Free Zones in Oman

Oman encourages the setup and operation of foreign business in its Free Trade Zone which entitle such business with special incentives, merits and facilities according to the Free Zones Law. There are four operational free zones in Oman at the northern industrial city of Sohar, next to the southern port of Salalah, at Duqm in the central coastal area and at Mazunah, close to the Yemen border.

1- Sohar Port and Free Zone

SOHAR Port and Free Zone is a deep-sea port and free zone in the Middle East, situated in the Sultanate of Oman, 220km northwest of its capital Muscat. The development of the 4500 hectare Free Zone is planned in five phases. Due to its fit-to-suit incentives and value propositions, The Free Zone is an ideal location for investors in the following clusters: semi-finished iron and steel products, plastics and rubber; ceramics; chemicals, food and perishables, white goods and furniture; and the automotive industry. The Sohar Free Trade Zone has attracted 14 foreign companies, which have invested in metals, minerals and logistics. Other sectors covered include oil and gas, light manufacturing, chemicals and food processing. In May 2013, the zone announced it was expecting $450m in investments over the next year, with $250m from India.

Facilities The zone affords easy access to the East African coast and the Indian subcontinent, and offers plentiful land on which to build units. The first 500-hectare phase of the zone has already been developed, with a further 4500 hectares planned.

Benefits 100 per cent foreign ownership (minimum two shareholders);

10-year exemption from corporate tax;

No customs duties;

No restrictions on sales within the GCC; a standard 5 per cent GCC customs duty applies;

Minimum Omanisation levels of 15 per cent;

Single-window licensing procedure.

Industries Metals and steel;

Food;

Light manufacturing and assembly;

Logistics and trade.

Contacts: SOHAR Industrial Port Company PO Box 9, Postal Code 327 Sohar, Sultanate of Oman Tel: +968 26852700 Fax: +968 26852701 Web: www.freezonesohar.com

2- Salalah Free Zone

It is an advanced and important step towards the establishment of the free zone in Salalah Port after studies have proved its value and advantages. That step was exemplified by signing an understanding memorandum related to the development of the first stage of free zone project with Salalah Company of Ports Service. The first phase of this free zone is complete, with further phases of development planned. The second phase, to be completed in 2015-20, will focus on developing sectors within the zone, while the third phase, due to be finished in 2025, will expand the zone’s infrastructure and facilities. The zone is supporting the development of a new sea-air cargo corridor, in partnership with Oman Air and Salalah port. Thus, the free zone advantages extend to Dhofar region; hence, it serves a fundamental goal of the government which is the regional development. Now the operator of Salalah free zone is Salalah Companies for Free Zones.

Facilities The Salalah Free Zone offers office space for rental, as well as business ‘incubators’ within its newly opened headquarters. There is also access to a deep sea port and international airport.

Benefits

100 per cent foreign ownership;

30-year tax holiday on profits and dividends;

No corporate or personal income tax;

No restrictions on the repatriation of capital or profits;

No customs or excise duties;

No minimum capital requirements;

Competitive labor and utilities costs.

Industries

General trading license: import, export, distribution and storage;

Trade license: import, export, distribution and storage of specific items;

Industrial license: manufacturing, import of raw materials and export of finished products;

Service license: completion of specified services.

Contacts: PO Box 87, PC 217 Al-Awqadain, Oman Tel: +968 2 321 2999 Fax: +968 2 321 2998 Email: info@sfzco.com Web: www.sfzco.com

3- The Duqm Special Economic Zone Authority (SEZAD)

The free zone comprises a sea port, industrial area, town, fishing harbor, tourist zone, logistics centre and an education and training zone. It has a land area of 1,777 square kilometers and 80km of coastline. The first phase of Duqm port is complete and will handle containers and bulk cargo. Its commercial quay can accommodate eight vessels. A 1km-long government quay is also under construction and, when complete, will accommodate the Royal Navy, Coast Guard and fast ferries. This zone also houses a dry dock (two docks of 410 meters each), plus 2.8km of quayside for ship repairs. Duqm airport is scheduled to begin operation in 2015, with a prospective capacity of 500,000 travelers a year. It will have a 4km runway and a cargo terminal with 50,000 tones of capacity. A total of 365 sq km has been allocated for use by industrial and logistics firms.

