Latest news with #PublicAuthorityforSpecialEconomicZonesandFreeZones
Observer
2 days ago
- Business
- Observer
EZAD: Anchoring investments for a diversified future
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. Dr Yousuf Hamed al Balushi The writer is founder and CEO - Smart Investment Gateway, economists, board adviser & business transformation mentor.
Muscat Daily
06-07-2025
- Business
- Muscat Daily
OPAZ signs 7 pacts to launch Economic Zone at Dhahirah
Muscat – Public Authority for Special Economic Zones and Free Zones (OPAZ) signed seven agreements and memoranda of understanding on Sunday to initiate operational activities in Economic Zone at Dhahirah (EZAD) marking a key step in the zone's development. Signed by Dr Ali bin Masoud al Sunaidy, Chairman of OPAZ, and contracting companies, the agreements include a RO22.3mn construction contract for main roads and a surface water drainage system. The 24-month contract was awarded to an Omani-Saudi consortium. OPAZ also signed a strategic MoU with Sohar International Bank to provide financial solutions for investors. The agreement includes preferential offers for businesses, capital structuring services and access to OPAZ's investor platform. Two service level agreements were signed with Al Watanyiah United Engineering (Oman) and Dar al Riyadh (Saudi Arabia), engaging them to prepare architectural, structural and infrastructure designs for investor projects in EZAD, provide technical advice and feasibility studies, and assist with approvals. Additionally, three MoUs were signed with Sohar International Bank, Poly Products and Naseem Ibra Company, expressing investment interest in the zone. Yahya bin Khamis al Zadjali, Planning Advisor to Chairman of OPAZ, said the zone is intended to serve as an integrated industrial and logistics hub, connecting GCC markets and enhancing trade between Oman and Saudi Arabia. Yahya bin Khamis al Zadjali, Planning Advisor to Chairman of OPAZ 'In cooperation with the Economic Cities and Special Zones Authority of Saudi Arabia, OPAZ has completed the master plan for EZAD,' Zadjali said. The first phase of development covers 20sqkm, including an urgent implementation area of 7.5sqkm within the total allocated 388sqkm. Zadjali added that the long-term vision for the zone is to become a centre for advanced industrial sectors, with particular focus on clean energy as a core driver of development. 'It will also serve as a logistics hub featuring an inland port and include a residential area designed with focus on environmental sustainability and community well-being, offering modern living amenities and essential services for both residents and workers.' The RO22.3mn road and drainage contract includes construction of 17km of roads, solar street lighting, storm water channels and a 6.3km diversion channel for wadi protection. The scope of work includes box culverts, road reconstruction and safety infrastructure such as roundabouts and signage. The agreement mandates that at least RO1.23mn of the works be awarded to SMEs and requires an Omanisation rate of at least 30%, including in technical roles, to promote local workforce development.
Observer
06-07-2025
- Business
- Observer
OPAZ inks key pacts to kickstart EZAD
MUSCAT: The Public Authority for Special Economic Zones and Free Zones (OPAZ) signed on Sunday, July 6, 2025, a series of agreements and memoranda of understanding (MoUs) related to the establishment of the Economic Zone at Al Dhahirah (EZAD) — a flagship project designed to catalyze cross-border industrial and logistics investments between the Sultanate of Oman and the Kingdom of Saudi Arabia. The agreements, which mark the formal launch of operational activities in the zone, were signed on behalf of OPAZ by its Chairman, Dr Ali bin Masoud Al Sunaidy. A total of seven agreements and MoUs were inked, covering the construction of main roads, a surface water drainage system, and the accreditation of two engineering firms from Oman and Saudi Arabia. At a press conference highlighting the economic significance of EZAD, Eng Yahya bin Khamis Al Zadjali, Planning Advisor to the Chairman of OPAZ, stated: 'OPAZ is committed to transforming the Al Dhahirah Economic Zone into an integrated industrial centre, pulsating with logistics services that serve as a vital gateway to commercial markets across the GCC. The zone aims to stimulate intra-regional trade between Oman and Saudi Arabia, and extend connections to neighbouring markets. Over the past period, the Authority has worked diligently to attract both local and international investment and to enhance the logistical movement of goods through land and sea ports via multimodal transport systems.' According to Al Zadjali, the initial development will focus on a 7.5 km² portion of the first phase, which spans 20 km² within the zone's total allocated area of 388 km². 