EZAD: Anchoring investments for a diversified future
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.
Dr Yousuf Hamed al Balushi
The writer is founder and CEO - Smart Investment Gateway, economists, board adviser & business transformation mentor.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
4 hours ago
- Observer
13 tonnes of local honey showcased in Salalah
SALALAH: The 2025 edition of the Omani Honey and Turmeric Exhibition officially opened at the Grand Mall in Salalah. Organised by the Directorate-General of Agriculture, Fisheries and Water Resources in Dhofar Governorate, the exhibition — now in its third year — will run until the end of August and serves as a platform to promote high-quality local products and support entrepreneurs in the agricultural sector. This year's event features the participation of a wide range of farmers and beekeepers, highlighting Dhofar's rich natural resources, especially in honey and turmeric production, both of which enjoy a strong reputation locally and internationally. Eng Fael bin Mohammed al Jahfali, Director-General of the Directorate, emphasised that the exhibition is part of ongoing efforts to support agricultural production chains and enhance the economic value of local products. 'We aim to create a supportive environment for SMEs, while also fostering partnerships between farmers, consumers, companies and specialised institutions,' he said. Dhofar's unique geography and diverse pastoral environments provide ideal conditions for year-round beekeeping. The governorate is renowned for a variety of honey types, including frankincense, sidr, gum Arabic, samr, Rub' al Khali flower, sarb season floral and wild tree honeys. Currently, the governorate has 132 registered beekeepers managing approximately 11,000 beehives, with an estimated annual production of 90 tonnes of honey. Turmeric farming, localised in the mountainous areas of Dhofar, is also seeing promising growth. The 2024 season produced over 90 tonnes, and projections for 2025 indicate a potential yield of at least 150 tonnes, reflecting its rising economic, nutritional and therapeutic significance. The exhibition showcases over 13 tonnes of honey from 16 participating beekeepers, along with a dedicated section for Omani turmeric products. The event was inaugurated by Dr Talib bin Ali al Siyabi, Director-General of Finance in Dhofar Governorate. - ONA
Observer
4 hours ago
- Observer
Khareef Dhofar opens new horizons for SMEs
Muscat, July 27 Intense efforts are being made to develop, advance and support Omani youth to promote sustainable development through the participation of small and medium enterprises (SMEs) in the Dhofar Khareef season. Coinciding with the Dhofar Khareef season, the Authority for Small and Medium Enterprises Development seeks to highlight the contributions and innovative experiences of Omani projects and active SMEs across the various Dhofar Khareef locations, as they serve as visitor attractions and contribute to creating a unique tourism experience for the season. SMEs are participating in the Dhofar Khareef season to showcase their diverse products and services, opening new horizons for direct marketing and strengthening their presence in the local market. The Sultanate of Oman seeks to enhance the role of SMEs in supporting the national economy by empowering entrepreneurs and expanding their reach to a wider segment of visitors and consumers, in addition to highlighting their creativity in events accompanying the khareef season. Dr Ahmed bin Mohsen Mohammed al Ghassani, Chairman of Dhofar Municipality, emphasised that the Khareef Dhofar Season 2025 devotes significant space to supporting Omani small and medium enterprises. This will enable Omani business owners to showcase their products to visitors, enhancing growth opportunities and highlighting the local character of the tourism experience. The work assigned by Dhofar Municipality to SMEs increased by RO 6.5 million by the end of the third quarter of 2024, compared to approximately RO 4 million in 2023. This growth in SME participation in Khareef Dhofar reinforces the partnership and integration approach between the Authority, government institutions, and the private sector in Dhofar Governorate, to continue efforts to stimulate and support the sustainable growth of SMEs in various events and activities held in Dhofar Governorate. The number of entrepreneurs benefiting from the activities and services provided by the event sites during the Khareef Dhofar last year 2024 reached approximately 328 business owners, both male and female. The activities implemented during the various tourism seasons also provided a range of temporary job opportunities for many SMEs and productive families in the governorate. Dhofar Municipality also provides ongoing support to SMEs throughout the governorate's various tourism seasons to strengthen their position in stimulating the tourism sector and support job seekers seeking to operate public sites and parks during the governorate's various tourism seasons. The khareef season in Dhofar Governorate represents a great opportunity to stimulate commercial and economic activity, contributing to strengthening and supporting the local economy, greatly benefiting businesses and society, and achieving sustainable development in the governorate.
Observer
4 hours ago
- Observer
'very event is delivered straight from the heart'
Reema al Sajwani, a young Omani figure in the MICE (Meetings, Incentives, Conferences and Exhibitions) sector, which plays a significant role in the tourism industry, believes that every event that hosts people is delivered straight from the heart. The story of Reema, a leading female entrepreneur in the events industry, is an inspiring tale that showcases how courage, vision and clarity can lead to success. Her hard work and determination helped her overcome numerous challenges to become the successful woman she is today. Her name has become synonymous with the next wave of female entrepreneurs in the events industry after organising key events both in and outside of Oman in recent years. "No one knew who Reema al Sajwani was when I organised my first event, but I am grateful that I introduced myself through high-quality performance and achieved my goals," said Reema, the Founder and Chairperson of Reema Integrated Projects Company, a renowned event management firm. She has successfully organised fashion shows, events and exhibitions and is a member of the Oman Chamber of Commerce and Industry. "In today's competitive business environment, the events industry is an excellent career choice for women aspiring to be entrepreneurs. Role models like Reema show that success is achievable and may inspire the next generation of women to start their own event management companies," she affirmed. Reema has received numerous accolades and her organisation was recognise by the Ministry of Commerce, Industry and Investment Promotion for five consecutive years as the most supportive firm for managing events and conferences to aid SMEs. "The journey has never been smooth. There were turbulence and storms, but I overcame them all and sailed to success because I always believed that challenges are the secret to success. I believed in myself and my abilities to achieve my goals and I did," she smiled. According to Reema, SMEs are crucial for a nation's development as they are the primary engine of economic growth, job creation and social progress. They contribute to GDP, drive innovation and enhance economic competitiveness. Reema's efforts to empower SMEs are commendable. She has supported several SMEs with her exceptional leadership, event management skills and entrepreneurial expertise. Reema believes that effective leadership is essential for business growth and long-term success and her company, Reema Integrated Projects Company, has been expanding horizontally under her astute leadership. In addition to her strong educational background, Reema is a researcher in entrepreneurship innovation, holds a certificate in the exhibition industry, and has a diploma in fashion design. She has been recognised as one of the guiding stars among other Arab women leaders who have made significant contributions to the events industry recently.
