Oman’s strategic push to diversify its economy has marked a significant milestone, with investment in its economic and free zones surging by 17 percent in 2025 to reach $3.6 billion. A recent report from the Public Authority for Special Economic Zones and Free Zones (OPAZ) credited this growth to a substantial increase in new projects, signaling growing confidence from both local and international investors in the Sultanate’s economic vision.
A Surge in New Projects
The momentum was driven by the establishment of 12 new projects within the free zones throughout the year, a notable increase from the eight projects recorded in 2024. These new ventures span several high-value sectors critical to Oman’s long-term economic strategy, including a modern vehicle factory, renewable energy initiatives, minerals processing, and a cutting-edge polysilicon plant. This diversification of projects underscores the country’s move away from hydrocarbon dependency.
Strategic Promotion and Economic Impact
According to the OPAZ report, the successful year is a direct result of its focused investment promotion strategy. The authority highlighted its continuous efforts to attract foreign direct investment and create a business-friendly environment for companies looking to establish a presence in the region.
“It is another successful year for the free zones that will boost our exports and diversify our economy. It all comes down to non-stop campaigns by OPAZ to promote investments for Oman,” the report stated.
Expanding the Zone Network
Oman currently operates six free zones, with the largest and most prominent economic hubs located in Sohar, Duqm, and Salalah. These zones serve as critical logistical and industrial centers for the country.
Further expanding this network, Oman and the UAE entered into an agreement in May 2024 to develop a new joint economic zone. The project, located in the Al-Rawdah area in the Buraimi governorate on the border between the two nations, represents a significant collaboration with an estimated cost of $2 billion.
National Diversification Goals
This investment boom aligns perfectly with recommendations from the International Monetary Fund (IMF), which has consistently urged Oman to reduce its reliance on hydrocarbon revenues, which have historically accounted for approximately 80 percent of its national income.
Oman has made considerable progress on this front. An IMF report noted that the country successfully increased its non-hydrocarbon economic activity from around 55 percent of GDP in 2005 to nearly 70 percent in 2024, demonstrating a clear and sustained commitment to building a more resilient and diversified economy.
About The Public Authority for Special Economic Zones and Free Zones (OPAZ)
The Public Authority for Special Economic Zones and Free Zones (OPAZ) was established to supervise, regulate, and develop special economic zones, free zones, and industrial cities in the Sultanate of Oman. OPAZ aims to create an attractive investment environment by providing a one-stop-shop for investors, offering incentives, and ensuring world-class infrastructure and services to foster economic growth and diversification.
Source: AGBI
