Oman has awarded infrastructure contracts worth more than RO73 million for the Special Economic Zone at Dhahirah, accelerating plans to turn the border area near Saudi Arabia into a logistics, customs and commercial hub.The agreements cover the third and fourth packages of the zone’s development, including a dry port, veterinary quarantine facilities, an administrative and commercial complex, internal roads, utilities and supporting infrastructure. The total value is equivalent to about $189.6 million, marking one of the largest construction steps yet for the project.
The third package, valued at RO48.058 million, focuses on the dry port and veterinary quarantine facilities. It will be implemented by a consortium comprising EDECS International Contracting Company, EDECS-KSA, EDECS Egypt and Assarain International Contracting Company. The package includes the first phase of the dry port over one square kilometre, part of a planned four-square-kilometre logistics facility.
Works under this package include container yards, customs gates, inspection platforms, customs clearance areas, electrical substations, maintenance workshops, laboratories, water tanks, firefighting systems, X-ray and scanning equipment, administrative offices, rest areas, employee accommodation, a mosque, fencing and surveillance systems. The veterinary quarantine component is intended to support regulated movement of livestock and animal products through the border corridor.
The fourth package, worth RO25.9 million, has been awarded to a consortium comprising Oman Shapoorji and Saudi-based Shapoorji Pallonji. It covers an administrative and commercial complex that will include a public square, business centre, administration building, commercial centre, hotel, health centre, internal roads and related facilities. The built-up area under this phase is estimated at 37,300 square metres.
The agreements were signed in Ibri by Qais Mohammed Al Yousef, chairman of the Public Authority for Special Economic Zones and Free Zones, and representatives of the companies involved. The project is being positioned as a key element in Oman’s drive to deepen economic links with Saudi Arabia, improve cross-border logistics and attract private investment into non-oil sectors.
Dhahirah’s location gives the zone strategic weight. The development lies around 20 kilometres from the Rub Al Khali border crossing, a route designed to provide a direct commercial link between Oman and Saudi Arabia. The wider economic zone covers about 388 square kilometres, while the first phase of infrastructure development spans roughly 20 square kilometres.
Al Yousef said the zone would help strengthen economic integration between Oman and Saudi Arabia, while supporting supply chain efficiency and lowering logistics costs for investors. Officials have presented the dry port as the core driver of the zone because it can reduce dependence on longer transit routes and provide faster customs and cargo handling for goods moving between the two countries.
The project also fits into Oman’s wider diversification agenda, which has placed special economic zones, free zones and industrial cities at the centre of efforts to attract manufacturing, logistics, minerals, food processing and services investment. The Public Authority for Special Economic Zones and Free Zones oversees major investment locations including Duqm, Salalah Free Zone, Sohar Free Zone and Al Mazunah Free Zone.
Design features for the Dhahirah zone include smart-city elements and sustainability standards. Officials have said the administrative and commercial complex will be built to meet environmental efficiency requirements, while logistics infrastructure will be integrated with border operations, customs processing and investor services.
The timing of the contracts reflects growing competition across the Gulf to capture regional trade flows as governments invest in ports, industrial zones, rail connectivity and customs modernisation. Oman’s advantage lies in its ports on the Arabian Sea, its proximity to Gulf markets and its ability to provide alternative routes for cargo moving between Saudi Arabia, South Asia and East Africa.
The dry port is expected to be operated by Asyad Group, the logistics arm linked to Oman Investment Authority. Its role will be central to the zone’s capacity to manage cargo flows, provide logistics services and support companies seeking warehousing, distribution and re-export operations.
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Oman