logo
Oman: EZAD, anchoring investments for a diversified future

Oman: EZAD, anchoring investments for a diversified future

Zawya6 days ago
Oman's economic landscape is undergoing a profound transformation guided by Vision 2040, the Sultanate of Oman's strategic roadmap towards a diversified, knowledge-driven economy. Central to this vision is the Al Dhahirah Economic Zone (EZAD), a flagship initiative that reflects Oman's commitment to redefining its economic narrative and deepening regional integration within the GCC. EZAD is more than just an economic zone; it is a symbol of visionary policy, geographic advantage, and sustainable development.
Situated in the Al Dhahirah Governorate, just 20 kilometers from the Rub Al Khali border crossing with Saudi Arabia, EZAD strategically positions Oman as a gateway to the $1.6 trillion GCC market. This proximity enables seamless overland trade, substantially reducing transportation costs and delivery times for businesses accessing the Saudi market and beyond.
The newly established direct Oman-Saudi road has already driven a remarkable 350% increase in bilateral trade between 2022 and 2024, reaching nearly RO 2.18 billion. This momentum underscores the immense potential EZAD holds in enhancing trade flows and industrial collaboration across borders.
The Public Authority for Special Economic Zones and Free Zones (OPAZ) plays a pivotal role in steering the development of EZAD. The zone encompasses a total area of 388 km², with OPAZ currently focused on Phase 1A, which spans 7.5 km² as part of the initial urgent development stage. This phase includes essential facilities such as the dry port and a dedicated veterinary quarantine centre. Through a robust regulatory framework and a streamlined 'one-stop shop' service, OPAZ ensures a highly investor-friendly environment. Investors benefit from a suite of competitive incentives including 100% foreign ownership, tax holidays of up to 30 years, duty exemptions on equipment and raw materials, and full repatriation of profits.
These advantages firmly position EZAD as a leading investment destination within the Middle East. Aligned with Oman's economic diversification objectives, EZAD is purposefully designed to cultivate sectors beyond hydrocarbons. Key industries targeted include clean and renewable energy, high-precision manufacturing, logistics, and advanced manufacturing that demand sophisticated infrastructure and specialised facilities.
EZAD is poised to emerge as a regional logistics hub, featuring a 4 km² dry port managed by Asyad Group on behalf of the Omani government. The first phase of the dry port development covers 1 km² and will include customs facilities, bonded warehouses, and container handling infrastructure. Smart city innovations, such as solar-powered lighting and intelligent traffic management systems, underline the zone's commitment to sustainability and operational efficiency.
To support this expansive vision, RO 122 million has been secured for comprehensive infrastructure development, encompassing roads, drainage systems, and connectivity enhancements. Specifically, RO 22.3 million has been allocated for Phase 1, ensuring the foundational infrastructure is in place to catalyse growth and investor confidence.
The zone's commitment to empowering local businesses is clear. Contracts stipulate significant subcontracting opportunities for Omani SMEs, with over RO 10 million earmarked for local enterprises. This strategy not only fosters job creation and skill development but also embeds SMEs into regional supply chains, contributing to Oman's broader economic objectives.
EZAD exemplifies Oman-Saudi collaboration. A joint executive committee oversees the zone's development, fostering mutual investments, regulatory alignment, and business facilitation. Discussions on establishing a joint Saudi-Omani operating company further solidify this bilateral partnership, reducing investor risks and enhancing regional cooperation.
While the zone's primary focus is regional, it actively seeks investments from Asia—particularly China and India—as well as Europe. Oman's stable investment climate, strategic logistics positioning, and connectivity to Gulf and African markets present compelling advantages for international investors. The zone is an ideal base for distribution centres, cold storage facilities, and third-party logistics operations.
Diverse investment opportunities await both local and international players. Agro-processing units can leverage Al Dhahirah's agricultural potential, while the veterinary quarantine centre opens pathways in livestock trade. Mining and mineral processing offer prospects to capitalise on Oman's rich natural resources. Financial institutions like Sohar International Bank stand ready to support these ventures through joint ventures and PPP models.
To maximise EZAD's potential, strategic enhancements are essential. Improving customs protocols with Saudi Arabia, adopting single-window systems, and integrating digital documentation will streamline cross-border trade.
Utility infrastructure, including reliable energy, water, and telecommunications, must be fortified to support industrial activity. OPAZ has also tendered projects for an administrative and commercial complex featuring a hotel, clinic, administration building, business centre and mall.
Promotion of EZAD should leverage its unique Oman-Saudi identity. Establishing an annual Al Dhahirah Economic Forum could serve as a dynamic platform to showcase investment opportunities. Additionally, academic and vocational training partnerships will be pivotal in cultivating a skilled workforce tailored to the zone's specialised industries. Facilitating technology transfers and fostering innovation clusters will further elevate EZAD's global competitiveness.
In conclusion, the Al Dhahirah Economic Zone stands as a strategic nexus for Oman's economic diversification, regional integration, and global engagement. Its strategic location, investor-friendly policies, comprehensive infrastructure, and deep-rooted Oman-Saudi collaboration make it a beacon of sustainable growth and investment. As Oman advances toward its Vision 2040 goals, EZAD is poised to play a transformative role in shaping a resilient, diversified, and globally competitive economy. Its success will not only benefit Oman but also serve as a testament to the power of visionary leadership, collaborative governance, and shared prosperity.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Saudi Arabia signs agreement with Societe Generale to join primary dealers in gov't debt, statement says
Saudi Arabia signs agreement with Societe Generale to join primary dealers in gov't debt, statement says

