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Sohar vs Salalah vs Duqm vs Khazaen vs KOM: A Decision Matrix 

Oman is a beautiful country, located in the southeastern Arabian Peninsula. The country has a growing industrial and logistics development landscape because of the country’s strategic geographical location, offering easy access to the major countries of the world, like Europe, Asia, and Africa. Additionally, the country’s efforts for economic diversification under the National Logistics Strategy (SOLS) and Oman Vision 2040 are an excellent strategy.  

Today, you will see rapid development across Sohar, Salalah, Duqm, Khazaen and KOM, with the government investing heavily in transport infrastructure, industrial zones and global trade connectivity, creating a strong business landscape. Each free zone is focused on different sectors of the industry; therefore, many investors are evaluating between Sohar vs Salalah vs Duqm vs Khazaen, vs KOM before deciding for business.  

Make sure that you choose a location that gives you the best operational efficiency, depending on your business type and long-term growth. This will help you choose the right economic zone that meets your business needs.  

Understanding Oman’s Economic Zones 

Oman Vision 2040 is a government initiative that is focused on economic diversification to reduce its dependence on oil and create a technology-driven economy. It is a program to improve the economy of Oman by nurturing new industries and creating a business-friendly environment to attract foreign investment and open the door for global entrepreneurs seeking company formation in Oman.  

As the country transitions away from oil, the industrial zones in Oman are of strategic importance in the Oman Vision 2040. The industrial zones such as Sohar, Salalah, Duqm, Khazaen and KOM play a focused role in strengthening the key industries such as logistics, technology, manufacturing, petrochemicals and the renewable energy sector.  

The industrial zones in Oman offer attractive incentives like 100% foreign ownership, simplified registration process, long-term tax exemptions, low utility costs, profit repatriation and a straightforward customs procedure to attract foreign investment. The industrial zones are also supported by large-scale investments in ports, airports, and smart digital systems designed to make Oman a competitive trade gateway. 

Sohar at a Glance 

Sohar Free Zone is one of Oman’s largest and most successful industrial zones. Established in 2010, it is located near Sohar port in proximity to Muscat, Abu Dhabi and Dubai with access to Gulf markets. Sohar free zone has global shipping routes with access to excellent transportation connectivity like a deep-sea port, highway network, airport and railway. This industrial zone is a perfect destination for startups in the logistics, manufacturing, metals, food processing startups and industrial sectors.  

The Sohar freezone and port offer low-cost transportation and insurance premiums for startups looking to enter the Oman market. It also has a one-stop shop service that allows you to set up your business efficiently and quickly. All the established businesses in the Sohar freezone enjoy excellent tax benefits like tax exemptions of up to 25 years, tax holidays, import and export tax exemptions, and investment incentives.  

It also has a modern and world-class infrastructure of ready-made warehouses, commercial offices, industrial spaces, and advanced logistics services. Additionally, the Sohar port offers an excellent regional gateway and logistical efficiency. 

Salalah at a Glance 

The Salalah free zone is a business hub that is located near the Salalah Port. It is a preferred destination for investors focused on logistics, manufacturing, chemical processing and tourism industries. The Salalah free zone also offers excellent geographic advantage as it is located on a major East-West shipping lane, offering direct access to the global markets like Asia, Africa and Europe. It is the country’s major transhipment hub that provides excellent handling capabilities.  

The free zone is focused on targeted industrial sectors such as manufacturing, logistics and distribution, transhipment, chemical, heavy industries, pharmaceuticals sector, assembly, and petrochemicals. It also offers excellent incentives to attract foreign investment, such as 100% foreign ownership, no customs duties, 30-year tax exemptions, no restrictions on profit repatriation, and excellent logistics connectivity with world-class infrastructure. The industries for investment in Salalah include logistics and distribution, petrochemicals, manufacturing, and green hydrogen and renewables.  

Duqm at a Glance 

Duqm Special Economic Zone (SEZAD) is one of the largest free zones in the Middle East with an area of 2,000 square kilometres. It is a preferred business hub for large-scale industries and tech startups. The biggest advantage for businesses in the Duqm free zone is no minimum share capital, income tax exemption and no customs duties. It also has an excellent transportation connectivity through modern networks, an international airport and ports.  

