LOC19:20
16:20 GMT
MUSCAT, May 26 (KUNA) -- The Omani Public Authority for Special Economic Zones and Free Zones (OPAZ) and Mahdah Development Company, an Omani-Emirati partnership, signed on Monday an agreement to develop and operate the first phase of Al-Rawdah Special Economic Zone in Mahdah in Al-Buraimi Governorate.
According to the Omani News Agency (ONA), the deal states that the developer is responsible for establishing essential public utilities and infrastructure, including road networks, water supply systems, sewage networks, and other critical services. Additionally, the developer will prepare the Zone's master plan, environmental studies, and initial zoning concepts covering industrial, logistical, commercial, and service sectors.
The first phase of Al-Rawdah Economic Zone will target key sectors such as manufacturing, logistics and warehousing, pharmaceutical and medical industries, plastic industries, mining industries, food processing, and security and safety services. This diversified approach is expected to attract high-value investors and ensure long-term business sustainability, it noted.
It represents a forward-looking investment initiative designed to leverage the region's geographic advantages, stimulate supply chain development, and facilitate re-export activities between Oman, the UAE, and broader international markets. In addition to its trade and industrial focus, the Zone aims to enhance regional lifestyle offerings, expand tourism-related economic activities, and support business diversification across Mahdah and Al-Buraimi.
The project is expected to create employment opportunities and support the growth of small and medium enterprises.
The Special Economic Zone offers a range of investment incentives, exemptions, and operational benefits. Businesses operating within the Zone will receive an income tax exemption for 10 years, which can be extended for two additional periods. Additionally, customs duty exemptions will apply to imports, exports, and storage of goods.
Investors will benefit from a simplified licensing and permitting process through the one-stop shop and enjoy unrestricted profit repatriation abroad, it pointed out.
Mahdah Development Company will initially develop 14 square kilometers in the first phase, with the potential to expand to 25 square kilometers in the second phase based on a detailed development plan submitted by the developer, it added.
The agreement spans 50 years and ensures that the Zone benefits from its direct trade access to both Sohar Port in Oman and Jebel Ali Port in the UAE, reinforcing its role as a central trade hub in the region, it continued.
The signing ceremony was attended by Omani Minister of Culture, Sports, and Youth Sayyid Theyazin bin Haitham Al-Said, and Crown Prince of Dubai, Deputy Prime Minister, Minister of Defense, and Chairman of the Executive Council of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum. (end)
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