Wedoany.com Report on Feb 6th, The Salalah Free Zone, located in southern Oman, is one of the country's key investment areas and is part of the Asyad Group. Situated adjacent to the Port of Salalah and on the vital maritime route connecting Europe, Asia, and Africa, it boasts comprehensive infrastructure and a favorable business environment, playing a crucial role in promoting Oman's industrial diversification.
The Salalah Free Zone enjoys a significant locational advantage, being positioned on the main shipping route from Rotterdam to Singapore. With over 50 weekly shipping lines, it facilitates petrochemical companies in reducing transportation time, lowering logistics costs, and gaining swift access to global markets. As a major regional transshipment hub, the Port of Salalah is equipped with specialized liquid terminals and deep-water berths, ensuring the efficient and safe transportation of petrochemical products to various destinations.
The zone covers an area of over 12 million square meters, providing industrial land suitable for heavy industries, supported by uninterrupted supplies of natural gas, electricity, and freshwater. A dedicated 4.5-kilometer pipeline directly connects petrochemical production facilities to the port's liquid terminals, enabling efficient transport of raw materials and finished products.
Proximity to local sources of petrochemical feedstock is another strength of the Salalah Free Zone. Existing companies within the zone produce key raw materials such as ammonia, liquefied petroleum gas (LPG), and methanol. This provides downstream investors with a stable supply of feedstock, helping to form a complete value chain, reduce import dependence, and enhance product competitiveness.
The Salalah Free Zone is seamlessly integrated into Oman's logistics network. The Port of Salalah handles millions of tons of bulk cargo annually, supported by advanced storage and pipeline systems. The nearby airport offers 28 international flights per week, facilitating the transport of high-value goods. A multimodal transport network provides petrochemical investors with comprehensive logistics solutions, from raw material import to finished product export.
Oman's investment policies create a favorable environment in the Salalah Free Zone. Investors can benefit from a 30-year tax exemption, zero customs duties, zero value-added tax, 100% foreign ownership, and profit repatriation incentives. A one-stop service center simplifies processes such as company registration and licensing. The zone allows for up to 80% foreign employees, making it easier for companies to access specialized talent.
The development of the Salalah Free Zone aligns with Oman Vision 2040, supporting economic diversification and sustainable growth by expanding the manufacturing base, promoting value-added production, and attracting international cooperation. The zone is actively integrating green hydrogen and ammonia projects, building a bridge between traditional petrochemicals and clean energy.
Leveraging its strategic location, feedstock supply, infrastructure, and policy support, the Salalah Free Zone is emerging as a significant platform for the regional petrochemical industry. Driven by the Asyad Group's logistics network and the national development vision, the zone offers petrochemical manufacturers and downstream investors an efficient and well-connected operational environment.