The major industries supported by Oman’s Duqm Special Economic Zone include logistics and shipping, manufacturing of heavy industry like cement, green energy, equipment for renewable energy, and steel. The energy and heavy industry manufacturing is developing in the Duqm free zone as it is strategically located far away from the city, making it a stable location for large refineries and heavy industrial projects with access to the major shipping lanes.  

The Oman Vision 2040 for economic diversification has also made Duqm a major pillar for logistics and strategic maritime positioning. As a result, Duqm has become a preferred destination for global investors who need large industrial land for business. 

Khazaen Economic City – An Overview 

Khazaen Economic City is a large and excellent business hub strategically located in Barka between the Sohar port and the Muscat International Airport. It is in proximity to Muscat, offering seamless integration to the national infrastructure with access to ports, GCC highways and airport. This economic city is an integrated logistics and industrial hub for business with excellent infrastructure for manufacturing zones, warehousing and commercial hubs.  

Khazaen is a unique economic zone that complements the traditional free zone by offering commercial and residential facilities to support the local community. It also offers excellent opportunities in warehousing, logistics and light industries, as Khazaen is Oman’s first inland dry port that offers smooth connectivity of goods for trade. It also offers strategic infrastructure to support light industries.  

The Khazaen economic city has a planned holistic environment with simplified regulations, “one-stop shop” service for company registration and licensing, cost-effective operations, and readymade infrastructure, offering a great growth potential for SMEs and foreign investors. 

Knowledge Oasis Muscat (KOM)- An Overview 

The Knowledge Oasis Muscat (KOM) is Oman’s reputed technological park, located in the capital of Oman, Muscat. It is an economic zone for technology-focused businesses that plays an important role as Oman’s tech and innovation hub. KOM also offers excellent infrastructure and facilities like high-speed internet and co-working spaces, business-friendly regulations and an innovative, focused ecosystem to support tech startups and investors to foster collaboration.  

The major industries in KOM are Information and Communications Technology (ICT), technology companies, digital services, software development, science and research and business incubation. While major parts of Oman are dependent on oil, the Knowledge Oasis Muscat (KOMs) economy is focused on IT, startups and knowledge-based industries supported through government initiatives, such as incubator programs like the Knowledge Mine (TKM) and initiatives like the Oman Information Technology Authority (ITA). 

Comparative Decision Matrix: Sohar vs Salalah vs Duqm vs Khazaen vs KOM 

Factor	Sohar	Salalah	Duqm	Khazaen	KOM
Location Advantage	Close to UAE and access to GCC markets	Access to Indian Ocean, African and the Middle Eastern trade routes	Access to regional and international trade	Access to domestic market in Oman	Close to Muskat international airport
Infrastructure Quality	Modern port, logistics hub and highway	Deep water port, free zone and urban development	Multimodal transport system of road, future rail, dry dock and air	Inland dry port, warehousing, commercial and residential areas	Modern business park, ICT infrastructure and incubation center
Key Industries	Manufacturing, Logistics and Petrochemicals	Manufacturing, Logistics	Manufacturing, Logistics, Petrochemicals	Logistics and light industries	Technology, IT and Startups
Incentives & Policies	100% foreign ownership and tax exemptions.	Free zone incentives and tax exemptions.	No minimum capital and long-term incentives	Tax incentives and no custom duty	Corporate tax exemption and no custom duty
Connectivity	Excellent road, port and rail connectivity	Port, rail, road and airport connectivity	Port, road and rail connectivity	Port, road and rail connectivity	Port, road, airport and rail connectivity
Investment Entry Barriers	Skilled labour requirement and high initial investment	High logistics costs and finding skilled labour	Regulatory hurdles and infrastructure development is not completed	Infrastructure costs, skilled workforce and efforts for market linkage.	High competition and high investment for R&D

Which Zone Fits Your Business Strategy? 

To start a business in one of Oman’s economic zones, you must select the right zone that will depend on your business model, business type, operational needs, and long-term growth opportunities. Each economic zone in Oman, i.e., Sohar, Salalah, Duqm, Khazaen and KOM, offers unique strengths and caters to specific industries. 

The Recommendations Based on Industry Type in Oman Economic Zones 

• Manufacturing: The economic zones for manufacturing in Oman are Salalah, Sohar and Duqm free zone. If your business deals with the export-focused manufacturing industry through the Indian Ocean, you can choose the Salalah zone. Manufacturing businesses looking for easy access to the GCC markets can choose the Sohar zone, and manufacturers of heavy industries can choose Duqm.  

