SOHAR Port and Freezone, recognized as one of the world’s fastest-growing port and freezone developments, has announced a USD $23 million expansion of its freezone area to meet the rising demand from prospective tenants. With the first phase nearing full occupancy, the need for additional space has become evident, as numerous businesses express interest in establishing operations in Oman’s burgeoning economic hub.
This expansion covers 500 hectares of leasable land and will feature a 15 km road network, 7.5 km flood protection facility and 30 km of stormwater drainage. It will also include five emergency exits and a 9 km security fence. Over 85% of project components will be sourced from local contractors and suppliers, reinforcing in-country value and supporting the local supply chain. The project will commence with the General Design Services Package, followed by construction to deliver new leasable land for businesses and tenants.
Mohammed bin Ali Al Shizawi, Acting CEO SOHAR Freezone, VP People and Support Services, stated “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 of SOHAR Freezone gains powerful momentum with the issuance of Royal Decree No. 38/2025 by His Majesty Sultan Haitham, which enacts the Law of Special Economic Zones and Free Zones following its presentation to the Council of Oman. This new law strengthens the legal and regulatory environment, making Oman’s free zones more competitive and attractive for foreign investment. As SOHAR Freezone advances its expansion, it is set to become a powerhouse of industrial growth and trade, unlocking new opportunities for manufacturing, logistics, and innovation, reinforcing Oman’s role as a vital gateway to the world. Strategically positioned at the crossroads of global trade routes between Asia and Europe markets, SOHAR Port and Freezone has attracted over USD 30 billion in investments to date. The freezone features a unique integrated complex with a single management structure, allowing for seamless flow of business and a bonded corridor between the port and freezone, with a transit time of only 14 minutes for goods.
SOHAR Freezone serves a diverse range of industries, providing essential services including warehousing and logistics, petrochemicals, general trading, automotive logistics, plastics, chemicals and metals. This comprehensive service positions the freezone as a vital center for both local and international businesses, fostering an environment conducive to growth across 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 alongside extensive construction activities but also emphasizes a commitment to sustainability and digitalization. By integrating innovative practices and sustainable solutions, SOHAR aims to enhance 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 alike.
Source: Sohar
