The UAE and Oman are looking to enhance booming $15.2bn trade relations with a new special economic zone at the Al Buraimi border between the two countries.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai, witnessed the signing of an agreement to develop and operate the first phase of the Al Rawdah Special Economic Zone, located in the Wilayat of Mahadha, Al Buraimi Governorate, in the Sultanate of Oman.
Phase 1 of the project will cover 14sq km, with expansion plans to reach 25sq km in Phase 2. The zone will benefit from direct connectivity to both Jebel Ali Port in Dubai and Omani ports, enhancing cross-border logistics.
Al Rawdah Special Economic Zone boosts UAE-Oman trade
The signing took place during the visit of a high-level UAE delegation to Oman led by Sheikh Hamdan bin Mohammed.
The signing of the agreement, which took place in Muscat, was attended by Sayyid Theyazin bin Haitham Al Said, Minister of Culture, Sports and Youth of Oman. The agreement is part of the flourishing economic cooperation between the two nations.
The agreement was signed by Ahmed bin Hassan Al Dheeb, Deputy Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), and Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, representing Mahadha Development Company, which will develop the new zone.
Mahadha Development Company is an Emirati-Omani joint venture in which DP World is the majority partner.
Sultan Ahmed bin Sulayem said: “The Al Rawdah Special Economic Zone represents a new chapter in the growing economic relationship between the UAE and the Sultanate of Oman.
“Through close collaboration with OPAZ and our Omani partners, this new zone will strengthen our deep trade ties while reflecting our shared ambition for sustainable and diversified economic growth.
“At DP World, 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 Oman and the UAE.”
Ahmed bin Hassan Al Dheeb said: “The Al Rawdah Special Economic Zone has been designed to support key development goals, including creating jobs, attracting advanced knowledge and modern technologies, and fostering a business-friendly environment that aligns with the sustainable development objectives of Oman Vision 2040.
“The zone’s strategic location in the Buraimi Governorate, at the crossroads between Oman and the UAE, provides seamless connectivity to both Sohar Port and Jebel Ali Port. This positioning is expected to enhance logistics efficiency, lower costs, and improve market access across Gulf, Asian, and African trade routes.”
Under the agreement, Mahadha Development Company will be responsible for developing the infrastructure and facilities, preparing the masterplan and environmental studies, and designing the initial layout.
The first phase will target a range of economic activities, including:
- Manufacturing
- Logistics
- Warehousing
- Pharmaceuticals
- Medical supplies
- Plastics
- Mining
- Food processing
- Security and safety services
The Al Rawdah project is a strategic initiative that will leverage its geographic location to strengthen supply chains, re-export activity, and logistics connectivity between Oman, the UAE, and international markets.
The zone will serve as a key engine of economic diversification aligned with the Dubai Economic Agenda D33 and Oman Vision 2040.
It aims to attract foreign direct investment (FDI), increase industrial output, and create thousands of jobs as the zone scales over the coming decades.
In 2024, non-oil trade between the UAE and Oman reached a record AED56bn ($15.2bn), a 9.8 per cent increase from the previous year, highlighting the deepening economic partnership.
The Al Rawdah Zone is expected to accelerate this trend by establishing a modern and advanced ecosystem for trade and manufacturing.
DP World brings four decades of expertise in developing and operating economic zones, including the Jebel Ali Free Zone (Jafza), the first free zone in the Middle East and one of the most successful globally.
This experience along with its portfolio of 11 economic zones worldwide positions DP World to deliver a future-ready, integrated platform in Oman, supported by OPAZ’s national development strategy.
