The governments of the United Arab Emirates and Oman have taken a major step toward economic integration with the formal signing of a development agreement for the Al Rawdah Special Economic Zone (SEZ) in the Wilayat of Mahdha, Al Buraimi Governorate.
The deal, signed in the presence of Dubai’s Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum during an official visit to Oman, marks a new era of strategic cooperation between the neighboring nations.
The first phase of the Al Rawdah SEZ will span 14 square kilometers, with potential expansion to 25 square kilometers under a 50-year usufruct agreement. The initiative is spearheaded by Mahdah Development Company — a joint venture involving UAE-based logistics giant DP World — in collaboration with Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ).
This partnership aims to strengthen economic corridors by linking the zone with major trading ports: Jebel Ali in Dubai and Sohar in Oman.
A Regional Gateway for Industry and Innovation
Once operational, the SEZ will cater to high-impact sectors such as:
- Advanced manufacturing
- Pharmaceutical and medical supply industries
- Logistics and warehousing
- Food and plastics production
- Mining
- Specialized security and safety services
All industries will benefit from a streamlined regulatory environment, delivered through a centralized service model that facilitates business setup and operations.
Boosting Gulf Trade Through Al Rawdah SEZ
The project is aligned with long-term national development agendas, particularly Oman Vision 2040, which focuses on job creation, innovation, and diversification, and the UAE’s Economic Agenda D33, which emphasizes expanding trade networks and sustainable growth.
Speaking at the ceremony, Eng. Ahmed bin Hassan Al Dheeb, Deputy Chairman of OPAZ, highlighted the zone’s strategic value, citing its potential to attract cutting-edge technology and foreign direct investment.
DP World Chairman Sultan Ahmed bin Sulayem echoed this sentiment, noting the zone’s capacity to
“build a connected, sustainable ecosystem that benefits the entire Gulf region.”
The timing of the launch is significant. In 2024, non-oil trade between the UAE and Oman reached AED 56 billion (approx. USD 15.2 billion), reflecting a 9.8% increase over the previous year. The Al Rawdah SEZ is expected to amplify this momentum by facilitating seamless trade, boosting re-exports, and expanding regional supply chains.
The initiative will also pave the way for thousands of new jobs, improved infrastructure, and broader economic diversification.
DP World brings to the project over 40 years of free zone development experience, notably its success with Jebel Ali Free Zone (JAFZA). With a global footprint in 11 economic zones, DP World is well-positioned to execute a forward-looking development model in Oman.
Mahdah Development Company will lead master planning, infrastructure rollout, and environmental studies for the Al Rawdah SEZ.
Senior Delegation Underscores Importance
The high-level event also saw participation from prominent UAE and Omani leaders, including:
- Sayyid Theyazin bin Haitham Al Said – Oman’s Minister of Culture, Sports and Youth
- Dr. Thani bin Ahmed Al Zeyoudi – UAE Minister of State for Foreign Trade
- Sheikh Salem bin Khalid Al Qassimi – UAE Minister of Culture
- Omar bin Sultan Al Olama – UAE Minister for AI and Digital Economy
- Other dignitaries and senior officials from both governments
The Al Rawdah Special Economic Zone is set to become a cornerstone of regional trade and industrial policy. As infrastructure development begins, businesses across the GCC and beyond are encouraged to monitor opportunities to invest, partner, or operate within this strategic hub.
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