JEDDAH: Oman has signed investment agreements worth more than 200 million Omani rials ($520 million) across its free zones, supporting its push to build an export-oriented industrial base spanning EV materials, steel, construction products and pharmaceuticals.
The agreements, signed by the Public Authority for Special Economic Zones and Free Zones, also known as OPAZ, cover projects in the Special Economic Zone at Duqm, Salalah Free Zone, and Khazaen Economic City, reinforcing the Sultanate’s drive to attract higher-value industrial investments and deepen its role in regional supply chains.
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,” the ONA report stated
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.
He further noted that “these agreements are an extension of ongoing efforts to attract high-quality investments and strengthen strategic partnerships, emphasizing that the coming phase will witness an acceleration in the implementation of industrial projects with high economic impact,” ONA said
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.
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.
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, according to ONA, 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.
He explained that 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.
He added that the new industrial facility will use Electric Arc Furnace technology, which has lower carbon intensity compared to traditional steel production.
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, as per ONA.
Meanwhile, SFZ secured a 35 million rial investment in active anode materials for electric vehicle batteries.
The project will be developed by GFCL EV Advanced Materials and represents the company’s second investment in the EV sector in the Salalah Free Zone, following last year’s agreement to establish a project for advanced chemical materials for electric batteries.
CEO of the SFZ, Ali Mohammed Tabouk, said the agreement marks a strategic step in strengthening the zone’s position as a regional hub for advanced industries, particularly clean energy, and electric vehicle technologies.
He added that attracting a $90 million project, covering more than 186,000 sq. meters, reflects global competitiveness, investor confidence, and the strength of the zone’s infrastructure and focus on high value-added industries.
The project comes amid a growing investment ecosystem, with the total cumulative value of active projects in Salalah Free Zone reaching around 4.5 billion rials, according to the ONA.
The agency added that industrial projects account for about 93 percent of total investments, underscoring a strategic focus on building an advanced industrial base supported by integrated commercial and service activities that enhance efficiency and sustainability.
Khazaen Economic City added four projects worth more than 12.8 million rials 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 110 million rials, studying project requirements, and allocating suitable spaces for implementation,” ONA reported.
It added that the company plans to develop a number of economic and investment projects within the zones under OPAZ’s supervision.
Said Khalifa Al-Quraini, director general of investment development at OPAZ, said recent years have seen strong efforts to attract new investments, with total funding in the zones reaching 22.4 billion rials by the end of 2025, an annual rise of 6.8 percent.
