Salalah Free Zone – Logistics Business® Magazine

As investors and manufacturers around the world seek stable and sustainable business environments, the Salalah Free Zone in Oman explains why it has become a preferred destination for investment and industry worldwide.

Established in 2006 in Sultanate of Oman, Salalah Free Zone (SFZ), member of Asyad group, is a 21 million square meter industrial and logistics hub that offers investors excellent financial and technical advantages and takes advantage of a strategic location overlooking major international trade routes. SFZ is now home to over 75 companies, from leading energy assets and manufacturing facilities to leading logistics companies, all utilizing our unique advantages to gain access to a variety of export markets.

While countries around the world suffer from political instability and high energy costs, Oman has become a desirable investment destination thanks to its strong economy, energy security, investment-friendly legislation and advanced transport and ICT infrastructure. More specifically, the South Omani city of Salalah is an ideal base of operations for any export-oriented company, as it opens onto the Indian Ocean and occupies the main east-west shipping route. SFZ takes advantage of the city’s strategic location, which provides easy and quick access to the world’s largest consumer markets in Africa, India and Southeast Asia.

In addition to these innate advantages, SFZ offers investors a range of benefits that enable them to increase their global competitiveness, ranging from secure and affordable energy supplies and a skilled, low-cost workforce to highly flexible incorporation requirements. Businesses in our Free Zone enjoy 0% corporate income tax and 0% tariffs, in addition to 100% foreign ownership and no minimum capital requirements.

SFZ also supports businesses with ample space for all manufacturing and industrial projects by providing comprehensive physical infrastructure options, including tailor-made packages of high-quality office space, warehouses and developed lots to meet customer-specific requirements. The free trade zone is designed to host all types of industries, with a particular focus on manufacturing, logistics, chemical, pharmaceutical and renewable energy projects.

Benefits of the free zone

Another leverage for SFZ is the strong connectivity features it has to offer. Oman has perfectly positioned itself to be a leading gateway to global markets, having secured free trade agreements with numerous countries including the USA, Singapore, Iceland, Norway, Switzerland and Liechtenstein. In addition, the Sultanate has developed a strong transportation system with an advanced road network, ranked 10th in the World Economic Forum’s Road Quality Index, stretches across the country and connects it to Saudi Arabia, the United Arab Emirates and Yemen.

In Salalah, excellent road transport options are complemented by Salalah International Airport, a state-of-the-art passenger and cargo airport located just 20 km from SFZ. The 23,000 square meter facility features a world-class cargo complex with an impressive annual cargo capacity of 50,000 tons. Our customers can use the conveniently located airport to support their business with express access to over 200 international destinations.

Meanwhile, excellent sea transport capacities are just around the corner, 10 km from the SFZ. That Harbor of Salalah is the third busiest port in the GCC, handling over 4 million containers and 16 million tonnes of dry and liquid bulk annually. It is also equipped with a state-of-the-art infrastructure for niche exports and imports, specifically targeting emerging green markets. For example, SFZ is now an ideal base of operations for green ammonia exporters as the port is equipped with four jet pipelines leading to a pipeline corridor, as well as 4.6 km of pipes connecting the port of Salalah directly to SFZ, where companies 230,000 have m3 of storage available to meet their bulk liquid needs.

Recently voted the sixth most efficient port in the world, the port boasts exceptional processing speeds and state-of-the-art equipment and IT systems. Located at the heart of the global trade map, it offers short shipping times to major markets, with 6 days to India, 16 days to China, 18 days to the US and 21 days to the Netherlands.

The Salalah Free Zone is now a major regional industrial and modern logistics cluster where global players and potential investors can operate easily and safely from turmoil, uncertainty and supply chain vulnerabilities.

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