'In the medium to long term, EZAD is envisioned as a hub for advanced industrial sectors — with clean energy as a primary driver of development — alongside a logistics complex featuring an inland port and a residential zone designed with environmental sustainability and public health in mind. The zone will offer modern living standards, comprehensive services, and amenities for workers and residents alike,' he added. A key agreement included the RO 22.3 million contract for the construction of main roads and a surface water drainage system (Package 1), with a 24-month implementation period. The contract was awarded to an Omani-Saudi consortium represented by Btouar Adli of Serka, Dr Amin Al Shanqiti of Pladco, and Othman Gonuc of Gonuc Insaat. Under this package, the project entails construction of dual and single carriageway roads stretching approximately 17 kilometres, installation of solar-powered street lighting, and development of stormwater drainage channels and flood protection infrastructure. A 6.3-kilometre-long, 250-metre-wide diversion channel will be constructed to redirect an existing wadi and mitigate flood risks. The scope also includes excavation and grading works, box culverts along the national road (N10), and partial reconstruction of the road. Among other pacts signed was a memorandum of understanding with Sohar International Bank for strategic cooperation. The MoU aims to offer innovative financial solutions for capital structuring of current and future projects in the zone. It includes preferential financing offers for investors and grants the bank access to OPAZ's investor platform to streamline registration and enhance investor experience. Signing on behalf of Sohar International was Khalil Salim Al Hedaifi, Chief Government and Private Banking Officer. Further, two Service Level Agreements were signed with engineering consultancies — Al Watanyiah United Engineering (Oman) and Dar Al Riyadh (Saudi Arabia). These agreements are part of OPAZ's strategy to accredit high-quality engineering firms that meet its technical standards. The agreements — signed by Fahad bin Ali Al Mahrouqi, Deputy Executive Director of Al Watanyiah Engineering, and Ayman Adnan Yahya, Deputy CEO of Dar Al Riyadh — authorize the firms to offer services including architectural design, structural planning, implementation supervision, technical consultancy, and feasibility studies. Accredited firms will also facilitate the investor approval process, including the issuance of building permits. In addition, MoUs expressing interest in investing in EZAD were signed by Sohar International Bank, Poly Products Co. Ltd., and Naseem Ibra Company. These aim to strengthen investment promotion through collaboration with Sohar International's sector specialists and advisory teams, supporting key priority areas identified by OPAZ. The MoUs include provisions for investment advisory support to prospective investors. Al Zadjali further revealed that OPAZ, in cooperation with Saudi Arabia's Economic Cities and Special Zones Authority (ECZA), has completed the master plan for the zone. The master plan features recreational amenities such as parks, gardens, sports, and tourism facilities. It envisions the zone as a destination for pilgrims and Umrah performers, as well as a draw for international tourists visiting Oman. He noted: 'We've seen rising interest from investors in both brotherly nations, reflecting EZAD's promise as a catalyst for business expansion and regional economic growth. The immediate phase, including the inland port, addresses critical infrastructure needs such as stormwater management, veterinary quarantine, and sustainable power supply using clean energy. It also includes a logistics services facility and a commercial services complex that will house administrative offices, healthcare, tourism, and retail amenities. Once operational, the zone will be managed by Asyad Group on behalf of the Omani side.' In conclusion, Al Zadjali affirmed OPAZ's commitment to positioning the Al Dhahirah Economic Zone as a regional industrial and logistics hub. 'The zone will serve as a vital link connecting GCC markets and boosting intra-regional trade. It will focus on advanced manufacturing, clean energy, and integrated logistics, while also offering sustainable residential solutions designed to enhance quality of life for all stakeholders.'
