MUSCAT: The Public Authority for Special Economic Zones and Free Zones (OPAZ) has signed a significant agreement with Mahdah Development Company, an Omani-Emirati partnership represented by DP World, to develop and operate the first phase of the Al-Rawdah Special Economic Zone in Al Buraimi Governorate. The ceremony took place with the presence of His Highness Sayyid Theyazin bin Haitham al Said, Minister of Culture, Sports, and Youth, and His Highness Shaikh Hamdan bin Mohammed bin Rashid al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defense of the United Arab Emirates. Eng Ahmed bin Hassan al Dheeb, Vice-Chairman of OPAZ, signed on behalf of OPAZ, while Sultan Ahmed bin Sulayem, Chairman and CEO of DP World, represented the Emirati side.

Eng Ahmed al Dheeb highlighted that the Al-Rawdah Special Economic Zone is a strategic initiative that aligns with the objectives of Oman Vision 2040. He stated that the project aims to create employment opportunities, attract advanced technologies, and promote a sustainable, business-friendly environment. The zone, located in Wilayat Mahdah at a key crossroads between Oman and the UAE, will ensure direct connectivity to Sohar Port and Jebel Ali Port. This strategic location is anticipated to improve logistics efficiency, lower operational costs, and enhance market access across the Gulf, Asia, and Africa.

Sultan Ahmed bin Sulayem remarked that the project marks a new chapter in the economic cooperation between Oman and the UAE. He reaffirmed DP World’s dedication to establishing a world-class trade and investment hub in collaboration with OPAZ and Omani stakeholders. The project is expected to serve as a platform for sustainable and diversified economic growth while strengthening commercial relations between the two nations.

Under the 50-year usufruct agreement, Mahdah Development Company will initially develop 14 square kilometers of the zone, with the capability to expand to 25 square kilometers during a second phase, depending on a comprehensive development plan. The company is responsible for delivering essential infrastructure, including road networks, water and sewage systems, and other public utilities. Additionally, it will prepare a detailed master plan, conduct environmental assessments, and establish zoning layouts for various sectors, including industrial, logistics, commercial, and services.

The first phase will prioritize attracting investments in pivotal sectors such as manufacturing, logistics and warehousing, pharmaceuticals, plastics, mining, food processing, and safety and security services. This diverse approach aims to draw high-value investors and support long-term business sustainability. To encourage investment, the Al-Rawdah Special Economic Zone will provide several benefits, including a 10-year income tax exemption, which can be extended for two additional terms, customs duty exemptions on imports, exports, and stored goods, and streamlined licensing and permitting through a one-stop shop. Furthermore, foreign investors will be allowed 100% ownership of their enterprises, and strategic projects will enjoy a single-window approval process for their establishment and operation.

Beyond its economic and trade objectives, the zone is designed to enhance supply chain development and re-export activities between Oman, the UAE, and global markets. It is also expected to improve lifestyle offerings, boost tourism, and foster business diversification within Mahdah and the broader Al Buraimi Governorate. This initiative is viewed as a catalyst for job creation and the growth of small and medium enterprises (SMEs) in the region.

The signing of this agreement underscores Oman’s commitment to economic diversification, fortifying strategic partnerships, and attracting quality investments in line with the long-term goals of Oman Vision 2040.