Key points
- Sohar is outside the Strait of Hormuz, so it kept receiving container ships after March 2026.
- SOHAR Freezone offers up to 100% foreign ownership, 0% import and re-export duty and a corporate tax holiday of up to 25 years.
- Goods leaving the freezone for mainland Oman pay 5% duty on CIF and 5% VAT at that point.
- Under the March 2026 terminal measures, imports get only 5 free storage days, so prepare clearance before arrival.
- Onward trucks reach the UAE via Khatmat Malaha or Al Wajajah–Hatta under a Bayan transit declaration.
Sohar port and freezone at a glance
SOHAR Port and Freezone is one integrated development on Oman's Batinah coast, about two hours by road from Muscat. Containers go through the Oman International Container Terminal (OICT), run by Hutchison Ports Sohar, a joint venture of Hutchison Ports, Rakiza and Omani investors. Since container traffic left Port Sultan Qaboos in Muscat, Sohar has been northern Oman's main container port. The freezone, set up under Royal Decree 123/2010, covers about 45 km² beside the port, linked to it by a bonded corridor that SOHAR Freezone describes as a 14-minute trip.
| Part | What it is | What it means for you |
|---|---|---|
| Container terminal (OICT) | Hutchison Ports Sohar terminal for gateway, transshipment and landbridge boxes | Where your container is discharged and free time starts |
| General cargo and breakbulk berths | Steel, machinery and project cargo; breakbulk nearly doubled to 1.24 million t in H1 2026 | For out-of-gauge cargo |
| SOHAR Freezone | 45 km² zone with warehousing, cold storage and sector zones | Store or process with duty suspended |
| Oman Customs | Royal Oman Police Directorate General of Customs, with all filings in Bayan | Every movement is declared in Bayan |
| Road links | Batinah highway to Muscat and the UAE border | About 2 hours to Muscat; Khatmat Malaha about 70 km away |
Why Sohar matters as of November 2026
From 1 March 2026 the Strait of Hormuz was effectively closed to normal shipping, and at the end of September Lloyd's List Intelligence reported that container transits were still minimal. Sohar, Salalah and Duqm lie outside the strait, so Omani ports took on extra Gulf cargo, part of which moves on by truck to the UAE and other GCC states. Sohar's first-half figures show it: throughput up 52%, containers up 40%, 1,555 vessel calls in six months.
On 18 March 2026 OICT announced congestion measures: booking forecasts up to 21 days ahead, a cap of 3,000 TEU per vessel call, first-come berthing, export boxes accepted only within five days of arrival, and free import storage cut to five days. Omani gateway cargo gets priority, while landbridge cargo is still accepted. Since 3 May 2026 the manifest must also be filed in Bayan at least 36 hours before arrival.
SOHAR Freezone benefits
Oman's Public Authority for Special Economic Zones and Free Zones (OPAZ) lists these incentives: up to 100% foreign ownership, a corporate tax holiday of up to 25 years, 0% personal income tax, 0% import and re-export duty, a low capital requirement, relaxed Omanisation and a one-stop shop for permits. Land is held under a usufruct agreement. Oman's free trade agreements with the United States and Singapore apply only to goods meeting their rules of origin.
- Brings goods into the zone with 0% customs duty
- Can store, repack, assemble or manufacture, then re-export without Omani duty
- Pays 5% duty on CIF and 5% VAT only on goods released into mainland Oman
- Needs a freezone licence and a usufruct or lease agreement
- Needs an Omani commercial registration with import activity and a Bayan importer registration
- Pays 5% duty on CIF and 5% VAT at clearance, unless goods are exempt, zero-rated or VAT is deferred
- Simplest route when all goods are sold in Oman
- Regulated goods need permits before arrival
- Goods are not cleared in Oman; a transit declaration is filed in Bayan
- The truck is sealed and a guarantee or deposit covers the duty at risk
- Duty is paid in the destination GCC state, with VAT at that state's rate
- The guarantee is released on proof of exit
Two common misunderstandings: goods only stored, repacked or labelled in the freezone stay Chinese origin (GCC origin needs real manufacturing that meets GCC rules of origin), and the freezone suspends duty rather than cancelling it. When goods are sold into Oman, an import declaration is filed in Bayan and duty and VAT are paid then.
