Published On 4/26/2026
The Sultanate of Oman signed investment agreements worth more than 200 million Omani riyals ($521 million) to establish new industrial and logistics projects in the Duqm Special Economic Zone, the Salalah Free Zone, and Khazaen Economic City, in addition to a memorandum of cooperation to frame 3 new investment opportunities, according to the Oman News Agency.
The agreements include projects in the sectors of electric car batteries, steel, cement, pipes, glue production, and tile cutting and processing, in addition to a pharmaceutical warehouse, in a move that the General Authority for Special Economic Zones and Free Zones said comes as part of efforts to attract new investments and localize specific projects that support economic diversification.
steel project
The agreements included the establishment of a steel molds factory in the Duqm Special Economic Zone by Alshaya Group, with investments amounting to 41 million riyals ($107 million), and a production capacity of 306 thousand tons annually in the first phase.
The Oman News Agency quoted the CEO of Al Shaya Group, Abdul Latif Muhammad Al Shaya, as saying that Duqm was chosen because of its strategic location as a multi-sector industrial center linked to the Port of Duqm overlooking the Arabian Sea and the Indian Ocean, in addition to the industrial infrastructure and investment incentives.
The project is expected to begin commercial production in 2028 with a production volume of 306,000 tons during the first year, increasing to 342,000 tons annually by 2030, according to the agency.
The Special Economic Zone at Duqm, according to the General Authority for Special Economic Zones and Free Zones, is the largest special economic zone in the Middle East and North Africa. It extends over an area of 2,000 square kilometers and overlooks an open sea off the Indian Ocean and global shipping lines.
Car batteries
In Salalah, an agreement was signed to establish a project to manufacture active anode materials used in lithium batteries for electric vehicles in the free zone, at an investment cost of 35 million riyals ($91 million), implemented by the “GFCLEV Advanced Materials” company.
The project is the company’s second investment in the electric vehicle sector within the Salalah Free Zone, after it signed an agreement last year for the advanced chemicals project for electric batteries.
The Omani Agency quoted the CEO of the Salalah Free Zone, Ali bin Muhammad Tabuk, as saying that the total cumulative investment volume for active projects in the Salalah Free Zone amounted to 4.5 billion riyals ($11.7 billion), and that industrial projects account for approximately 93% of the total investments.
The Authority describes the Salalah Free Zone as a “global center for industries and logistics on the Arabian Sea,” extending over an area of 21.6 square kilometers, taking advantage of Salalah’s location on the Indian Ocean.
Economic city
Khazaen Economic City signed 4 new investment agreements in the manufacturing and pharmaceutical industries, with a total investment exceeding 12.8 million riyals ($33.3 million).
The first agreement included the establishment of a factory for the production of glue, and a unit specialized in cutting and preparing tiles, with investments amounting to 6 million riyals ($15.6 million) by Al-Fedan International Company.
The second agreement included the establishment of a factory specialized in manufacturing infrastructure products, landscaping, and cement, with an investment of 5 million riyals ($13 million) by Al-Qimam Trade and Industry Company.
The agreement included the establishment of an advanced pharmaceutical warehouse to be implemented by the High Seas Investment Company at a cost of 1.2 million riyals ($3.1 million), and a factory for the production of polyethylene and polyvinyl chloride pipes at a cost of 600 thousand riyals ($1.6 million) by the Virgin Forests Trading Company.
The General Authority for Special Economic Zones and Free Zones and Majan Al Khaleej Investment Company also signed a memorandum of cooperation to frame 3 investment opportunities, the size of which exceeds 110 million riyals ($286 million), and to discuss the requirements of the projects that Majan Company intends to implement in the areas supervised by the Authority.
It is noteworthy that the General Authority for Special Economic Zones and Free Zones in the Sultanate of Oman supervises a system that includes the Special Economic Zone in Duqm, the Free Zone in Salalah, the Free Zone in Sohar, the Free Zone in Al Mazyouna, and Khazaen Economic City, in addition to other industrial areas and cities.
The total volume of committed investment in the areas supervised by the Authority reached 22.4 billion riyals ($58.3 billion) by the end of 2025, after recording new investments of about 1.4 billion riyals ($3.65 billion) during the same year, a growth of 6.8% compared to 2024.
