Oman to establish two economic freezones in its Khazaen Economic City

Oman will establish two economic freezones in its south governorate Al Batinah called Khazaen Economic City, following two royal decrees issued by Oman’s Sultan Haitham, according to a tweet from Oman News Agency. The two freezones will fall under the supervision of Oman’s Public Authority for Special Economic Zones and FreeZones. The news agency did not disclose the timeline for the development and completion of the zones.

What we know: One of the zones will be used for light and medium industries and logistical activities, while the other will focus on business and trade, and offer customs and tax exemptions, according to the news agency. While the exact investments for the freezones was not disclosed, Khazaen was able to attract 100 investment agreements valued at OMR 300 mn, the news agency said.

Who’s involved? Oman Logistics Company — the operator of Khazaen Economic City — will operate the two new freezones. Khazaen Economic City Company, the economic city’s developer, will develop the two freezones, according to a tweet by the news agency.

About Khazaen Economic City:Khazaen is the trade, logistics and industrial hub of Oman and the largest development zone connected to Muscat, located on a 52 mn sqm land on the Muscat-Batinah Expressway. The “integrated economic city” includes an inland dry port, freezone, logistics and warehousing facilities, commercial, residential and mixed use developments, the news agency said. The development of Khazaen is reportedly set to be completed over two stages, with the first phase providing 3.2 mn sqm of leasable space for various sectors, Mubasher writes.

Oman — along with other GCC countries — is working to diversify its sources of income: Oman is striving to stimulate its economic growth by enhancing its logistics and industrial development, maximizing private sector participation within the county’s development, and attracting global and regional investments, according to the state agency.