Speech of His Excellency Sheikh Dr. Ali bin Masoud bin Ali Al Sunaidy Chairman of the Public Authority for Special Economic Zones and Free Zones

2024 has been remarkable, witnessing a substantial increase in committed local and foreign investments. Infrastructure projects have been expanded across various zones. OPAZ has launched new initiatives to promote innovation, sustainability, and the transition towards renewable energy. Additionally, OPAZ has focused on developing digital services, contributing to the swift completion of licenses and improving the business environment. Furthermore, OPAZ continues to promote integration between economic zones, free zones, and industrial cities to support economic diversification and sustainable growth.

The indicators we will highlight in this meeting reflect the achievements of 2024, aligned with the priorities of Oman Vision 2040.

Our key achievements in 2024:

First: Private Sector, Investment, and International Cooperation Priority

In 2024, the volume of investment in economic zones, free zones, and industrial cities grew by 10% compared to 2023, reaching approximately 21 billion Omani Riyals by the end of December 2024. Of this, 6.3 billion Omani Riyals were committed in the Special Economic Zone at Duqm, marking a 5% growth compared to 2023. The free zones recorded an investment volume of 6.6 billion Omani Riyals by the end of December 2024. The Sohar Free Zone witnessed a significant increase in cumulative investment, doubling from 600 million Omani Riyals at the end of December 2023 to over 1.3 billion Omani Riyals by the end of December 2024. This was due mainly to the successful attraction of the polysilicon factory project with an investment of about half a billion Omani Riyals, providing the required materials for the solar panel industry and other sectors.

Industrial cities recorded a committed investment volume of 7.6 billion Omani Riyals by December 2024, with a growth rate of 3.3%. Investments in Khazaen Economic City grew by an impressive 18.8%, with total committed investments exceeding half a billion Omani Riyals by the end of December 2024.

The economic survey conducted by the Authority in coordination with the National Center for Statistics and Information in mid-2024 targeted establishments operating in economic and free zones and industrial cities. The survey revealed that the zones contributed 7.5% to the GDP in 2022, representing 11.6% of the contribution of non-oil activities for the year. The value of exports from the zones exceeded 4.5 billion Omani Riyals, accounting for 17.9% of the total value of exports in Oman and 38% of non-oil exports for the same year. The Authority is working with the Ministry of Commerce, Industry, and Investment Promotion to update the data.

The Authority's data indicates that the number of projects under negotiation increased to 180 across various economic sectors, including medical and pharmaceutical, food and fisheries, renewable energy, petrochemical, and more. Of these, 12% are being pursued by the Authority in partnership with “Invest in Oman” and the National Negotiation Team.

During the last period, the Al Mzyuna Economic Exhibition and Forum was organized with the participation of over 100 Omani and Yemeni companies, along with other international companies. The exhibition aimed to support promising sectors and targeted investment opportunities in the zone, attracting over 3000 visitors.

Construction work began on the ACME Green Hydrogen Project, with the completion rate of the first phase reaching 6% by the end of last year. Additionally, construction work on the Vulcan Steel Project commenced, achieving a completion rate of 22% by the end of December 2024.

The multi-purpose fishing port and the fisheries and food industries complex in the Special Economic Zone at Duqm constitute an important economic tributary to the zone. Several projects related to the fishery products sector have been attracted over the past years.

The tender for the first phase of the superstructure works of the fisheries industries complex, including road networks and public services, has been launched. Work is currently underway to complete the second package, which will include a complex for food industries and meat processing, a central market, outlets selling fresh products, and commercial and administrative buildings, aiming to complete the system of services and public facilities in the fish and food complex in Duqm.

The implementation of the Cold Chain Economic Cluster project in the Special Economic Zone at Duqm is also underway, establishing refrigeration and freezing warehouses and fish processing plants to enhance In-country Value.

The Authority has allocated a site within the port to establish a veterinary quarry in coordination with the Ministry of Agriculture, Fisheries, and Water Resources, supporting the Port's ability to handle various operations related to food security projects.

Second: Economic Diversification and Financial Sustainability Priority

The Authority continues to develop economic and free zones and new industrial cities, focusing on economic diversification. In 2024, construction works for the first phase of the Muscat Airport International Free Zone began, with the completion rate reaching approximately 10% by the end of the year.

The tender for consultancy services for the detailed design and supervision of infrastructure facilities for the first phase of the integrated economic zone in Al Dhahirah Governorate was assigned to an Omani-Saudi consortium, covering an area of 6.5 square kilometers. A tender for infrastructure, land port, and veterinary quarry in the zone was also floated.

