DUBAI (Reuters) — Dubai’s DP World has signed a preliminary agreement with the Nara Namib Free Economic Industrial Zone to develop a dedicated business park in the Namibian port town of Walvis Bay.

The park will be a free economic zone for industry and logistics and initially cover an area of 50 hectares, according to a statement on Dubai’s government media office website on Tuesday.

The park could eventually be spread across 1,500 hectares, it said.

A free economic zone is often a dedicated area that has different laws or rules, such as fewer or no taxes, designed to attract investment.

DP World and Nara Namib aim to reach a final agreement in the second quarter of 2020, the statement said.