The Special Economic Zone of Duqm

The Special Economic Zone of Duqm

 

Port of Duqm is part of the ambitious SEZD project (Special Economic Zone of Duqm) in Oman, destined to be the biggest fully integrated Special Economic Zone in the Middle East. It includes industrial, logistics, residential and tourist zones, supported by world-class road infrastructure, international airport and seaport. Besides, the Sultanate of Oman is well known for its business-friendly environment, a stable currency pegged to the US Dollar, a stable government with liberal policies and strategic international trade relationships with other countries. These conditions, coupled with Duqm’s strategic location, make Port of Duqm ideally suited to become a major import, export and trans-shipment hub in near future in the Middle Eastern region.

Interactive Map of SEZD: http://duqm.gov.om/duqm-sez/interactive-map

 

Free Zone Incentives

 

The economic free zone is ideal for investors looking to set up their manufacturing facilities in Duqm Free Zone, to take advantage of Duqm’s prime location, its available land and low cost utilities and its excellent infrastructure, while seeking predominantly to import raw materials, or use locally available raw materials, create value in production processes and re-export their products to local or international markets.

Investors can enjoy a full list of incentives applicable for all businesses establishing themselves in the Special Economic Zone of Duqm. Port of Duqm, as well as all its concession areas, lie within the special economic zone, so investors tying up Port of Duqm will enjoy the full package of incentives.

 

Duqm SEZ Incentives

 

1. Exemption from Corporate Taxes for 30 years

Tax exemption for 30 years from the start of commercial activities, renewable for a similar period thereafter. Financial institutions such as banks and insurance companies, telecom service providers and transport companies are not eligible to claim tax exemption unless they are registered with SEZD and strictly conduct business within SEZD boundaries.

 

2. 100% Ownership by Foreign Shareholders Allowed

The special economic zone of Duqm allows foreign entities to own upto 100% shares in a company registered in the zone. 

 

3. No Minimum Capital Requirement

Exemption from minimum capital requirements stipulated in the commercial companies law and other laws.

 

4. No currency restrictions.

No restriction on currency or capital controls applicable

 

5. Exemption of Commercial Agency Law provisions

Companies registered in SEZD benefit from not being subject to the provisions of the Commercial Agency Law

 

6. Free repatriation of Profits & Capital

No charges or restrictions on repatriation of capital or profits to a foreign country. 

 

7. Usufruct agreements up to 25 years, renewable for similar periods

The long duration of urufruct allows companies to plan capital-intensive projects for the long term. 

 

8. Import Freedom and Free Movement of Goods Inside the Zone

Freedom to import all kinds of goods (except banned goods) without prior approval or permit, unless goods are under explosives or chemical products classification, for which laws and regulations are in force. The imported goods are not subject to any restrictions related to the retention period in the Zone unless otherwise specified by SEZD Board of Directors.

 

9. Free Movement of Goods 

Investors are also allowed to transport goods freely within the Duqm free zone or any other free zone inside the Sultanate.

 

10. Goods Manufactured Treated as Made In Oman

The finished or assembled products in the area are treated as locally produced products, which are entitled to numerous benefits.

 

11. Right to Open Representation Office

Enterprises have the right to open a representation office inside the customs jurisdiction.

 

12. One Stop Shop

The one-stop station of SEZD provides all necessary services for the enterprises. Through this window, investors can obtain all the required permits, licenses, approvals, commercial registration of enterprises as well as visas.

 

13. Easy Omanization Requirements & Fast Processing of Expatriate Manpower Visa Applications

Speedy and efficient processing of expatriate manpower applications. The process shall not take more than five working days from the date of submitting the application. Visas for expatriates and their families' members will be issued by the ‘Passport and Residence Department’ that is currently being set up in the area.

 

14. Speedy & Modern Customs Procedures

Speedy, modern and transparent customs procedures which allow quick processing of transactions. 

 

Conditions to Avail Incentives

 

To avail the above incentives, a company must satisfy the following conditions:

  • It should be registered in the Free Zone and subject to the Free Zone rules and regulations in force. 
  • It must conduct its activities inside the free zone.
  • It  must maintain the mandatory minimum 10% Omanization rate stipulated by SEZD Board

 

For more information about the Special Economic Zone of Duqm (SEZD), please visit the SEZD website: http://www.duqm.gov.om