SOHAR Freezone Announces Major Expansion with $23 Million Investment in Infrastructure
SOHAR JUNE
In response to the unprecedented surge in demand from international investors and businesses, SOHAR Freezone is proud to announce, SOHAR Freezone is proud to announce the signing of a $23 million USD contract for the construction of Phase II infrastructure, a move driven by the rapid expansion in its concession area and the surging demand from potential tenants. The contract will be managed by Nafal Contracting & Trading LLC, marking a significant milestone in the Freezone’s growth and underscoring our commitment to supporting local businesses and contributing to the national economy
The decision to proceed with Phase 2 comes as a direct response to the overwhelming demand from potential tenants eager to establish their operations within SOHAR Freezone. Three major international investors have already reserved land investments in Phase 2. This unprecedented demand underscores the strategic importance of the Freezone as a premier business destination. In response to these rapid and substantial commitments, the infrastructure project has been initiated to provide facilities and ensure that these new ventures have the essential resources to thrive. This development not only caters to the immediate needs of these investors but also positions SOHAR Freezone as a pivotal hub for global trade, aligning with our long-term vision for sustainable economic growth.
With the development of Phase 2, SOHAR Freezone anticipates an additional throughput of over 2.5 million tons per year. This surge in activity is expected to significantly boost port traffic, positioning SOHAR Port and Freezone as a pivotal hub in the global trade network. The expansion will attract an additional $1.5 billion in investments, further solidifying SOHAR Freezone's position as a hub for international businesses.
The commencement of Phase 2 will begin with the General Design Services Package, followed by Construction Packages. This strategic approach ensures that all required leasable spaces are delivered efficiently, allowing new businesses to commence operations seamlessly. The expansion is not only a testament to SOHAR Freezone's commitment to fostering a thriving business environment but also a catalyst for increased trade activity and cargo volumes through SOHAR Port.
Phase 2 will increase the leasable land within SOHAR Freezone by 500 hectares, providing ample space for new businesses to establish and grow. The project is projected to create between 300 to 700 direct, indirect, and induced jobs, contributing to the local economy and enhancing the overall employment landscape. Additionally, the expansion will significantly increase Freezone revenue from land leases, local trading, and supplying activities, thereby boosting the overall GDP of the region.
Our commitment to rapid and strategic expansion aligns perfectly with Oman Vision 2040," said Omar bin Mahmood Al Mahrizi, CEO of SOHAR Freezone and Deputy CEO of SOHAR Port. "Phase 2 is a crucial step in our mission to meet the increasing demand from international businesses. This expansion underscores our position as a central hub for global trade, driving substantial economic growth and creating valuable job opportunities for the region. By enhancing our infrastructure, SOHAR Freezone Phase 2 will attract new businesses, stimulate trade, and boost regional employment. This project aligns with Oman Vision 2040's goals of economic diversification and prosperity, contributing to Oman's strategic objectives of creating a diversified and sustainable economy.
With these strategic achievements, SOHAR Freezone reaffirms its commitment to driving economic prosperity and fostering international business excellence.
About SOHAR Port and Freezone
As one of the fastest-growing ports in the world, SOHAR Port and Freezone continues to leverage on its strategic location and enhance its services, positioning itself as a key logistics hub within the region and across the world boasting container, liquids, dry and break-bulk terminals. A powerful combination of the expertise of the Port of Rotterdam and ASYAD Group, it is earmarked as one of the Sultanate’s mega-projects, home to logistics, petrochemicals, and metal clusters, as well as the region’s first dedicated agri terminal. Today, after 20 years of operation, it serves as the main gateway for import and export in Oman, directly contributing 2.1% of the country’s GDP and almost 36,000 direct and indirect employment opportunities. With a focus on sustainable development and innovative technology, it is leading the development and modernization of the Sultanate’s logistics infrastructure and supporting the economic diversification objectives of Oman’s 2040 Vision.