Benefits

No personal income tax;

Long-term leases and reduced rates;

No restrictions on foreign ownership;

No minimum investment capital;

Waivers and reduction of corporate tax and customs duties;

100 per cent repatriation of capital and profits.

Industries

Industrial estates;

Warehousing and logistics villages;

Tourist villages and resorts;

Commercial, office and residential complexes.

Contacts PO Box 25, PC 103 Bareeq al-Shatti, Oman Tel: +968 2 200 0088 Fax: +968 2 200 0099 Email: info@duqm.com Web: www.duqm.gov.om

4- Al-Mazunah Free Zone

Free Zone in Al Mazunah started operation in November 1999. It is located in Dhofar governorate near the Yemeni borders which is only 260 km from Salalah and 245km from Al Ghedha, 500 km from Saon which are the 2 nearest towns to the sisterly Republic of Yemen. The area is located outside the borders of Omani customs. Therefore, the goods can enter to Mazunah without taxes. The investors also can enter the area without a visa or complete the border's procedures between Republic of Yemen and the Sultanate of Oman. The Mazunah area provides excellent chances for those who are interested in trading between Oman and Yemen or establishing storage utilities. There are commercial shops and exhibitions in the area, in addition to the general storage and other utilities plus communication services and the essential setup services such as electricity, water, and roads. Benefits

Omanisation rates of 10 per cent;

Customs duty exemption;

Exemption from commercial agency law;

30-year income tax holiday;

100 per cent capital ownership;

Yemeni employees can work without visas;

No minimum investment required;

Imported goods can be sold into the larger Omani market. Industries

Industrial: factories, food, plastics, textiles and maintenance;

Commercial: trading and storage of goods, cars and spare parts, livestock, food, machinery and equipment;

Supporting services: transport and logistics, distribution and clearing, handling and commercial correspondence.

Contacts: Al-Mazyunah Free Zone Tel. +968 23382222 Fax +968 23382229 E-Mail: mohd.rafeet@peie.om /mfznet3@peie.om Head Office in Knowledge Osis Muscat Tel. +968 24155100 E-Mail: info@peie.om Website: http://portal.peie.om/mfz/

Industrial Estates in Oman Oman is home to 9 industrial estates operated by the Public Establishment for Industrial Estates

(PEIE). The first, at Rusayl, was opened in 1983 and inaugurated in 1985. All nine estates cover an

area of approximately 88,300 million sq m.

The PEIE offers packaged facilities and services, including land and buildings for industrial

development, nearby hotel accommodation for guests and staff, restaurant and banking facilities,

telecommunications infrastructure, and convenience and retail stores.

Incentives include 100 per cent foreign share capital, a five-year tax holiday and no personal income

tax, exemption from customs duties, special loan terms for joint government projects in agriculture,

fisheries, health and traditional handicrafts, and export credit insurance.

PEIE’s Corporate Objectives

Recognize our employees' talents and contributions, and empowering them to achieve their

full professional potential;

Assist the companies to prosper in the competitive world of the global marketplace;

Establish Oman as a vibrant business destination based on our abundant natural, cultural

and human resources and create meaningful employment opportunities for nationals;

Develop industrial estates and high-tech office accommodations that meet the needs of

today’s Knowledge-driven businesses;

Maintain sustainable business climate that attracts and generates investment.

PEIE provides packaged facilities and services, including:

Good and eco-friendly locations;

Strong connections - well established economic, social and cultural ties with the Middle East,

the Indian sub-continent, Africa, Far East, Europe and the USA;

Land and buildings available for bespoke industrial development;

100% foreign share capital for companies in Knowledge Oasis Muscat;

Community spirit;

Excellent telecommunications;

Close by modern and quality hotel accommodations for visiting clients and staff;

Restaurant and banking facilities;

Convenience and retail stores.

