SOHAR Port and Freezone announces USD 23 million expansion to meet soaring demand
SOHAR Port and Freezone, one of the world’s fastest-growing integrated economic zones, has announced a USD 23 million expansion of its freezone to accommodate rising demand from prospective tenants. With the first phase of the freezone nearing full occupancy, this new development reflects the growing appeal of SOHAR as a strategic hub for global trade and investment in Oman.
The expansion will cover 500 hectares of leasable land and includes the construction of key infrastructure: a 15 km road network, 7.5 km flood protection system, 30 km stormwater drainage, five emergency exits, and a 9 km security fence. In line with the country’s commitment to In-Country Value (ICV), over 85 percent of the project’s components will be sourced from local contractors and suppliers, further strengthening Oman’s domestic supply chain.
The project will commence with the General Design Services Package, followed by construction to deliver additional leasable land for new and expanding businesses.
Mohammed bin Ali Al Shizawi, Acting CEO of SOHAR Freezone and VP of People and Support Services, commented:
“This expansion is a key step in enhancing our capacity to support the region’s economic growth. As Oman advances towards the goals of Vision 2040, we are committed to building the infrastructure and economic zones that will attract global investments and talent. By strengthening our position as a business hub, we aim to contribute to Oman’s long-term economic development and create shared opportunities for growth and prosperity.”
The expansion is further bolstered by the issuance of Royal Decree No. 38/2025 by His Majesty Sultan Haitham, enacting the Law of Special Economic Zones and Free Zones. This legislation enhances the legal and regulatory framework governing free zones in Oman, making them more competitive and attractive to foreign investors.
Strategically located at the intersection of global trade routes connecting Asia and Europe, SOHAR Port and Freezone has already attracted over USD 30 billion in investments. Its unique setup—an integrated complex with a single management structure and a 14-minute bonded corridor between the port and freezone—ensures operational efficiency and seamless logistics.
SOHAR Freezone caters to a wide array of industries including logistics, petrochemicals, metals, chemicals, general trading, automotive, and plastics, offering end-to-end services in warehousing, transportation, and industrial support.
The new expansion is a cornerstone of SOHAR’s mission to drive economic diversification, support sustainable development, and foster innovation. By integrating digitalisation and sustainable practices, the freezone aims to enhance supply chain resilience and deliver long-term value for both local communities and international investors—solidifying its role as a central pillar in Oman’s evolving economic landscape.
For more information visit www.soharportandfreezone.om
14 April 2025