UAE, Oman begin new chapter in trade, economic cooperation

Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai, on Monday witnessed the signing of an agreement to develop and operate the first phase of the Al Rawdah Special Economic Zone, located in the Wilayat of Mahadha, Al Buraimi Governorate, in the Sultanate of Oman.

The signing took place during the visit of a high-level UAE delegation to Oman led by Sheikh Hamdan bin Mohammed.

The signing of the agreement, which took place in Muscat, was attended by His Highness Sayyid Theyazin Bin Haitham Al Said, Minister of Culture, Sports and Youth of Oman. The agreement is part of the flourishing economic cooperation between the two nations.

The agreement was signed by Engineer Ahmed Bin Hassan Al Dheeb, Deputy Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), and Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, representing Mahadha Development Company, which will develop the new zone. Mahadha Development Company is an Emirati-Omani joint venture in which DP World is the majority partner.

Commenting on the occasion, Sultan Ahmed Bin Sulayem said: “The Al Rawdah Special Economic Zone represents a new chapter in the growing economic relationship between the UAE and the Sultanate of Oman. Through close collaboration with OPAZ and our Omani partners, this new zone will strengthen our deep trade ties while reflecting our shared ambition for sustainable and diversified economic growth.”

He added: “At DP World, we are committed to developing a world-class platform that will create new opportunities for growth, strengthen connectivity and bring long-term economic value to both Oman and the UAE.”

In his speech, Engineer Ahmed Bin Hassan Al Dheeb highlighted: “The Al Rawdah Special Economic Zone has been designed to support key development goals, including creating jobs, attracting advanced knowledge and modern technologies, and fostering a business-friendly environment that aligns with the sustainable development objectives of Oman Vision 2040.” He added: “The zone’s strategic location in the Buraimi Governorate - at the crossroads between Oman and the UAE - provides seamless connectivity to both Sohar Port and Jebel Ali Port. This positioning is expected to enhance logistics efficiency, lower costs, and improve market access across Gulf, Asian, and African trade routes.” Phase 1 of the project will cover 14 square kilometres, with expansion plans to reach 25 square kilometres in Phase 2. The zone will benefit from direct connectivity to both Jebel Ali Port in Dubai and Omani ports, enhancing cross-border logistics.

Under the agreement, Mahadha Development Company will be responsible for developing the infrastructure and facilities, preparing the masterplan and environmental studies, and designing the initial layout. The first phase will target a range of economic activities, including manufacturing, logistics, warehousing, pharmaceuticals, medical supplies, plastics, mining, food processing, and security and safety services - all provided through an integrated one-stop-shop service model.

The Al Rawdah project is a strategic initiative that will leverage its geographic location to strengthen supply chains, re-export activity, and logistics connectivity between Oman, the UAE, and international markets. The zone will serve as a key engine of economic diversification aligned with the Dubai Economic Agenda D33 and Oman Vision 2040. It aims to attract foreign direct investment (FDI), increase industrial output, and create thousands of jobs as the zone scales over the coming decades.

In 2024, non-oil trade between the UAE and Oman reached a record Dhs56 billion - a 9.8% increase from the previous year - highlighting the deepening economic partnership. The Al Rawdah Zone is expected to accelerate this trend by establishing a modern and advanced ecosystem for trade and manufacturing.

DP World brings four decades of expertise in developing and operating economic zones, including the Jebel Ali Free Zone (Jafza), the first free zone in the Middle East and one of the most successful globally. This experience along with its portfolio of 11 economic zones worldwide positions DP World to deliver a future-ready, integrated platform in Oman, supported by OPAZ’s national development strategy.

The signing was attended by Sheikh Ahmed bin Mohammed Bin Rashid Al Maktoum, Second Deputy Ruler of Dubai; Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Dubai Airports, and Chairman and Chief Executive of Emirates Airline and Group; and. Sheikha Latifa Bint Mohammed bin Rashid Al Maktoum, Chairperson of the Dubai Culture and Arts Authority.

Also present at the signing were Mohammad Bin Abdullah Al Gergawi, Minister of Cabinet Affairs; Sheikh Salem bin Khalid Al Qassimi, Minister of Culture; Dr Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade; Omar Bin Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Application.

WAM