Oman, DP World launch new economic zone to reshape Gulf role in global trade
Al Rawdah SEZ to boost UAE-Oman ties, draw foreign investment as trade wars disrupt supply chains
MUSCAT, Oman (MNTV) — The UAE and Oman have signed a major agreement to develop the Al Rawdah Special Economic Zone in Mahadha, marking a significant step in the Gulf’s ambition to anchor itself at the center of emerging global supply chains amid growing trade tensions.
The deal, signed by Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, and Ahmed bin Hassan, Deputy Chairman of Oman’s Public Authority for Special Economic Zones and Free Zones, was concluded during a high-level visit by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Deputy Prime Minister of the UAE.
The new SEZ will be developed by Mahadha Development Company, a UAE-Omani joint venture in which DP World holds a majority stake.
Phase one will span 14 square kilometers, with plans to expand to 25 square kilometers, reported UAE’s The National.
DP World said the zone will initially focus on sectors such as automotive manufacturing, textiles, steel fabrication, logistics, and trading.
UAE-based firms including Spinneys, Apparel Group, Conares, and Al Bayader have signed letters of intent to invest.
“This is a strategic move that signals GCC economies’ determination to integrate into global supply chains,” said Nicolas Michelon, managing partner at Alagan Partners.
He noted that US President Donald Trump’s escalating tariff policies have pushed companies to rethink sourcing networks, creating demand for new logistics hubs and free trade zones.
The zone will be directly connected to Jebel Ali Port in Dubai and Sohar Port in Oman, offering enhanced access to Gulf, Asian, and African markets. “This connectivity will reduce logistics costs and improve market reach,” said Ahmed bin Hassan.
Nasser Saidi, economist and former Lebanese minister, said the UAE’s expertise in managing free zones will aid Oman in implementing smart logistics systems and modern governance models.
He highlighted the potential for collaboration in technologies such as AI and blockchain in customs.
The UAE and EU recently announced trade talks, while the GCC has opened FTA negotiations with Malaysia and is in discussions with the UK. Analysts say unified GCC infrastructure is crucial to capitalize on shifting trade routes.
“This project reflects the region’s readiness to adapt,” Michelon said. “But the window of opportunity is narrow—coordination across the GCC is essential to seize it.”
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