1- Rusayl Industrial Estate

Rusayl Industrial Estate is situated 45 km from Muscat and occupies 7.9 Million square meters. Established in 1983, Rusayl is Oman’s flagship industrial estate. From its initial 12 factories, Rusayl is now a bustling estate with 211 factories. Factories in operation produce a wide spectrum of consumer as well as industrial-oriented products, ranging from: chemicals; batteries; electrical and building materials; fiber optic cables; foodstuff; textiles; garments; stationery; and paints. As on all PEIE managed-estates, Rusayl provides its tenants with first class facilities and services, these include: factory and office space; electricity; water; gas; telecommunications; sewage treatment; disposal of solid and other waste; housing; internal and external road networks; mosques; banks; restaurants; supermarket; post office; and clinic. Rusayl is also home to offices of the Customs Department and Royal Oman Police.

Contacts: Mohseen Al Hinai - Director General Rusayl Industrial Estate PO Box 2, 124, Rusayl Tel: (+968) 24 44 96 00 Fax: (+968) 24446349

2- Sohar Industrial Estate

Sohar Industrial Estate covers an area of 21,674,348 sqm, of which 10,730,000 sqm have been developed and subdivided into 226 plots. Established in November 1992, and ideally located mid-way between Muscat (200 km) and Dubai (180 km) Sohar – Oman’s garden city – offers tenants easy access to domestic as well as international markets. The estate is home to 60 businesses, 35 units under construction and a further 55 are expected to come on stream in the near future. On the estate’s doorstep is Sohar Port, a large three-phase project which began late-1999. The Daewoo Corporation completed the construction of a breakwater and Hyundai Engineering & Construction, executed the dredging and reclamation at the port. Turkey’s STFA Construction is building an 850-metre long quay. In time, the Port will boast cargo and container berths and two liquid cargo berths, to be used for oil, as well as a 260-metre quay for the upcoming fertilizer plant. Moreover, there are plans to erect a fourth for the aluminum smelter project. The harbor will have a depth of 17 meters, deep enough to accommodate fifth generation container vessels which are currently coming into service. Indeed, the Port has generated considerable international interest in Sohar Industrial Estate. Production on the estate includes: marble; paper recycling; foodstuffs; detergents; leather; furniture; toothpaste; beverages; ice cream; resins; glass, steel bars; and engine oil. Contact: Eng. Abdul Kadir Salim Al Balushi - Director General PO Box 1, 327, Sohar Tel: (+968) 26 700 907 Fax: (+968) 26 75 1307

3- Raysut Industrial Estate

Established in November 1992, Raysut Industrial Estate is located in Oman's southern region of Dhofar. The estate covers an area of 3,069,607 sqm, including warehouse facilities of 30 hectares. Sixty three hectares of the estate have already been developed and are serviced and subdivided into industrial plots ranging from 1,350 to 11,000 sqm. Raysut Industrial Estate is four km from the strategically placed Port Salalah, the only port between Europe and Singapore that can accommodate the S-class – the world’s largest class of container vessel. The Port is in a position that offers easy access to the Gulf, the Red Sea, the Indian Ocean and the east coast of Africa. It is, therefore, in an ideal position for ships sailing between the east coast of the US, Europe and the Far East. With plans to establish a free zone adjacent to the port, there is the potential to make Salalah a major air-sea cargo hub and centre for industrial development, capable of handling next generation container ships of 10,000 - 12,000 TEU containers. Indeed, given the Port’s development, as well as plans to initiate a free zone, Raysut Industrial Estate’s popularity with international investors has seen a marked increase. As a result of this, the government is expanding the Estate and has begun to supply it with subsidized natural gas. Raysut Industrial Estate is home to manufacturers producing a range of products, such as: school stationery, box files, ice, fish processing, frozen chickens, PVC pipes, steel fabrication, medical supplies, solar heaters, flour, fertilizer and vegetable oil. Contact: Mr. Said bin Ali Al-Mashani Director General PO Box 2317, 211, Salalah Tel: (+968) 23 21 8300 Fax: (+968) 23 21 9221 E-mail: raysut@peie.com

