By: Zawya

The Public Authority for Special Economic Zones and Free Zones (OPAZ) signed on Sunday a total of seven agreements and memoranda of understanding (MoUs) for the Economic Zone at Al Dhahirah (EZAD), marking the beginning of operational activities in the zone.

The agreements and MoUs were signed on behalf of OPAZ by H.E. Dr Ali bin Masoud Al Sunaidy, Chairman of OPAZ.

Among the key agreements was the contract for the construction of main roads and the surface water drainage system (Package 1), valued at RO 22.3 million, with a 24-month implementation period. The contract was awarded to an Omani-Saudi consortium. Signing on behalf of the consortium were: Btouar Adli (Circa), Dr Amin Al Shanqiti (Pladco), and Othman Gonk (Gonk).

OPAZ also signed an MoU with Sohar International Bank for strategic cooperation in the zone. The agreement aims to provide innovative financial solutions for capital structuring of existing and future projects in the zone. It includes preferential offers for businesses interested in investing, as well as granting the bank access to OPAZ’s investor platform to facilitate registration and enhance the investor experience. The MoU was signed by Khalil Salim Al Hedaifi, Chief Government and Private Banking Officer at Sohar International.

Two Service Level Agreements were also signed with engineering consultancies: Al Watanyiah United Engineering (Oman) and Dar Al Riyadh (Saudi Arabia). The agreements aim to accredit both firms to prepare architectural, structural, and infrastructure designs for investor projects in the zone, provide technical advice and feasibility studies, and assist with approvals. The agreements were signed by Fahad bin Ali Al Mahrouqi, Deputy Executive Director of Al Watanyiah Engineering, and Ayman Adnan Yahya, Deputy CEO of Dar Al Riyadh.

Additionally, MoUs expressing interest in investing in the Economic Zone at Al Dhahirah were signed with Sohar International Bank, Poly Products Co. Ltd., and Naseem Ibra Company.

Integrated industrial and logistics hub

Eng. Yahya bin Khamis Al Zadjali, planning advisor to the Chairman of OPAZ, affirmed that OPAZ is working to establish the Economic Zone at Al Dhahirah as an integrated industrial hub with robust logistics services. The zone aims to become a vital link connecting markets across the GCC and to promote intra-regional trade between the Sultanate of Oman and the Kingdom of Saudi Arabia.

He explained that OPAZ, in cooperation with the Economic Cities and Special Zones Authority (ECZA), has completed the master plan for the zone. The first development phase covers 20 square kilometers of the total allocated area of 388 square kilometers, with an initial urgent development zone of 7.5 square kilometers currently under implementation.

Main roads and drainage works agreement

As part of the first development package, the agreement includes the construction of dual and single-carriageway roads stretching approximately 17 kilometres, installation of solar-powered street lighting, construction of stormwater drainage channels, and protective infrastructure. It also involves the diversion of the existing wadi through the construction of a 6.3-kilometer-long, 250-metre-wide channel to safeguard the area from flood risks. This includes excavation and leveling works, construction of box culverts along the national road (N10), and partial reconstruction of the road.

The project will also include multiple roundabouts, road safety elements such as road markings and signage, and the protection of utility networks by approved plans and permits.

The agreement stipulates that at least RO 1.23 million worth of work must be subcontracted to small and medium enterprises (SMEs). It also mandates an Omanisation rate of no less than 30 percent, including in key positions, to ensure the development of skilled Omani expertise across the project’s components.