Free Zones in Oman
Public Authority for Special Economic Zones and Free Zones | |
Al Mazunah FZ | |
Sohar FZ | |
Salalah FZ |
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Duqm SEZ | |
Knowledge Oasis Muscat SEZ | |
Khazaen Economic City |
Comparison of freezones
Oman Free Trade Zones - Comparative Analysis
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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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