Industrial and economic hubs power Oman's Vision 2040 goals
Muscat: Oman's free economic zones are emerging as key engines of growth, aligning closely with the national development objectives outlined in Oman Vision 2040. With a strong focus on economic diversification, sustainability, and employment generation, these zones are helping reshape the Sultanate's future economy beyond oil dependence.
According to the Public Authority for Special Economic Zones and Free Zones (OPAZ), total committed investments across special economic zones, free zones, and industrial cities reached RO 21 billion by the end of 2024, a 10 per cent increase over the previous year. These figures underscore the strategic role the zones play in attracting both local and foreign investment into high-priority sectors.
Speaking at OPAZ's annual media meeting, Shaikh Dr Ali bin Masoud al Sunaidy, Chairman, highlighted that the zones now contribute 7.5 per cent to Oman's GDP and 11.6 per cent to non-oil activities, with exports exceeding RO 4.5 billion, accounting for 38 per cent of the Sultanate's non-oil exports.
These zones are channelling investment into industries vital to Oman Vision 2040, including pharmaceuticals, food processing, fisheries, renewable energy, and petrochemicals. In 2024, 180 projects were under negotiation, with 12 per cent being advanced in partnership with Invest Oman and the National Negotiation Team.
Environmental sustainability, a core pillar of Oman Vision 2040, is also being prioritised. The Special Economic Zone at Duqm (SEZAD) is establishing a renewable energy cluster, while Sur Industrial City is developing green areas under its Green Belt Project. In Sohar Free Zone, an air quality monitoring system has been launched as part of a broader environmental plan.
Job creation remains a fundamental outcome. In 2024, 3,597 Omanis were employed in projects across the zones, raising the national workforce to over 29,000, with an Omanisation rate of 37 per cent. This directly supports Vision 2040's emphasis on developing a skilled, competitive local workforce.
To enhance the business environment, OPAZ has implemented investor-friendly reforms including reduced lease rates, streamlined licensing, and digital integration with government entities aimed at improving transparency and reducing red tape.
Quality improvements are also being realised in areas such as Duqm. The Saay Commercial District is over 90 per cent complete, while the number of students in local schools has increased by 47 per cent in three years. Plans are also under way to expand green spaces and develop tourism infrastructure.
As Oman accelerates towards its 2040 aspirations, free and economic zones remain central to national progress. Under the leadership of His Majesty Sultan Haitham bin Tarik and with OPAZ at the helm, these zones are laying the groundwork for a resilient, inclusive, and sustainable economy turning Vision 2040 into a living reality.
Caption:
Site of the expansive United Solar Polysilicon project in Sohar Freezone
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
6 hours ago
- Observer
OIA announces job creation, global partnerships, and strong returns in 2024
Muscat: The Oman Investment Authority (OIA) revealed a series of achievements and performance indicators from its 2024 operations during its annual media briefing held on Sunday. As part of its efforts to support national employment and economic diversification, the Authority announced the creation of 1,393 direct job opportunities for Omani nationals across its companies and affiliated institutions. During the event, OIA said it also completed six successful divestments, redirecting the proceeds towards new investment opportunities, thereby enhancing the sustainability and dynamism of its assets. The Authority expanded its global investment reach by allocating funds to 13 new international funds, while also establishing new strategic partnerships with both Turkey and Jordan, in line with its drive to enhance international cooperation. OIA further noted an increase in Omanisation rates, reaching 93% in the Authority itself and 77.7% across affiliated companies, underlining its commitment to empowering national talent in the investment sector. In support of local entrepreneurship, the Authority reported a total expenditure of RO 265.5 million on small and medium enterprises (SMEs) in 2024. Key financial milestones The media briefing also showcased several headline financial achievements. OIA's total assets surpassed RO 20 billion, underscoring its growing scale and investment footprint. Furthermore, profits exceeded RO 1.5 billion, reflecting strong returns on investments and prudent financial management. The Authority reaffirmed its role in contributing to the national economy, with its entities channelling RO 800 million into the state budget, helping fund development projects and essential services.
