Oman’s Sohar Port and Freezone has announced a US$23 million expansion of its Freezone area to meet growing demand from prospective tenants.
With the first phase nearing full occupancy, the need for additional space has become clear as many businesses have expressed interest in establishing operations in Oman’s growing economic hub.
The expansion will cover 500 hectares of leasable land and will feature a 15km road network, 7.5km of flood protection and 30km of stormwater drainage. This will include five emergency exits and 9km of security fencing. More than 85% of the project components will be sourced from local contractors and suppliers, strengthening value locally and supporting the local supply chain. The project will begin with a general design services package, followed by construction to deliver the new leasable land to businesses and tenants..
“This expansion is a key step in enhancing our ability to support the region’s economic growth. As Oman progresses towards the goals of Vision 2040, we are committed to creating 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 growth and create shared opportunities for growth and prosperity,” said Mohammed bin Ali Al Shisawi, Vice President of SOHAR Freezone.
The expansion of the SOHAR Free Zone has received a powerful boost with the issuance of Royal Decree No. 38/2025 by His Majesty Sultan Haitham Al Saud, enacting the Special Economic Zones and Free Zones Law, following its submission to the Council of Oman. This new law strengthens the legal and regulatory environment, making Oman’s free zones more competitive and attractive to foreign investment. As the SOHAR Free Zone progresses its expansion, it is set to become a force for industrial growth and trade, opening up new opportunities for manufacturing, logistics and innovation, reinforcing Oman’s role as a key gateway to the world.
Strategically positioned at the intersection of global trade routes between the Asian and European markets, the SOHAR Port and Freezone has attracted over US$30 billion in investments to date. The Freezone features a unique integrated complex with a single management system, allowing for a seamless flow of business and a bonded route between the port and the Freezone, with a transit time of just 14 minutes for goods.
SOHAR Freezone serves a wide range of industries, providing essential services including warehousing and logistics, petrochemicals, general trading, automotive logistics, plastics, chemicals and metals. This comprehensive service position the Freezone as a major hub for local and international businesses, fostering an environment conducive to growth in various sectors.
SOHAR Freezone is dedicated to driving economic diversification and fostering a prosperous future for the people of Oman. The expansion not only showcases a vibrant ecosystem of fully operational businesses with extensive construction activities, but also emphasizes a commitment to sustainability and digitalization. By integrating innovative practices and sustainable solutions, SOHAR aims to improve supply chain efficiency and solidify its role as a key player in Oman’s economic landscape, ensuring long-term benefits for local communities and businesses.
