In a significant move to bolster economic relations, the United Arab Emirates and the Sultanate of Oman have signed an agreement to develop the Al Rawdah Special Economic Zone (SEZ) in Al Buraimi Governorate. The signing ceremony was attended by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, during his official visit to Oman.
The agreement was formalized between the Public Authority for Special Economic Zones and Free Zones (OPAZ) and Mahdah Development Company, a joint venture predominantly owned by Dubai-based DP World. This collaboration aims to enhance cross-border trade and investment opportunities between the two nations.
Strategic Location and Alignment with Oman Vision 2040
The Al Rawdah SEZ is strategically located near the Oman-UAE border, facilitating seamless connectivity to major ports such as Sohar in Oman and Jebel Ali in Dubai. The first phase of the project will cover 14 square kilometers, with plans to expand to 25 square kilometers in subsequent phases.
Eng. Ahmed bin Hassan Al Dheeb, Deputy Chairman of OPAZ, emphasized the project’s alignment with Oman Vision 2040, stating that the zone is designed to attract advanced technologies, create employment opportunities, and foster a business-friendly environm
Economic Impact and Industry Focus
The Al Rawdah SEZ is expected to play a pivotal role in enhancing regional supply chains, accelerating re-export activities, and attracting foreign direct investment. Targeted industries for the zone include manufacturing, logistics, warehousing, pharmaceuticals, medical supplies, plastics, mining, food processing, and security services.
Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, highlighted the significance of the project, stating,
“This new zone will strengthen our deep trade ties while reflecting our shared ambition for sustainable and diversified economic growth.”
The establishment of the Al Rawdah SEZ comes on the heels of a record $15.2 billion in non-oil trade between the UAE and Oman in 2024, marking a 9.8% increase from the previous year. The zone is anticipated to further boost trade volumes by providing a modern trade and manufacturing ecosystem.
The development of the Al Rawdah Special Economic Zone signifies a deepening of economic cooperation between the UAE and Oman. With its strategic location and focus on key industries, the zone is poised to become a catalyst for regional economic growth and integration.
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