Salalah Free Zone: Oman’s emerging petrochemical powerhouse

Located in the southern city of Salalah, Salalah Free Zone (SFZ) is one of Oman’s premier investment destinations and a key subsidiary of Asyad Group, the nation’s integrated logistics provider under the Oman Investment Authority (OIA). Strategically positioned adjacent to the Port of Salalah, SFZ serves as a vital link between global shipping routes connecting Europe, Asia, and Africa. Its world-class infrastructure, business-friendly environment, and integrated logistics connectivity make it a cornerstone of Oman’s industrial diversification and a catalyst for attracting foreign direct investment into the Sultanate.

A gateway to the world’s fastest-growing markets

Salalah’s location is one of its most significant competitive advantages. Situated along major east-west maritime routes - between Rotterdam and Singapore - the Free Zone benefits from over 50 weekly sea connections, enabling direct access to global trade corridors. For petrochemical producers, this translates into shorter transit times, reduced logistics costs, and access to consumers across three continents from a single operational base. The Port of Salalah, one of the Middle East’s largest and most efficient transshipment ports, serves as the Free Zone’s maritime backbone. It offers specialised liquid jetties, deep-water berths, and an integrated logistics corridor, allowing petrochemical products to move swiftly and safely from plant to port, and then to global markets.

World-class infrastructure built for industrial growth

Spanning over 12 million square metres, Salalah Free Zone offers fully serviced industrial plots designed to meet the technical demands of heavy manufacturing and petrochemical operations. Investors benefit from uninterrupted access to natural gas, electricity, and desalinated water through Salalah Gas Supply, Nama Dhofar, and the area’s modern utility networks.

The zone also features a 4.5-kilometre dedicated pipeline corridor directly connecting petrochemical producers to the Port’s liquid terminal. This infrastructure enables cost-efficient, secure, and continuous transport of raw materials and finished products - a distinct advantage for industries dealing with bulk liquids such as ammonia, LPG, and methanol.

Direct access to local feedstock

SFZ’s greatest strength lies in its proximity to locally produced petrochemical feedstock. Within the zone, global players such as OQ Methanol, OQ Ammonia, and LPG operations are already operational, producing essential inputs like ammonia, liquefied petroleum gas (LPG), and methanol.

This local availability provides downstream investors with direct and reliable access to key feedstocks used in the production of plastics, resins, polymers, and specialty chemicals. The result is a highly integrated value chain that minimises import dependency, reduces production costs, and enhances competitiveness for manufacturers targeting regional and global markets.

Seamless logistics and export capabilities

SFZ is seamlessly connected to Oman’s wider logistics network. The Port of Salalah handles millions of tonnes of bulk cargo annually, supported by state-of-the-art storage, loading, and pipeline systems. Additionally, Salalah Airport, located just 20 minutes from the zone, operates 28 weekly international connections, facilitating the movement of high-value or time-sensitive cargo.

This multimodal connectivity - combining sea, air, and road networks - gives petrochemical investors a complete logistics solution from raw material import to final product export. The result is greater operational flexibility and access to key markets across Asia, Africa, and Europe.

A proven and growing industrial ecosystem

SFZ’s petrochemical cluster is not just conceptual; it is already thriving. The presence of OQ’s major production facilities has fostered a growing ecosystem of downstream and supporting industries in chemical blending, packaging, warehousing, and logistics.

Moreover, the Free Zone is strategically linked to Oman’s broader petrochemical value chain, including the Duqm Refinery and OQ’s chemical complexes, creating strong integration between upstream and downstream operations. This synergy allows investors to benefit from shared infrastructure, reliable utilities, and established supply chains.

Investor-friendly environment

Oman’s open investment framework makes SFZ one of the region’s most attractive destinations for petrochemical ventures. Investors enjoy 30 years of tax exemption, 0% customs duties, 0% VAT, and 100% foreign ownership, along with full repatriation of profits.

The one-stop-shop centre simplifies business setup through streamlined procedures for company registration, licensing, visas, customs clearance, and work permits. In addition, investors are allowed to employ up to 80% of the foreign workforce, enabling access to specialised expertise and ensuring operational scalability.

Aligned with Oman Vision 2040

The development of SFZ is fully aligned with Oman Vision 2040, which emphasises economic diversification, private sector participation, and sustainable industrial growth. SFZ contributes to these goals by expanding the nation’s downstream manufacturing base, promoting value-added production, and attracting international partnerships that create employment opportunities and technology transfer.

A platform for the future of petrochemicals

While SFZ’s foundation lies in petrochemical strength, it is also evolving toward sustainability. The zone’s integration with emerging green hydrogen and ammonia initiatives positions it as a bridge between conventional hydrocarbon industries and the clean energy transition. This forward-looking approach ensures that petrochemical investors can operate within an ecosystem that is both profitable and future-ready.

With its strategic location, abundant feedstock, world-class infrastructure, and investor-friendly policies, SFZ is redefining the regional petrochemical landscape. Backed by Asyad Group’s integrated logistics network and Oman’s national development vision, SFZ provides a unique, efficient, and globally connected platform for petrochemical manufacturers and downstream
investors.

From ammonia and methanol to polymers and plastics, Salalah is not just exporting products - it is exporting potential, shaping Oman’s future as a competitive and sustainable industrial powerhouse.