Free zones have not developed in Oman in the same way they have in other Gulf states, but Muscat has one development called Knowledge Oasis Muscat (www.kom.om). This technology park, situated in Rusayl Industrial Estate (near Sultan Qaboos University), offers 100% foreign ownership of businesses. You pay no personal income tax, you are exempt from foreign exchange controls, and you pay no tax on your company profits for the first five years. The first phase is already fully allocated to local, regional and multinational companies, and a second phase is in planning stage.
Construction is currently underway on the Salalah Free Trade Zone. This free zone, built around the Salalah Port, will offer attractive incentives to foreign and local businesses. The first phase of the free zone is expected to be completed by the end of 2006.