4- Sur Industrial Estate

Sur Industrial Estate is situated in the Al Sharqia region, 300 kilometers from Muscat. The estate was established in 1999, covers an area of 36,10 Million square meters and boasts a deep water harbor. Major tenants on the estate include: Oman LNG, the National Gas Company and the newly created - US$969 million project - Oman India Fertilizer Company (OMIFCO). Given the nature and international stature of the estate’s key tenants, Sur is rapidly developing expertise and competitive advantage in the area of natural gas and its associated industries and services. Contact: Eng. Abdullah Khamis Al-Mukhaini Director General PO Box 959, 411, Sur Tel: (+968) 25 56 22 92 – 25 56 22 93 Fax: (+968) 25 56 22 90 E-mail: sur@peie.om

5- Nizwa Industrial Estate

Inaugurated in November 1994, Nizwa Industrial Estate is located in Oman’s interior, 180 Kilometres from Muscat and covers 3,097,935 Million square meters. Nizwa Industrial Estate plays a pivotal role in accelerating industrial development in Oman’s Al-Dakhliya, Al-Wusta and Al-Dhahira government. With the recently completed Muscat-Nizwa dual carriageway, the estate offers tenants rapid access to Muscat, the capital’s Seeb International Airport and Mina Sultan Qaboos Port. The estate is home to manufacturers producing: ceramics; plastics; medical products; plywood; tea packaging; mineral water; water tanks; ferrous casting; oil services and foodstuffs.

Contacts

Hamad Al Qasabi - Director

PO Box 998, 611, Nizwa

Tel: (+968) 25 44 90 89

Fax: (+968) 25 44 9119 E-mail: nizwa@peie.com

6- Buraimi Industrial Estate

Buraimi Industrial Estate was established in 1998 and occupies a total area of 5.5 million square meters. Buraimi is located in the Al-Dhahira government in the western part of the Sultanate and occupies a strategic business location on the border with the UAE. Given the estate’s geographical location - easy and rapid access to air and seaports in both Oman and the UAE - it offers tremendous opportunities to tenants wishing to exploit either domestic or/and emerging B-2-C and B-2-B markets particularly in the Gulf region and Central Asia. Contacts Eng. Abdullah Salim Abdullah AlKabi - Director General PO Box 525, 512, Buraimi Tel: (+968) 25 65 77 00 Fax: (+968) 25 64 20 33 E-mail: Abdullah.alkabi@peie.om, buraimi@peie.om

7- Al-Mazunah Industrial Estate

This estate sits inside the Al-Mazunah Free Zone, near the border with Yemen. Yemeni employees can work in the zone without a visa, and workers can cross into the estate without the usual border procedures. Al-Mazunah assists with trading and warehouse facilities. Contacts Mohammed Ahmed Rafeet - Assistant General Manager of Al Mazunah Free Zone Tel. +968 23382211 Fax. +968 23382229 Email: mohd.rafeet@peie.om mfznet3@peie.om Website: www.mfz.om

8- Smail Industrial Estate Smail Industrial Estate is located in the wilayat of Smail in Al Dakhiliyah governorate, about 45 km away from Muscat International Airport. It occupies an area of 7.4 million square meters. The establishing of Smail Industrial Estate was first announced in 2010, and the number of investors who have signed leases has reached more than 130 investors. Significant efforts are being made by the management of the Public Establishment for Industrial Estates to accelerate the implementation of infrastructure projects for Smail Industrial Estate. Contacts Dawood Salim Alhadabi - Assistant director Manager PO Box 400,615, Smail Tel: (+986) 25362000 Fax: (+986) 25362050

