Oman has introduced a sophisticated regulatory framework to ensure that capital flowing into its special economic zones and free zones translates into meaningful domestic value. Under Decision 81/2026, issued by the Public Authority for Special Economic Zones and Free Zones (OPAZ), the Sultanate is transitioning toward an investment model that prioritises projects with clear economic substance. By implementing the provisions of Royal Decree 38/2025, the authority aims to attract enterprises that foster technology transfer, boost industrial capacity, and solidify local supply chains.

Aligning Investment with National Ambitions

This strategic shift targets a diverse array of sectors critical to Oman’s diversification agenda. From manufacturing and downstream processing to the burgeoning fields of green hydrogen, renewable energy, and biotechnology, the focus remains on projects that enhance both economic and food security. The new regulations provide a structured pathway for evaluating how these investments contribute to national priorities, ensuring that incentives are tethered to verifiable economic outcomes.

Strengthening Governance and Oversight

To ensure these development goals are met, OPAZ has introduced rigorous assessment mechanisms. Investors seeking land allocation must now provide detailed feasibility studies, clearly outlining their financial capacity, project implementation schedules, and the specific nature of their proposed activities. An integrated investment register will serve as a central monitoring tool, tracking capital expenditure, employment metrics, and levels of Omanisation. By requiring ongoing reporting on operational performance and workforce composition, the authority gains the ability to confirm that enterprises are meeting their commitments throughout the life of their incentives.

Streamlining the Investor Experience

Beyond oversight, the new framework prioritises administrative efficiency through the One-Stop Shop. By digitising the investor journey-from application and payment to coordination with cross-sectoral government entities-OPAZ is working to minimise bureaucratic hurdles. The introduction of a seven-day response window for complete applications offers investors a new level of predictability. If a decision is not rendered within this timeframe, the application is deemed approved, underscoring the Sultanate’s commitment to facilitating a business-friendly environment that rewards projects designed to scale within Oman’s industrial landscape.

Sources

Oman Observer · 2026-10-22