Oman’s Shift to Sector-Specific Industrial Clusters: What It Means for Investors and Entrepreneurs
MUSCAT, SEPTEMBER 11 — Industrial hubs in Oman, once primarily defined by their geographic locations, are now increasingly developing around specific sectors and commodities. This emerging trend is expected to attract new industrial investments across the Sultanate, according to Dr. Ali bin Masoud al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ).
Dr. al Sunaidy highlighted several upcoming clusters being planned or already in early development. These clusters focus on sectors such as green hydrogen, renewable energy supply chain manufacturing, minerals, and value-added aluminium industries. This approach marks a shift from the initial Special Economic Zones (SEZs) and free zones, which were established mainly near strategic ports without a sector-specific focus.
“OPAZ policies align with Oman’s industrial strategy, which emphasizes sectoral clustering—bringing together complementary industries within designated zones to strengthen value chains and enhance economic resilience,” Dr. al Sunaidy explained. He gave the example of Sohar Free Zone, where a manufacturing cluster centered on polysilicon production and downstream solar-related industries is emerging.
The comments were made during an interview with Oxford Business Group (OBG), a London-based global publishing, research, and consultancy firm. OBG recently released its Oman 2025 Report, which reviews Oman’s significant progress in energy, logistics, manufacturing, tourism, and financial services, while also exploring emerging opportunities in green energy, agritech, and digital innovation.
Dr. al Sunaidy further noted that established industrial cities and free zones are also seeing the formation of new sector-specific clusters. For instance, Salalah Free Zone and the adjacent Raysut Industrial City are developing a pharmaceutical cluster that benefits from easy access to raw materials, supply chains, and international markets via the Port of Salalah.
He added that the master plan for the Special Economic Zone at Duqm (SEZAD) is underway. The zone’s existing infrastructure provides the necessary energy to support a cluster focused on green hydrogen and renewables industries.
Infrastructure development is increasingly tailored to support these sectoral clusters, the OPAZ Chairman emphasized. Investments in physical, logistical, and utility infrastructure are being strategically directed to meet the unique needs of priority industries within each zone. For example, Khazaen Economic City is becoming a hub for food-related industries, boosted by public and private investments such as the Silal Fruits and Vegetables Central Market.
Similarly, the newly established fishing port at Duqm SEZ is fostering the growth of a major industrial fisheries cluster. This cluster will support activities such as canning, processing, and the production of fish oil, fish meal, and organic fertilizers. Ongoing plans include integrating cold chain logistics to maximize value in fisheries and food processing, underscoring the government’s commitment to this sector.
Dr. al Sunaidy also outlined coordinated efforts with various government ministries and agencies to develop other clusters. These include plastics and polysilicon industries working closely with the Ministry of Commerce, Industry and Investment Promotion, OQ Group, the Oman Investment Authority, Invest Oman, and the Nazdaher program. The hydrogen cluster is being developed in coordination with the Ministry of Energy and Minerals and government-owned Hydrogen Oman. Additionally, fish and food clusters are aligned with the Ministry of Economy and the Ministry of Agriculture, Fisheries and Water Resources. Several other clusters remain under study or design.
Plans are also advancing for a downstream aluminium manufacturing center near Sohar Aluminium Company, while in Dhofar Governorate, at Shaleem, OPAZ is progressing with the establishment of a mineral-focused economic zone. This zone will include infrastructure to facilitate bulk exports by sea, reflecting a strategic vision to integrate natural resource development with industrial processing.
Dr. Ali Masoud al Sunaidy, Chairman of OPAZ, continues to champion this sector-driven industrial evolution as key to Oman’s economic future.
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Oman’s strategic shift towards sector-specific industrial clusters signals a transformative push for deeper value chains and enhanced economic resilience, creating fertile ground for targeted investments in green hydrogen, renewables, minerals, and aluminium. For smart investors and entrepreneurs, this emerging landscape offers unique opportunities to align with specialized infrastructure and government-backed initiatives, especially in green energy and advanced manufacturing, while mitigating risks by leveraging sectoral synergies and established logistical hubs. Businesses in Oman should now focus on integrating into these clusters to maximize growth and competitiveness in a rapidly evolving industrial ecosystem.