9- Knowledge Oasis Muscat (KOM) Opened in 2003, Knowledge Oasis Muscat (KOM) is the Sultanate of Oman’s flagship technology park. KOM symbolises successful public-private partnership in nurturing knowledge-based businesses. KOM is committed to creating an environment in which budding entrepreneurs, small and medium-sized enterprises and established multi-nationals can coexist, innovate and flourish within a Middle East setting. KOM is the ideal location for businesses starting or expanding in the Middle East. Factors important to investors, employers and employees can all be satisfied in the Sultanate. Competitively priced land and office spaces, combined with a high quality of life make Muscat an excellent place to live, work and for recreation! Contacts PO Box 200, Rusayl, 124 - Sultanate of Oman Tel: +968 24 170 700 Email: info@kom.om Website: www.kom.om

Ports in Oman

Oman has 3 Seaports and 2 industrial Port, which are:

1- Port of Duqm:

Port of Duqm is located in Al Wusta Governorate enjoys a superior and open location. It is a multi-purpose port and its importance has increased after building a dry dock for ship repair to be added to the many facilities already present in the port. Situated on the southeastern seaboard of the Sultanate of Oman, overlooking the Arabian Sea and the Indian Ocean beyond, Port of Duqm is fast becoming an important reality of the Middle East region’s rapidly transforming maritime landscape. At the heart of Port of Duqm’s appeal is its strategic geopolitical location, far removed from Strait of Hormuz and the Arabian Gulf. It is this advantageous location that the Omani government seeks to leverage as it sets out to position Duqm as a safe, stable and business-friendly destination for industrial and economic investment. Port of Duqm lies under the management of Port of Duqm Company SAOC, a 50:50 joint venture between the Omani Government and the Consortium Antwerp Port (CAP). CAP is supported by the Port of Antwerp (Belgium), one of Europe’s largest hub ports.

The town of Duqm is now the focus of one of Oman’s biggest economic undertakings – centering on a Special Economic Zone (SEZ) underpinned by a modern multipurpose port and dry dock. Envisaged within this vast SEZ are clusters specially earmarked for investments related to, among others, refining and petrochemicals, heavy industry, light manufacturing, fish processing, tourism and leisure, mineral processing and more. Duqm’s long-term potential is underlined by its mammoth size. Covering an area of 1,777 sq km, the Duqm SEZ – which incorporates the Port of Duqm – is by far the largest economic initiative in Oman’s modern history. In the initial phases, only the northern half of the SEZ is being taken in hand for development. This area in itself is large enough to cater to demand for land leases well into the 2035-40 timeframe. Development of the southern half of the SEZ will be pursued only thereafter, denoting thus the long-term vision underpinning this giant venture.

Contacts: PO Box: 2409, PC: 111, Sultanate of Oman 4th Floor, Almashreq Building, 18 November Street, N. Azaiba Tel: (+968) 24-342-800 Fax: (+968) 24-587-343 E-mail: info@portduqm.com

2- Port Sultan Qaboos (PSQ)

Port Sultan Qaboos is Oman’s premier gateway for International Commerce. It is located in the Gulf of Oman, at the gate of the Arabian Gulf outside the Straits of Hormuz (just 350 Kilometers south) on the main shipping route of vessels traveling between Africa, Asia and Europe. The location of Port Sultan Qaboos makes it an ideal gateway to the Gulf Ports; On the path of the mainline routes; Savings in steaming time for ships; ideal for a Regional Hub; Gateway of Arabian Gulf to the International markets, more specifically to the markets in the Indian Subcontinent & Asia, East & South of the African Continent. Port Services Corporation (S.A.O.G) manages and operates The Port. This thriving seaport sustains its competitive edge through innovative & progressive policies and known for its path breaking initiatives in Port Operations. Port Sultan Qaboos encompasses 249 acres of land and 6,342 acres of waterfront. Facilities

Deep Drafted Berths;

Navigational Aids And Facilities;

Ample Covered and Open Storage Space;

Range of Container & Cargo Handling Equipment;

Cruise Terminal Facilities;

State-of-the-Art Technologies. In addition to Berthing Facilities, Harbor Services, Container Terminal Facilities, Non-Containerized Cargo (Break-Bulk, Dry Bulk and Liquid Bulk) Terminal Services, and Cruise Terminal. Contacts: Port Sultan Qaboos, P.O. Box 133, Postal Code 100, Sultanate of Oman Tel: +968 24711205 Fax: +968 24714007 Email: info@pscoman.com Website: http://www.pscoman.com/

