Strategic Direction
Balanced and Integrated Development Across All Governorates
Strategic Direction
The governorates priority addresses one of Oman’s most persistent structural imbalances: economic activity and opportunity are heavily concentrated in Muscat Governorate, while the country’s vast interior and coastal governorates remain relatively underdeveloped.
Vision 2040’s ambition: comprehensive regional development achieved through decentralisation, guided by the principle of optimal and balanced use of land and natural resources.
Oman’s Governorate Structure
Oman is divided into eleven governorates:
| Governorate | Capital | Key Economic Focus |
|---|---|---|
| Muscat | Muscat | Services, administration, finance |
| Dhofar | Salalah | Tourism (Khareef), logistics, fisheries |
| Al Batinah North | Sohar | Industry, logistics, agriculture |
| Al Batinah South | Rustaq | Agriculture, fisheries |
| Al Dakhiliyah | Nizwa | Cultural tourism, SMEs, agriculture |
| Al Wusta | Haima | Energy (oil), mining, Duqm |
| Ash Sharqiyah North | Ibra | Agriculture, tourism, manufacturing |
| Ash Sharqiyah South | Sur | LNG, manufacturing, fishing |
| Adh Dhahirah | Ibri | Mining, energy |
| Al Buraimi | Al Buraimi | Manufacturing, cross-border trade |
| Musandam | Khasab | Tourism, fisheries, strategic position |
2025 Progress
Sultan Faisal bin Turki Road (Diba-Lima-Khasab): This 71 km strategic road connecting Musandam to the rest of Oman’s road network is approximately 48% complete as of June 2025. When complete, it will dramatically improve connectivity for Oman’s most isolated governorate.
Al Rawdah Special Economic Zone (Al Buraimi): A new special economic zone in Al Buraimi Governorate is being developed, leveraging the governorate’s position on the Oman-UAE border for light manufacturing, logistics, and cross-border trade.
A’Dhahirah Economic Zone: Another new economic zone announced for the mineral-rich A’Dhahirah Governorate, aimed at stimulating mining-related processing and manufacturing.
Urban Neighbourhood Development: Programmes creating integrated urban communities with complete road networks, services, and infrastructure have been implemented across multiple governorates.
Special Economic Zones Strategy
SEZs are the primary instrument for regional economic development:
- Duqm SEZ (Al Wusta): The flagship — 2,000 sq km, deep-water port, refinery, green hydrogen zone, fisheries zone, industrial areas
- Sohar Port and Freezone (Al Batinah North): Chemicals, food, metals, logistics
- Salalah Free Zone (Dhofar): Logistics, manufacturing
- Al Mazunah (Dhofar): Border zone with Yemen
Key Institutions
Ministry of Housing and Urban Planning, Special Economic Zone Authority at Duqm (SEZAD), Madayn, Ministry of Transport Communications and Information Technology, Sohar Port and Freezone.