Oman Introduces New Law to Boost Investment in Economic Zones
The Sultanate of Oman has taken a major step to strengthen its investment climate with the introduction of the Special Economic Zones and Free Zones Law, issued under Royal Decree No. (38/2025). Announced by His Excellency Dr. Ali bin Masoud Al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones, the new law is designed to attract high-value investments, simplify business processes, and support national economic goals.
Key Highlights of Oman’s New Economic Zones Law
- Unified Legal Framework:
The law brings together all regulations, incentives, exemptions, and procedures under a single system, creating a clear and reliable investment environment across Oman’s special economic and free zones. - Strategic Investment Incentives:
New benefits and added flexibility are being offered to strategic and high-value projects, making Oman more competitive in attracting international businesses and investors. - One-Stop Business Setup System:
To streamline the investment process, the law introduces a single-window system for approvals, licenses, permits, and certificates—significantly reducing time and bureaucracy for investors. - Tax Exemptions Linked to Local Impact:
Tax relief is now strategically tied to key outcomes such as job creation, local content development, and high-value project attraction, ensuring long-term national benefits. - Real Estate Development & Freehold Ownership:
The law allows real estate developers to sell residential units on a freehold basis within special economic zones, aiming to boost population growth, housing demand, and public service development in these areas.
Why This Matters for Investors
This legislation is part of Oman’s broader efforts to become a leading investment destination in the Gulf region. By enhancing transparency, reducing red tape, and offering targeted incentives, the country is positioning itself as a hub for innovative industries, logistics, manufacturing, and real estate development.
Conclusion
With the implementation of the new Special Economic Zones and Free Zones Law, Oman is reaffirming its commitment to creating a dynamic, investor-friendly environment. The law not only supports economic diversification but also aligns with Oman Vision 2040 by encouraging sustainable and inclusive growth.
