Oman Allocates Salalah and Raysut Land for Medical Manufacturing Clusters
By Mehdi Touzene · 2026-11-03 08:29 UTC
Oman has allocated more than one million square metres across Salalah Free Zone and Raysut Industrial City for pharmaceutical and medical-device industries. A further site at Khazaen Economic City forms part of the initiative’s first phase.
Oman is setting aside industrial land in Dhofar for pharmaceutical and medical-device manufacturing. The Public Authority for Special Economic Zones and Free Zones (OPAZ) announced that more than one million square metres across Salalah Free Zone and Raysut Industrial City have been allocated to specialized clusters, creating room for factories and the services that support them.
What was announced
The announcement follows the approval by His Majesty Sultan Haitham bin Tarik of a proposal for dedicated pharmaceutical and medical-device clusters in special economic zones and free zones. OPAZ presented the plans in the presence of its chairman, Qais bin Mohammed Al Yousef, and Minister of Health Dr. Hilal bin Ali Al Sabti, alongside officials and healthcare-sector investors.
The initiative is intended to support domestic production, attract Omani and overseas investment, and connect manufacturers with suppliers and service providers. It covers pharmaceuticals, biopharmaceuticals and medical devices. OPAZ also points to Dhofar’s infrastructure, logistics and access to regional and international markets as advantages for the locations.
Key locations and market context
Salalah Free Zone has allocated approximately 500,000 square metres for pharmaceutical and medical investments. Raysut Industrial City, affiliated with the Public Establishment for Industrial Estates (Madayn), has designated more than 500,000 square metres. The land is intended for manufacturing as well as related technical services, packaging, storage and distribution.
The first phase also includes a dedicated area of more than 500,000 square metres at Khazaen Economic City. Together, the locations are intended to give investors options for production and distribution rather than concentrating the initiative at one site.
The Ministry of Health reported that Omani exports of pharmaceutical and medical products were worth approximately OMR 26.5 million in 2025. Separately, National Centre for Statistics and Information data put healthcare-product imports at approximately OMR 345.2 million in 2024, up from around OMR 287.1 million in 2020. Those figures provide context for the initiative, but do not establish how much of that demand the proposed clusters will serve.
What it means for buyers and investors
For property investors, this is primarily an industrial-land and employment story—not an announcement of new homes. If factories and supporting businesses proceed, they could increase demand over time for suitable industrial space and services around Salalah and Raysut. Any effect on nearby residential property would depend on how many projects move into operation and where their workers choose to live.
Khazaen adds another location to monitor for businesses weighing access to distribution networks and customers. Buyers should avoid treating allocated land as completed development: an announced cluster does not, by itself, confirm construction schedules, occupancy or future property prices.
What to watch next
The clearest milestones will be individual project approvals, construction progress and factories beginning production. These will show whether the allocated sites are turning into operating industrial districts and what, if any, demand they create in surrounding property markets.
Original source: Ministry of Health.
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