Several Free Zones are being offered by the Oman Sultanate, which is regarded to be its eye catching parameter, thereby attracting investors from all over the world to consider investing in this region. There has emerged another zone similar to that of the Salalah and Sohar Free Zones, named Duqm SEZ Special Economic Zone. Going through this article can provide you with a clear picture about Duqm Oman along with the innumerous facilities it has on offer. Being an investor, if in Oman, you search for viable business investment opportunities, and are more interested in the industrial sector, then Duqm SEZ is perhaps the best bet. Let’s begin with…
ABOUT SPECIAL ECONOMIC ZONE (SEZ)
What is it? The SEZ (Special Economic Zone) is regarded to be the region dealing with trade and business laws which are somewhat different from that of the regular company incorporation ground. It is also located along the national boundary of the country. Its objective is to help increase investment, trade balance, effective administration and job creation. Let us understand better about Duqm SEZ Authority as well as the investment opportunities offered here.
INVESTMENT OPPORTUNITIES AT DUQM SEZ
SEZAD (Duqm SEZ Authority) offers investors with lucrative opportunities to set up various types of businesses here. There are offered innumerous opportunities at DUQM SEO similar to other free-zones like the following
- Tourist resorts
- Logistics Village and warehousing
- Real estate development
- Fishery industries
- Mining
- Malls and markets
- Therapeutic and health services
- Logistics and transport
- Petrochemical industries
- Refining, oil storage and refineries
- Residential complexes and commercial offices
Before going ahead with your investments, it will be wise to have some knowledge pertaining to the different benefits offered here to investors.
Benefits to set up a venture in Duqm SEZ
- 100 percent foreign ownership available
- Tax exemption for 30 year period
- There is no restriction on currency
- No restriction with regards to minimum capital requirements
- Flexible free goods movement within the zone
- 100% Capital & profit repatriation, invested & earned.
- Smooth network link with international and Gulf markets
- Easy availability of Expatriate Visa
- Business activities enjoying politically stable zone
- Foreign workforce issued necessary permits by concerned Labor Department present here.
- Freedom to setup Representative Office
- 10 percent Omanization rate mandatory as SEZAD Board stipulated.
Prior to moving ahead with setting up the core process of your company, there is a need to be aware about the different licenses to be obtained for carrying out desired business activities. There are present different departments which tend to issue such licenses.
- Commerce & Industry Ministry
- Health Ministry
- Capital Markets Authority
- Tourism Ministry
- Education Ministry
- Information Ministry
The next step will to have a closer look at the different documents that will be necessary for establishing a business at Duqm SEZ.
Some documents to submit for establishing company at Duqm SEZ
- Founders, Partners, Owner and others ID copies
- As per Annex (1) of Investment Application, Signatories signature
- Investment Project decryption with its needs, as per Annex (2) of Investment Application
- Articles & Memorandum of Association
- If partner is legal person, then partner’s share along with minutes of minute to be submitted
- If a Branch office is to be opened, then the parent company is to issue a letter stating taking responsibilities of all business activities that are conducted at the branch office.
- Company Registration Certificate
- Establishment Owner providing official letter requesting Branch Office registration
- There will have to be submitted No Objection Letter from current sponsor, if applicant is on work visa.
Following is the question that is likely to crop up in your mind…
Steps to establish a venture in Duqm SEZ
There are to be followed few crucial steps to initiate a venture in Duqm SEZ
- Application form submission also referred to as PAF (Plot Application Form) by filling up all essential details.
- There is to be drafted an agreement based upon the Contract Term, Land Lease Price and Commercial Terms.
- From MECA (Environment & Climate Affairs Ministry) is to be obtained No Objection Letter.
- There needs to be performed due diligence process on promoters and main shareholders.
- Payments to be made as specified.
- After completing the payment procedure, there is to be obtained from Oman Chamber of Industry & Commerce, company incorporation certificate.
Facilities offered at Duqm SEZ
- Marine & Logistics Hub.
- Diversified environment offering greater flexibility to carry out different business activities.
- Huge ground covering an area of about 2,000 sq. km. to enable business setup.
In short, Duqm can be considered to be a powerful pillar, when Free Zones are concerned in Oman. Foreign expats are offered multiple benefits. Moreover, the Omani Government is taking necessary steps continuously to run this free zone into the largest one, diversifying it with multiple business directions.