Al Rawdah Special Economic Zone (Al Buraimi): Status & Setup Guide

The Special Economic Zone in Al Rawdah is a new OPAZ zone in the Wilayat of Mahdah, Al Buraimi Governorate, directly on the border with the UAE. Royal Decree 88/2025 established it in October 2025. It is being developed by Mahdah Development Company, an Omani–Emirati partnership represented by DP World, starting with a 14 km² first phase. Companies get 100% foreign ownership, customs exemptions and a 10-year income tax holiday. In 2026 the zone is still at the infrastructure stage.

What is the Al Rawdah Special Economic Zone?

Al Rawdah is the first Omani economic zone developed jointly with an Emirati partner. It aims to capture trade between the UAE (Dubai's Jebel Ali in particular) and Oman's Batinah coast and Sohar Port. Key milestones:

Where is it and how big is it?

• Location: Niyabat of Al Rawdah, Wilayat of Mahdah, Al Buraimi Governorate, on the UAE border
• Connectivity: road access towards Sohar Port and Jebel Ali Port
• Phase 1: 14 km² under the usufruct agreement
• Expansion: up to 25 km² in a second phase, subject to a detailed development plan

When the decree was announced, officials quoted an area of 11 million m², while the developer agreement covers 14 km² for Phase 1. Figures differ between releases, so rely on the final master plan and your plot allocation, not headline numbers.

Who manages Al Rawdah SEZ?

• Regulator: OPAZ
• Developer and operator (Phase 1): Mahdah Development Company, an Omani–Emirati partnership. DP World represents the developer, but its exact shareholding has not been published.

DP World's involvement matters to investors. It runs Jebel Ali and many inland logistics parks, which points to a zone designed around logistics and links to UAE ports.

Which sectors is it for?

The Phase 1 plan names:

• Manufacturing
• Logistics and warehousing
• Pharmaceutical and medical products
• Plastics
• Mining
• Food processing
• Security and safety services

At the decree announcement, OPAZ also highlighted clean energy. The zone suits companies that serve both UAE and Omani customers, or that want to make goods in Oman for distribution through UAE logistics networks.

What incentives apply?

The decree applies the Special Economic Zones and Free Zones Law (Royal Decree 38/2025). Its Executive Regulations were issued in September 2026.

• 100% foreign ownership
• Customs: exemption from duties on imports, exports and stored goods within the zone
• Income tax: 10-year exemption from the start of operations, extendable for two more terms for special-nature activities. Banks, insurance, telecoms, contracting and transport are excluded.
• Free repatriation of capital and profits
• One-stop shop for licences and permits, plus an immigration branch inside the zone, as the law provides for SEZs

Omanisation rates, rents and zone fees have not been published. Multinational groups with worldwide revenue of EUR 750 million or more are subject to Oman's 15% domestic minimum top-up tax.

How will setup work?

Licensing is expected to follow the standard zone process once the developer opens allocations:

1. Submit a project profile to the developer and OPAZ: activity, land or warehouse size, investment, jobs and utilities.
2. Sign a sub-usufruct or lease for a plot or ready unit with Mahdah Development Company.
3. Register the company on the Oman Business Platform, usually as an LLC or SPC. See company types.
4. Get the environmental permit for your activity category.
5. Get the zone licence, build or fit out, then hire staff and arrange visas.
6. Apply for the income tax exemption once you are operating.

Many investors run their trading through a UAE entity or an Omani mainland company until the zone is operational.

Which documents are typically required?

• Shareholder and manager passports
• For corporate investors: certificate of incorporation, articles of association and board resolution, notarised and attested by the Omani embassy. UAE companies follow the same attestation route.
• A project profile or feasibility study
• Technical and environmental documents for industrial projects
• A power of attorney for the filing agent

What will it cost?

No official tariff exists yet. Budget for:

• Commercial registration and OCCI fees
• Zone licence and administration fees set by the developer
• Land or warehouse rent and service charges
• Construction, utilities and environmental studies
• Visas, staff costs and Omani hiring
• Cross-border trucking and customs brokerage

Pros and limitations

Pros

• Right on the UAE border
• A developer partner with deep logistics experience
• Long-term usufruct structure
• Road links to Sohar and Jebel Ali
• Full SEZ incentives under the 2025 law

Limitations

• Still under development in 2026, with no published fees
• Area figures differ between official releases
• Flood risk was flagged during master planning, so check plot drainage
• A small local labour market

How does it compare with nearby alternatives?

See all zones on our free zones hub and read about investment opportunities in Oman free zones.

How Oman Register helps

Oman Register follows Al Rawdah's rollout and can introduce your project to the developer and OPAZ. In the meantime we can register an interim mainland or industrial-city company so you can trade now. When the zone opens, we handle the free-zone registration, licences and visas.