Sohar Freezone Phase 2 targets plastics, steel investments

Sohar Freezone Phase 2 targets plastics, steel investments

Having already secured tenants for a sizable part of Phase 1 of its sprawling development, Sohar Freezone has opened up a new phase for investment, this time with an eye on businesses that will capitalise on an array of mega projects operating at the adjoining industrial port, according to a report by Oman Observer. Sohar Port currently hosts large-scale chemical, petrochemical, refining and metal industries, in addition to a nascent agro-foods cluster, that collectively open up wide opportunities for investment in downstream processing and value-added activities within the nearby free zone. Phase 1 of the free zone development has so far attracted a total of 44 investments across smelting, manufacturing, warehousing and logistics, cold storage, and office solutions. By the end of 2020, as much as 63 per cent of Phase 1's five million sq m development had already been leased to tenants, according to Duqm Economist, the quarterly newsletter of the Public Authority for Special Economic Zones and Free Zones (OPAZ). Phase 2, which has since been launched, offers a further 5 million sq m for development. The primary focus for investment, however, will be activities pertaining to plastics and food processing, iron and steel, mineral processing, vehicle parts manufacturing, and renewable