OPA2Z’s New MoU: Implications for Business Growth in Smart Cities and Digital Innovation in Oman
BUSINESS REPORTER
MUSCAT, JAN 12
On January 12, 2026, the Public Authority for Special Economic Zones and Free Zones (OPAZ) signed a memorandum of understanding (MoU) with the Ibn Firnas Drone Centre, focusing on smart cities and digital innovation applications. This agreement is part of OPAZ’s initiative to foster a prosperous, technology-driven economy.
The MoU was signed by Eng. Ahmed bin Hassan al Dheeb, Deputy Chairman of OPAZ, and Mohammed bin Abdullah al Harthy, CEO of the Ibn Firnas Drone Centre. The primary goal of this partnership is to establish a long-term strategic collaboration aimed at integrating modern technologies to enhance operational and administrative efficiency across sectors supervised by OPAZ. Additionally, it seeks to create a smart city model by developing a comprehensive regulatory and technical framework.
Within the first year of the agreement, a series of foundational projects will be implemented, serving as a cornerstone for future collaboration. Notably, an integrated pilot project will be launched at the Special Economic Zone at Duqm (SEZAD), recognized as an ideal environment for testing smart city solutions in areas such as security, environmental monitoring, and logistics services.
The foundational projects will also support the innovation ecosystem by funding and organizing at least one hackathon focused on developing innovative solutions to challenges faced by SEZAD. Participants will receive technical and advisory support, aimed at establishing the zone as a leading model for smart and sustainable cities. Furthermore, the partnership aims to stimulate innovation by fostering an integrated ecosystem that supports startups, attracts global digital investments, and enhances governmental and regulatory frameworks through the development of flexible policies governing smart city solutions.
Looking beyond the initial foundational year, the partnership is expected to evolve to include commercial activities that align with the objectives of both parties. This includes the provision of commercial services by Ibn Firnas Drone Centre to companies operating in SEZAD, such as smart city solutions for infrastructure management and monitoring, as well as specialized advisory services to assist investors and companies in complying with smart city requirements.
The initiative will also explore big data projects, including the establishment of a platform for analyzing data generated by smart city operations. This platform will provide insights to support decision-making and enhance service efficiency. Additionally, a training academy may be created to offer commercial training and qualification programs designed to upskill the workforce in SEZAD in the latest digital technologies.
The signing of this MoU underscores OPAZ’s commitment to expanding strategic partnerships with specialized national institutions, contributing to the development of special economic zones and reinforcing Oman’s position as a leading regional hub for innovation and smart cities. The Ibn Firnas Drone Centre is a government-owned entity specializing in drone solutions and smart city applications.
Notably, the Special Economic Zone at Duqm possesses several advantages conducive to the success of smart city and drone projects, including an artificial intelligence zone spanning 18 square kilometers. In recent years, the area has seen numerous successful drone trials, including inspections of the commercial quay at the Port of Duqm using modern technology rather than divers, as well as exploratory surveys of port cranes. Additional trials have encompassed postal and food delivery, 360-degree aerial imaging for mapping purposes, topographical surveys, and the creation of three-dimensional models of the area.
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The recent MoU between OPAZ and the Ibn Firnas Drone Centre marks a pivotal moment for Oman, signaling a commitment to smart city development and digital innovation. Businesses should recognize the potential for new opportunities in tech-driven projects and innovative solutions, particularly within the Special Economic Zone at Duqm, while also preparing for regulatory shifts that may arise as Oman embraces these advancements. Smart investors and entrepreneurs should focus on aligning with the innovation ecosystem, as active participation in this sector could lead to substantial long-term benefits and partnerships.
