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Omani-Saudi Committee to Develop Dhahirah Economic Zone

Saudi Arabia and Oman are implementing joint strategic projects for economic development (Asharq Al-Awsat)
Saudi Arabia and Oman are implementing joint strategic projects for economic development (Asharq Al-Awsat)
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Omani-Saudi Committee to Develop Dhahirah Economic Zone

Saudi Arabia and Oman are implementing joint strategic projects for economic development (Asharq Al-Awsat)
Saudi Arabia and Oman are implementing joint strategic projects for economic development (Asharq Al-Awsat)

The Public Authority for Special Economic Zones and Free Zones in the Sultanate of Oman (OPAZ) issued a decision to form an executive committee that would include representatives from Oman and Saudi Arabia to supervise a project to develop an integrated economic zone in Al-Dhahirah governorate.

Chaired by Ahmed bin Hassan al Deeb, Deputy Chairman of OPAZ, the committee will also include several officials of OPAZ and Saudi Arabia’s Ministry of Investment, Economic Cities and Special Economic Zones Authority and the Saudi Development Fund.

The committee will be in charge of supervising the implementation of a memorandum of understanding signed between OPAZ and the Saudi Economic Cities and Special Economic Zones Authority in the field of economic development for special economic zones and free zones.

It will also put forward a plan for the development, execution and management of the zone, including programs and initiatives, and monitor their implementation.

Moreover, the committee will seek to promote the exchange of experiences and practices in the management and operation of economic zones and will organize informative workshops for traders and investors in both countries.

General Manager of Planning and IT Sector at OPAZ Mahmoud bin Hamoud al-Rawahi said that the Omani authority has completed the consultancy studies pertaining to the Integrated Economic Zone project in Dhahirah, which has been allocated 388 square kilometers of investment land.

He added that OPAZ has also submitted the relevant documents, which support providing the funding required for developing the project’s first phase, covering an area of 20 square kilometers.

According to Al-Rawahi, the first phase of the project includes the establishment of infrastructure, roads, electrical installations, water and sewage networks, industrial waste treatment, and necessary facilities, in addition to providing engineering consultancy services, including design and supervision.

“Operating the integrated economic zone will offer various investment opportunities, in addition to its important role in developing Al-Dhahirah governorate, and raising and supporting the level of intra-trade between the two brotherly countries,” he stated.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.