Salalah Free Zone: The gateway to unprecedented investment opportunities in the Middle East

By Energy Connects

Nov 01, 2024

Salalah Free Zone (SFZ) emerges as a standout destination for investors in the essential sectors like energy, petrochemical, mining, and pharmaceuticals. Part of Asyad Group, SFZ combines a strategic location, robust infrastructure, and investor-friendly policies to create the ideal environment for expanding operations in the Middle East

A Strategic Crossroads

SFZ is situated on Oman’s southern coast at the intersection of major shipping routes between East and West, enabling businesses to reach most global ports within two weeks, reducing costs, and providing access to emerging markets.

Proximity to key transport hubs accentuates this advantage. The Port of Salalah, five kilometers away, is renowned for high-capacity container handling as one of the region’s busiest cargo facilities. With over 50 weekly sea connections, it is invaluable for maritime logistics, particularly importing raw materials and exporting finished goods. Salalah Airport is 12 kilometers away, providing air freight services with 28 weekly air connections. Direct trade routes to the GCC, India, and Africa are particularly noteworthy for investors seeking new and optimized supply chains.

Investor-Centric Infrastructure

SFZ provides an industrial ecosystem tailored to diverse sectors. With over 12 million square meters of leasable land—only 46% occupied—the zone offers ample space for ambitious investments.

The zone’s exceptional resource networks offer reliable energy through direct connections to Salalah Gas Supply and Dhofar Electricity Generating Company, and uninterrupted water supply from the Salalah Main Reservoir and a private desalination plant. The on-site liquid bulk terminal, with a 4.5 million-tonne capacity currently at 50% utilization, presents significant growth potential for industries relying on bulk liquid handling or exports.

Each of SFZ’s facilities are modern and customizable. State-of-the-art warehouses, Light Industrial Units (LIUs), and office spaces can be tailored for each business to maximize efficiency.

Sector-Specific Opportunities that Maximize ROI

SFZ focuses on several high-growth sectors offering opportunities for substantial returns:

Energy and Petrochemical: Abundant natural gas resources and existing pipeline infrastructure provide competitive advantages in producing like EPT, methanol, ammonia, LPG, and more..

Green Hydrogen and Renewables: Oman’s commitment to net-zero emissions by 2050 dovetails with SFZ renewable energy initiatives. Investors can leverage existing green ammonia production facilities and ideal conditions for solar and wind farms.

Mining: Rich in oil, copper, marble, limestone, gypsum, and chromium, SFZ’s infrastructure supports every stage from extraction to export, enabling investors to fully reap these resources.

Pharmaceuticals: Backed by the Ministry of Health, SFZ offers specialized facilities with customizable features like temperature control, essential for pharmaceutical storage and distribution.

Food Processing and Agriculture: Government initiatives like the Nejd project support food security solutions. Plus, food processing investors can benefit from abundant local resources and proximity to key regional markets.

Robust Government Incentives

The Omani government supports SFZ investors through a range of attractive incentives, including a 30-year tax exemption (including VAT), full foreign ownership, and 0% customs duties. Additionally, SFZ’s one-stop-shop services cover licensing, visas, and customs. Companies can also obtain work permits for up to 80% foreign labor, ensuring access to preferred professionals.

Leveraging government-backed initiatives that contribute to Oman’s goal of net-zero emissions by 2050, SFZ is at the forefront of green hydrogen development. This provides opportunities for companies committed to clean energy, reducing their carbon footprints, and lowering operational costs.

Established Success with Untapped Potential

SFZ, home to 145 companies and 64 active projects, sets the stage for a prosperous future. With 56% industrial, 14% logistical, and 30% commercial projects, and USD 12 billion in investments generating around 2,998 direct jobs, the free zone demonstrates strong investor confidence.

The inauguration of export-oriented projects in foods, petrochemicals, and mining worth USD 60 million further underscores the zone’s thriving development potential.

Yet, the true opportunity lies in what’s untapped. With ample leasable land and underutilized facilities like the liquid bulk terminal, investors can secure prime positions in this growing hub before it reaches full capacity.

Investing in SFZ

Salalah Free Zone stands out as an ideal choice for investors in energy, petrochemicals, mining, and more. Its strategic location minimizes logistical costs while robust infrastructure meets diverse industry needs. Coupled with attractive government incentives and sector-specific opportunities aligned with global trends, SFZ offers unmatched potential for maximizing returns on investment.