Value Proposition


Value Proposition

The viability and ultimately the success of the Salalah Free Zone (SFZ) reside in a clearly defined mandate by the Government of Oman and an undeniable value proposition built on market reach and access as well as cost advantages that are core to the DNA of the location.

Value Proposition


Salalah Free Zone is a location with Cost Competitive Market Reach and Access. Salalah’s global location, connectivity and cost competitiveness provide a unique advantage in terms of reach, enabling global sourcing and exporting from and to the world, and competitive total landed costs.

First, the location of SFZ provides relocating manufacturers direct access to countries that are mostly raw materials exporters.

Second, Salalah is among the most competitive cost locations in the region in terms of labor, utilities and infrastructure which combined with the proximity to the raw material sources offer relocating manufacturers competitive conversion costs. The regulatory environment of international standards, provides investors assurances of IP protection, 100% foreign ownership, taxes exemption and freedom of repatriation of capital.

The location becomes more attractive when considering the access it offers to Free Trade Agreements (FTA), currently regionally net importing markets, and trade routes. The access to the US-OMAN Free Trade Agreement (FTA) provides considerable duties exemptions. The FTA is an interesting opportunity to attract companies seeking to reduce their cost, if they generate at least 35% of their value in Oman. The FTA seems to be particularly attractive in various sectors such as textile, electronics and other consumer goods and products, traditionally exported from Asia to the US. Neither Europe, India, nor China have a similar agreement. Tenants of SFZ can start trading in a true global customs free environment.

Furthermore, the location is the center of gravity to the East Africa/GCC/Subcontinent market , which imports more than USD$620 Bln of goods and materials per year, providing defacto an attractive regional market.

Finally, the strategic location between trade routes of the East and the West (with over USD 2 trillion worth of goods passing through every year, Salalah is located right at the heart of world trade) gives Salalah Free Zone a shipping cost and delivery time advantage to relocating manufacturers when compared to China, USA and India as well as regional competitors.

The location has already developed the required connectivity enablers to exploit its potential as it is served by the by Port of Salalah, an international airport, a major network of highways into GCC markets, and in time, will be connected by a GCC-wide rail network.

Oman Air also offers a competitive sea-air connection from Asia to Europe that saves 48 hours on lead times and passes through Salalah.

Salalah Port is today a major regional and global transshipment hub, second only to Dubai in terms of size, and first in the Indian Ocean. It is also one of the biggest deepwater ports in the world. Three of the World’s largest shipping lines call at the Port of Salalah offering regular weekly connections to global hubs (e.g. 23 to Europe, 21 to Indian subcontinent, 13 to Asia, and 11 to Africa). As a result, import and export shipping times are on average 30% to 40% lower than other competing locations (e.g. 15 days to Newark, 12 days to England, and 8 days to Singapore).

Value Proposition


The mandate of Salalah Free Zone is driven by Oman 2020 vision and Oman economic development goals. The Free Zone will play an active role in delivering the Sultanate’s goal of being one of the most desirable and advantageous locations to do business in the world, diversifying the economy and supporting the development of value added activities to drive employment and knowledge.

Salalah Free Zone is to develop a unique value proposition with the necessary incentives to drive FDI inflows and attract international companies to set up business, beyond trade, boosting the economic and industrial development of Oman. Salalah Free Zone aims to strengthen the link between Oman business and the global economy by giving the Salalah and Omani workforce more exposure to international best practices and providing them with opportunities to build valuable experience and capabilities in industrial sectors, of international standard. The Free zone will support the overall development of the Salalah region by acting as a catalyst or even direct investor to enhance Salalah community services offering such as healthcare, education, tourism and others.

Value Proposition

Investment Incentives

The Omani business environment offers businessmen, entrepreneurs and multinational organizations several incentives that provide ease, security and profitability.

Investors are allowed up to 100% ownership and 0% income tax, with no minimal capital requirements with establishing a company or representative office in the Free Zone.

There are no import restrictions or restrictions of repatriation of capital, providing easy alignment with international partners and subsidiaries. Export guarantee insurance is available as well.

Investors are also exempt from all taxes, and are supported by State Funding at competitive rates for SMEs, and also have access to commercial loans.

Value Proposition


TQM by definition is "a management adapted approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society " ISO 8402:1994"

SFZ follows a Total Quality Management (TQM) philosophy which integrates all organizational functions (Executive, Marketing, Finance, Projects, Planning, Engineering, Information & Communication Technology, Human Resources & Administration Customer Service) to focus on meeting customer needs and organizational objectives.

Through TQM, SFZ has evolved a methodology in which management and employees are always involved in the continuous improvement of the organizational functions and services.

We have developed a set of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. TQM requires that the company maintains this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations