The Untold Story of Oman’s Free Zones: How to Build a 100% Foreign-Owned Company

Introduction

When most people think of business in the Gulf, they think of the United Arab Emirates or Qatar. But a quieter story is unfolding in the Sultanate of Oman — one of strategic positioning, under-the-radar incentives and full foreign-ownership possibilities. For entrepreneurs and investors who want a foothold in the Middle East without the flash and saturation, Oman’s free zones offer a compelling pathway.

What Are Oman’s Free Zones?

Free zones (and special economic zones) in Oman are designated areas where regulatory, tax and ownership rules differ favourably from standard mainland regimes. Under the OPAZ regime:

• 100 % foreign ownership is permitted. Oman Free Zones Authority+1

• Full capital and profit repatriation is allowed. Oman Free Zones Authority+1

• Exemptions or holidays on corporate tax may last up to 25-30 years in some cases. Chambers+1

• No customs duties on import/export in many zones. Tetra Consultants+1

These features combine to make Oman a highly competitive jurisdiction for foreign-owned companies, especially when you factor in stability, strategic location (adjacent to Africa/Asia) and growing infrastructure.

Step-by-Step: Setting Up Your 100% Foreign-Owned Company

1. Select Free Zone or SEZ – Research zones (Sohar, Salalah, Al Mazunah, Duqm etc) and pick one aligned with your industry (logistics, manufacturing, services). Oman BSS+1

2. Choose Legal Structure – Most common: Limited Liability Company (LLC) or Free-Zone Company. These can be fully foreign-owned in the zone. Make My Company+1

3. Register with Ministry – Submit application to Ministry of Commerce, Industry and Investment Promotion (MOCIIP) or relevant free-zone authority. Business Setup Oman+1

4. Licence & Compliance – Obtain trade licence, meet zone-specific conditions, open bank account, recruit staff (Omanisation may apply but typically more relaxed in zones). Chambers+1

5. Cash-in & Launch – Once licence granted and capital (if any) uploaded, you can begin operations — enjoy 100% ownership, import/export benefits, and profit repatriation.

Why This Matters for Business Owners & Marketers

• Competitive advantage: You’re operating from the Gulf but in a jurisdiction with fewer crowds and more opportunity.

• Cost-effectiveness: Lower setup costs, fewer competing disruptions, less saturated market.

• Narrative-driven marketing: “Build your business base in Oman’s free zone” sells strength + exclusivity.

• Cross-border potential: With Oman’s free-trade agreements and growing logistics hubs, your company can project into Africa/Asia circles.

Key Considerations & Risks

• Not all activities are covered — you must ensure your business field is permitted for 100% ownership. Oman Tax Free Zones

• Free-zone incentives depend on compliance and zone-specific conditions.

• Recent regulatory developments: For example, Law of Special Economic Zones & Free Zones (Law 38/2025) introduced new frameworks. EY

Conclusion

Oman’s free zones aren’t just a footnote in Gulf business; they’re a strategic platform. For entrepreneurs, they offer full foreign ownership, tax/planning advantages and growth-oriented infrastructure without the noise. If you’re looking to expand into the Middle East, carve your niche and do business with autonomy — Oman’s free zones are a story worth telling, and a business worth building.