Muscat Daily
05-07-2025
- Business
- Muscat Daily
OPAZ releases 40th Edition of Duqm Economic Magazine
Muscat – The Public Authority for Special Economic Zones and Free Zones (OPAZ) has released the 40th issue of Duqm Economic Magazine, a media platform dedicated to spotlighting the latest developments in investment and growth across the special economic zones, free zones, and industrial cities under the authority's oversight. This milestone edition features in-depth content, including exclusive interviews, analytical economic reports, and specialised coverage of key agreements, projects, and initiatives that signal the zones' accelerating momentum toward sustainable development and high-value investments. The magazine opens with full coverage of the landmark agreement to develop and operate the first phase of the Al-Rawda Special Economic Zone, an accord signed between the Sultanate of Oman and the United Arab Emirates, attended by H H Sayyid Theyazin bin Haitham al Said and H H Sheikh Hamdan bin Mohammed al Maktoum. The editorial – titled An Ambitious Vision for Sustainable Development and Promising Investment – outlines the authority's strategic trajectory in positioning itself as a catalyst for economic transformation, aiming to cultivate globally competitive, investor-friendly economic and free zones and industrial cities in the Sultanate of Oman. The magazine also highlights the recent decision by Sheikh Dr Ali bin Masoud al Sunaidi, Chairman of the authority, to amend the regulations governing urban planning and building permits in the Duqm Special Economic Zone – an initiative set to strengthen governance and streamline procedures. This edition features an exclusive interview with H E Dr Hilal bin Ali al Sabti, Minister of Health, who revealed that eight pharmaceutical factories are currently operating within Oman's free zones and industrial cities. He emphasised the ministry's direction in bolstering local pharmaceutical production and reducing reliance on imports. The publication also offers a detailed review of 2024's key performance indicators across economic and free zones, and presents the findings of a comprehensive study on the governing law of special economic and free zones, highlighting government efforts to unify incentives, integrate legislation, and foster an enhanced investment climate.
Observer
05-07-2025
- Business
- Observer
40th edition of Duqm Economist launched
BUSINESS REPORTER MUSCAT, JULY 5 The Public Authority for Special Economic Zones and Free Zones (OPAZ) has released the 40th issue of Duqm Economic Magazine, a media platform dedicated to spotlighting the latest developments in investment and growth across the special economic zones, free zones, and industrial cities under the Authority's oversight. This milestone edition features in-depth content, including exclusive interviews, analytical economic reports, and specialized coverage of key agreements, projects, and initiatives that signal the zones' accelerating momentum toward sustainable development and high-value investments. The magazine opens with full coverage of the landmark agreement to develop and operate the first phase of the Al-Rawda Special Economic Zone, an accord signed between the Sultanate of Oman and the United Arab Emirates, attended by His Highness Sayyid Theyazin bin Haitham Al Said and His Highness Shaikh Hamdan bin Mohammed Al Maktoum. The editorial, titled 'An Ambitious Vision for Sustainable Development and Promising Investment,' outlines the Authority's strategic trajectory in positioning itself as a catalyst for economic transformation, aiming to cultivate globally competitive, investor-friendly economic and free zones and industrial cities in the Sultanate of Oman. The magazine also highlights the recent decision by Shaikh Dr Ali bin Masoud al Sunaidi, Chairman of the Authority, to amend the regulations governing urban planning and building permits in the Duqm Special Economic Zone - an initiative set to strengthen governance and streamline procedures. This edition features an exclusive interview with Dr Hilal bin Ali Al Sabti, Minister of Health, who revealed that eight pharmaceutical factories are currently operating within Oman's free zones and industrial cities. He emphasised the Ministry's direction in bolstering local pharmaceutical production and reducing reliance on imports. The publication also offers a detailed review of 2024's key performance indicators across economic and free zones, and presents the findings of a comprehensive study on the governing law of special economic and free zones, highlighting government efforts to unify incentives, integrate legislation, and foster an enhanced investment climate. One of the most significant highlights is the coverage of Oman's green hydrogen export project to Europe via Duqm, backed by a monumental $49 billion investment, underscoring the Sultanate of Oman's leadership role in the global shift toward renewable energy. Additionally, the magazine includes insights from Eng Nasser al Kindi, CEO of Invest in Oman, who disclosed that 90 investment projects - worth approximately RO 4.9 billion - were received and processed via the national platform. Further highlights include a report on the Salalah Free Zone, which now hosts 97 investment projects totaling more than RO 4.74 billion, as well as a selection of inspiring success stories across a range of economic sectors. Also covered is the $1.3 billion investment in the polysilicon project within Sohar Free Zone, along with the sustainable labour housing model at the Housing Village project in Khazaen Economic City.
