Free Zones in Oman

Public Authority for Special Economic Zones and Free Zones 

https://opaz.gov.om/en 

Al Mazunah FZ 

https://www.madayn.om/sites/AFZ/EN 

Sohar FZ 

https://soharportandfreezone.om/en 

Salalah FZ 

Duqm SEZ 

https://www.duqm.gov.om/en 

Knowledge Oasis Muscat SEZ 

https://madayn.om/sites/KOM/EN/Pages/home.aspx 

Khazaen Economic City 

https://khazaen.om/ 

Category 

Al Mazunah 

Salalah 

Sohar 

Duqm 

Knowledge Oasis 

Area covered by the free zone 

3M sq. km 

6 sq. km 

45 sq. km 

25 sq. km 

778 sq. km 

Most popular business sector 

Light industries 

Manufacturing & logistics 

Petrochemicals & logistics 

Light industries & logistics 

IT services 

Can set up a WFOE in the zone? 

Yes 

Yes 

Yes 

Yes 

Yes 

Bonded warehouses available? 

Yes 

Yes 

Yes 

Yes 

No 

Can hire foreign workers? 

Yes 

Yes 

Yes 

Yes 

Yes 

Can secure offshore corporate finance? 

Yes 

Yes 

Yes 

Yes 

Yes 

Can remit money abroad freely? 

Yes 

Yes 

Yes 

Yes 

Yes 

Can trade with other parts of Oman? 

Yes 

Yes 

Yes 

Yes 

Yes 

Time zone (ahead of GMT) 

+4 hours 

+4 hours 

+4 hours 

+4 hours 

+4 hours 

Airport nearby? 

Yes 

Yes 

Yes 

Yes 

Yes 

Company registration 

Online company incorporation? 

No 

Yes 

Yes 

No 

No 

Time to set up a company 

6 weeks 

4 weeks 

4 weeks 

6 weeks 

7 weeks 

Time to secure a business license 

4 weeks 

3 weeks 

3 weeks 

4 weeks 

5 weeks 

Foreign investor approval required? 

Yes 

Yes 

Yes 

Yes 

Yes 

Client travel required for registration? 

No 

No 

No 

No 

No 

Minimum paid-up capital 

US$0 

US$0 

US$0 

US$0 

US$52K 

Logistics considerations 

Physical office space required? 

Yes 

Yes 

Yes 

Yes 

Yes 

Quality of utilities 

Excellent 

Excellent 

Excellent 

Excellent 

Excellent 

Industrial space rental (per 1000 sq.m) 

US$2,650 

US$2,300 

US$2,750 

US$3,100 

N/A 

Warehouse space rental (per 1000 sq.m) 

US$2,600 

US$2,200 

US$2,500 

US$3,000 

N/A 

Attractive for manufacturing? 

Yes (light manufacturing) 

Yes (manufacturing & assembly) 

Yes (light manufacturing) 

Yes (light manufacturing) 

No 

Wi-Fi quality 

Good 

Good 

Good 

Good 

Good 

Electricity price (per kWh) 

US$0.026 

US$0.025 

US$0.03 

US$0.026 

- 

Proximity to seaport 

260 km 

5 km 

10 km 

9 km 

46 km 

Proximity to airport 

260 km 

18 km 

25 km 

20 km 

25 km 

Accounting and tax considerations 

Corporate tax rate 

0% 

0% 

0% 

0% 

0% 

Custom duties on goods? 

No 

No 

No 

No 

No 

VAT within the zone? 

No 

No 

No 

No 

No 

VAT on mainland goods/services? 

5% 

5% 

5% 

5% 

5% 

Tax incentives for start-ups? 

Yes 

Yes 

Yes 

Yes 

Yes 

Quarterly tax filing? 

No 

No 

No 

No 

No 

Annual tax return required? 

Yes 

Yes 

Yes 

Yes 

Yes 

Government inspection required? 

Yes 

Yes 

Yes 

Yes 

Yes 

Annual audit required? 

Yes 

Yes 

Yes 

Yes 

Yes 

Access to double taxation agreements? 

Yes 

Yes 

Yes 

Yes 

Yes 

Corporate banking considerations 

Recommended bank 

National Bank 

HSBC 

Bank of Sohar 

Bank Muscat 

Oman Arab Bank 

Time to set up bank account 

6 weeks 

6 weeks 

6 weeks 

6 weeks 

6 weeks 

Corporate visa debit cards? 

Yes 

Yes 

Yes 

Yes 

Yes 

E-banking quality 

Good 

Very Good 

Good 

Good 

Good 

English e-banking available? 

Yes 

Yes 

Yes 

Yes 

Yes 

Overseas payments (OR/USD)? 

Yes 

Yes 

Yes 

Yes 

Yes 

Loans within the zone? 

Yes 

Yes 

Yes 

Yes 

Yes 

Loans from mainland banks? 

Yes 

Yes 

Yes 

Yes 

Yes 

Access to PE/VC funds? 

Yes 

Yes 

Yes 

Yes 

Yes 

Listing on Muscat Securities Market? 

Yes 

Yes 

Yes 

Yes 

Yes 

Labour considerations 

Foreign employees allowed? 

Yes 

Yes 

Yes 

Yes 

Yes 

Time to secure work permit 

4 weeks 

4 weeks 

4 weeks 

4 weeks 

4 weeks 

Client travel for work permit? 

Yes 

Yes 

Yes 

Yes 

Yes 

Permanent residency for investors? 

Yes 

Yes 

Yes 

Yes 

Yes 

Avg. monthly salary (local employees) 

US$4,000 

US$4,000 

US$4,000 

US$4,000 

US$4,000