Saturday 05 / September / 2026
Muscat: Al Mazunah Free Zone, managed and operated by the Public Establishment for Industrial Estates (Madayn), localised four projects worth over OMR620,000 during the first half of 2026. The projects, spanning industrial and logistics activities as well as export offices, will occupy a total area exceeding 2,415 sqm.
With these new investments, the cumulative investment in the free zone has surpassed OMR141 million, while the total leased area has exceeded 1.4 million square metres out of the zone’s overall area of 15,362,305 square metres. Moreover, the number of the workforce at Al Mazunah Free Zone has reached 472.
Eng. Ahmed Al Kasbi, Director General of Al Mazunah Free Zone, stated that the free zone is currently preparing to organise the second edition of Al Mazunah Economic Exhibition and Forum, scheduled for 20 to 22 October 2026. “Building on the success of the first edition, the event aims to strengthen trade and investment ties between the Sultanate of Oman and the Republic of Yemen. The second edition is designed to broaden the participation of local and international companies, showcase investment opportunities, and facilitate strategic partnerships,” Al Kasbi said.
He added, “The event is geared towards supporting the presence of local products and services in regional markets and reinforcing Al Mazunah Free Zone’s role as a gateway for trade exchange between Oman and Yemen. Additionally, the event aims to attract service companies, manufacturers, brand agents, automotive showrooms, import and export firms, logistics providers, food suppliers, and the SMEs to discuss new prospects for cooperation and joint ventures.”
Al Kasbi informed that during the first half of 2026, Al Mazunah Free Zone has completed the readiness of its desalination plant to provide water service and started receiving requests for the service. Design works for the infrastructure of Phase 4, covering an area of 1.5 million square metres, were also completed. Madayn is also planning several projects at Al Mazunah Free Zone, including the development of the zone’s sovereign gateway in coordination with the relevant authorities in addition to an internal irrigation network to expand green areas.
Other planned projects planned under the current Five-Year Plan include an industrial incubator and specialised warehouses covering 50,000 square metres, as well as a study to establish a 1,000-square metres cold storage facility and open a representative office for Al Mazunah Free Zone targeting the Yemeni market, capitalising on the zone’s strategic position as an eastern gateway to Yemen.
The free zone is also studying to sign an MoU with the operator of Najd Farms to create added value from agricultural products through manufacturing activities at the zone. These include producing animal feed from agricultural waste generated by Najd Farms and establishing compound fertiliser manufacturing facilities.
Al Kasbi pointed out that future plans also include a study to develop infrastructure for an automotive complex comprising showrooms and public parking over 50,000 square metres. In addition, the free zone aims to add one megawatt of solar energy capacity through solar-powered lighting, encourage existing companies to shift 10% of their electricity consumption to clean energy, and mandate the installation of renewable energy systems for new companies.
Strategically located near regional markets, Al Mazunah Free Zone plays a key role in supporting economic and commercial development in Dhofar governorate and the Sultanate of Oman in general. The free zone attracts projects across industrial, advanced technology, food manufacturing and logistics sectors, while offering investors a range of incentives.
The incentives include exemption of profits from income tax for 30 years without the need to provide income declaration, flexibility in the transaction process for remittance and dealing of foreign exchange, exemption from the law of commercial agencies and customs duties, possibility of 100% ownership of the invested project’s capital, among other investment incentives.
