Saudi Fund for Development (SFD) has signed a memorandum of understanding (MoU) with the Oman’s Finance Ministry to provide funding of 1.2 billion Saudi riyals ($319.81 million) to develop the first phase of infrastructure at Al Dhahirah Special Economic Zone in Oman.

The MoU was on the side lines of the Saudi-Omani Investment Forum, held in Riyadh from February 1 to 4, state news agency SPA reported.

The MoU will support the establishment of an economic zone in Al Dhahirah Governorate, which contributes to promoting sustainable economic growth, said SFD CEO Sultan Al-Murshid.

Furthermore, the agreement will encourage partnerships among sectors to reduce the cost of production and export between the two nations, he stated.

Phase 1 also includes provision of engineering advisory services in terms of design and supervision.

SFD has been working for nearly 45 years to fund and support development projects in Oman.