Development of new SEZs, industrial zones makes headway across Oman

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As many as eight clusters, earmarked by the Omani government for development into Special Economic Zones, Free Zones and Industrial Cities, are currently in various stages of design and early development around the Sultanate of Oman, according to the Public Authority for Special Economic Zones and Free Zones (OPAZ).

Strategically distributed around the country, these clusters represent a key part of the government’s drive to spur investments in manufacturing, industrial and economic activities in line with a broader thrust to diversify the national economy.

According to details shared by OPAZ, the biggest of these clusters – the Integrated Economic Zone in Al Dhahirah Governorate (EZAD) – is making significant headway in its early development at a site located not far from the Omani-Saudi border crossing in the Wilayat of Ibri.

Overseeing the master-planning and development of the landmark project is aN Omani-Saudi executive committee. Phase 1, covering a mere 20 km2 site of the massive zone, will include a land port set on a 6.5 km2 area operated and managed by Asyad Group. A tender for the design and construction supervision of Phase 1 garnered a total of nine joint bids from Omani and Saudi firms. In March, OPAZ said it had selected one of the bidders for the design consultancy contract.

In the Governorate of Al Buraimi, OPAZ has announced the completion of a detailed plan for Phase 1 of the Al Rawdah Economic Zone. Participating from the UAE side in the project is Mahdha Development Company, the investment arm of Dubai International Ports. Following the signing of an initial framework agreement with a strategic partner last November, Mahdha Development Company has been granted the right to use and develop an area of 11 km2 in addition to an area of 3 km2 for future expansion, according to OPAZ.

Adding to OPAZ’s portfolio of investment clusters are Airport Free Zone developments planned at Muscat International Airport, as well as Sohar and Salalah Airports. OPAZ says it has signed a concession agreement with Asyad Group, the end-to-end logistics services provider of Oman, granting it the right to manage and operate the free zone at Muscat Airport.

“The operator will develop plans for operation and development of the free zone, and regulations and controls for the land use and planning. It will also comply with OPAZ regulations, decisions, rules and laws, and provide all services and facilities at the zone,” said OPAZ.

In addition to these economic zones and free zones, at least five industrial cities are being prepped for development at different locations around Oman. Topping the list is Mahas Industrial City, a 21.5 million m2 cluster in Musandam Governorate. Basic infrastructure, including roads, drainage, lighting and water supply networks, are being implemented.

In Muscat Governorate, the modest-sized Al Wadi Al Kabir Industrial City is the subject of a significant upgrade. As part of this exercise, OPAZ subsidiary – the Public Establishment for Industrial Estates (Madayn) – is overseeing the implementation of several studies to support the cluster’s rehabilitation and further development.

Finally, preliminary design and consultancy services are currently underway in support of industrial cities planned at Thamrait (Dhofar Governorate), Al Mudhaibi (North Al Sharqiyah Governorate) and Seeh Sarya (Al Dakhiliya Governorate).