Al
Dhahirah Economic Zone Begins Operational Activities
Muscat,
6 Jul (ONA) — The Public Authority for Special Economic Zones and Free Zones
(OPAZ) signed today a total of seven agreements and memoranda of understanding
(MoUs) for the Economic Zone at Al Dhahirah (EZAD), marking the beginning of
operational activities in the zone.
The
agreements and MoUs were signed on behalf of OPAZ by Dr Ali Masoud Al Sunaidy,
Chairman of OPAZ.
Among
the key agreements was the contract for the construction of main roads and the
surface water drainage system (Package 1), valued at RO 22.3 million, with a
24-month implementation period. The contract was awarded to an Omani-Saudi
consortium. Signing on behalf of the consortium were: Btouar Adli (Circa), Dr Amin
Al Shanqiti (Pladco), and Othman Gonk (Gonk).
OPAZ
also signed an MoU with Sohar International Bank for strategic cooperation in
the zone. The agreement aims to provide innovative financial solutions for
capital structuring of existing and future projects in the zone. It includes
preferential offers for businesses interested in investing, as well as granting
the bank access to OPAZ’s investor platform to facilitate registration and
enhance the investor experience. The MoU was signed by Khalil Salim Al Hedaifi,
Chief Government and Private Banking Officer at Sohar International Bank.
Two
Service Level Agreements were also signed with engineering consultancies: Al Watanyiah
United Engineering (Oman) and Dar Al Riyadh (Saudi Arabia). The agreements aim
to accredit both firms to prepare architectural, structural, and infrastructure
designs for investor projects in the zone, provide technical advice and
feasibility studies, and assist with approvals. The agreements were signed by Fahad
Ali Al Mahrouqi, Deputy Executive Director of Al Watanyiah Engineering, and
Ayman Adnan Yahya, Deputy CEO of Dar Al Riyadh.
Additionally,
MoUs expressing interest in investing in the Economic Zone at Al Dhahirah were
signed with Sohar International Bank, Poly Products Co. Ltd., and Naseem Ibra
Company.
Eng.
Yahya Khamis Al Zadjali, planning advisor to the Chairman of OPAZ, affirmed
that OPAZ is working to establish the Economic Zone at Al Dhahirah as an
integrated industrial hub with robust logistics services. The zone aims to
become a vital link connecting markets across the GCC and to promote
intra-regional trade between the Sultanate of Oman and the Kingdom of Saudi
Arabia.
Speaking
at the signing ceremony, Al Zadjali highlighted the zone’s strategic importance
in attracting both local and international investments. He also underlined its
potential to strengthen logistics connectivity for goods via land and sea ports
using multimodal transport systems between the Sultanate of Oman and the
Kingdom of Saudi Arabia.
He
explained that OPAZ, in cooperation with the Economic Cities and Special Zones
Authority (ECZA), has completed the master plan for the zone. The first
development phase covers 20 square kilometres of the total allocated area of
388 square kilometres, with an initial urgent development zone of 7.5 square
kilometres currently under implementation.
The
long-term vision for the zone is to become a centre for advanced industrial
sectors, with a strong focus on clean energy as a core driver of development.
It will also serve as a logistics hub featuring an inland port and will include
a residential area designed with a focus on environmental sustainability and
community well-being, offering modern living amenities and essential services
for both residents and workers.
The
agreement for the construction of the main roads and surface water drainage
system represents a cornerstone for developing the Economic Zone at Al Dhahirah
and enabling it to attract investment.
As
part of the first development package, the agreement includes the construction
of dual and single carriageway roads stretching approximately 17 kilometres,
installation of solar-powered street lighting, construction of stormwater
drainage channels, and protective infrastructure. It also involves the
diversion of the existing wadi through the construction of a
6.3-kilometre-long, 250-metre-wide channel to safeguard the area from flood
risks. This includes excavation and levelling works, construction of box
culverts along the national road (N10), and partial reconstruction of the road.
The
project will also include multiple roundabouts, road safety elements such as
road markings and signage, and the protection of utility networks in accordance
with approved plans and permits.
The
agreement stipulates that at least RO 1.23 million worth of works must be
subcontracted to small and medium enterprises (SMEs). It also mandates an
Omanisation rate of no less than 30 percent, including in key positions, to
ensure the development of skilled Omani expertise across the project’s
components.
The
signing of the memorandum of understanding (MoU) between the Public Authority
for Special Economic Zones and Free Zones and Sohar International Bank forms
part of OPAZ’s efforts to promote the Economic Zone at Al Dhahirah to both
Omani and foreign private sector investors, while offering attractive banking
solutions to encourage investment in the zone.
The
MoU aims to support and enhance investment promotion by engaging the bank’s
specialised advisors and sector experts to assist in developing key priority
areas identified by OPAZ. It also includes provisions for Sohar International
to provide investment advisory services to prospective investors, helping them
make informed decisions and improve the success rate of their ventures.
The
two ‘Service Level Agreements’ that were signed with Al Watanyiah United
Engineering and Dar Al Riyadh Engineering Consultants aim to deliver
engineering consultancy services to investors in the Economic Zone at Al
Dhahirah.
These
agreements are part of OPAZ’s broader strategy to accredit qualified
engineering firms that can provide high-quality services aligned with the
Authority’s technical standards. The agreements allow the accredited firms to
offer a wide range of services including design and architectural planning,
structural blueprints, supervision of implementation, advisory support,
technical studies, and economic feasibility assessments. These services also
streamline approval processes, including the issuance of building permits, on
behalf of investors.
OPAZ
also signed MoUs expressing interest in investing in the Al Dhahirah Economic
Zone with Sohar International Bank, Poly Products Co. Ltd., and Naseem Ibra
Company. These MoUs reflect the public-private partnership approach and OPAZ’s
commitment to enabling the private sector’s role in driving Oman’s economic
development.
The
Economic Zone at Al Dhahirah is being developed to boost cross-border trade
between the Sultanate of Oman and the Kingdom of Saudi Arabia, support national
development and economic diversification, and unlock new opportunities for both
Omani and GCC economies. The zone also aims to capitalise on its strategic
geographic location and competitive advantages.
The
zone spans 388 square kilometres and is being developed in multiple phases. It
is situated just 20 kilometres from the Rub Al Khali border crossing between
the Sultanate of Oman and the Kingdom of Saudi Arabia.
—Ends/AG
