New Law on Special Economic Zones and Free Zones in Oman

A new law on Special Economic Zones and Free Zones was issued by Royal Decree 38/2025 (New Law). The New Law came into effect on 8 April 2025 and repeals the free zones law issued by Royal Decree 56/2002.

The New Law creates a unified regulatory framework for special economic zones (e.g. Duqm) and free zones (e.g. Sohar and Salalah). Executive regulations, which are to be issued by April 2026, will provide further guidance on the implementation of the law. Until then, existing regulations will continue to apply to the extent they do not conflict with the New Law.

The New Law provides for 10-year corporate tax exemptions and the possibility of longer tax exemptions for certain special activities (with more detail to be provided under the executive regulations). The New Law provides project benefits, incentives and exemptions aimed at attracting foreign investment in various sectors, particularly real estate development, within special economic zones and free zones.

Please contact one of our specialists if you have any queries relating to the New Law.