Salalah Free Zone

Salalah Free Zone (SFZ), a part of the Asyad Group, is a prominent industrial and investment hub in Oman. It serves as a home to multinational corporations, regional enterprises, and local businesses, offering a highly competitive value proposition, world-class infrastructure, and top-notch facilities. SFZ provides investors with unrestricted access to Asyad Group’s integrated logistics ecosystem.

During the first half of 2023, SFZ, under the Asyad Group, attracted significant economic projects by signing five new usufruct agreements, with a total investment amounting to OMR 727 million. The cumulative agreements in SFZ have reached an impressive 127, with a total volume of OMR 4.5 billion. These numbers reflect the growing interest and confidence of investors in SFZ as a prime business destination.

SFZ, strategically located in the southern region of the Sultanate of Oman in the Arabian Peninsula, offers unparalleled advantages for hosting data centers in the Middle East and North Africa (MENA) region. With its world-class infrastructure, abundant energy supply, and proximity to high-demand markets, SFZ is well-equipped to meet the skyrocketing demand in data markets. It provides a full set of incentives, infrastructure, and logistics capabilities tailored to cloud service providers and tech businesses.

SFZ’s strategic advantage lies in its proximity to submarine cable landing points in Salalah, ensuring high connectivity and bandwidth. Cables such as 2Africa, Gulf2Africa (G2A), India Europe Xpress (IEX), and Raman provide reliable connections to various regions, spanning from Africa to the Middle East, Europe, and India. This connectivity enables SFZ to meet the growing demand for data processing, storage, and transmission with minimal latency.

Robust Power Infrastructure & Workforce

SFZ boasts a robust power infrastructure and hosts large-scale renewable energy projects like H2Oman and SalalaH2, ensuring a reliable and sustainable power supply for data centers. The direct access to cold seawater, coupled with Salalah’s year-long moderate climate, reduces energy consumption and costs while enhancing the vital cooling capabilities of HVAC systems. This sustainable approach ensures uninterrupted operations for data centers.

SFZ benefits from Oman’s commitment to education and technology, ranking first globally in the total number of science and engineering graduates. This provides a steady supply of skilled IT graduates, supporting the needs of data centers and tech businesses. Oman also offers a politically and financially stable environment, ensuring a business-friendly atmosphere for international investors away from geopolitical volatility.

Close to High-Demand Markets

SFZ has capitalized on Oman’s position as a major gateway between East and West, providing global cloud service providers and tech businesses unparalleled access to the high-demand data center market in the MENA region. The GCC data sector presents ripe opportunities, with the regional data center market projected to reach almost US$5.3 billion by 2028. SFZ’s strategic location puts businesses right at the doorstep of the underserved markets of the Middle East, Africa, and South Asia.

SFZ’s exceptional connectivity is further enhanced by its direct connection to Salalah Port, a key marine traffic and transit hub that offers swift maritime access to the entire globe. Additionally, SFZ benefits from the international cargo and logistics capabilities of the nearby Salalah Airport, as well as Oman’s advanced road network, enabling fast road shipping to neighboring countries such as Yemen, the UAE, and Saudi Arabia.

SFZ: A Gateway to the Food Industry

SFZ not only caters to the data industry but also offers access to the industrial infrastructure required by large businesses in the food industry. With its sizeable tax and customs exemptions, full foreign ownership, and special permissions to recruit a foreign workforce, SFZ empowers its food industry customers. It provides unrestricted access to regional and global agricultural production areas, such as East Africa and India, facilitating efficient supply chains.

Established in 2006, SFZ has continuously developed its value proposition to meet the growing demands of global businesses and investors. In a time of global supply chain disruptions and volatile markets, SFZ stands as a reliable logistics provider, offering secure connectivity and consistent support.

SFZ, with its strategic location, world-class infrastructure, and attractive incentives, is poised to continue attracting investments and serving as a gateway to growth in the MENA region.

Additional Details for Salalah Free Zone

• Total area: 1848 hectares
• Land tenure: 50 years
• Developer: Salalah Free Zone Company