Al Mazunah Free Zone Surpasses RO 140 Million in Investments: What This Means for Business Growth in Oman
AL MAZUNAH: The Al Mazunah Free Zone has solidified its role as a vital gateway for trade and investment, with total investments surpassing RO 140 million by the end of October 2025. This year alone, the zone secured 13 new projects valued at RO 420,000.
Engineer Ahmed bin Khamis Al Kasbi, Director General of Al Mazunah Free Zone, reported that 144 lease agreements have been signed across industrial, service, and commercial sectors. The management is focusing on industrial investments to promote sustainable and diversified economic growth.
Al Kasbi also announced that preparations are underway to commence the trial operation of the animal quarantine facility, in coordination with the Ministry of Agriculture, Fisheries and Water Resources, during the fourth quarter of 2025. Additionally, the desalination plant project is 80% complete and expected to become operational by year-end, further enhancing the zone’s infrastructure.
He acknowledged that several lease contracts were canceled this year due to non-compliance with implementation timelines. Despite this, trade activity remains robust, with imports and exports increasing by 21.7% during the first three quarters of 2025 compared to the previous year. The total weight of goods handled exceeded 228,500 tonnes, while vehicle traffic rose 40%, reaching 5,765 vehicles by the end of October.
To enhance commercial services, the free zone has issued a tender to manage and operate a duty-free market aimed at facilitating direct sales and catering to travelers crossing the Oman-Yemen border.
Al Kasbi emphasized that the new Free Zones Law (Royal Decree No. 38/2025) marks a significant advancement in improving the investment climate by establishing a unified legislative framework for free and special economic zones across Oman. He added that the law promotes stronger integration between Al Mazunah and other economic hubs, supporting the objectives of Oman Vision 2040. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The rapid development of Al Mazunah Free Zone, marked by over RO 140 million in investments and a 21.7% rise in trade activity, signals robust growth opportunities for industrial and commercial businesses in Oman. Smart investors should leverage the enhanced infrastructure projects like the desalination plant and animal quarantine facility, as well as new legislative support under the 2025 Free Zones Law, to capitalize on Oman’s strategic gateway position and integrated economic ecosystem. However, vigilance is needed around compliance to avoid risks related to lease cancellations and project delays.
