MUSCAT – These projects will be established on a combined area of 5,405.88 square meters, further diversifying the zone’s economic activities.

According to Eng. Ahmed bin Khamis Al Kasbi, Director General of Al Mazunah Free Zone, the number of lease contracts signed in the zone has risen to 172, covering industrial, commercial, and service sectors. The zone remains focused on attracting industrial investments to support long-term sustainability and economic diversification.

Eng. Al Kasbi noted that final preparations are underway to launch an animal quarantine facility, in collaboration with the Ministry of Agriculture, Fisheries and Water Resources, with trial operations expected in Q3 2025. Simultaneously, 70 percent of a water desalination plant has been completed, with full completion expected by Q4 2025. These infrastructure projects aim to boost the zone’s operational efficiency and investor appeal.

Freight traffic at the free zone surged during the first half of 2025, with over 137,000 tonnes of goods recorded—a 21 percent increase compared to the 113,000 tonnes handled during the same period last year. The number of vehicles imported and exported through the zone also climbed 31 percent, reaching 2,921 vehicles, up from 2,223 in the first half of 2024.

To enhance services for travellers and stimulate cross-border trade, Al Mazunah has issued a tender for the management and operation of a duty-free market, aimed at specialized companies. The market will serve travelers crossing the Oman–Yemen border, reinforcing Al Mazunah’s role as a gateway to East Africa.

Eng. Al Kasbi highlighted the impact of the new Free Zones Law issued under Royal Decree No. 38/2025, which provides a unified legislative and regulatory framework for free zones and special economic areas in Oman. He emphasized that the law is a major step toward integrating Al Mazunah with other free zones and economic cities across the Sultanate.

This legal reform aligns with the goals of Oman Vision 2040, aimed at enhancing economic diversification, attracting local and foreign investments, and boosting the contribution of non-oil sectors to GDP.
Located in Oman’s southwestern region, Al Mazunah Free Zone is strategically positioned as the Gulf’s gateway to East African markets via Yemen. It is the first free zone in the Sultanate and continues to emerge as a promising hub for trade, logistics, and industrial development.