Oman’s growing status as a regional investment hub was reinforced last year as private sector investments in the country’s free zones, economic zones, and industrial cities reached a combined $4.16 billion, according to a report by Duqm Economist Magazine, published by the Public Authority for Special Economic Zones and Free Zones (Opaz).
The Sultanate signed 325 investment agreements across six major jurisdictions, reflecting a sharp focus on economic diversification and enhanced private sector participation. While the report does not provide year-on-year comparative data, the scale of investments underscores Oman’s increasing appeal to regional and global investors.
The Special Economic Zone at Duqm led the way, attracting $2.99 billion in private funding. Following closely was the Sohar Free Zone, with investments totaling $1.85 billion. These two zones accounted for the majority of inflows, reinforcing their strategic importance in Oman’s industrial and logistical landscape.
Other key destinations for investment included:
Salalah Free Zone: $1.48 billion
Khazaen Economic City: $210.57 million
Al Mazunah Free Zone: $1.94 million
In addition, the Public Establishment for Industrial Estates (Madayn), which oversees the development and management of industrial cities throughout Oman, recorded $636.51 million in private sector investments. These contributions align with Oman’s broader strategy to enhance industrial output and reduce dependency on oil revenues.
Currently, oil accounts for about 55% of Oman’s economy, making private investment a cornerstone of the government’s economic diversification agenda. The latest IMF projections show that Oman’s real GDP grew by 1.7% in 2023, with forecasts pointing to growth of 2.3% in 2025 and 3.6% in 2026.
As the Sultanate continues its Vision 2040 roadmap, the significant inflows into free and economic zones underscore the progress being made toward building a resilient, diversified economy.
Source: agbi.com
