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

> The Special Economic Zone in Al Dhahirah (EZAD) was established by Royal Decree 87/2025 in the Wilayat of Ibri, about 20 km from the Empty Quarter crossing to Saudi Arabia; Phase 1 infrastructure including a dry port is under construction.

URL: https://omanregister.com/free-zones/al-dhahirah-special-economic-zone/
Updated: 2026-10-24
Publisher: Oman Register (omanregister.com) — company registration and residency services in Oman. Contact: +968 7733 3556, info@omanregister.com

## At a glance

- **Authority:** OPAZ (Public Authority for Special Economic Zones and Free Zones)
- **Established:** Royal Decree 87/2025 (8 October 2025)
- **Location:** Wilayat of Ibri, Al Dhahirah Governorate
- **Nearest border:** About 20 km from the Empty Quarter (Rub' al Khali) crossing to Saudi Arabia
- **Area:** 388 km² allocated; first phase about 20 km²
- **Status:** Phase 1 under construction (about 15% complete end-2025)
- **Ownership:** Up to 100% foreign
- **Best for:** Oman–Saudi logistics, mining, food, livestock trade, clean energy

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:

| Date | Milestone |
|---|---|
| April 2023 | OPAZ formed a joint Omani–Saudi executive committee for an "integrated economic zone" in Al Dhahirah, with Saudi ministry and SEZ authority members |
| 8 Oct 2025 | Royal Decree 87/2025 established the Special Economic Zone in the Governorate of Dhahirah (Wilayat of Ibri) |
| End 2025 | Phase 1 construction (main roads, drainage) about 14.9% complete; the main contractor had signed 11 SME subcontracts worth OMR 5.7 million |
| May 2026 | Contracts worth OMR 73.9 million signed for the dry port, veterinary quarantine and an administrative and commercial complex |

## 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](https://omanregister.com/industrial-cities/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](https://omanregister.com/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](https://omanregister.com/mainland-company-registration-oman/) 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](https://omanregister.com/industrial-cities/ibri-industrial-city/) (Madayn) suits smaller local-market factories without SEZ incentives.
- [Al Rawdah Special Economic Zone](https://omanregister.com/free-zones/al-rawdah-special-economic-zone/) is the equivalent new zone on the UAE border, with DP World involved.
- [Sohar Free Zone](https://omanregister.com/free-zones/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](https://omanregister.com/free-zones/duqm-special-economic-zone/) offers far larger established infrastructure for heavy industry.

See our [free zones hub](https://omanregister.com/free-zones/) 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.

## FAQ

**Is the Al Dhahirah Special Economic Zone operational?**

Not yet in full. It was formally established in October 2025. Phase 1 roads and drainage were about 15% complete at the end of 2025, and dry port and administrative complex contracts were signed in May 2026.

**Where exactly is the Al Dhahirah SEZ?**

It is in the Wilayat of Ibri in Al Dhahirah Governorate, about 20 km from the Empty Quarter border crossing with Saudi Arabia. Official sources put it about 100 km from the Ibri Industrial City project.

**What incentives will companies receive?**

Royal Decree 87/2025 applies the Special Economic Zones and Free Zones Law. That means up to 100% foreign ownership, customs exemptions, and a 10-year income tax exemption extendable twice for special activities.

**Who will develop and operate the zone?**

The decree leaves the appointment of the developer and operator to the OPAZ board. Earlier OPAZ plans called for an Omani–Saudi company to manage it, but no operator had been publicly named as of October 2026.

**Can I reserve land in the Al Dhahirah SEZ now?**

You can register interest with OPAZ and discuss projects. Land allocation and licensing will depend on the operator's leasing rules and Phase 1 being completed.

## Sources

- [Royal Decree 87/2025 establishing the Special Economic Zone in Dhahirah (decree.om)](https://decree.om/2025/rd20250087/)
- [OPAZ — Total committed investment in zones reached OMR 22.4 billion (2026)](https://opaz.gov.om/en/media-center/news/2026/total-committed-investment-in-economic-free-and-industrial-zones-reached-omr-22-4-billion)
- [Oman Observer — Pacts inked for RO 73.9mn infrastructure projects at EZAD (May 2026)](https://www.omanobserver.om/ampArticle/1190018)
- [Oman Observer — Panel set up to develop new Integrated Economic Zone in Al Dhahirah (2023)](https://www.omanobserver.om/ampArticle/1135525)
- [Times of Oman — Royal decrees set up economic zones near UAE and KSA borders (Oct 2025)](https://timesofoman.com/article/163700-royal-decrees-set-up-economic-zones-near-uae-and-ksa-borders-to-drive-diversification)
- [KPMG — Oman issues law for special economic zones and free zones (2025)](https://kpmg.com/om/en/home/insights/2025/06/oman-issues-law-for-special-economic-zones-and-free-zones.html)
- [Times of Oman — Executive Regulations issued for SEZ and Free Zones Law (Sept 2026)](https://timesofoman.com/article/177163-executive-regulations-issued-for-special-economic-zones-and-free-zones-law)