After detailed review of the value proposition, the strategy of the Salalah Free Zone is to focus on export-oriented activities resulting from three areas of competitive advantages:
- Attractive Market Access and Reach – Proximity and accessibility to raw materials in terms of mineral and non-mineral natural resources, catering to a regional demand currently satisfied through imports, and relocating activities that are currently serviced through the global trade flows.
- Competitive Conversion Costs – In terms of labor wages, utilities costs and savings on duties as a result of the Free Trade Agreement with the US.
- Strong and Global Connectivity – Primarily through a world class transshipment port.
Three clusters emerged: Chemical and Material Processing, Manufacturing and Assembly, Logistics and Distribution with the certainty of significantly reducing their total landed costs.
Chemical and Material Processing
Oman has a wealth of natural resources, being a large supplier of oil and gas, as well as a wide variety of non-fuel minerals.
Manufacturing and Assembly
Salalah Free Zone's competitive labor and input costs, its Free Trade Agreement, and zero tax and customs environment
Logistics and Distribution
The benefits of an international airport, one of the largest deep-water ports in the world, a sea-air corridor that cuts down on transport times and costs