Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) has been granted expanded powers under a new regulatory framework, aimed at boosting investment and economic diversification. The framework was issued under Royal Decree No 39/2026, marking a significant shift in the governance of the country’s economic zones.

Enhanced Oversight and Regulatory Powers

Qais bin Mohammed al Yousef, Chairman of OPAZ, emphasized that the new system grants the Authority expanded powers that complement the Special Economic Zones and Free Zones Law and associated legislation. He described the updated framework as a key step in enhancing the business environment and reinforcing governance across the country’s economic zones.

Al Yousef stated that the updated framework reflects OPAZ’s commitment to providing an investment climate defined by clarity, flexibility, and long-term stability, in line with national economic objectives. The Authority aims to streamline procedures and strengthen institutional efficiency across the zones under its supervision.

The enhanced mandate is expected to bolster OPAZ’s role in driving economic development, nurturing industrial clusters, and attracting quality investments. This approach supports broader government efforts to advance economic diversification and maximize local added value.

Infrastructure Development and Investment Growth

The new system also expands OPAZ’s supervisory and oversight functions, enabling closer regulatory alignment across all existing and future special economic zones, free zones, and industrial cities. Ongoing development initiatives include the planned special economic zone in Al Dhahirah Governorate, the special economic zone in Al Rawdah, and the free zone at Muscat International Airport, alongside four new industrial cities in the wilayats of Al Mudhaibi, Al Suwaiq, Thamrait, and Madha.

These projects aim to accommodate a broad range of industrial activities and reinforce the domestic manufacturing base. Al Yousef noted that the broader powers will allow the Authority to deliver a thorough suite of services through a single-window platform.

Services will cover project registration, issuance of licenses and permits, approvals and certificates required for economic activities, as well as regulation of municipal services within the zones. The framework also provides for coordination with the Ministry of Labour on work permits for expatriate employees and Omanisation ratios and with the Royal Oman Police on customs administration and import-export procedures.

The objective is to streamline processes, enhance performance efficiency, and significantly improve the investor experience. OPAZ currently oversees 23 special economic zones, free zones, and industrial cities. New investments in these zones exceeded RO 1.4 billion in 2025, bringing total committed investments to RO 22.4 billion, representing growth of 6.8 per cent compared with 2024.

Future Implications and Economic Outlook

Analysts suggest that the new regulatory framework could position Oman as a more attractive destination for foreign and domestic investors. By centralizing regulatory functions and improving service delivery, OPAZ is expected to reduce bureaucratic hurdles and increase operational transparency.

According to Al Yousef, the framework also includes provisions for long-term planning and development of the zones. He noted that the Authority will work closely with local and international stakeholders to ensure the zones remain competitive and aligned with global economic trends.

With the ongoing development of new zones and the expansion of existing ones, Oman is well-positioned to use its strategic location and natural resources to drive economic growth. The government has set a target to increase the contribution of the private sector to the national GDP to 50 per cent by 2030, and the new framework is expected to play a crucial role in achieving this goal.

As the implementation of the new framework progresses, OPAZ will need to monitor the impact on local businesses and ensure that the transition is smooth and beneficial for all stakeholders. The Authority has also indicated that it will conduct regular assessments to evaluate the effectiveness of the new system and make necessary adjustments.