Salalah Free Zone eyes 15bn investments by 2028

By Conrad Prabhu — MUSCAT — Salalah Free Zone (SFZ), Oman’s first special economic zone development, hopes to pull in a hefty $15 billion in industrial, commercial and logistics related investments by the year 2028. A blueprint drawn up by the authority with the help of experts envisages a phased strategy for attracting investments into the free zone over the next 15 years.  Phase 1 of the Strategic Action Plan, spanning a five-year period from 2013 to 2018, projects an increase in the aggregate investment from the present $3.6 billion to a total of $5 billion by the end of this phase. The area under development by then is expected to rise to six square kilometres. Investments are anticipated to double to $10 billion by the end of Phase 2 (2018-2023), with the area under development encompassing a total of eight square kilometres by the end of this period. In the third and final phase (2023-2028), a further $5 billion in investment is foreseen, raising the total investment in the free zone to $15 billion by the end of 2028.

Also by this time, the area under development will have burgeoned to 18 square kilometres, according to the Strategic Action Plan.

The ambitious size of these investment targets underscores the Authority’s conviction that the free zone’s location, overlooking the Indian Ocean and abutting international east-west and north-south trading routes, makes it an attractive investment destination for international investors. Adding to this appeal is the presence of a successful transshipment and logistics hub operated by an AP Moller subsidiary, it is pointed out. The action plan also details a phased approach to the development of the infrastructure and facilities at the free zone, as well as steps to be taken to attract the targeted investment.  While most of the objectives set out in the current first phase (2013-2018) have already been implemented, a key outstanding goal is the construction of SFZ’s headquarters. Work on this impressive building, however, is already under way.  Also in train is a major international marketing campaign, which is also an objective of this phase.

In the second phase (2018-2023), the Authority will focus on developing dedicated complexes for target industries and economic activities. Also during this phase, the free zone is proposed to be positioned as an international centre for a variety of target industries.  Furthermore, an integrated system of services and technological facilities will be set in place to attract investors. Envisioned in the third phase (2023-2028) is a plan to expand facilities at the free zone, as well to create economic clusters designed to promote local economic development. In addition, there will be centres established for research, development and designing. Identified in the Strategic Action Plan are three key categories of industrial and commercial activities that the Authority sees most prospective in attracting to the Free Zone. They are: Chemicals and Materials processing; Manufacturing and Assembling; and Logistics and Distribution.

In the category for Chemicals and Materials Processing, the Authority foresees good prospects for the production of a wide range of commodities, including building materials (such as rubber products, ceramics, pipes and plaster products),  non-metallic natural resources (such as limestone, cement, metal, attapulgite (aluminium and magnesium silicate), dolomite (calcium and magnesium carbonates) etc), plastic and chemicals (organic and inorganic chemicals, plastics, etc), and select metals, such as iron and zinc and their applications. Activities falling in the Manufacturing & Assembly category encompass the assembly of equipment, such as machinery, electronics and medical hardware, manufacture of readymade textiles and accessories, furniture and so on, production of equipment related to alternative energy sources (solar, wind, etc), packaging and packing of grains, foods, animal and vegetable oils, production of medicines, cosmetics, paper products, textiles, and goods recycling.

Opportunities for investments in the third category of activities include distribution of processed materials, logistics, re-exports, and trading activities.  (OEPPA Business Development Dept)