Joint efforts with the Ministry of Housing and Urban Planning resulted in the expansion of Raysut Industrial City, which recorded high occupancy rates. The total area increased to over 9 million square meters, adding about 5 million square meters. The design of these new spaces is scheduled to start this year enabling the City to start welcoming investors.

Third: Labor Market and Employment Priority

The Authority places great importance on raising employment rates in economic zones, free zones, and industrial cities. In 2024, 3597 Omani citizens were appointed to projects operating in these zones, bringing the national workforce to over 29 thousand workers. The Omanization rate stands at 37% of the total employees, estimated at about 78 thousand workers, including service providers, compared to 75 thousand workers by the end of 2023.

Industrial cities achieved the highest percentage of Omani workers, estimated at over 40%.

Fourth: Environment and Natural Resources Priority

In 2024, OPAZ completed the consultancy study for the project to develop the renewable energy zone in the Special Economic Zone at Duqm. Sur Industrial City adopted the Green Belt Project, aiming to create green areas that contribute to reducing carbon emissions. The environmental sustainability plan was implemented in Sohar Free Zone, including the air quality monitoring network project.

Fifth: Governance of the State’s Administrative Apparatus, Resources, and Projects

In line with His Majesty's directives, the Authority has initiated the unification of services provided to investors through electronic linkage with relevant government agencies, facilitating procedures and achieving greater transparency. The rates of leasing lands for heavy and medium industrial projects have been reduced to range from 250 Baisa to 500 Baisa per square meter annually.

Additional incentives have been granted to investors by reducing the rental value for several years for new projects in Ibri Industrial City, Sur Industrial City, and Mahas Industrial City. The rental value has also been reduced, with exemptions for the first years for new projects in industrial cities under construction in Al Mudhaibi, Suwaiq, and Madha.

The Authority achieved a 75% satisfaction rate in the beneficiary satisfaction index for services provided by the Authority and the zones it supervises, according to the survey conducted by the National Center for Statistics and Information for 2024. The Authority obtained 86% in the digital transformation item and 95% in the government commitment item. Additionally, the Authority's evaluation in the institutional proficiency system increased to 97.5% for 2024.

The Special Economic Zones and Free Zones Law was recently issued by Royal Decree No. 38/2025, aiming to enhance investor confidence by unifying the legislative system of these zones. The law will contribute to developing the business environment in economic and free zones, making them more attractive. It includes explicit clauses related to the requirements for granting approvals, incentives, and facilities, unifying the exemption from income tax for all zones for up to 30 years, reviewed every 10 years. The law also covers procedures for allocating land and real estate, grace periods for practicing activities in economic and free zones, regulating the issuance of labor licenses, temporary import and export to and from the zones, and transferring projects between zones. Additionally, it includes special provisions related to customs administration, determining the obligations of operators in free zones, and regulating real estate development projects within economic zones, including allowing real estate ownership.

Sixth: Sustainable Cities and Governorates Priority

The Authority continued its efforts to improve the lifestyle in the Special Economic Zone at Duqm, working on afforestation projects and expanding the green areas. The development rate of the new Sai commercial district exceeded 90%, with all complementary services provided, making it one of the newest commercial districts in the country.

To complement the procedures for developing, implementing, and supervising municipal services and public utilities for areas where public benefit status was lifted from within the zone's general plan, detailed designs have been prepared for the first phase of the main and secondary road network as part of the Authority's mandate to provide municipal services in the zone.

On the other hand, the number of students enrolled in schools in Duqm has grown by 47% during the past three years, indicating that more families are moving to Duqm.

The Authority has continued its efforts to achieve its vision of making economic and free zones and industrial cities the ideal destination for investment and implementing its strategy for institutional transformation. The Authority will shortly review the results of institutional transformation and the key indicators in the various zones it supervises.

The attention paid by the government of His Majesty Sultan Haitham bin Tariq to enhance the investment environment, develop economic zones and industrial cities, and empower the governorates economically, will strengthen the role of these zones in the next future.

The Authority continues to enhance the contribution of economic zones, free zones, and industrial cities to the GDP and create direct and indirect job opportunities. We extend our sincere thanks to all workers in these zones supervised by the Authority, and special thanks to our Omani sons and daughters working in these estates. We also appreciate all investors from inside and outside the Sultanate of Oman for their confidence in these zones and invite them to invest in industrial cities and new zones under construction.