In a major move to elevate economic integration, the UAE and Oman have unveiled plans for the Al Rawdah Special Economic Zone (SEZ), situated along the Al Buraimi border. This ambitious project is designed to accelerate non-oil trade between the two nations, which reached AED 56 billion ($15.2 billion) in 2024—marking a 9.8% increase year-on-year.
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, attended the official signing ceremony. The agreement sets the stage for the development and operation of Phase 1 of the SEZ, which spans 14 square kilometres in the Wilayat of Mahadha, Al Buraimi Governorate. A second phase will extend the zone to 25 square kilometres.
The project aims to leverage the zone’s strategic position, which offers direct access to Dubai’s Jebel Ali Port and major Omani ports. As a result, it is expected to significantly improve cross-border logistics and connectivity.
New Platform to Support Investment and Innovation
The signing event, held in Muscat, occurred during a high-level UAE delegation visit led by Sheikh Hamdan. Sayyid Theyazin bin Haitham Al Said, Oman’s Minister of Culture, Sports and Youth, was also present to witness the agreement. Representing the Emirati-Omani joint venture Mahadha Development Company, Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, signed the agreement alongside Ahmed bin Hassan Al Dheeb, Deputy Chairman of Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ).
Sultan Ahmed bin Sulayem stated:
“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. 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.”
DP World will spearhead the zone’s development, bringing its four decades of experience operating successful economic zones—including the Jebel Ali Free Zone (Jafza), one of the Middle East’s most renowned free zones.
Economic Catalyst for Oman Vision 2040 and D33
The zone’s masterplan includes infrastructure, environmental studies, and initial layout design. Phase 1 will cater to a broad range of sectors, including manufacturing, logistics, warehousing, food processing, medical supplies, pharmaceuticals, plastics, mining, and safety services.
Ahmed bin Hassan Al Dheeb explained:
“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. 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.”
The Al Rawdah SEZ is expected to play a critical role in economic diversification efforts aligned with both Oman Vision 2040 and Dubai’s Economic Agenda D33. As the project expands over the coming decades, it aims to attract foreign direct investment, boost industrial productivity, and generate thousands of new jobs.
With Mahadha Development Company at the helm, the zone will establish a robust ecosystem for re-exports, manufacturing, and trade. Ultimately, this initiative represents a forward-looking partnership between the UAE and Oman, supporting long-term prosperity across the region.
