New Pharma Project Boosts Khazaen Medicine Cluster: What This Means for Investors and Business Growth in Oman
MUSCAT – Khazaen Economic City has taken a major step forward in expanding its Pharma Cluster with the signing of a new investment agreement to establish a fully integrated human pharmaceutical manufacturing plant.
Gulf Pharmaceutical Industries and Medical Devices Corporation LLC (GPIMC) will develop the first phase of the facility on a 10,000-square-metre site within Khazaen’s dedicated “Medicine City” zone in Al Batinah South Governorate. The initial investment for this phase is RO 15 million.
The signing ceremony was attended by senior officials from the Ministry of Health, highlighting strong government support for initiatives aimed at enhancing Oman’s pharmaceutical security and reducing dependency on imported medicines by bolstering local manufacturing capabilities.
GPIMC has outlined plans for the new plant to produce a wide array of pharmaceutical products such as injectables, plain and coated tablets, gelatin capsules, syrups, suspensions, nasal sprays, powders, granules, creams, and topical ointments. The facility will also manufacture specialized products, including specific antibiotic powders for injection, and will feature an integrated primary and secondary packaging department compliant with Ministry of Health regulatory standards.
Hamid bin Saif al Sabahi, Founder and Executive Director of Adawaa Al Wataniya Pharmaceutical Consultancy (AAPC), which served as regulatory consultant for GPIMC, commented that this investment aligns with Oman’s national strategy to boost pharmaceutical security and promote value-added industries.
He noted that with this agreement, total investment in Khazaen Economic City has reached approximately RO 175 million, reinforcing the city’s status as a premier pharmaceutical hub within Oman.
This GPIMC project further enhances Khazaen’s growing portfolio of pharmaceutical initiatives designed to address both human and veterinary healthcare needs. Currently, at least eight other projects are in various stages of planning, construction, and operation within the Medicine City cluster.
Among these projects is a significant veterinary vaccine facility by Technology Medical & Educational Supplies Company, which is expected to produce around two billion doses annually, supporting livestock health, agricultural productivity, and national food security. Other notable ventures include Biogenmix’s specialised insulin manufacturing plant, aimed at reducing reliance on imports, and a large integrated pharmaceutical complex by Aviso Pharmaceuticals to manufacture a broad range of drug products.
Opal Biopharmaceuticals is advancing with the second phase of its biologics production expansion, while Khazaen also hosts a titanium dental implants factory serving both local and regional markets. Additionally, plans are underway to establish human vaccine manufacturing facilities aligned with Oman’s long-term healthcare security goals.
These manufacturing efforts are complemented by state-of-the-art pharmaceutical storage, warehousing, and cold-chain distribution facilities, alongside smaller plants producing medical inputs, consumables, and specialised supplies that support larger pharmaceutical producers.
Collectively, these projects are building a diverse ecosystem encompassing medicines, medical devices, logistics, and supply chains. Khazaen’s strategic location near Muscat International Airport, Suwaiq Port, and major road networks strengthens its role as a key national and regional distribution hub.
Looking forward, the broader vision is to integrate manufacturing, storage, logistics, research, development, and training, establishing Khazaen Economic City as a cornerstone of Oman’s healthcare industrialisation strategy.
Special Analysis by Omanet | Navigate Oman’s Market
The expansion of Khazaen Economic City’s Pharma Cluster with a RO 15 million fully integrated pharmaceutical plant signals strong government backing and a strategic push towards pharmaceutical self-sufficiency in Oman. For businesses, this creates tangible opportunities in manufacturing, logistics, and healthcare innovation, while smart investors should consider the growing ecosystem around pharmaceutical production and related value chains as a fertile ground for long-term growth and regional market access.