• Logistics and Distribution: The best economic zones for the logistics and distribution industry are Salalah, Sohar, and Duqm. Businesses serving Asia, Africa and European countries can choose the Salalah zone. If your business requires global shipping routes and quick customs clearance, you can choose the Sohar zone. You can choose the Duqm zone if you want a multimodal hub of an airport, port and a dry dock.  

• Technology and Innovation: The only and best economic zone for technology and innovation business in Oman is the Knowledge Oasis Muscat (KOM). This economic zone offers a favourable environment for tech-focused businesses, IT, startups, and R&D centres with excellent support from the government.  

• Energy and Petrochemicals: The recommended economic free zone for energy and petrochemicals is the Duqm Special Economic Zone (SEZAD) for future-focused energy projects. Sohar is for heavy industries like petrochemicals, and the Salalah Free Zone is for smaller-scale petrochemical industries and a strategic location for logistics.  

• Export Focused Businesses: If you are seeking to export in the GCC markets with flexibility in sea and road transportation, you can choose the Sohar zone. You can choose Salalah if you want direct access to the Indian Ocean, Red Sea or Asian and African markets. Duqm is also an excellent location in Oman with a well-developed port and industrial infrastructure. 

Expert Insights & Future Outlook 

Oman’s economic zones are expected to see a GDP growth of 3.4% in 2025. After the launch of Oman Vision 2040 and the investment in non-oil industries, the country has experienced diversified growth.  

Growth Trends for Each Zone with Government Initiatives and Foreign Investment Predictions 

Sohar Economic Zone and Port: The Sohar economic zone and port are expected to see continued growth in heavy industries, petrochemicals and manufacturing. The government signed a port expansion agreement in May 2025, offering ongoing support for trade. There is also a demand for foreign investment in manufacturing because of its proximity to the UAE. It’s a perfect zone for the setup of a virtual office in Oman. 

Salalah Economic Zone: The Salalah economic zone is focusing on becoming the key export and logistics hub by leveraging its easy access to the GCC, African and Indian markets. The government has also launched a future Salalah city development and renewable energy projects to diversify the economy. Export-oriented manufacturing businesses and logistics will see a high demand for foreign investment in Salalah. 

Duqm Special Economic Zone (SEZAD): The Duqm economic zone has the highest growth trend every year, leading among all other zones. It is Oman’s most important industrial and energy hub, attracting European, Korean and British investment. The government of Oman has also invested heavily in renewable energy and green hydrogen projects.  

Khazaen Economic City: The Khazaen economic zone is expected to see economic growth and become the primary inland logistics hub for Oman. The government is actively working on developing the dry port, creating an auto mall, and building commercial and residential areas. Khazaen was once known as the fastest-growing investment destination and has recently attracted an investment of RO 276.5 million.  

Knowledge Oasis Muscat (KOM): KOM is expected to rapidly grow in ICT with a value of US$8.22 billion by 2028. Other sectors, such as innovation, digital services, and the startup ecosystem, are also expected to grow through government initiatives like incubation programs and tax incentives. As the ICT market is projected to grow exponentially, there is a potential for foreign investment.  

Conclusion 

Selecting the best economic zone is an important first step before investment. If you are confused between Sohar vs Salalah, you can select Sohar, provided you want GCC access and Salalah if you want global export routes. While Duqm offers excellent potential for large-scale industries and long-term growth, Khazaen serves as a well-organised logistics hub to target the domestic market, and KOM remains a preferred destination for tech-focused industries and knowledge-based businesses.  

Each specific industry can enjoy tailored benefits from each economic zone, and entrepreneurs must choose the zone that aligns with their business goals. You will have to understand the unique strengths of each zone and growth potential, so that you can make the right choice based on your current business needs and expansion plans. 

If you are confused between the many economic zones, Enterslice can assist you. We are the leading global business consultants with over 15 years of experience that can help you select and understand the entire process. To get expert help for company registration and tax and accounting compliance in Oman, visit our website: https://enterslice.com.  

Common Questions About Sohar vs Salalah vs Duqm vs Khazaen vs KOM