The Free Zone in Al Mazyounah was inaugurated on November24, 1999 as the first region of its kind in the Sultanate; it lies in the far south-west of the Sultanate of Oman on the land border with the Republic of Yemen, and it is considered the Gulf port for transit trade to the Republic of Yemen and East Africa through Yemen, it has a total area of 4.5 million square meters. The Free Zones Law issued by Royal Decree No: (56/2002) incentives, privileges and facilities for the free zone in Al Mazyounah, It is the legislation governing the establishment and management of free zones in the Sultanate of Oman, it granting of incentives and exemptions for the investors, and it regulates the legal frameworks for operating the free zones.
The region is characterized by a package of incentives and benefits, the most important:
- Exemption from income tax for 30 years and no need to submit income statements.
- Providing, trading, and exchanging foreign currency and easy access to capital.
- Exemption from the Commercial Agencies Law.
- Exemption from customs duties.
- Allowing the import of all goods permitted to be traded in the Sultanate.
- Exemption from minimum investment requirement and free use of currencies.
- The investor’s inability to own 100% of the project capital.
- Yemeni employment shall be allowed to work in the zone without visas.
- The Omanization rate shall be reduced to 10% instead of 30%.
- Adoption of Yemeni customs data for the goods received from it.
- Issuance of certificates of origin.
- Free zone factories shall be granted a national certificate of origin.
- Facilitate granting of residence and visas to non-Omani investors.
- The establishment of a representative office shall be permitted within the Omani customs territory.
- The diversification of Omani and Yemeni commodities and products at affordable prices through one common market.