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Salalah Free Zone ideal for local and foreign investment

Salalah- The Salalah Free Zone showcased an impressive economic performance, boasting a cumulative investment of nearly 4.5 billion Omani Rials. This underscores its appeal to both domestic and foreign investors.


The leased land in the area spans approximately 5.8 million square meters, accounting for 48 percent of the total leasable land, indicating a robust utilization of available spaces.


During the first half of 2023, the Salalah Free Zone launched several investment projects, significantly enhancing industrial activities. These projects include the “Exahertz” data processing and mining facility, the Gulf’s inaugural specialized trading factory for pastry production, and a company specializing in integrated food production, offering a diverse range of food products.

Dr. Ali bin Mohammed Tabuk, the CEO of the Salalah Free Zone, emphasized the region’s status as a major hub for import and export, serving as a leading center for high-quality industrial and logistical activities. He highlighted the substantial prosperity witnessed in 2022, with a noteworthy increase in trade and economic activities in Oman. Import volumes surged from 12 million tons in 2021 to over 42 million tons, while exports and re-exports reached about 41 million tons, compared to 3 million tons in 2021. The free zone has evolved into a pivotal hub for international trade, with the total volume of goods passing through the region reaching approximately 101 million tons.


Dr. Tabuk pointed out that the Salalah Free Zone hosts a diverse array of sectors and factories that contribute significantly to the national economy. The pharmaceutical industry is exemplified by Felix Pharmaceuticals, a company investing around 58 million Omani Rials to manufacture high-quality pharmaceutical products, ensuring the availability of top-tier medicines for patients and medical facilities in Oman and beyond.


The petrochemical sector, represented by Octal for Methanol production and OKIYO for Liquefied Petroleum Gas (LPG), plays a pivotal role in propelling the national economy forward. Octal produces methanol and ammonia, contributing to various chemical and petrochemical product manufacturing. OKIYO, operational since January 2022, significantly contributes to the production and distribution of LPG as a crucial fuel source, with a daily production capacity of around 837 tons.


In the logistics sector, SAGA develops and manages warehouses for storing and redistributing garments, textiles, and accessories, thereby enhancing the efficiency of the supply chain.


Dr. Tabuk highlighted Octal’s significant role in supporting the environmentally friendly plastic sector in the national economy. Octal produces PET sheets, resins, and high-quality packaging, shipping to more than 75 countries worldwide in 14-18 days. This meets the raw material needs of global and local industries that rely on these materials for various plastic products.


The food industries sector is one of the fastest-growing in the Salalah Free Zone, with around 25 projects. Notable companies include Oman Dairy Products Company, specializing in high-quality milk and dairy products, and Joud, the world’s third-largest producer of tahini. Additionally, there is a project for processing, freezing, and packaging fish for export, such as the Ocean Experts Fish Company.


Dr. Tabuk concluded by emphasizing that the Salalah Free Zone offers advanced facilities and incentives for investors, including tax exemptions and full foreign ownership rights for investment projects. Its strategic location near the Salalah port, overlooking major global shipping routes, positions it among the world’s top commercial ports with robust infrastructure and facilities.





Oman Daily Observer