Oman's zones are now governed by one law: Royal Decree 38/2025, the Law of Special Economic Zones and Free Zones, in force since April 2025. The regulator is the Public Authority for Special Economic Zones and Free Zones (OPAZ), and the executive regulations were announced in September 2026.
The zones
OPAZ lists these zones and estates:
- Special Economic Zone at Duqm
- Sohar Free Zone
- Salalah Free Zone
- Al Mazunah Free Zone
- Muscat Airport Free Zone
- Khazaen Economic City
- Industrial estates (Madayn)
Each zone is created by its own royal decree, which sets its location and any zone-specific incentives. So check the rules for the zone you choose as well as the general law.
What the law offers
| Topic | What Royal Decree 38/2025 says | |---|---| | Foreign ownership | Companies in a zone can be wholly owned by non-Omanis | | Income tax | Exempt for 10 years from the start of activity, renewable for two similar periods for activities of a special nature. Returns must still be filed | | Excluded from the tax exemption | Banks and financial institutions, insurance and reinsurance, telecoms, construction, land and maritime transport | | Customs on what you bring in | Machinery, equipment, spare parts and raw materials needed for the licensed activity are exempt | | Customs on what you ship out | Products exported from the zone outside Oman are not subject to customs tax | | Moving money | Profits and investment amounts can be transferred abroad freely | | Minimum capital | The board can waive it | | Work permits | Issued within five working days, and silence counts as approval |
What older guides get wrong
Many guides still quote the old Free Zones Law of 2002, which this decree repealed. Figures like "30-year tax holiday" or a fixed Omanisation rate per zone come from that period. Companies already operating keep their existing benefits until they expire, but a new company should work from the 2025 law and its regulations.
The law itself does not state an Omanisation percentage, so ask the authority.
Next steps
Contact OPAZ on +968 2450 7500 or at [email protected] for the zone you have in mind. To compare a free zone with a mainland company, see company registration and market entry, or ask our team below.
Frequently asked questions
Can a foreigner fully own a company in an Omani free zone?
Yes. Under Royal Decree 38/2025, a company operating in a zone can be wholly owned by non-Omanis.
How long is the tax exemption?
The law gives 10 years from the start of activity, renewable for two similar periods for activities of a special nature. That is why you will see 'up to 30 years'. Banks, insurers, telecoms, construction and transport companies are excluded.
What is the Omanisation rate in a free zone?
The 2025 law does not set a percentage. Older guides quote different rates per zone, so ask the zone authority for the rate that applies to you.
Do companies already in a zone keep their benefits?
Yes. Existing free zone operators and Duqm enterprises keep their current benefits until those periods end.
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