Oman, UAE, DP World Launch Al Rawdah Economic Zone, Boosting 9.8% Trade Growth

Oman and the UAE's DP World have signed a cooperation agreement to develop and operate the first phase of the Al Rawdah Special Economic Zone in the Mahadha region of Oman. The project, covering an area of 14 square kilometers, aims to attract various industries, including manufacturing, logistics, pharmaceuticals, plastics, mining, food processing, and services. The economic zone is strategically located near the border between Oman and the UAE, facilitating connections to key ports such as Sohar Port in Oman and Jebel Ali Port in the UAE, one of the largest ports in the Middle East.

The Mahadha Development Company, a joint venture between the UAE and Oman with DP World as the controlling shareholder, will oversee the planning, infrastructure development, environmental assessments, and layout design of the economic zone. The project is expected to enhance logistics efficiency and market reach to the Gulf, Asia, and Africa. The economic zone will serve as a platform to align with the UAE's "Economic Agenda D33" and Oman's "Vision 2040," fostering deeper cooperation in re-exports, supply chains, manufacturing, and cross-border trade.

DP World, with over 40 years of experience in developing and operating economic zones, has previously established the first free zone in the Middle East, Jafza. The company currently manages 11 economic zones globally. This collaboration with Oman will expand DP World's regional footprint and allow Oman to leverage DP World's resources and operational expertise. As the economic zone progresses, the economic ties between the two countries are expected to strengthen further.

The project is part of a broader effort to enhance regional industrial cooperation and logistics efficiency. By strategically locating the economic zone near major ports, Oman and the UAE aim to improve connectivity and streamline supply chains, making it easier for goods to move between the Gulf, Asia, and Africa. This initiative is expected to boost trade and investment in the region, creating new opportunities for businesses and fostering economic growth.

The Al Rawdah Special Economic Zone is designed to provide a one-stop service system, attracting a diverse range of industries and fostering a clustering effect that will enhance industrial synergy. The project's focus on key sectors such as manufacturing, logistics, and pharmaceuticals aligns with the strategic goals of both Oman and the UAE, supporting their respective economic visions and promoting sustainable development.

Oman's non-oil trade with the UAE reached 560 billion dirhams in 2024, marking a 9.8% year-on-year increase. This growing trade relationship underscores the importance of the Al Rawdah Special Economic Zone in strengthening economic ties between the two countries. The project is expected to further boost non-oil trade and diversify the economies of both nations, reducing their reliance on oil revenues and promoting long-term economic stability.

Hassan Al Dheeb, Vice Chairman of OPAZ, highlighted the significance of the economic zone as a key platform for aligning the UAE's "Economic Agenda D33" with Oman's "Vision 2040." The project will drive deeper cooperation in areas such as re-exports, supply chains, manufacturing, and cross-border trade, creating a mutually beneficial partnership that supports the economic goals of both countries.

In summary, the collaboration between Oman and DP World to develop the Al Rawdah Special Economic Zone represents a significant step forward in regional economic integration. By leveraging DP World's expertise and strategic location, the project aims to enhance logistics efficiency, boost trade, and foster industrial cooperation. As the economic zone progresses, it is expected to strengthen the economic ties between Oman and the UAE, supporting their respective economic visions and promoting sustainable development in the region.