Oman Explores Economic Zone Partnership with Saudi Arabia: What This Means for Investors and Businesses
Qais bin Mohammed al Yousef, Chairman of Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ), is currently visiting Saudi Arabia to explore avenues for strengthening economic collaboration between the two nations, particularly in economic zones, industrial, and logistics sectors.
During his visit, Al Yousef and his delegation held meetings with key Saudi officials, including Eng Khalid bin Abdulaziz al Falih, Minister of Investment and Chairman of the Economic Cities and Special Zones Authority (ECZA). Mazen al Saleh, Acting Secretary General of ECZA, was also present. The discussions focused on enhancing bilateral economic and investment cooperation, with particular attention to special economic zones, free zones, and industrial cities.
The two parties reviewed recent progress at the Economic Zone at Al Dhahirah (EZAD) Governorate, located near the Oman-Saudi border. Significant infrastructure developments are underway in the zone, which is expected to play a vital role in boosting economic activity between the two countries by serving as a major logistics and industrial hub.
Al Yousef also met with Bandar bin Ibrahim Al Khorayef, Minister of Industry and Mineral Resources and Chairman of the Saudi Authority for Industrial Cities and Technology Zones (MODON), to discuss strengthening cooperation in the industrial sector. Additionally, he met Sultan Al Marshad, CEO of the Saudi Fund for Development, to explore opportunities for collaboration on development projects financed by the Fund, and Abdullah bin Mohammed Aal Sadhan, Vice Governor of Operations at the Zakat, Tax and Customs Authority.
The delegation visited several Saudi companies, including a meeting with Prince Turki bin Abdullah bin Abdulrahman al Saud, Founder and Chairman of Dar Al Riyadh, alongside CEO Abdullah al Mustaneer. Al Yousef highlighted OPAZ’s role in attracting investments to Oman’s special economic zones, free zones, and industrial cities, detailing incentives for investors, a competitive environment, and diverse investment sectors across zones under OPAZ’s oversight.
The OPAZ delegation includes officials from various Omani entities, including the Public Establishment for Industrial Estates (Madayn), Oman Investment Authority, General Administration of Customs, Ministry of Commerce, Industry and Investment Promotion, Oman Logistics Center at the Ministry of Transport, Communications and Information Technology, and the Oman Chamber of Commerce and Industry.
In 2025, OPAZ launched tenders for constructing the dry port and veterinary quarantine facility (Package 3), as well as the administrative and commercial complex (Package 4) within the Economic Zone at Al Dhahirah.
Established by Royal Decree 87/2025, the Economic Zone at Al Dhahirah covers 388 square kilometers. It was developed to stimulate cross-border trade between Oman and Saudi Arabia, support economic diversification, and create new opportunities for the Omani and GCC economies. Its strategic location, about 20 kilometers from the Rub Al Khali border crossing, positions it as a crucial gateway for regional commerce.
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The deepening economic cooperation between Oman and Saudi Arabia, particularly through the development of the Economic Zone at Al Dhahirah, presents a strategic gateway for enhanced cross-border trade and industrial growth. For businesses in Oman, this opens significant opportunities in logistics, manufacturing, and investment sectors, especially near the key border hub. Smart investors and entrepreneurs should now consider leveraging the incentives and infrastructure advancements in these special economic zones to capitalize on the expanding GCC economic integration.
