Al Rawdah SEZ: UAE and Oman Forge a 50-Year Partnership to Redefine Gulf Trade
By Shayne Heffernan
When nations unite to build shared infrastructure, they don’t just create projects—they craft enduring legacies that shape the future. The UAE and Oman have done just that with the launch of the Al Rawdah Special Economic Zone (SEZ) in Al Buraimi, a landmark 50-year agreement that promises to transform regional logistics, manufacturing, and economic collaboration for decades to come.
Signed under the watchful eyes of HH Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum and H.H. Sayyid Theyazin bin Haitham Al Said, the Al Rawdah SEZ is more than a development—it’s a bold statement of Gulf unity, visionary leadership, and a commitment to shared prosperity.
Strategic Location: Al Buraimi’s Geographical Advantage
Al Buraimi, located in northwestern Oman, sits at a critical crossroads of the Arabian Peninsula, sharing its border with the UAE’s city of Al Ain. This strategic positioning makes it a natural gateway for trade and logistics between the two nations. Al Buraimi lies approximately 370 km from Muscat, Oman’s capital, and 120 km from Abu Dhabi, with direct access to major transport corridors linking the UAE’s Jebel Ali Port and Oman’s Sohar Port. Nestled in a region framed by the Hajar Mountains to the east and vast desert plains to the west, Al Buraimi’s proximity to key urban centers and ports enhances its role as a logistics hub. The SEZ, spanning 14 km² in its first phase and scalable to 25 km² in phase two, is being developed by the Mahadha Development Company, led by global logistics giant DP World, with a focus on ESG-compliant infrastructure.
Sectors Set to Thrive
Al Rawdah is poised to become a powerhouse for high-growth industries, including:
- Advanced manufacturing
- Food processing and agritech
- Plastics and petrochemicals
- Mining and minerals logistics
- Pharmaceuticals and medical supplies
- AI-driven security and warehousing solutions
This diverse portfolio ensures the SEZ will attract a wide range of global investors and operators, positioning it as a critical node in the Gulf’s economic ecosystem.
A Magnet for Global Investment
What makes Al Rawdah irresistible to businesses? The incentives are compelling:
- A 10-year corporate tax exemption, with potential extensions
- 100% foreign ownership
- Customs duty exemptions for imports, exports, and stored goods
- Streamlined single-window licensing and fast-track permitting
- Green infrastructure designed to meet global sustainability standards
These advantages make Al Rawdah a low-risk, high-reward destination for investors seeking long-term growth in a region known for stability and innovation.
Strategic Wins for Both Nations
For the UAE, Al Rawdah strengthens logistics sovereignty, enhances export infrastructure, and aligns with Dubai’s ambitious D33 Economic Agenda. Direct access to Omani ports via Al Buraimi boosts trade flexibility, while deepening the UAE’s trusted partnership with Oman.
For Oman, the SEZ is a cornerstone of Vision 2040, driving economic diversification, attracting foreign direct investment (FDI), and creating jobs in Al Buraimi. By leveraging its strategic location, Oman positions Al Buraimi as a high-impact logistics gateway, boosting national revenues and elevating its global trade profile.
The Numbers Tell the Story
The UAE and Oman are already economic powerhouses together:
- Non-oil trade hit AED 56.2 billion (USD 15.3 billion) in 2024, a record high
- Year-on-year trade growth of 9.8%
- The UAE is Oman’s top trading partner
- Oman’s SEZs have attracted over USD 45 billion in investments, with Al Rawdah poised to set new benchmarks
A Legacy of Unity and Ambition
In the Gulf, progress isn’t built on competition—it’s forged through collaboration. The Al Rawdah SEZ exemplifies how the UAE and Oman are co-creating a future defined by shared goals, visionary leadership, and unshakable trust rooted in their shared heritage. This isn’t just diplomacy; it’s a legacy in motion, amplified by Al Buraimi’s unique geographical position as a bridge between two economic powerhouses.
As a proud observer of this region’s relentless ambition, I see Al Rawdah as more than a zone—it’s a symbol of what the Gulf stands for: unity as a habit, not a headline. It’s a blueprint for the next generation of Arab innovation and economic leadership.
A Call to Investors and Visionaries
To global investors, operators, and policymakers: Al Rawdah, anchored in Al Buraimi’s strategic geography, is a zone to watch. It’s a gateway to opportunity, a hub for innovation, and a testament to the Gulf’s unmatched ability to turn vision into reality.
This is the Gulf. This is who we are. And this is just the beginning.
Shayne Heffernan is a global markets analyst and commentator with a focus on emerging economies and strategic investments.
