Al Dhahirah Special Economic Zone (Ibri): Status, Incentives & Setup

The Special Economic Zone in Al Dhahirah, often shortened to EZAD, is a new OPAZ zone in the Wilayat of Ibri, about 20 km from the Empty Quarter border crossing with Saudi Arabia. Royal Decree 87/2025 established it in October 2025. Phase 1 infrastructure, including a dry port and veterinary quarantine facility, is under construction in 2026. It is a zone for early movers who are planning Oman–Saudi trade, logistics, mining or food projects, not yet a place to open a ready-made office.

What is the Al Dhahirah Special Economic Zone?

The zone grew out of Omani–Saudi plans to build trade along the road through the Empty Quarter, the first direct land link between the two countries. Key milestones:

Where is it, and how big is it?

• Governorate: Al Dhahirah, in the Wilayat of Ibri
• Border: about 20 km from the Empty Quarter (Rub' al Khali) crossing into Saudi Arabia
• Nearby industry: about 100 km from the Ibri Industrial City project. See Ibri Industrial City.
• Land: OPAZ has allocated 388 km² of investment land. The first phase covers about 20 km², which matches the 20 million m² cited when the decree was issued.
• Dry port: planned at 4 km² in total, with a 1 km² first phase

Who manages the zone?

OPAZ is the regulator. Under the decree, the OPAZ board appoints the entity that will manage, operate and develop the zone. Earlier plans foresaw a joint Omani–Saudi company. As of October 2026, no operator has been publicly named. Before you commit capital, confirm who will sign your land agreement.

Which sectors is it aimed at?

OPAZ has named these target sectors:

• Logistics and cross-border trade: dry port, customs, container yards, trucking
• Mining and minerals, drawing on Al Dhahirah's resources
• Food industries and livestock trade, supported by the veterinary quarantine facility
• Clean and renewable energy
• Manufacturing and oilfield services

The administrative and commercial complex now being built (about 37,300 m² built-up in the current phase) will include a business centre, a hotel, a health centre and staff accommodation.

What incentives apply?

Royal Decree 87/2025 applies the Special Economic Zones and Free Zones Law (Royal Decree 38/2025). Its Executive Regulations were issued in September 2026 as OPAZ Resolution 81/2026.

• Ownership: up to 100% foreign ownership
• Income tax: 10-year exemption from the start of operations, extendable twice for activities of a special nature. Banks, insurance, telecoms, contracting and transport are excluded.
• Customs: no duty on goods used to build and operate projects or on exports. A zone customs directorate is planned.
• Capital: minimum capital can be waived, subject to approval
• Services: a digital one-stop shop and an on-site immigration branch, as the law provides for each SEZ

Omanisation rates, land rents and zone fees for EZAD have not been published. Large multinational groups are also subject to Oman's 15% domestic minimum top-up tax.

How will company setup work?

The zone is not yet fully operational, so the steps are expected to follow the standard OPAZ zone process:

1. Register interest with OPAZ and submit a project profile covering activity, land need, investment, jobs and utilities.
2. Get land allocated under a usufruct or lease agreement with the appointed operator.
3. Register the company on the Oman Business Platform, usually as an LLC or SPC. See company types.
4. Get the environmental permit. Mining and heavy industry will usually need an ESIA.
5. Get the zone licence, build, connect utilities, and then hire staff and obtain visas.
6. Apply for the tax exemption once you are operating.

If you need to trade before the zone is ready, a mainland company or a plot in a nearby industrial city can serve as an interim base.

Which documents will you need?

Expect the usual zone list: shareholder passports, attested parent-company documents (registration certificate, articles and board resolution) for corporate investors, a feasibility study or project profile, technical drawings, environmental documents, and a power of attorney.

Costs: what to budget

There are no official fees or land rates for EZAD yet. Plan for these items:

• Company registration and OCCI fees
• Zone licence and administrative fees (to be set by the operator)
• Land usufruct rent and service charges
• Construction, utility connections and environmental studies
• Visas, staffing and Omani hiring
• Transport between the zone and ports. Sohar is the nearest major seaport, several hours away by road.

Pros and limitations

Pros

• Gateway to the Saudi market by land, close to the only direct border crossing
• A large land bank
• Backed by both governments
• Dry port and veterinary quarantine geared to trade

Limitations

• Early stage: most infrastructure was still under construction in 2026, and no operator is named
• No published tariffs
• A remote location with a small local labour pool
• Long trucking distances to seaports

How does it compare with nearby alternatives?

• Ibri Industrial City (Madayn) suits smaller local-market factories without SEZ incentives.
• Al Rawdah Special Economic Zone is the equivalent new zone on the UAE border, with DP World involved.
• Sohar Free Zone is already operating, has a seaport and a published track record, and is better if you need to start now.
• Duqm SEZ offers far larger established infrastructure for heavy industry.

See our free zones hub for all options.

How Oman Register helps

Oman Register follows EZAD's rollout and can register your interest with OPAZ. If you need to operate now, we can set up an interim mainland or industrial-city company. Once the operator opens allocations, we handle registration, licences and visas.