Storage options at Sohar
| Option | Duty status | Best for | Watch out for |
|---|---|---|---|
| Terminal yard (OICT) | Not cleared, duty not yet paid | Short dwell while the declaration is processed | Five free import days under the March 2026 measures, then storage and line demurrage |
| Freezone warehouse | Duty suspended | Stock held for months, re-export, regional distribution | Demand is high: leased warehouse space rose 19% to about 37,000 m² in H1 2026 |
| Freezone cold storage | Duty suspended | Food and temperature-sensitive goods | Food still needs MAFWR approval when it enters the Omani market |
| Bonded transit | Not cleared in Oman | Cargo going on to the UAE, Saudi Arabia or Yemen | Truck sealed; guarantee released only on proof of exit |
| Mainland warehouse after clearance | Duty and VAT paid | Goods for Omani customers | Domestic distribution inside Oman needs an Omani truck |
Free time and daily charges differ by line, port and container type. Use the figures on your booking.
Onward trucking from Sohar across the GCC
Sohar's closeness to the UAE border made it a landbridge port in 2026. In transit, cargo stays under customs control from ship to destination and duty is paid once, where the goods are finally imported.
- Discharge and delivery orderThe line discharges at OICT and issues the D/O once local charges are paid.
- Choose the customs treatmentImport into Oman, freezone, or transit to another GCC state; this decides where duty is paid.
- File in BayanOur broker files the transit declaration with invoice, packing list, B/L and destination permits.
- Seal and guaranteeThe truck is sealed; a guarantee or deposit covers duty at risk.
- Exit OmanKhatmat Malaha for Sharjah and the north, Al Wajajah–Hatta for Dubai, Hili for Al Ain, the Empty Quarter road for Saudi Arabia.
- Import at destinationDestination customs checks seals, collects 5% duty on CIF plus local VAT, and releases.
- Close the transitProof of exit closes the file and releases the guarantee.
| Destination | Usual crossing | Notes as of November 2026 |
|---|---|---|
| Sharjah, Ajman, northern emirates | Khatmat Malaha (Oman) to the Kalba side of Sharjah | Sharjah–Oman logistics corridor launched in May 2026; Sharjah toll gate fees waived for corridor trucks from Oman |
| Dubai and Jebel Ali | Al Wajajah (Oman) to Hatta (Dubai) | Temporary Dubai–Oman Green Corridor for sealed bonded trucks of approved operators (Dubai Customs Notices 04/2026 and 06/2026) |
| Al Ain and Abu Dhabi | Hili (Oman) to Mezyad / Khatm Al Shikla | Normal transit or import procedures |
| Saudi Arabia | Empty Quarter road, opened in 2021 | Direct Oman–Saudi route; check truck permits and border hours |
How to plan a Sohar shipment
Before your cargo sails to Sohar
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Frequently asked questions
Where is Sohar port?
On Oman's Batinah coast, about two hours by road from Muscat, near the UAE border and outside the Strait of Hormuz.
Is Sohar port affected by the Hormuz closure?
Ships reach Sohar without passing Hormuz, so it stayed open and took extra cargo in 2026. Congestion measures since March 2026 include five free storage days for imports; our team confirms current rules per booking.
What are the benefits of Sohar Freezone?
According to OPAZ: up to 100% foreign ownership, a corporate tax holiday of up to 25 years, 0% personal income tax, 0% import and re-export duty, a low capital requirement, relaxed Omanisation and a one-stop shop for permits.
Do I pay VAT on goods in Sohar Freezone?
Not while goods stay in the freezone. The 5% duty on CIF and 5% VAT apply when goods enter mainland Oman.
How long does shipping from China to Sohar take?
Our China to Oman sea service via Sohar and Muscat is typically 16–28 days door to door.
Can I truck cargo from Sohar to Dubai?
Yes, in a sealed truck under a Bayan transit declaration, usually via Khatmat Malaha or Al Wajajah–Hatta, with duty paid in the UAE. We quote within one working day.
Sources
- OPAZ – Sohar Free Zone (incentives, Royal Decree 123/2010, area)
- Oman Observer – Sohar Port terminal to prioritise Omani gateway cargo (OICT measures, March 2026)
- Maritime Professional – SOHAR Port cargo throughput jumps 52% in first half of 2026
- Oman Observer – Sohar Freezone announces new incentives (bonded corridor, warehousing)
- Deloitte – GCC supply chain facilitation measures in KSA, UAE, Oman (Bayan 36-hour manifest)
- Gulf News – Sharjah waives truck toll fees for Oman cargo traffic (Khatmat Malaha, Al Madam)
- Gulf News – Dubai issues new customs rules to route cargo via Oman (Green Corridor)
- The National – UAE–Oman trade corridors vital as Hormuz remains closed (May 2026)
- Lloyd's List Intelligence – Strait of Hormuz Brief, 30 September 2026
General information checked on the date shown. Rules and rates change: our team confirms the details for your shipment.