In a bold move to accommodate increasing interest from global and regional investors, SOHAR Port and Freezone in Oman has revealed a USD $23 million expansion project. The development will add 500 hectares of leasable land, further reinforcing the site’s reputation as a rising economic hub at the heart of international trade routes.
With the initial phase of the freezone nearing full capacity, the growing demand for business-ready land has compelled SOHAR authorities to accelerate the expansion. Prospective tenants from diverse sectors have shown strong interest in setting up operations, driving the urgency for more infrastructure and industrial-ready land.
Massive Infrastructure Plan Backed by Local Supply Chain
The new phase of SOHAR Freezone will feature comprehensive infrastructure, including a 15-kilometer internal road network, 7.5 kilometers of flood protection systems, and 30 kilometers of stormwater drainage channels. Additional facilities will include five emergency exits and a 9-kilometer security fence, ensuring safety and accessibility for all operations.
A significant portion of the project—over 85%—will utilize local contractors and suppliers, thereby reinforcing Oman’s in-country value (ICV) strategy. This approach not only strengthens the domestic supply chain but also provides direct economic benefits to the local community.
Initially, the General Design Services Package will be initiated, after which construction will begin to deliver leasable land to prospective businesses.
Strengthened Legal Framework Enhances Investment Climate
The expansion efforts align with Oman’s Vision 2040 and gain momentum following the issuance of Royal Decree No. 38/2025 by His Majesty Sultan Haitham. This decree enacts the Law of Special Economic Zones and Free Zones, which enhances the legal and regulatory ecosystem for investment. With these new legal provisions in place, Oman’s free zones are expected to become even more appealing to foreign investors seeking a stable and forward-thinking environment.
Strategic Location Fuels Global Trade Connectivity
Strategically situated at the junction of key global maritime routes between Europe and Asia, SOHAR Port and Freezone has already attracted more than USD $30 billion in investments. Its integrated management structure allows for a seamless operational environment, including a bonded corridor between the port and the freezone that enables goods to move in just 14 minutes—a significant logistical advantage for import-export businesses.
Leadership’s Vision for Growth and Sustainability
Mohammed bin Ali Al Shizawi, Acting CEO of SOHAR Freezone and Vice President of People and Support Services, emphasized the strategic intent behind the expansion:
“This initiative is a milestone in our mission to empower Oman’s economic development. By expanding our capacity and upgrading infrastructure, we are creating an environment that attracts world-class investments and nurtures innovation. As we align with Vision 2040, SOHAR Freezone is poised to become a hub of opportunity and transformation.”
A Thriving Hub for Diverse Industries
SOHAR Freezone already supports a wide range of industries including petrochemicals, automotive logistics, warehousing, general trading, plastics, chemicals, and metals. The new expansion is expected to bolster these sectors and pave the way for emerging industries to flourish.
The freezone offers businesses not only physical space but also vital services, digitalized systems, and a business-friendly environment that promotes operational efficiency and sustainable practices.
Commitment to Innovation and Community Impact
Sustainability and digital transformation are integral to SOHAR Freezone’s ongoing development. The expanded area will include smart infrastructure solutions to improve supply chain efficiency and environmental performance. By fostering a balance between industrial progress and ecological responsibility, SOHAR is establishing itself as a forward-thinking model for economic zones in the region.
Furthermore, the freezone’s emphasis on local engagement ensures that the benefits of development are shared with the wider Omani community. Employment generation, knowledge transfer, and community growth remain top priorities as the expansion unfolds.
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