Port of Salalah & Salalah Free Zone: 2026 Trade Opportunities

The Port of Salalah and the Salalah Free Zone in southern Oman form one of the Arabian Sea's main trade and logistics platforms. The port handled a record 4.3 million TEU of containers and 26.4 million tonnes of general cargo in 2025, according to Salalah Port Services, while the adjacent free zone offers up to 30 years of income tax exemption and 100% foreign ownership. Together they give manufacturers and traders direct access to shipping lanes linking Asia, the Middle East, Africa and Europe.

Key takeaways

Salalah's container terminal handled about 4.3 million TEU in 2025, up 31% on 2024, and general cargo hit a record 26.4 million tonnes (+17%), according to Salalah Port Services.
Volumes kept rising in 2026: 2.33 million TEU in the first half (+14.8%) and a monthly record of 511,209 TEU in September 2026, as reported by the Oman Observer.
About 87% of first-half 2026 container volume was transshipment, which confirms Salalah's role as a regional hub.
The Salalah Free Zone offers up to 30 years of income tax exemption, customs exemptions, 100% foreign ownership and no minimum capital, according to the free zone company.
Cumulative free zone investment reached about RO 5.1 billion by the third quarter of 2025, in sectors from food processing to petrochemicals and battery materials.
Oman's government announced in October 2026 that the current port concession will not be extended beyond 1 November 2028, so a new operator is expected after that date.

Why is the Port of Salalah's location so important?

Salalah sits on Oman's southern coast in the Dhofar governorate, facing the Arabian Sea and the Indian Ocean. This places it close to the main east–west shipping route between Asia and Europe through the Gulf of Aden and the Red Sea, and outside the Strait of Hormuz. Large container lines can stop there with minimal deviation from their routes, and cargo can be transferred to smaller feeder ships serving the Gulf, East Africa, the Red Sea and the Indian subcontinent.

According to the Salalah Free Zone, typical sailing times from Salalah are about 8 days to Singapore, 12 days to England and 15 days to New York. The port, which opened in 1998, says it is served by major liner networks including Maersk, MSC, CMA CGM and COSCO. Its own materials also cite its 2021 ranking as the world's second most efficient container port.

What are the Port of Salalah's terminals and capacity?

The port has two main business units: a container terminal and a general cargo terminal.

Container terminal

According to Salalah Port, the container terminal has six berths along a 2,197-metre quay with water depth of up to 18 metres, deep enough for the largest container ships. A US$300 million upgrade, completed in the first quarter of 2025, upgraded all berths, expanded the yard and added new ship-to-shore cranes. The port states that annual capacity increased from 4.5 million to about 6 million TEU (some press reports put it at around 6.5 million). The upgrade was designed partly to serve the Gemini Cooperation, the shipping network of Maersk and Hapag-Lloyd.

General cargo terminal

The general cargo terminal handles dry bulk such as limestone, gypsum and cement, plus liquid bulk, livestock, project cargo and breakbulk. An expansion opened in 2015 added two general cargo berths and two liquid bulk berths on a 1,266-metre quay, according to APM Terminals, which also notes a planned extension connecting to the free zone. Total general cargo reached a record 26.4 million tonnes in 2025, driven mainly by limestone and gypsum exports.

How much cargo does Salalah handle? Latest figures

Salalah Port Services, the listed company that holds the port concession, reported a strong 2025:

Indicator	2024	2025	Change
Container throughput	3.3 million TEU	4.3 million TEU	+31%
General cargo	22.6 million tonnes	26.4 million tonnes	+17%
Consolidated revenue	RO 70 million	RO 89.4 million	+28%
Net profit	RO 2.3 million	RO 7.3 million	more than tripled

Source: Salalah Port Services, 2025 results.

Growth continued in 2026. According to figures reported by the Oman Observer in October 2026, the container terminal handled 2.331 million TEU in the first half of 2026, 14.8% more than a year earlier. August 2026 set a monthly record of 491,114 TEU, and September 2026 beat it with 511,209 TEU. Transshipment made up about 87% of first-half volume, with import and export containers just over 8%.

Who operates the port, and what changes in 2028?

The port is run by Salalah Port Services Company (SPS). APM Terminals, part of the A.P. Moller–Maersk group, holds about 30% of SPS and manages day-to-day operations, while the Omani government holds about 20% through Asyad Group, according to Baird Maritime and the Oman Observer.

On 18 October 2026, SPS said it had been formally notified by Oman's Ministry of Transport, Communications and Information Technology that its concession agreements will not be extended beyond 1 November 2028. The ministry said a successor operator will be announced in due course. For investors and shippers, this is an important point to follow: the port infrastructure stays, but contracts, tariffs and service arrangements may change after 2028.

What does the Salalah Free Zone offer investors?

