SULTANATE OF OMAN INVESTMENT DESTINATION OF CHOICE
Considering the current geoeconomic situation, Oman merits serious consideration with its strategic location which supports lower logistic cost and dependable supply, being key considerations for businesses looking to expand overseas by setting up units or accessing global markets. Oman Vision 2040 launched in January 2021 by order of His Majesty the Sultan strategically repositions the national competitiveness around six themes one of which is “world class infrastructure and transport services”.
Oman today has emerged as an attractive destination with favourable investment climate, characterized by a stable political environment, world-class infrastructure (such as 5 modern airports, 4 world class sea ports, nation wide fibre optic connectively growing coastal ferry and shipping services), full foreign ownership in many sectors, one-stop shop portal InvestEasy for clearances, no restriction on capital and profit repatriation, regionally competitive costs, ready supply of raw materials (oil, gas, minerals, metals, other natural resources) 100% population as urban with median age of 29.2 years (2023), wide use of English language as accredited one and a supportive government.
Its geographic location, positioned as it is at the intersection of key global trade corridors, serves as a gateway between East and West offering immense potential for transshipment and trade. Oman is well connected with a 3 hours flight from 30% of the world’s population. It is ranked as one of the safest countries in the world.
While India-Oman FTA is nearing conclusion, there are other agreements which make it an attractive investment location for setting up business. Illustratively, GCC-European Free Trade Association FTA with Iceland, Liechtenstein, Norway & Switzerland for goods & services covering industrial goods exemption from customs duties.
A case to point is Khazaen Economic City, located just 60 kms from Muscat with direct links to Sohar Port and major road networks. It is a planned city offering logistics, industrial, commercial, and residential components in a single connected ecosystem. It offers special zone benefits such as simplified regulatory procedures, duty exemptions, and fast-track approvals through a single-window system. It hosts the first integrated international dry port in Oman. Free Zones offer further incentives such as no minimum capital requirement and exemption from customs duty and income tax (15 years extendable).
An event (limited seats), supported by Optimax Aces(1) and India and Arab Countries Chamber of Commerce Industry & Agriculture(2), is scheduled for 17th Sep’25 at the residence (in New Delhi) of the Ambassador of the Sultanate of Oman to India for a delegation from Khazaen Economic City to showcase its many advantages. This event, with 4 sectors as focus, presents a great opportunity since the delegation would be present in person to share information, answer questions, and provide any support needed.
The focus sectors for the delegation from Khazaen Economic City are:
- Food Processing & Cold Chain Logistics This stream primarily targets companies operating in food storage, value-added processing, dry warehousing, and distribution. Opportunities exist for multi-temperature storage solutions, packing centers, and food-grade logistics infrastructure, especially for exportdriven businesses. Khazaen platform is particularly well-suited for investors who oer integrated or specialized logistics capabilities within the agri-food and processed food space.
- Pharmaceuticals & Healthcare Logistics This includes opportunities in secure pharmaceutical warehousing, temperature-controlled logistics, and regional distribution centers. Khazaen also welcomes value-adding activities such as secondary packaging, labeling, and regulatory support services. This stream aligns with the national objectives to localize parts of the pharma supply chain and enhance healthcare resilience.
- Textiles & Factory Outlets In addition to retail factory outlets planned as part of the upcoming Commercial Boulevard, industrial plots can also be allocated within designated manufacturing zones for textile production or light assembly operations. This flexibility allows for both retail and production aspects of the textile value chain to be accommodated.
- Light Manufacturing & Export-Oriented SMEs This stream includes industries requiring moderate infrastructure such as assembly, fabrication, electronics, furniture, packaging, and processing. SMEs is defined in alignment with regional standards — generally firms with fewer than 250 employees and manageable utility and land requirements — though larger players can be considered if their operations align with Khazaen’s framework and export objectives.
Article by : Rajesh Lal
www.linkedin.com/in/rajesh-lal
(1) Optimax Aces Private Limited
Optimax Aces is a unique, sector agnostic, “Go-To” venture to support and simplify doing business in India, with India, across India, end-to-end from idea stage to government affairs, to business setup, to business security, to legal affairs, to licenses and permissions, to regulatory matters such as taxation, customs & foreign exchange, to stewardship, to JVs/Collaborations and beyond. It also undertake business development for interesting technologies and solutions, sector notwithstanding. Team Optimax Aces comprising of decision makers – very senior former bureaucrats, highly decorated former defence officers, industry stalwarts, subject matter experts – makes success happen.
Optimax Aces strives to promote and support growth of India’s bilateral economic and cultural relations with countries across the world.
Website: https://www.optimaxaces.com/
LinkedIn: https://www.linkedin.com/company/optimaxaces
(2) India and Arab Countries Chamber of Commerce Industry & Agriculture
IACCIA is dedicated to fostering economic collaboration between India and the Arab world. Established as a key outcome of the Fifth Arab-Indian Partnership Conference in Muscat (2016) and the Sixth Arab-Indian Partnership Conference in New Delhi (2023), IACCIA serves as a dynamic platform for business leaders, entrepreneurs, and industry experts to explore new opportunities and strengthen economic ties.
Mission: To foster global business growth by creating a strong network of Indian and Arab entrepreneurs, promoting trade, investment, and collaboration. Vision: To be a leading platform that empowers businesses across India and Arab countries, driving economic progress and sustainable partnerships.
IACCIA invites businesses to join it and become part of a transformative journey that connects economies, empowers businesses, and drives sustainable growth between India and the Arab world.
Website: https://iaccia.com/about-us/ LinkedIn: https://www.linkedin.com/company/indiaand-arab-countries-chamber-of-commerce-industryagriculture/
