UAE and Oman widen investment corridor

UAE and Oman officials have opened a fresh round of economic talks aimed at expanding investment in free zones, industrial cities, logistics, food security and advanced technology, as the two neighbours seek deeper private-sector integration across one of the Gulf’s busiest non-oil trade corridors.

Abdulla bin Touq Al Marri, Minister of Economy and Tourism, met Qais bin Mohammed Al Yousef, Chairman of Oman’s Public Authority for Special Economic Zones and Free Zones, during Al Yousef’s visit to Abu Dhabi. The discussions centred on new commercial opportunities, smoother trade flows, investor facilitation and stronger links between business communities on both sides of the border.

The meeting forms part of a wider Omani engagement in the UAE that also included discussions with Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, and Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority. The agenda placed special emphasis on cooperation between economic zones, free zones and industrial cities, with both sides reviewing ways to connect logistics platforms, industrial clusters and supply-chain services more closely.

Officials examined prospects in manufacturing, logistics, advanced industrial technologies, food security, economic-city development and business-environment reform. The talks also covered knowledge exchange on the management of free zones and special economic zones, including regulatory practices, investor services and mechanisms to attract high-value projects capable of supporting regional supply chains.

Trade data has strengthened the case for closer coordination. The UAE ranked first among Oman’s trading partners in 2025 for non-oil exports, re-exports and merchandise imports. Oman’s non-oil exports to the UAE exceeded RO1.311 billion during the year, a rise of 25.3 per cent. The UAE also accounted for 35.2 per cent of Oman’s re-export activity, valued at RO724 million, while Oman’s merchandise imports from the UAE rose by 5.4 per cent to more than RO4.1 billion.

That pattern reflects the practical complementarity between the two economies. UAE ports, airports, re-export platforms and financial services offer Omani companies access to global markets, while Oman’s ports, industrial estates, free zones and access to the Arabian Sea provide UAE investors with alternative manufacturing and logistics bases. The relationship has become more important as Gulf economies seek to reduce exposure to oil cycles, strengthen domestic production and create higher-value jobs.

Oman’s Public Authority for Special Economic Zones and Free Zones oversees the Special Economic Zone at Duqm, Sohar Free Zone, Salalah Free Zone, Al Mazunah Free Zone, Khazaen Economic City and the Madayn industrial estates. The authority offers incentives including long-term tax exemptions, full foreign ownership, customs advantages and profit repatriation, positioning Oman as a competitive site for industrial and logistics investment.

Oman has also been moving to scale up projects in its economic zones. Investment agreements worth more than RO200 million have been signed for projects covering electric-vehicle batteries, specialised steel, cement, pipe manufacturing, glue production, tile processing and pharmaceutical warehousing. Duqm, Salalah and Khazaen are expected to play central roles in these ventures, which are aligned with Oman Vision 2040 and the country’s push to build manufacturing capacity outside hydrocarbons.

For the UAE, the talks support a broader strategy of expanding non-oil trade and investment partnerships. The country’s non-oil foreign trade surpassed AED3.8 trillion in 2025, helped by wider market access, industrial expansion and a network of economic partnership agreements. Its policy focus has increasingly shifted towards high-value exports, advanced manufacturing, tourism, finance, logistics and technology-led growth.

Private-sector engagement was a central theme of the UAE-Oman discussions. Both sides underlined the need to create direct channels between investors, exporters, importers and zone operators, with the aim of turning official cooperation into joint ventures and operational projects. That approach is particularly relevant for smaller and mid-sized companies seeking cross-border expansion but facing licensing, customs, financing and market-entry challenges.

Food security and supply chains have also gained importance in Gulf economic planning. The UAE has invested heavily in logistics networks, agri-tech, cold-chain systems and import diversification, while Oman’s ports and industrial zones offer scope for storage, processing and redistribution. Joint ventures in these areas could help both countries manage external supply shocks and build more resilient trade routes.