
EZAD: Anchoring investments for a diversified future
Situated in the Al Dhahirah Governorate, just 20 kilometers from the Rub Al Khali border crossing with Saudi Arabia, EZAD strategically positions Oman as a gateway to the $1.6 trillion GCC market. This proximity enables seamless overland trade, substantially reducing transportation costs and delivery times for businesses accessing the Saudi market and beyond.
The newly established direct Oman-Saudi road has already driven a remarkable 350% increase in bilateral trade between 2022 and 2024, reaching nearly RO 2.18 billion. This momentum underscores the immense potential EZAD holds in enhancing trade flows and industrial collaboration across borders.
The Public Authority for Special Economic Zones and Free Zones (OPAZ) plays a pivotal role in steering the development of EZAD. The zone encompasses a total area of 388 km², with OPAZ currently focused on Phase 1A, which spans 7.5 km² as part of the initial urgent development stage. This phase includes essential facilities such as the dry port and a dedicated veterinary quarantine centre. Through a robust regulatory framework and a streamlined 'one-stop shop' service, OPAZ ensures a highly investor-friendly environment. Investors benefit from a suite of competitive incentives including 100% foreign ownership, tax holidays of up to 30 years, duty exemptions on equipment and raw materials, and full repatriation of profits.
These advantages firmly position EZAD as a leading investment destination within the Middle East. Aligned with Oman's economic diversification objectives, EZAD is purposefully designed to cultivate sectors beyond hydrocarbons. Key industries targeted include clean and renewable energy, high-precision manufacturing, logistics, and advanced manufacturing that demand sophisticated infrastructure and specialised facilities.
EZAD is poised to emerge as a regional logistics hub, featuring a 4 km² dry port managed by Asyad Group on behalf of the Omani government. The first phase of the dry port development covers 1 km² and will include customs facilities, bonded warehouses, and container handling infrastructure. Smart city innovations, such as solar-powered lighting and intelligent traffic management systems, underline the zone's commitment to sustainability and operational efficiency.
To support this expansive vision, RO 122 million has been secured for comprehensive infrastructure development, encompassing roads, drainage systems, and connectivity enhancements. Specifically, RO 22.3 million has been allocated for Phase 1, ensuring the foundational infrastructure is in place to catalyse growth and investor confidence.
The zone's commitment to empowering local businesses is clear. Contracts stipulate significant subcontracting opportunities for Omani SMEs, with over RO 10 million earmarked for local enterprises. This strategy not only fosters job creation and skill development but also embeds SMEs into regional supply chains, contributing to Oman's broader economic objectives.
EZAD exemplifies Oman-Saudi collaboration. A joint executive committee oversees the zone's development, fostering mutual investments, regulatory alignment, and business facilitation. Discussions on establishing a joint Saudi-Omani operating company further solidify this bilateral partnership, reducing investor risks and enhancing regional cooperation.
While the zone's primary focus is regional, it actively seeks investments from Asia—particularly China and India—as well as Europe. Oman's stable investment climate, strategic logistics positioning, and connectivity to Gulf and African markets present compelling advantages for international investors. The zone is an ideal base for distribution centres, cold storage facilities, and third-party logistics operations.
Diverse investment opportunities await both local and international players. Agro-processing units can leverage Al Dhahirah's agricultural potential, while the veterinary quarantine centre opens pathways in livestock trade. Mining and mineral processing offer prospects to capitalise on Oman's rich natural resources. Financial institutions like Sohar International Bank stand ready to support these ventures through joint ventures and PPP models.
To maximise EZAD's potential, strategic enhancements are essential. Improving customs protocols with Saudi Arabia, adopting single-window systems, and integrating digital documentation will streamline cross-border trade.
Utility infrastructure, including reliable energy, water, and telecommunications, must be fortified to support industrial activity. OPAZ has also tendered projects for an administrative and commercial complex featuring a hotel, clinic, administration building, business centre and mall.
Promotion of EZAD should leverage its unique Oman-Saudi identity. Establishing an annual Al Dhahirah Economic Forum could serve as a dynamic platform to showcase investment opportunities. Additionally, academic and vocational training partnerships will be pivotal in cultivating a skilled workforce tailored to the zone's specialised industries. Facilitating technology transfers and fostering innovation clusters will further elevate EZAD's global competitiveness.