Zawya

timean hour ago

  • Zawya

Saudi Arabia signs agreement with Societe Generale to join primary dealers in gov't debt, statement says

Saudi Arabia signed an agreement with Societe Generale to be appointed as a primary dealer in the government's local debt instruments, the kingdom's National Debt Management Center (NDMC) said on Saturday. Societe Generale joins BNP Paribas, Citi Group, Goldman Sachs, Standard Chartered and J.P. Morgan as the kingdom's sixth international bank primary dealers in government debt, NDMC added in a statement. (Reporting by Enas Alashray and Hatem Maher in Cairo; Editing by Daniel Wallis)

Gulf Bank records KD 24mln in net profit for the first half of 2025
Gulf Bank records KD 24mln in net profit for the first half of 2025

Zawya

timean hour ago

  • Zawya

Gulf Bank records KD 24mln in net profit for the first half of 2025

Ahmad Mohammad Al-Bahar: Gulf Bank delivered resilient performance with strategic clarity despite a complex operating environment. The Bank's potential conversion to Sharia-complaint aligns with our vision of expanding and diversifying our reach and offerings. We look ahead to the second half of the year with confidence in our strategic direction and the strength of our team. Waleed Khaled Mandani: Our results reflect strong execution and a prudent approach to managing our operations. We continued to maintain a balanced approach between credit expansion and asset quality, ensuring the resilience and integrity of our loan book. Recent Government debt issuances could provide banks with added flexibility to manage their balance sheets and capture emerging financing opportunities. Kuwait: Gulf Bank K.S.C.P. announced its financial results for the first half ending 30 June 2025. The Bank reported a net profit of KD 24.0 million, a decline of KD 4.2 million or 14.8% compared to 2024 first half net profit of KD 28.2 million. In addition, Gulf Bank recorded an operating income of KD 91.8 million for the first half of 2025, representing a decline of 5.3% compared to the same period of last year. Moreover, operating profit before provisions and impairments was KD 44.9 million, representing a decline of 14.7% compared to the first half of 2024. As for the second quarter ending 30 June 2025, Gulf Bank reported a net profit of KD 14.7 million and an operating income of KD 47.8 million, both representing a slight decline of 4.3% and 1.7% respectively, when compared to the same period of the prior year. However, when compared to the first quarter of 2025, net income has increased from a reported KD 9.4 million in the first quarter to KD 14.7 million for the second quarter, a significant improvement of KD 5.3 million or 57.0%. Similarly, operating income increased by KD 3.8 million or 8.7% in the second quarter when compared to the first quarter of 2025. Financial Performance The decline in net profit for the first half of 2025 is attributed to the decline in net interest income of KD 4.9 million or 6.3%, coupled with an increase in operating expenses of KD 2.6 million or 5.8%, compared to the same period of 2024. However, these declines were partially offset by an improvement in total provisions, which declined by KD 3.4 million or 14.7% year-on-year, reaching KD 19.6 million in the first half of 2025. As for asset quality, the non-performing loans (NPL) ratio was 1.4% as of 30 June 2025, compared to the prior year level of 1.2%. Additionally, the Bank continues to have significant non-performing loans coverage ratio of 317% including total provisions and collaterals. Total credit provisions as of 30 June 2025 reached KD 275 million whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 180 million. As a result, the Bank has a healthy excess provision level of KD 96 million, above and beyond what is required by the IFRS 9 accounting requirements. Compared to 31 December 2024, total assets declined by 2.4% to KD 7.3 billion, whereas net loans and advances increased by 3.8% to KD 5.7 billion. On the other hand, total deposits stood at KD 5.4 billion and total Shareholders' equity reached KD 825 million. The Bank's regulatory Tier 1 ratio of 14.6% was 2.6% above the regulatory minimum of 12% and the Capital Adequacy Ratio (CAR) of 16.8% was 2.8% above the regulatory minimum of 14%. Strategic Clarity Commenting on the financial results for the first half of 2025, Gulf Bank Chairman Mr. Ahmad Mohammad Al-Bahar stated: 'Gulf Bank's performance during the first half of 2025 demonstrates resilience and clarity in the face of a complex operating environment. Rising geopolitical tensions and oil price fluctuations have added volatility to regional markets and shifted fiscal priorities. Despite these headwinds, Gulf Bank has maintained its solid fundamentals and strategic direction, enabling us to remain adaptive and forward-looking. He continued: 'One of the most significant initiatives under consideration is the potential conversion of Gulf Bank into a fully Sharia-compliant institution. This transformation aligns with our long-term vision and would allow us to expand our reach, diversify our offerings, and better serve the evolving needs of our clients. Moreover, we have signed a Memorandum of Understanding with Warba Bank stating the basis of cooperation in assessing the proposed merger between both banks independently ensuring the best interest of all the Bank's shareholders in line with regulatory controls.' Mr. Al-Bahar concluded: 'We look ahead to the second half of the year with confidence in our strategic direction and the strength of our