Sohar Port

Overview of SOHAR Port and Freezone

SOHAR Port and Freezone is a prominent deep-sea port and economic zone located in the Sultanate of Oman. Managed by the SOHAR Industrial Port Company (SIPC)—a 50:50 joint venture between the Port of Rotterdam and the Sultanate of Oman—it stands as a critical gateway for trade in the Gulf region.

Key Highlights:

• Strategic Location: Positioned midway between Dubai and Muscat, SOHAR offers a strategic maritime gateway that facilitates access to global trade routes, avoiding the congested Strait of Hormuz.

• Historical Development: The port welcomed its first vessel in 2004, and the adjacent Freezone was established in 2010. By 2018, SOHAR had serviced over 3,434 vessels and handles more than one million metric tons of cargo weekly.

• Investment and Growth: With total multinational investments exceeding US$27 billion, SOHAR is recognized as one of the world’s fastest-growing port and free zone developments, operating at the heart of trade routes connecting Asia and Europe.

• Industrial Clusters: The port was developed around three key industrial clusters:

1. Metals

2. Petrochemicals

3. Logistics

Recently, a fourth cluster was introduced—the SOHAR Food Zone, which includes the region’s first dedicated agro-bulk terminal, integrating food manufacturing, packaging, and logistics.

Infrastructure and Services:

• Deep-Water Facilities: SOHAR features deep-water jetties capable of accommodating some of the world’s largest vessels, ensuring efficient handling of diverse cargo types, including containerized, dry bulk, liquid, gas, and general cargo.

• Leading Global Partnerships: The port collaborates with esteemed global partners like Hutchison Ports Oman, Vale Oman, Oiltanking & Co Terminals, and C. Steinweg Oman to operate its various terminals.

• Accessibility: SOHAR boasts a robust road network and an airport, with future plans for a rail system that will enhance connectivity across the GCC countries.

Freezone Benefits:

• Development Area: The Freezone spans 4,500 hectares and is rapidly attracting global investments, with its first phase almost fully leased three years ahead of schedule.

• Investor Incentives: SOHAR Freezone offers numerous benefits:

• 100% foreign ownership

• Zero import or re-export duties

• Zero personal income tax

• Corporate tax holidays of up to 25 years

• A dedicated One-Stop-Shop for all permits and clearances

• Business Environment: Oman provides a stable and business-friendly climate, making SOHAR an attractive hub for regional and international investors aiming for a foothold in the Middle East.

Future Developments:

• Expansion Plans: SOHAR is set for further expansion, with SOHAR Port South project underway, adding 250 hectares to its area, which will include additional deep-water berths to enhance cargo capacity.

• Sustainability Initiatives: SOHAR has partnered with Shell to develop solar power projects, allocating 600 hectares for photovoltaic projects, each with a capacity of 25 MW. This initiative aims to meet rising energy demands sustainably while reducing operational costs for businesses in the Freezone.

• Growth Opportunities: The port and free zone continue to explore growth in infrastructure and industrial clusters, providing a compelling value proposition for investors seeking flexibility and ease in their operations.

Conclusion

SOHAR Port and Freezone stands as a vital contributor to Oman’s economic landscape, combining strategic location, robust infrastructure, and attractive investment incentives. Its ongoing expansion and sustainable initiatives promise to enhance its role as a leading hub for trade, logistics, and industrial activity in the region.