Muscat – Salalah Free Zone attracted RO395mn in new private sector investment in 2025, pushing its cumulative investment to RO5.52bn by the end of December, underscoring its expanding role as a key industrial and logistics hub in the Middle East.

The new investment commitments were secured through 16 agreements signed last year, including eight industrial projects, according to data published in the April 2026 edition of Duqm Economist, a quarterly magazine issued by the Public Authority for Special Economic Zones and Free Zones (OPAZ).

Industrial activity continued to dominate investment inflows at Salalah Free Zone, with agreements spanning logistics, warehousing and manufacturing, reflecting sustained investor confidence in the zone’s infrastructure, incentives and strategic proximity to the Port of Salalah.

Authorities processed 16 investment applications during 2025, including eight industrial and six logistics-related proposals, alongside two commercial submissions.

Business activity within the zone remained robust, with 154 commercial registrations recorded and 270 business licences issued.

On the project front, 19 investment projects were under implementation at the end of 2025. Of these, three projects commenced production during the year, while two reached full completion. Progress across other projects varied, with the highest completion rate at 95%, indicating near-operational readiness in several cases.

Salalah Free Zone also reported the completion of 11 investment projects across sectors such as logistics, food processing, energy, storage, recycling and industrial manufacturing, reinforcing its diversified economic base.

Trade activity through the Port of Salalah remained a key enabler of growth for the free zone. At the Port of Salalah, re-exports totalled RO127mn in 2025, while imports reached RO1.06bn and exports stood at RO730mn, highlighting the free zone’s integration with regional and global supply chains.

Regulatory and operational processes were further streamlined during the year. Eight building permits were issued, covering industrial, logistics and utility projects. Environmental oversight remained active, with 93 field visits conducted, including routine, surprise and joint inspections, ensuring compliance among operating entities.

Infrastructure development within Salalah Free Zone progressed steadily last year, with one project fully completed and another under implementation. The completed project achieved 100% delivery, including roadworks and associated infrastructure, while the ongoing project has reached 36% completion, with approvals finalised and financial bids opened.

The 2025 performance underscores Salalah Free Zone’s continued momentum in attracting investment, advancing projects and strengthening its position as a strategic gateway for trade and industry in the region.