Times of Oman
7 hours ago
- Times of Oman
Boosting Omanisation in energy and minerals sectors discussed
Muscat: As part of the Shura Council's commitment to monitoring employment and Omanisation initiatives and enhancing the role of national talent in key sectors, the Youth and Human Resources Committee hosted Mohsen Hamad Al-Hadhrami, Undersecretary of the Ministry of Energy and Minerals, along with a number of ministry officials. The meeting focused on the efforts being made to empower and develop the national workforce within the energy and minerals sectors. The session, held under the chairmanship of Younis Ali Al-Mandhari, Head of the Youth and Human Resources Committee, and attended by members of the Committee, began with a comprehensive presentation by the Undersecretary. He highlighted the Ministry's role in supporting and developing employment policies, underlining the need to strengthen ties between the Ministry, employment institutions, the labour market, and educational institutions. He also outlined the key challenges facing institutions and companies operating in the petroleum sector and called for innovative solutions to boost employment and Omanisation in this strategic sector. He affirmed that the Ministry remains committed to empowering national talent and integrating them into organisations within the oil and energy sectors. Following the opening remarks, the Committee members were briefed through a presentation by a Ministry expert on ongoing efforts to enhance Omanisation rates in operating companies across the oil and gas sector, as well as in contracting and service companies. The presentation also featured an overview of the 'Energy Sector Human Resources Forum,' which serves as an important platform for exchanging ideas and experiences on strengthening national competencies. Key themes of the forum and the number of participating companies were outlined. The briefing included a detailed explanation of the 'PetroJobs' platform, which offers a comprehensive database of available jobs in the sector. Recent statistics were shared on job opportunities posted, registered users, and the nature of jobs listed. The presentation also shed light on the 'Tawteen' platform, a key initiative designed to enhance employment opportunities for citizens. Additionally, the efforts of 'Tactive Provac Oman' Institute and Oman Energy Institute were highlighted for their role in preparing Omani talent for the energy and minerals labour market. Further, the role of the Oman Society for Petroleum Services (OPAL) was addressed in supporting the Omanisation strategy. The presentation detailed the strategy for Omanisation in the mining sector, which aims to increase Omani employment in mining projects, particularly in concession areas, ensuring that local communities benefit from the resulting economic opportunities. The session included extensive discussions between the Committee members and the Undersecretary, focusing on several main topics. Key among them was the need to empower and qualify national talent for various technical and administrative roles in the energy and minerals sectors, and to increase Omanisation rates in companies operating in these areas. The discussion stressed the importance of having clear, actionable plans and initiatives to expand employment opportunities in the oil and energy sectors. The Committee also addressed the importance of coordination between the Ministry, higher education institutions, and specialised training institutes to ensure that academic outputs align with the needs of the job market in the energy and minerals sectors—particularly by training university students through institutes affiliated with the energy and minerals industries. Regarding the mining sector, the Committee emphasised the necessity of obligating companies to employ and train national talent, especially in concession areas, as part of their social responsibility towards local communities. It also called for an assessment of the quality and effectiveness of specialised training institutes in preparing and qualifying personnel for this sector. In conclusion, the Committee Chair praised the Ministry of Energy and Minerals for its efforts in supporting Omanisation policies and improving the working environment across both sectors. He stressed the importance of sustained cooperation and coordination between the Ministry and relevant stakeholders to achieve national goals related to employment and the development of Omani human resources.
Observer
a day ago
- Observer
Mahas Industrial City investments surpass RO 41 million
KHASAB: Total investments in Mahas Industrial City in Musandam Governorate have exceeded RO 41.7 million by the end of 2024, according to the Public Establishment for Industrial Estates (Madayn). The city, located in the Wilayat of Khasab, spans an area of 1.5 million square metres and has seen the completion of key infrastructure works, including a 7-kilometre road network, sidewalks, solar-powered street lighting, water and sewage networks, a water tank, a sewage treatment plant, a guard gate, and a protective channel for the main valley. Mubarak bin Salem al Ghailani, Acting Director General of Mahas Industrial City, reported that eight new projects were approved in 2024 with investments exceeding RO 2.5 million, covering more than 49,900 square metres. The city now has a total leased area of 229,600 square metres and employs around 320 people. In 2024, three building permits were issued, along with several map approvals and work permits, all in line with Madayn's regulatory framework. Eight land surveying requests were also processed. Al Ghailani also noted that construction is ongoing for the Madayn Pioneer Complex, which is intended to support startups and SMEs. Spread over 10,000 square metres, the complex will feature 10 ready-built, expandable factories, external parking, and full support facilities. Mahas Industrial City aims to attract investments in food security, logistics, and light to medium industries. Its strategic location on the Strait of Hormuz and proximity to Khasab Port, Khasab Airport, and regional markets such as the UAE and Iran offer logistical advantages for investors. — ONA
