at the Port of Salalah, already the biggest port in Oman, has grown by a whopping 70%. The Port has also signed an exciting MoU with the Port and Maritime Authority of Iran to foster growth in a variety of sectors of mutual interest, including logistics. Incentives in the Salalah free zone are strong and include an exemption from all corporate taxes for 30 years and 100% foreign ownership opportunities. Set to remain a vital player for years to come, a large-scale LPG plant is in the works in Salalah and will further develop Oman's downstream capabilities.
OPERATION FREE ZONE
TABLE OF CONTENTS
Review: Diplomacy
The Talleyrand of Muscat
Oman reaps the benefits of its strategic diplomatic balancing act between Iran and the US, which culminated in the successful implementation of the Joint Comprehensive Plan of Action (JCPOA) in January 2016. The fruits are many and real: new infrastructural deals, automotive plants, and air routes, to name but a few.
read articleInterview
Khalifa Said Salim Al Abri, former CEO, Public Authority for SME Development (Riyada)
TBY talks to Khalifa Said Salim Al Abri, former CEO of the Public Authority for SME Development (Riyada), on working closely with the private sector, furthering opportunities for SMEs, and his goals for the next year.
read articleInterview
HE Dr. Khalifa Abdullah Al-Barwani, CEO, National Centre for Statistics and Information (NCSI)
TBY talks to HE Dr. Khalifa Abdullah Al-Barwani, CEO of National Centre for Statistics and Information (NCSI), on the growing demand for in-depth information, technical innovations, and using data in all areas of life.
read articleInterview
HE Hamood Sangour Al-Zadjali, Executive President, Central Bank of Oman (CBO)
TBY talks to HE Hamood Sangour Al-Zadjali, Executive President of the Central Bank of Oman (CBO), on the factors behind the country's strong banking sector, the growth of Islamic banking, and a new law on foreign investment capital.
read articleInterview
HE Abdullah Salim Abdullah Al Salmi, Executive President, Capital Market Authority (CMA)
TBY talks to HE Abdullah Salim Abdullah Al Salmi, Executive President of the Capital Market Authority (CMA), on encouraging a stronger insurance industry, working to attract PPPs, and upcoming projects.
read articleInterview
Hamdah Said Al Shamsi, Acting General Manager , Public Authority for Social Insurance (PASI)
TBY talks to Hamdah Said Al Shamsi, Acting General Manager of the Public Authority for Social Insurance (PASI), on how the role of insurance has developed and earned itself a distinction in Oman.
read articleInterview
Musab Al Mahruqi, CEO, Oman Oil Refineries and Petroleum Industries Company (Orpic),
TBY talks to Musab Al Mahruqi, CEO of Oman Oil Refineries and Petroleum Industries Company (Orpic), on investment opportunities amidst low oil prices, the role Orpic is playing in developing the SME sector, and outlooks for the year ahead.
read articleInterview
HE Dr. Mohammed Bin Nasser Al-Zaabi, CEO, Public Authority for Civil Aviation (PACA)
TBY talks to HE Dr. Mohammed Bin Nasser Al-Zaabi, CEO of Public Authority for Civil Aviation (PACA), on the sector's role in the ninth Five-Year Plan, the Gulf's increasing demand for ground handling services, and expectations for the year ahead.
read articleFocus: 2040 Tourism Strategy
Choose Your Omani Adventure
With the global oil market in decline, Oman seeks to strengthen other sectors of its economy. The country has just begun to take advantage of its plethora of tourism assets and plans to significantly increase the sector's contribution to the economy by 2040.
read articleInterview
HE Rashad Ahmed Mohammed Omer Al-Hinai, Undersecretary of the Ministry, Sports Affair
TBY talks to HE Rashad Ahmed Mohammed Omer Al-Hinai, Undersecretary of the Ministry of Sports Affairs, on growing the local sports culture, hosting sporting events in the country, and supporting the development of athletes.
read articleInterview
HE Najeeb A. Al-Rawas, Ministry of Environment , Climate Affairs (MECA)
TBY talks to HE Najeeb A. Al-Rawas, Undersecretary of the Ministry of Environment and Climate Affairs (MECA), on sustainable development, MoUs with other ministries, and encouraging sustainable development.
read articleInterview
Dr. Salim Al Ruzaiqi, CEO, Information Technology Authority (ITA)
TBY talks to Dr. Salim Al Ruzaiqi, CEO of the Information Technology Authority (ITA), on penetrating the government sector with e-services, building the Sultanate's fiber-optic network, and the national e-tendering system.
read articleInterview
Saif bin Saud al Mahrooqi, Acting CEO, Oman Establishment for Press, Publication, and Advertising (OEPPA)
TBY talks to Saif bin Saud al Mahrooqi, Acting CEO of Oman Establishment for Press, Publication, and Advertising (OEPPA), on digital autonomy, multilingual publishing, and editorial quality.
read articleInterview
HE Dr. Hamed Said Al-Oufi, Undersecretary of Fisheries Wealth at the Ministry , Agriculture and Fisheries
TBY talks to HE Dr. Hamed Said Al-Oufi, Undersecretary of Fisheries Wealth at the Ministry of Agriculture and Fisheries, on boosting sustainable production, shrimp farming, and milking the Arabian Sea.
read articleFocus: Aquaculture
Fishing for Development
With an expected production enhancement of more than 100% and a projected job creation of 20,000 posts, fisheries in Oman have a promising but challenging target to get from 200,000 tons per year to close to 480,000 tons in the next four years.
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