Oman Plans Specialised Pharmaceutical, Medical Clusters in 3 Industrial Zones

Oman is planning to develop specialised industrial clusters for pharmaceutical and medical device manufacturing across three economic and industrial zones, with the first phase covering 1.5mn sqm and offering incentives to attract domestic and foreign investors.

The Public Authority for Special Economic Zones and Free Zones (OPAZ) announced details of the initiative at a meeting in Salalah, held under the patronage of H E Dr Hilal bin Ali al Sabti, Minister of Health, and attended by H E Qais bin Mohammed al Yousef, Chairman of OPAZ.

The first phase will allocate 500,000 sqm each in Salalah Free Zone, Raysut Industrial City and Khazaen Economic City, bringing together pharmaceutical manufacturers, medical device producers and supporting industries.

The initiative aims to strengthen national pharmaceutical security, reduce dependence on imported healthcare products and establish an integrated industrial base capable of serving domestic and export markets.

H E Al Yousef said the establishment of the clusters followed the approval of His Majesty Sultan Haitham bin Tarik for the proposal to develop specialised economic clusters for the pharmaceutical and medical device industries.

Investors will benefit from a range of incentives, including customs exemptions on imported equipment, machinery and raw materials, financial and tax exemptions for up to 30 years, and land usufruct rights for up to 50 years. Other incentives include 100% foreign ownership, operational facilities, freedom to transfer funds and profits, export support incentives, and financial and credit facilities.

H E Dr Al Sabti said developing specialised manufacturing clusters would strengthen health security by expanding domestic production, diversifying supply sources and localising specialised technologies and knowledge.

He also highlighted the importance of industrial and technological partnerships, developing national expertise in production, quality assurance, research and development, and directing investments towards priority healthcare needs.

Oman’s pharmaceutical and medical products exports reached approximately RO26.5 million (US$68.92 million) in 2025. The sultanate currently has 20 medical manufacturing plants, comprising seven pharmaceutical factories, two pharmaceutical raw material factories and 11 medical supply factories. A further 18 industrial projects are under construction or implementation.

The Salalah meeting also witnessed the signing of four investment agreements worth a combined RO20 million (US$52.02 million) at Khazaen Economic City, covering the pharmaceutical and medical services sectors. The agreements cover more than 52,000 sqm and will facilitate the establishment of three pharmaceutical factories and a specialised centre for storing medical products, devices and supplies.

Al Badr Trading and Industry Company will establish a factory to manufacture pharmaceutical tablets and capsules. Lama Pharmaceutical Company will invest in a factory producing immunology, cancer and anaesthetic medicines, while Al Mansour Pharmaceutical Factory will establish a facility to manufacture human medicines and vitamins.

The fourth project involves a specialised pharmaceutical centre affiliated with National Pharmacy for storing medical products, devices and supplies. The centre will involve an investment and occupy approximately 29,000 sqm.

Salim bin Sulaiman Al Dhuhli, CEO of Khazaen Economic City, said the agreements would strengthen the city’s role in the specialised industrial clusters. Khazaen Economic City has so far secured 18 actual investment agreements with a combined value of nearly RO250 million (US$650.22 million), he said.

In a separate development, two memoranda of understanding (MoUs) were signed at Salalah Free Zone for proposed projects in medical manufacturing and supporting industries. Apex Trans Gulf Manufacturing plans to establish two facilities, one for manufacturing medical laryngoscopes and the other for producing non-woven fabrics for medical use. The proposed investment is RO30.76 million (US$80 million), with the projects covering a combined area of 50,000 sqm.

The second MoU was signed with Aram Pharma for a project specialising in the secondary packaging of pharmaceutical products. Ali bin Mohammed Tabouk, CEO of Salalah Free Zone, said the proposed projects would support the diversification of medical industries and strengthen supply chains. He said the zone is working with its partners to finalise project development requirements, while capitalising on Salalah’s strategic location and connectivity to international markets.