Key Sectors


Key Sectors

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.

Key Sectors

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, such as manganese, chromite, copper, silica, marble, attapulgite, dolomite, gypsum and limestone. Many of these materials are used in large quantities, particularly in the developing economies of the east.

These natural resources can be leveraged for several purposes. For example, available Caustic Soda, Chlorine, Ethylene, Propylene and Methanol can produce major end use derivatives such as PVC, LDPE, LLDPE, HDPE, Polyester, PET and Adhesives.

Additional opportunities may rise from petrochemical development in Oman by taking advantage of the presence of Propylene, Butadiene, Benzene and Xylenes (which can produce Acrylic Fibers, ABS, Paint and Coatings, Polypropylene, Polyurethane, Rubbers, Nylon and Polycarbonates). Selected metals and niche applications such as iron, zinc and steel casting for example will be possible in the Free Zone.

The chemical and material processing facilities allow foreign investors to establish standalone or joint venture operations to beneficiate resources, sourced locally or from Gulf markets and other markets for shipment to end-user markets across the globe.

Key Sectors

Manufacturing and Assembly

Salalah Free Zone’s competitive labor and input costs, its Free Trade Agreement, and zero tax and customs environment, and its excellent location at the mid-point of major shipping routes make it an ideal location for global multinationals as well as any industrious organization to set up manufacturing facilities to produce cost-competitive products for global markets.

The Manufacturing and Assembly cluster includes capital intensive activities and labor intensive assembly of equipment such as machinery, electronics, transport, medical apparatus. This could also include assembly of consumer goods such as furniture, food, pharmaceutical, cosmetics extending to other industries as well such as energy and alternative energy turbines and tools and garments and textiles.

Key Sectors

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, an efficient administrative environment, proximity to other global hubs, and a one-stop-shop to expedite the processing of all required forms and approvals make Salalah Free Zone an ideal location for logistics and distribution activities.

The Logistics and Distribution cluster embraces all intermodal global logistics activities of processed materials and manufactured goods in the Salalah Free Zone, as well as goods being stored and handled in the Salalah Free Zone prior to re-export. It also includes logistics MRO and general distribution activities primarily for the Indian Ocean.