team. On behalf of the Board of Directors, I extend my appreciation to our shareholders, employees, and customers for their continued trust and support. We also thank the Central Bank of Kuwait and regulatory authorities for their guidance. Gulf Bank remains committed to delivering high-quality banking services and supporting Kuwait's financial future.' Operational Discipline Gulf Bank Acting Chief Executive Officer, Mr. Waleed Khaled Mandani, stated: 'Despite persistent pressure on margins across the sector, our second quarter results reflect strong execution and a prudent approach to managing our operations. We continued to maintain a balanced approach between credit expansion and asset quality, ensuring the resilience and integrity of our loan book. Our low non-performing loan ratio and high coverage levels underscore the effectiveness of our risk management framework and our ongoing commitment to financial stability.' He added: 'We are also advancing our internal readiness for a potential Islamic Sharia-compliant conversion subject to being granted with the necessary regulatory and shareholders' approvals. The essential systems, governance frameworks, and talent are being explored for a smooth transition. At the same time, we continue to deliver practical banking solutions and maintain the agility needed to respond effectively to changing market conditions.' Mr. Mandani further noted: 'Recent government debt issuances, estimated at KD 600 million locally and another potential USD 6 billion internationally are expected to support government spending on capital development projects across vital sectors including infrastructure, housing, and logistics, thus accelerating economic activity and enabling faster participation by banks in financing national initiatives. Moreover, such instruments could provide banks with added flexibility in managing their balance sheets and capturing emerging financing opportunities. We remain opportunistic in utilizing these tools to support our growth plans.' Credit Ratings and Recognitions Gulf Bank's financial strength and operational resilience were affirmed by leading credit rating agencies. Fitch Ratings assigned a Long-Term Issuer Default Rating (IDR) of 'A' with a Stable Outlook, while Moody's rated long-term deposits at 'A3' with a Positive Outlook. Capital Intelligence affirmed a Long-Term Foreign Currency rating of 'A+' with a Stable Outlook, further highlighting the Bank's stability and sound risk management practices. Reinforcing its position as a digital leader in the region, Gulf Bank has been awarded the 'Best Mobile Banking Application and Experience' by MEED business intelligence platform during the Middle East and North Africa Banking Excellence Awards ceremony. This prestigious recognition highlights Gulf Bank's ongoing commitment to delivering an advanced, exceptional digital banking experience to meet customer expectations and enhance ease of access to banking services. Responsible Banking During the second quarter of 2025, Gulf Bank advanced its ESG agenda through impactful environmental and social initiatives aligned with its 2030 Sustainability Strategy. A key milestone during the quarter was the official launch of the Bank's Sustainable Finance Framework and internal Sustainability Risk Management Policy, aimed at integrating ESG considerations into lending decisions, operations, and risk oversight. In parallel, the Bank remained active across various community initiatives, with an emphasis on youth development, financial literacy, and education. These programs reflect Gulf Bank's ongoing commitment to supporting inclusive growth, empowering the next generation, and contributing to Kuwait's broader sustainable development goals. Key Financial indicators for the first Half 2025: First half 2025 net profit of KD 24 million. First half 2025 operating income of KD 91.8 million. Net loans and advances grew by 3.8% year-to-date to reach KD 5.7 billion. Non-performing loan ratio as of 30 June 2025 was 1.4%, with a solid non-performance loan coverage ratio of 317% including total provisions and collaterals. Capital ratios as of 30 June 2025, Tier 1 ratio was 14.6% and Capital Adequacy Ratio (CAR) was 16.8%.

Oman Air achieves threefold increase in point-to-point traffic
Oman Air achieves threefold increase in point-to-point traffic

Zawya

timean hour ago

  • Zawya

Oman Air achieves threefold increase in point-to-point traffic

Oman Air has seen a significant increase in point-to-point passengers, rising from 75,000 in June 2024 to 200,000 in June 2025, marking a near threefold increase. Point-to-point traffic - passengers flying directly into Oman rather connecting onwards - now accounts for 58 per cent of the airline's total flight loads. Mike Rutter, Chief Commercial Officer at Oman Air, said: 'A core pillar of our strategy is to increase point-to-point traffic; not simply by adding more flights, but by ensuring each flight brings more visitors directly to the country. The growth we have achieved is the direct result of careful route planning, targeted marketing, and a network strategy that prioritises stable demand over aspiration. Our approach not only supports national tourism goals, but also drives a stronger revenue performance for the airline, which in turn will enable us to open new routes sustainably. We remain focused on keeping travel to Oman both accessible and attractive, while delivering on our promise to be an engine of Oman's tourism growth.' Copyright 2025 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store