DP World, Omani partners launch new economic zone at Omani border

A new UAE-Oman trade zone: Emirati developer DP World and Oman’s Public Authority for Special Economic Zones have signed a 50-year agreement to develop and operate the first phase of the Al Rawdah Special Economic Zone in Oman’s Mahadha, Omani state news agency Oman News Agency (ONA) reports. The project’s first phase is expected to see about USD 2 bn in investments, ONA reports, citing DP World’s CEO and Chairman Sultan Ahmed bin Sulayem.

Who is doing what? Emirati-Omani joint venture (JV) Mahadha Development Company will carry out the development of the 14 sq km first phase of the project — expandable to 25 sq km in a second phase. DP World is a majority partner in the JV, which will lead on developing the infrastructure, designing the initial layout, and preparing the masterplan and environmental studies, Emirati public news agency Wam reports.

Sectors in focus: The zone’s first phase will focus on manufacturing, logistics, warehouses, pharma and medical supplies, mining, food processing, plastics, and security devices.

Incentives abound: Businesses in the zone will be exempted from import and exports customs, and will be allowed to transfer any returns abroad without constraint. Foreign ownership with up to 100% will also be permitted, and businesses will benefit from streamlined licensing processes.

Location matters: The zone’s location in the Buraimi governorate puts it between Oman’s Sohar port and the UAE’s Jebel Ali port, facilitating logistical flows between the Gulf, Africa and Asia. The zone is also targeting increasing re-export activity to international markets by integrating industrial processes within the two countries.

DP World has been on a global roll: The UAE port operation also inked a USD 800 mn agreement to develop Syria’s Tartus Port and an MoU worth USD 750 mn to expand the Port of Caucedo in the Dominican Republic earlier this month.