3- Sohar Port and Free Zone SOHAR Port and Free Zone is a multipurpose industrial and logistical complex, situated in the Sultanate of Oman, 220 km northwest of its capital Muscat. The Port houses three clusters: logistics, petrochemicals and metals. World-leading companies Vale, Air Liquide, Larsen & Toubro, Methanol Holding International and Jindal Power & Steel are established in SOHAR Port and Free Zone. The independent terminals are operated by world-class leading companies: C. Steinweg Oman for general cargo, a joint venture between Oiltanking and Odfjell for liquid cargo, and Hutchinson Whampoa for containers. Facilities:

Vessel Notification System;

Shipping Vessel;

Port Services;

Marine Services;

Stevedoring Services;

Shipping Lines/ Ship Agents;

Cargo Handling. Sectors:

Metals and Steel: Steel demand will grow to two billion tons by 2025. Since the turn of the decade,

infrastructure and construction projects linked to urbanization—in India, the Middle East, China and

other regions. In 2015, the demand-supply gap for (semi) finished steel products in the Sohar market

region is estimated to be around 45 million metric tons, just in the Gulf region and the western part

of India alone.

Food: SOHAR Port and Free zone is at the centre of a large consumer market of nearly two billion people, a region that is reporting excellent growth figures in the consumption of perishables and packaged food products. A large part of this consumer base is located in areas that are heavily dependent on food imports due to low levels of local production. Logistics and Trade: Trade and Logistics form the core of any commercial hub. It is the heart of ports and free zones all over the world. Recently, SOHAR Port and Free zone saw the start of the development of a large-scale logistics park of around 40.000m2, available for lease as from now. Contacts: SOHAR Industrial Port Company PO Box 9, Postal Code 327 Sohar, Sultanate of Oman Tel: +968 26852700 Fax: +968 26852701 Website: http://www.soharportandfreezone.com

4- Port of Salalah:

Port of Salalah is a world class transshipment hub in the West Central Asia Region. Situated right at the major East-West shipping lanes, Salalah enjoys an attractive strategic location in the heart of the Indian Ocean Rim and caters to some of the world’s largest ocean going vessels. Salalah Port Services Company SAOG is a Public Omani Company with 30% foreign ownership and 70% locally owned. The A.P. Moller - Maersk Group is the largest shareholder with 30%, The Omani Government 20%, Local Private Sector 19%, Government Pension Funds 11% and 20% is traded on the Muscat Securities Market. The Port of Salalah first began operating at what used to be Mina Raysut, in November 1998. The container terminal was then built and the former port became the General Cargo Terminal. In its 10-year history, the Port of Salalah has experienced consistent double-digit growth. The year after its opening, it set the world record for productivity, with more than 250 moves per hour. Today, those high standards continue as its capacity, investment in technology and ability to innovate continues apace. Contacts: Salalah Port Services Co. (S.A.O.G) P.O. Box 105, Postal Code 118 Al Jawharah Building, Muscat - Sultanate of Oman Tel +968 2460 1003 Fax +968 2460 0736 Website: http://www.salalahport.com/

5- Port of Khasab

The importance of the port of Khasab in the proximity of the strategic Strait of Hormuz, has received considerable attention from the government in order to encourage commercial traffic in Musandam Governorate and service the local economy of the province, and has seen a number of development projects, which began in 2002 to establish breakers wavelengths (1015 meters) and deepen the harbor basin to (10) meters and a channel access (10.5 meters), was created as jetty commercial length of 300 meters and a berth last for fishermen along the (100 meters), as well as the installation (7) floating docks, has completed the construction work for this project in 2007 . It was recently completed construction of a floating pier and facilities for the reception of fast ferries at the port, is also underway to examine the options run the port by the private sector in coordination with the competent authorities. Contacts: Ministry of Transport and Communications PO Box 684, Muscat 113 - Oman Tel: + 968 2448 3430 Fax: + 968 2469 4077 Website: www.motc.gov.om