15-year tax exemptions for airport free zone investors

Airport Free Zones established at Muscat, Suhar and Salalah, in line with a Royal Decree issued on Wednesday, will be entitled to major investment incentives and tax waivers, according to the Public Authority for Special Economic Zones and Free Zones (OPAZ).

According to Ahmed bin Hassan Al Dheeb, Vice-President of OPAZ, the new airport free zones will support Oman’s economic diversification by stimulating the growth of air cargo volumes and re-exports, while opening up multimodal cargo transportation services.

In a statement to ONA, he said the airport free zones will be ideal for, among other activities, storage and distribution of goods at competitive costs, air-logistics services, light industries with an eye on international markets, support services such as banking and insurance, and commercial and hospitality services.

Operators of, and investors in, airport free zones will be eligible to 100 per cent foreign ownership, exemption from import and export duties, no minimum capital, and tax exemption for 15 years extendable for another 5 years. Additionally, the airport free zones will benefit from a one-stop portal for the processing of applications for permits, licenses, approvals and visas.

There will also be opportunities for investments in facilities and services, such as offices, commercial outlets and retail stores, to support the establishment of an world-class integrated air cargo complex at the airports.

As the regulator of SEZs and Free Zones, OPAZ will also oversee the airport free zones in accordance with the powers granted to the Authority vide Royal Decree 105/2020. In line with this role, the Authority will also enter into concession agreements with designated operating companies on behalf of the Omani government. It will also review and approve the business plans submitted by the operator, introduce the one-stop one, oversee the issuance of all kinds of licenses, approvals and certifications relating to the practice of economic activities, formulate the rules governing the movement of goods and people to and from free zones, and so on. A report of the operator’s performance will also be submitted to the Council of Ministers, he added.