Wednesday 30 / July / 2025
Muscat: The Public Authority for Special Economic Zones and Free Zones (Opaz) signed on Sunday 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 OMR22.3 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 multi-modal 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 storm-water 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 OMR1.23 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.
