$200m contracts awarded for Saudi-Oman trade zone

Two consortia of Omani and Saudi companies have secured contracts worth OMR74 million ($192 million) to develop infrastructure in an economic zone near the Omani-Saudi border.

Data from the state-owned Public Authority for Special Economic Zones and Free Zones (Opaz) revealed that trade across the Oman-Saudi border reached record levels as companies rerouted goods overland to avoid maritime disruption caused by the Iran conflict.

The value of goods crossing the border almost trebled to OMR320 million in March, compared with OMR112 million in February.

The two development contracts for the economic zone in Al Dhahirah governorate were awarded by Opaz, the state-run Oman News Agency reported.

Package 3, valued at OMR48 million, includes the development of the core infrastructure for the dry port, a veterinary quarantine facility and associated utilities and facilities.

Package 4, worth OMR26 million, includes the development of the administrative and commercial buildings complex and associated facilities.

Opaz chairman Qais Al Yousef said the economic zone near the Empty Quarter border crossing is among the key projects aimed at strengthening economic and trade partnerships between Oman and Saudi Arabia.

Last year, Oman started the construction of a 20 square kilometre free zone in the Al Dhahirah region.

In November work began on the $2 billion Al-Rawdah Special Economic Zone, which officials say will increase foreign trade and reduce logistics costs between Oman and the UAE.

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