Oman's Public Authority for Special Economic Zones and Free Zones (OPAZ) has signed investment agreements worth more than RO200 million ($519 million) to establish a portfolio of industrial projects across the Special Economic Zone at Duqm (SEZAD), Salalah Free Zone and Khazaen Economic City, thus reinforcing the Sultanate of Oman’s push to deepen industrial diversification and localise high-value manufacturing said a report.
The investment agreements cover projects across key economic sectors, including EV batteries, specialized steel, cement, and pipe manufacturing, as well as glue production, tile cutting and processing, in addition to a pharmaceutical warehouse, according to the Oman News Agency.
Qais Al Yousef, chairman of OPAZ, affirmed that the signing of these agreements “represent an important step toward enhancing economic diversification across the governorates and reinforcing Oman’s position as a regional hub for high-quality investments.
Al-Yousef explained that these projects also reflect the confidence of both local and international investors in the competitive investment environment offered by these zones.
Together, the deals highlight Oman’s strategy of positioning its economic zones as specialized industrial clusters aimed at strengthening manufacturing capacity, increasing in-country value, and advancing economic diversification under Vision 2040, stated the ONA report.
Opaz is spearheading efforts to develop these zones by attracting investment across key economic sectors and enhancing their role as integrated industrial platforms supporting national economic growth.
According to Opaz, the Khazaen Economic City added four projects worth more than RO12.8 million spanning construction materials, plastics, and pharmaceuticals.
The Public Authority for Special Economic Zones and Free Zones also signed a memorandum of cooperation with Majan Gulf Investment aimed at structuring three investment opportunities worth more than RO110 million, studying project requirements, and allocating suitable spaces for implementation, ONA reported.
The company plans to develop a number of economic and investment projects within the zones under OPAZ’s supervision, it added.
Duqm accounted for one of the largest commitments with a 41 million rial steel mold manufacturing project, aimed at meeting the growing demand in the region, driven by construction and infrastructure activity, while also reducing imports and increasing in-country value, stated the report, citing Abdul Latif Mohammed Al-Shaya, CEO of Al-Shaya Group.
Al-Shaya added that Duqm offers structural cost advantages and logistical flexibility, placing the project in a strong position to benefit from future green hydrogen initiatives.
The initiative aims to meet growing regional demand for steel molds driven by construction and infrastructure activity, while reducing imports and increasing in-country value, it added.
The new industrial facility will use Electric Arc Furnace technology, which has lower carbon intensity compared to traditional steel production, said the ONA report.
Commercial production is expected to begin in 2028, with output projected at 306,000 tons in the first year, rising to 342,000 tons annually by 2030, it added.
