Oman has many export-oriented Economic Zones and Industrial Estates to attract foreign investors to the country and help promote economic development. With world-class and highly advanced infrastructure, the Sultanate’s economic zones offer several investment incentives, tax holidays and simplified procedures for licenses and permits supporting the free zones’ competitive business environment.
Oman has set up three Free Trade Zones (FTZ) namely Sahar Salalah and Al Muzanah, and two Special Economic Zones (SEZ) called Duqm and Knowledge Oasis Muscat. Besides the FTZ and SEZ, there are also six major Industrial Estates including Rusayl, Raysut, Sur, Nizwa, Al Buraimi and Sumail which offer highly attractive land rents, tax exemptions and equipment duty waiver.
The FTZs and SEZs are categorized based on commercial activities and incentives offered. Different zones are formed for different sectors and all zones are designed for foreign companies to benefit from Oman’s position as a regional manufacturing and distribution base. The purpose of setting up these economic zones is to attract different types of businesses to the country.
In a press briefing to The Business Times, Mr Anwar Muqaibal, the Consul General of the Sultanate of Oman to Singapore said: “There is no minimum share capital requirement for Oman’s free zones. Importers enjoy tax exemptions as no duties are imposed on goods imported and exported from the free zones. Oman free trade zone companies are allowed to trade within Oman without a local agent.”
The Duqm SEZ has long been considered as the place that will balance regional development by energizing the Al Wusta governorate and diversifying Oman’s revenue sources and employment opportunities of Omanis, added SEZAD, the regulator of the economic zone.
Duqm, established in 2011 is the newest SEZ and also the biggest in the Middle East region. It includes functional zones: Duqm, a deepwater port, a dry dock, a regional airport, a heavy/medium and light industries complex with a refinery and petrochemical complex, a residential and commercial space, tourism and logistics service areas and an industrial fisheries complex with a port and offers unique foreign investment opportunities in Oman.
Oman’s Consul General highlighted: “The port entered into an early operations phase in 2012 and currently remains in this stage with a fully functional commercial quay capable of handling heavy-lift project cargo, general cargo, dry bulk and containers.”
The development, management and regulation of the SEZ are administered by the Special Economic Zone Authority at Duqm, SEZAD which is responsible for the management of entire economic activities in Duqm, including long term strategies of infrastructure development and investment. The urban expansion of Duqm city and environmental protection are also overseen by SEZAD.
“Oman has taken important steps to make it’s economy more competitive and conducive to foreign direct investment. Incentives include a five year renewable tax holiday, subsidized plant facilities and utilities, and customs duties relief on equipment and raw materials for the first 10 years of a firm’s operation in Oman,” Mr Muquaibal added.
Mr Muquaibal also said: “Oman’s strategic location connecting the Persian Gulf and the Indian Ocean with east Africa and the Red Sea could also boost the country’s economy. The Duqm Special Economic Zone, which is among the largest in the world, could become the commercial thread between Oman, South Asia and China’s Belt and Road initiative.”
Trade exhibitions and investment events promotions are also planned at a global level to woo more foreign investors for doing business in Oman.
Skill enhancement of the local Omanis has also been planned by the Oman Government so they can be hired by foreign investors contributing to the nation’s economy.
“As the Sultanate remains a very stable country, Oman has good prospects and is an ideal location with its easy market entry,” emphasized Mr Muquaibal.
Referring to Oman and Singapore bilateral relations, the Consul General remarked that ties between the Sultanate of Oman and Singapore date back centuries as both countries share the same aspiration for economic prosperity and social stability.
Mr Muquaibal added that his priorities in the coming months would be to enhance economic relations between the two countries by promoting investment opportunities in Oman and encouraging Singaporean businesses to explore them.
With the tourism sector gradually opening up, this sector also becomes a priority as Oman remains a very attractive destination being unique in the region not commercialized and largely untouched with its mesmerizing scenic coastlines.
Another item on the list of Consul General’s priorities is promoting the visit of high-level Omani officials and specialists from different sectors to Singapore for exploring and investing in health, logistics and manufacturing sectors.
Hyflux, CrimsonLogic and SembCorp are the main business ties Singapore already has with the Sultanate of Oman. Hyflux’s first destination was in 2009 for setting up one desalination facility in Salalah and then in Qurayyat in 2014 to design, build, own and operate an independent water project.
CrimsonLogic has signed an MOU with local Omani SMEs in the IT sector and is also engaged in developing a customs management platform with an office in Oman. SemdCrop won a 15-year contract to supply power and water to the Oman Power and Water Procurement Company.
“Singapore businesses should be looking into investing in agriculture and fisheries, manufacturing, logistics and transport, energy and mining, and tourism,” remarked Mr Muquaibal.
Oman also has business entities in Singapore. The Bank Muscat runs a Singapore Representative Office since 2011 and OQ Trading Company Oman also has a presence in Singapore.
As per Mr Muquaibal said that the Sultanate of Oman is a hidden jewel in the Middle East region and worth exploring by Singaporean business entrepreneurs.
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