Agreement Signed to Develop and Operate the First Phase of Al-Rawdah Special Economic Zone

Muscat – Monday, May 26, 2025

The Public Authority for Special Economic Zones and Free Zones (OPAZ) and Mahdah Development Company, an Omani-Emirati partnership represented by DP World at the signing, have signed an agreement to develop and operate the first phase of Al-Rawdah Special Economic Zone.

The signing ceremony was attended by His Highness Sayyid Theyazin bin Haitham Al Said, Minister of Culture, Sports, and Youth, and His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defense, and Chairman of the Executive Council of Dubai, United Arab Emirates. The agreement was signed on behalf of OPAZ by H.E. Eng. Ahmed bin Hassan Al Dheeb, Vice Chairman of OPAZ, and on behalf of DP World, by H.E. Sultan Ahmed bin Sulayem, Chairman and CEO of DP World.

In his speech, H.E. Eng. Ahmed bin Hassan Al Dheeb highlighted that Al-Rawdah Special Economic Zone is designed to achieve key development objectives, including job creation, attracting advanced knowledge and modern technologies, and fostering a business-friendly environment that supports sustainable development in line with Oman Vision 2040 objectives. He also emphasized that the Zone’s strategic location in Buraimi Governorate, situated at the crossroads between Oman and the United Arab Emirates, offers seamless connectivity to Sohar Port and Jebel Ali Port. This positioning is expected to enhance logistics efficiency, reduce costs, and facilitate market access for Gulf, Asian, and African trade networks.

His Excellency Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said: “The Al Rawdah Special Economic Zone represents a new chapter in the economic relationship between Oman and the UAE. Working alongside OPAZ and our Omani partners, this zone will build on our close commercial ties and reflects our shared ambition for sustainable and diversified economic growth. We are committed to developing a world-class platform that will create new opportunities for growth, strengthen connectivity and bring long-term economic value to both our nations.”

Under the usufruct agreement, Mahdah Development Company will initially develop 14 square kilometers in the first phase, with the potential to expand to 25 square kilometers in the second phase based on a detailed development plan submitted by the developer. The agreement spans 50 years and ensures that the Zone benefits from its direct trade access to both Sohar Port and Jebel Ali Port, reinforcing its role as a central trade hub in the region.

The developer is responsible for establishing essential public utilities and infrastructure, including road networks, water supply systems, sewage networks, and other critical services. Additionally, the developer will prepare the Zone’s master plan, environmental studies, and initial zoning concepts covering industrial, logistical, commercial, and service sectors.

The first phase of Al-Rawdah Economic Zone will target key sectors such as manufacturing, logistics and warehousing, pharmaceutical and medical industries, plastic industries, mining industries, food processing, and security and safety services. This diversified approach is expected to attract high-value investors and ensure long-term business sustainability.

Al-Rawdah Special Economic Zone offers a range of investment incentives, exemptions, and operational benefits. Businesses operating within the Zone will receive an income tax exemption for 10 years, which can be extended for two additional periods. Additionally, customs duty exemptions will apply to imports, exports, and storage of goods. Investors will benefit from a simplified licensing and permitting process through the one-stop shop and enjoy unrestricted profit repatriation abroad. Foreign investors will be permitted to own 100 percent of their enterprises, and strategic projects will receive a single approval for establishment and operation.

Located in Wilayat Mahdah, Al Buraimi Governorate, Al-Rawdah Special Economic Zone represents a forward-looking investment initiative designed to leverage the region’s geographic advantages, stimulate supply chain development, and facilitate re-export activities between Oman, the UAE, and broader international markets. In addition to its trade and industrial focus, the Zone aims to enhance regional lifestyle offerings, expand tourism-related economic activities, and support business diversification across Mahdah and Al-Buraimi. The project is expected to create employment opportunities and support the growth of small and medium enterprises.

The signing of this agreement reinforces Oman’s commitment to economic diversification, the strengthening of strategic partnerships, and the attraction of high-value investments, in line with the objectives outlined in Oman Vision 2040.