Saudi Arabia lends $40m to build industrial city in Oman

The Saudi Fund for Development (SDF) has signed a preliminary agreement to provide $40 million towards building an industrial city in Oman.

Thumrait Industrial City will be established in the southwestern Dhofar Governorate, covering around 4 million square metres and equipped with infrastructure to support industry and logistics, state-run Saudi Press Agency reported. 

The infrastructure will include administrative and service buildings, public facilities, road networks, electricity and water systems, two wastewater treatment plants and engineering consultancy services.

In January 2023 the fund provided financing for a SAR1.2 billion ($320 million) infrastructure project at the special economic zone in Ad Dhahirah, Oman.  

The SFD has been supporting and financing various projects in Oman, including infrastructure, higher education, vocational training, water and energy.  

In August 2025 the two countries signed a joint investment agreement to increase bilateral trade and help diversify their economies. 

Trade between Oman and Saudi Arabia reached OMR2.2 billion ($5.7 billion) in 2024, up 7 percent from a year earlier, official Omani data shows.

Work started in November on the $2 billion Al-Rawdah Special Economic Zone project in Oman, which officials said will increase foreign trade and reduce logistics costs between the sultanate and the UAE.

The project is being developed by Oman’s Public Authority for Special Economic Zones and Free Zones and the UAE’s DP World. 

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