In conclusion, the Al Dhahirah Economic Zone stands as a strategic nexus for Oman's economic diversification, regional integration, and global engagement. Its strategic location, investor-friendly policies, comprehensive infrastructure, and deep-rooted Oman-Saudi collaboration make it a beacon of sustainable growth and investment. As Oman advances toward its Vision 2040 goals, EZAD is poised to play a transformative role in shaping a resilient, diversified, and globally competitive economy. Its success will not only benefit Oman but also serve as a testament to the power of visionary leadership, collaborative governance, and shared prosperity.
Dr Yousuf Hamed al Balushi
The writer is founder and CEO - Smart Investment Gateway, economists, board adviser & business transformation mentor.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Times of Oman
13 hours ago
- Times of Oman
Tender floated for Nizwa-Bahla dual carriageway project
Muscat: The Ministry of Transport, Communications and Information Technology clarified that the Nizwa-Bahla Dual Carriageway Project, for which the Projects, Tenders and Local Content Authority has announced a tender, involves doubling the existing road from the Daris Roundabout in the Wilayat of Nizwa to the Jabrin area in the Wilayat of Bahla, within Al Dakhiliyah Governorate, with a total length of 40 kilometres. The ministry noted that the project includes the installation of two traffic signals near Bahla Souq (market), 10 roundabouts at various locations along the route, and several pedestrian and vehicle tunnels in commercial and high-traffic areas. It emphasised that the design ensures functionality in all weather conditions. The ministry stated that the project is expected to enhance traffic flow, strengthen social connectivity, reduce traffic accidents, and boost commercial, economic and tourism activity.


Muscat Daily
13 hours ago
- Muscat Daily
Oman's non-oil exports increase 7% to RO2.7bn
By GULAM ALI KHAN Muscat – Buoyed by strong demand for Omani products in the UAE, Saudi Arabia and India, the sultanate's non-oil exports recorded a robust increase of over 7% during the first five months of 2025. According to data released by the National Centre for Statistics and Information (NCSI), Oman's total non-oil exports rose by 7.2% to RO2.701bn between January and May 2025, compared to RO2.521bn during the same period in 2024. The growth was largely driven by rising demand from key regional and global markets. Exports to the United Arab Emirates surged by nearly 23%, reaching RO485mn in the January–May period of 2025, up from RO395mn during the corresponding period last year. Shipments to Saudi Arabia climbed by 34.9% to RO451mn, compared to RO335mn a year earlier. India also emerged as a strong market for Omani products, with non-oil exports increasing by 38.9% to RO280mn in the first five months of 2025, from RO202mn in the same period of 2024. The NCSI data indicated that the recovery in non-oil exports is broad-based across nearly all of Oman's major trading partners – with the notable exception of the United States. This performance highlights the continued success of Omani exporters in expanding their reach and meeting overseas demand. However, exports to the United States fell by 17.5% to RO159mn in the first five months of this year, down from RO193mn during the same period last year. Non-oil exports to other countries also recorded modest growth of 1.5%, amounting to RO1.125bn between January and May 2025, compared to RO1.108bn in 2024. In terms of product categories, Oman's mineral product exports stood at RO716mn in the first five months of 2025, slightly lower than RO721mn during the same period last year. Exports of chemical products, however, rose by 9.2% to RO339mn, up from RO311mn. With enhanced production capacity in Oman's downstream industries, exports of plastics, rubber and related items remained relatively stable at RO394mn, compared to RO399mn in the corresponding period of 2024. Base metals and related articles contributed RO568mn in export value during the five-month period, reflecting a 1.4% increase from RO560mn last year. Meanwhile, exports of live animals and animal products rose by 9.9% to RO164mn. In contrast, Oman's re-export activity declined by 10.3% in the first five months of 2025, falling to RO623mn from RO695mn during the same period in 2024. This drop was primarily attributed to lower transshipments of transport equipment and mineral products.


Times of Oman
14 hours ago
- Times of Oman
CBO announces auction results of 75th GDB Issue
Muscat: The Central Bank of Oman on Tuesday announced the Auction results of the 75th Government Development Bonds (GDB) issue worth OMR72.70 million. According to a media release issued by CBO's Market Operations Department, the 75th GDB Issue, which received overwhelming response from investors, has received applications amounted to OMR150,779,300. The average yield was 4.28 percent at an equivalent price of OMR100.055, while the highest yield was 4.30 percent at an equivalent price of OMR100.000 and the lowest was at 4.10 percent at an equivalent price of OMR100.560. The three-year Bond will be issued on Thursday (24 July 2025) and it will mature on 24 July 2028, carrying a coupon rate of 4.30% per annum.