Oman is intensifying measures to attract pharma sector investment and expand pharmaceutical and medical device manufacturing by offering prospective producers a range of incentives, according to the Public Authority for Special Economic Zones and Free Zones (OPAZ). The package includes preferential access to government procurement, tax and customs exemptions, full foreign ownership and other investment benefits.
A central element of this pharma sector investment initiative is the introduction of advance purchase agreements that can cover up to 30 per cent of the Ministry of Health’s requirements for locally manufactured pharmaceutical products. As the Sultanate of Oman’s largest customer for medicines and pharmaceutical products, the Ministry of Health represents a significant and predictable source of demand for companies establishing production capacity in the country.
Oman is also providing price-based support, including a price preference of up to 30 per cent for locally manufactured products and 20 per cent for products undergoing secondary packaging. These measures are intended to strengthen the competitiveness of Oman-made medicines in government procurement while encouraging investors to shift from importation towards domestic manufacturing.
Pharmaceutical Projects Expand Across Oman’s Economic Zones
OPAZ said the incentive package to attract pharma sector investment is part of a wider strategy aimed at positioning Oman as a regional centre for pharmaceutical and medical industries.
The authority stated, “Oman’s pharmaceutical industry is accelerating, powered by a business-friendly investment environment, competitive incentives and diverse investment opportunities.”
The country already has 13 pharmaceutical projects and manufacturing facilities spread across its special economic zones, free zones and industrial cities. These projects cover areas including generic pharmaceutical manufacturing, research laboratories, active pharmaceutical ingredient (API) production, vaccines and biopharmaceuticals.
OPAZ further said, “13 pharmaceutical projects and manufacturing facilities across Oman’s Special Economic Zones, Free Zones and Industrial Cities — offering investors a strategic platform to scale and grow.”
The range of opportunities is also being extended to medical devices, including medical equipment, digital health solutions, surgical instruments and smart health-monitoring devices.
Tax, Customs and Foreign Ownership Benefits
The investment package includes several financial and ownership-related incentives designed to support companies establishing operations in Oman. Investors can receive tax exemptions for up to 30 years, while customs exemptions are available on raw materials and equipment. The framework also carries no minimum capital requirement and permits 100 per cent foreign ownership.
OPAZ additionally highlights exemptions from personal income tax, value-added tax and capital gains tax. Alongside these financial measures, investors can access streamlined establishment and licensing procedures, work permits issued within 24 hours, long-term residency visas and the ability to transact in all currencies. Usufruct agreements can run for up to 50 years and are renewable, providing investors with longer-term operating arrangements.
Investor Support and Infrastructure
OPAZ said companies entering the sector will also benefit from one-stop-shop services, dedicated investor-support teams, flexible regulatory procedures and accelerated customs clearance. Infrastructure and facilities can be tailored to individual requirements, providing additional support for pharmaceutical and medical device producers establishing operations within Oman’s special economic zones, free zones and industrial cities.
OPAZ added, “With the right infrastructure, strategic advantages and an enabling investment ecosystem, Oman is emerging as a regional hub for medical and pharmaceutical industries, creating new opportunities for investors and driving sustainable industrial growth.”
