Work has officially commenced on the Al-Rawdah Special Economic Zone, a landmark $2 billion project situated on the border between Oman and the UAE. This joint venture between Oman’s Public Authority for Special Economic Zones and Free Zones (Opaz) and the UAE’s DP World is poised to significantly enhance trade relations and streamline logistics between the two nations.
The project is located in the Omani town of Mahdah in the Buraimi region, a strategic point connecting the two Gulf countries. Officials have confirmed that civil work is now underway for the first phase, which will cover an area of 14 square kilometres.
A Strategic Commercial Gateway
The zone’s location offers a distinct logistical advantage, providing direct access to key regional maritime hubs and trade corridors.
“The position at the Rawdah border post between the UAE and Oman has direct access to Sohar and Jebel Ali ports as well as major GCC road corridors,” said Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World.
This direct linkage to Oman’s Sohar port and Dubai’s Jebel Ali free zone is expected to create a powerful commercial gateway, reducing transit times and costs for businesses operating within the region.
Fostering Industrial Growth
The Al-Rawdah free zone is designed to become a hub for a diverse range of industries. The development plans include factories for petrochemical products, machinery, and metal, alongside facilities for food and beverage production. A central logistics centre will anchor the zone’s operations, supporting the seamless movement of goods.
Following the initial phase, the joint venture is already planning a second phase of expansion, which will be built on an adjacent 25 square kilometre plot, signaling long-term ambitions for the project.
Incentives to Attract Investment
To attract businesses and investors, the Al-Rawdah zone will offer a highly competitive fiscal environment. Investors will be exempt from corporate tax for the first 15 years of operation.
Furthermore, companies based in the free zone will benefit from a complete waiver on import and export duties, providing a substantial financial advantage. These incentives are designed to position the zone as a premier destination for foreign and regional investment, aligning with the growing trade between the two countries, which reached $3.3 billion in the first eight months of 2025.
About Al-Rawdah Special Economic Zone
The Al-Rawdah Special Economic Zone is a $2 billion joint venture between Oman’s Public Authority for Special Economic Zones and Free Zones (Opaz) and the UAE’s DP World. Located in Mahdah, Oman, on the border with the UAE, the project aims to bolster economic ties, increase foreign trade, and reduce logistics costs between the two nations by creating a major industrial and logistics hub.
Source: AGBI
