Oman turns to free zones to attract foreign investors

Oman turns to free zones to attract foreign investors

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Muscat: His Majesty Sultan Haitham bin Tarik’s Royal Decree issued to expand free zones in Oman is a step in the right direction to boost the economy and attract much-needed foreign investments to the country.

The free zones in Muscat, Salalah, Sohar and Duqm will help diversify the state income and bring in prospective trading partners.

Economic diversification

Experts say the move marks a significant shift as Oman seeks to align itself with international standards and move towards a global investment scenario.

“The free zones will bring in huge economic benefits to the country,” said Peter Hays, a former senior banker at Citigroup. “The move will align Oman with global financial standards and move forward to partner with the biggest international investors. This is what is needed right now to help diversify away from the backbone of the economy that relies heavily on energy income.”

Free zones

Oman has four airports in cities across the country, and all of them have both economic and free zones. The Royal Decree will encourage the expansion of business and trade freedoms for investors such as exemptions of taxes like corporate and import duty for international companies operating there.

The first economic zone in Oman was established at Salalah in 1986