DP World unit signs 50-year deal to develop UAE-Oman free zone

• Al Rawdah zone to be built near border
• Dubai’s crown prince visits Muscat
• SEZ to focus on manufacturing

A DP World unit has signed a 50-year deal to develop an economic free zone between the UAE and Oman.

Mahdah Development Company, a UAE-Omani joint venture led by DP World, is working with Oman’s Public Authority for Special Economic Zones and Free Zones (Opaz) to develop the first phase of the Al Rawdah zone.

The special economic zone will be located in the town of Mahadha in Oman’s Al Buraimi governorate, just over the border from the central UAE town of Al Ain.

Mahdah Development Company “will be responsible for developing the infrastructure and facilities, preparing the masterplan and environmental studies and designing the initial layout”, Oman Television reported.

The signing ceremony in Muscat was witnessed by the crown prince of Dubai, Sheikh Hamdan bin Mohammed Al Maktoum.

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The zone will focus on sectors ranging from manufacturing, logistics and warehousing to pharmaceuticals, plastic industries and mineral processing, according to an Opaz social media post.

It will benefit from direct connections to Jebel Ali Port in Dubai and Omani ports, enhancing cross-border logistics, Opaz added.

Al Rawdah Special Economic Zone will be Oman’s fifth free zone.

Non-oil trade between the UAE and Oman reached an all-time high of $15 billion last year, a 10 percent increase year on year, according to Oman’s National Center for Statistical Information.