MUSCAT: The Public Authority for Special Economic Zones and Free Zones (OPAZ) signed on Sunday, July 6, 2025, a series of agreements and memoranda of understanding (MoUs) related to the establishment of the Economic Zone at Al Dhahirah (EZAD) — a flagship project designed to catalyze cross-border industrial and logistics investments between the Sultanate of Oman and the Kingdom of Saudi Arabia.

The agreements, which mark the formal launch of operational activities in the zone, were signed on behalf of OPAZ by its Chairman, Dr Ali bin Masoud Al Sunaidy. A total of seven agreements and MoUs were inked, covering the construction of main roads, a surface water drainage system, and the accreditation of two engineering firms from Oman and Saudi Arabia.

At a press conference highlighting the economic significance of EZAD, Eng Yahya bin Khamis Al Zadjali, Planning Advisor to the Chairman of OPAZ, stated: “OPAZ is committed to transforming the Al Dhahirah Economic Zone into an integrated industrial centre, pulsating with logistics services that serve as a vital gateway to commercial markets across the GCC. The zone aims to stimulate intra-regional trade between Oman and Saudi Arabia, and extend connections to neighbouring markets. Over the past period, the Authority has worked diligently to attract both local and international investment and to enhance the logistical movement of goods through land and sea ports via multimodal transport systems.”

According to Al Zadjali, the initial development will focus on a 7.5 km² portion of the first phase, which spans 20 km² within the zone’s total allocated area of 388 km².

“In the medium to long term, EZAD is envisioned as a hub for advanced industrial sectors — with clean energy as a primary driver of development — alongside a logistics complex featuring an inland port and a residential zone designed with environmental sustainability and public health in mind. The zone will offer modern living standards, comprehensive services, and amenities for workers and residents alike,” he added.

A key agreement included the RO 22.3 million contract for the construction of main roads and a surface water drainage system (Package 1), with a 24-month implementation period. The contract was awarded to an Omani-Saudi consortium represented by Btouar Adli of Serka, Dr Amin Al Shanqiti of Pladco, and Othman Gonuc of Gonuc Insaat.

Under this package, the project entails construction of dual and single carriageway roads stretching approximately 17 kilometres, installation of solar-powered street lighting, and development of stormwater drainage channels and flood protection infrastructure. A 6.3-kilometre-long, 250-metre-wide diversion channel will be constructed to redirect an existing wadi and mitigate flood risks. The scope also includes excavation and grading works, box culverts along the national road (N10), and partial reconstruction of the road.

Among other pacts signed was a memorandum of understanding with Sohar International Bank for strategic cooperation. The MoU aims to offer innovative financial solutions for capital structuring of current and future projects in the zone. It includes preferential financing offers for investors and grants the bank access to OPAZ’s investor platform to streamline registration and enhance investor experience. Signing on behalf of Sohar International was Khalil Salim Al Hedaifi, Chief Government and Private Banking Officer.

Further, two Service Level Agreements were signed with engineering consultancies — Al Watanyiah United Engineering (Oman) and Dar Al Riyadh (Saudi Arabia). These agreements are part of OPAZ’s strategy to accredit high-quality engineering firms that meet its technical standards.

The agreements — signed by Fahad bin Ali Al Mahrouqi, Deputy Executive Director of Al Watanyiah Engineering, and Ayman Adnan Yahya, Deputy CEO of Dar Al Riyadh — authorize the firms to offer services including architectural design, structural planning, implementation supervision, technical consultancy, and feasibility studies. Accredited firms will also facilitate the investor approval process, including the issuance of building permits.

In addition, MoUs expressing interest in investing in EZAD were signed by Sohar International Bank, Poly Products Co. Ltd., and Naseem Ibra Company. These aim to strengthen investment promotion through collaboration with Sohar International’s sector specialists and advisory teams, supporting key priority areas identified by OPAZ. The MoUs include provisions for investment advisory support to prospective investors.

Al Zadjali further revealed that OPAZ, in cooperation with Saudi Arabia’s Economic Cities and Special Zones Authority (ECZA), has completed the master plan for the zone. The master plan features recreational amenities such as parks, gardens, sports, and tourism facilities. It envisions the zone as a destination for pilgrims and Umrah performers, as well as a draw for international tourists visiting Oman.

He noted: “We’ve seen rising interest from investors in both brotherly nations, reflecting EZAD’s promise as a catalyst for business expansion and regional economic growth. The immediate phase, including the inland port, addresses critical infrastructure needs such as stormwater management, veterinary quarantine, and sustainable power supply using clean energy. It also includes a logistics services facility and a commercial services complex that will house administrative offices, healthcare, tourism, and retail amenities. Once operational, the zone will be managed by Asyad Group on behalf of the Omani side.”

In conclusion, Al Zadjali affirmed OPAZ’s commitment to positioning the Al Dhahirah Economic Zone as a regional industrial and logistics hub. “The zone will serve as a vital link connecting GCC markets and boosting intra-regional trade. It will focus on advanced manufacturing, clean energy, and integrated logistics, while also offering sustainable residential solutions designed to enhance quality of life for all stakeholders.”

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