Al Mazunah investment reaches $366m after H1 projects

Al Mazunah Free Zone has lifted cumulative investment above OMR141 million after localising four new projects in the first half of 2026, according to figures released by its operator, the Public Establishment for Industrial Estates, or Madayn.

The four projects carry investment of more than OMR620,000 and cover industrial and logistics activities as well as export offices. Together they will occupy more than 2,415 square metres, adding to the zone’s leased area, which now exceeds 1.4 million square metres.

Madayn said Al Mazunah’s overall site covers 15.36 million square metres, while the workforce in the free zone has reached 472. The new projects add to an investment base that has expanded gradually as Oman seeks to strengthen commercial links through its southern border region.

Ahmed Al Kasbi, Director General of Al Mazunah Free Zone, said preparations were under way for the second Al Mazunah Economic Exhibition and Forum, scheduled for October 20 to 22. The event is intended to widen participation by companies from Oman, Yemen and other markets and to promote investment opportunities and commercial partnerships.

Al Kasbi said the forum would focus on strengthening trade and investment ties between Oman and Yemen, while encouraging a broader presence for local products and services in regional markets. Organisers are targeting manufacturers, logistics companies, import and export businesses, food suppliers, automotive companies, brand agents and small and medium-sized enterprises.

Infrastructure work is also continuing. During the first half, the zone completed the readiness of a desalination plant to provide water services and began accepting requests from users. Design work for infrastructure in Phase 4, covering about 1.5 million square metres, was also completed. The work gives the operator a basis for extending serviced plots as it pursues new tenants.

Madayn plans additional works including development of a new sovereign gateway in coordination with the relevant authorities and an internal irrigation network aimed at expanding landscaped areas. Projects under the current five-year plan include an industrial incubator and specialised warehouses covering 50,000 square metres.

The zone is also studying a 1,000-square-metre cold-storage facility and a representative office focused on the Yemeni market. Management views Al Mazunah’s location near the border as an important element in facilitating trade flows between Oman and Yemen and supporting access to neighbouring markets.

Another proposal under study involves a memorandum of understanding with the operator of Najd Farms to create manufacturing value from agricultural products and waste. The ideas include producing animal feed from agricultural waste generated by the farms and establishing facilities for compound fertiliser production.

Plans for the next phase also include studying infrastructure for a 50,000-square-metre automotive complex incorporating showrooms and public parking. The zone additionally aims to add one megawatt of solar-energy capacity through solar-powered lighting.

Al Mazunah is encouraging existing companies to shift 10 per cent of their electricity consumption to clean energy and plans to require renewable-energy systems for new companies. Those measures form part of efforts to expand utility capacity while reducing the environmental impact of industrial and commercial activity.

The free zone, located in Dhofar governorate near the Yemeni border, targets investment in manufacturing, advanced technology, food production and logistics. Its position gives businesses access to cross-border trade routes, while Oman has used free zones as part of a broader strategy to attract foreign capital and diversify activity beyond hydrocarbons.

Investors at Al Mazunah are offered incentives including income-tax exemptions for up to 30 years, customs-duty exemptions and the possibility of 100 per cent foreign ownership. The zone also provides flexibility for foreign-exchange transactions and exemptions from commercial agency requirements. Madayn says the income-tax exemption can run for 30 years without requiring an income declaration, while customs concessions are intended to support companies moving goods through the zone.