The Salalah Free Zone (SFZ) lies next to the port and close to Salalah Airport. According to the Salalah Free Zone Company, its main incentives are:

Income tax exemption for up to 30 years, reviewed every 10 years.
Exemption from customs duties on imports and exports in the zone.
100% foreign ownership and no minimum capital requirement.
An Omanisation (local hiring) requirement of about 20%.
Land leased for up to 30 years, renewable, plus ready-built warehouses, offices and industrial units.
A one-stop shop for registration, licences, permits, visas, utilities and customs.

Companies can register as a Free Zone Company (FZC) with one or more shareholders or a Free Zone Establishment (FZE) with a single owner. Real operations and a physical presence in the zone are required; offshore companies are not permitted.

Which industries are growing in the free zone?

SFZ targets food processing, pharmaceuticals, petrochemicals, high-tech industries, mining and mineral processing, logistics, and packaging and assembly. According to the Oman Observer (January 2026), cumulative investment rose from RO 4.7 billion at the end of 2024 to about RO 5.1 billion by the third quarter of 2025, with 106 active tenants and 18 projects under development worth about RO 1.275 billion. Examples include:

Food processing: an integrated food complex by International Industries (RO 173 million), Al Rabie Food Industries (RO 18.4 million), a tahini plant and a pet food factory.
Petrochemicals and energy: a downstream petroleum products complex by Salalah Petroleum Company (RO 33.8 million) and new fuel storage by OQ (RO 48 million).
New energy: a battery materials plant for electric vehicles by India's GFCL (RO 189 million).
Logistics and light industry: packaging, detergents, recycling and warehousing projects.

How does Salalah connect to the Gulf, East Africa and India?

Salalah works as a gateway in several directions:

Gulf and GCC markets: by road, through Oman's highway network to the rest of the country and neighbouring GCC states, and by sea through feeder services.
East Africa and the Red Sea: short sailing distances make Salalah a natural hub for redistributing cargo to ports in the Horn of Africa and East Africa.
India and South Asia: the Oman–India Comprehensive Economic Partnership Agreement (CEPA), signed on 18 December 2025, entered into force on 1 June 2026, improving tariff access between the two markets.
United States: the US–Oman Free Trade Agreement offers duty exemptions for qualifying goods, which the free zone highlights as an advantage.
Air links: Salalah Airport, close to the port and free zone, supports sea-air logistics.

The port has also said it expects a cautious return of shipping to the Red Sea and Suez route, which would further support container volumes in the region.

Summary of Salalah's advantages

Advantage	What it means for business	Source
Location on east–west shipping lanes	Fast access for Asia–Europe and regional feeder services	Salalah Port, SFZ
Deep-water container terminal (up to 18 m)	Can receive the largest container ships	Salalah Port
Capacity of about 6 million TEU a year after 2025 upgrade	Room to grow with transshipment demand	Salalah Port
Record volumes in 2025 and 2026	Strong liner connectivity and frequent sailings	SPS, Oman Observer
Free zone tax exemption up to 30 years	Lower operating costs for manufacturers	SFZ
100% foreign ownership, no minimum capital	Easier entry for international investors	SFZ
Trade agreements (US FTA, India CEPA)	Preferential access to large markets	Zawya, SFZ
Concession change in 2028	A point to monitor for long-term contracts	Baird Maritime

How Yazdan Invest can help

Yazdan Invest is headquartered in Muscat and manages several production lines in Oman, and its Oman Register department supports company formation and government services. For investors looking at manufacturing, trading or logistics in Oman, including Salalah, we can help with company setup and practical market entry. Learn more about our production lines in Oman or contact our team.

This article is general information only and is not investment, legal or tax advice. Incentives and regulations can change, so confirm current terms with the authorities and independent advisers.

Frequently asked questions

How many containers does the Port of Salalah handle?

The Port of Salalah handled about 4.3 million TEU in 2025, up 31% on 2024, according to Salalah Port Services. In the first half of 2026 it handled 2.33 million TEU, and it set a monthly record of 511,209 TEU in September 2026.

Who operates the Port of Salalah?

Salalah Port Services Company holds the concession, and APM Terminals, which owns about 30% of the company, runs daily operations. Oman's government has said the concession will not be extended beyond 1 November 2028, and a successor operator will be announced later.

What are the main incentives of the Salalah Free Zone?

According to the Salalah Free Zone Company, incentives include up to 30 years of income tax exemption, customs exemptions, 100% foreign ownership, no minimum capital and an Omanisation requirement of about 20%. Land is leased for up to 30 years and can be renewed.

Which industries suit the Salalah Free Zone?

The zone focuses on food processing, pharmaceuticals, petrochemicals, mining and mineral processing, logistics, packaging and high-tech industries. Recent projects include food complexes, fuel storage and an electric-vehicle battery materials plant.

Can a foreign company set up in the Salalah Free Zone without a local partner?

Yes. The free zone allows 100% foreign ownership through a Free Zone Company or a Free Zone Establishment. The company must have a real physical presence and operations in the zone.