Public Establishment for Industrial Estates – Madayn
The Sultanate of Oman’s industrial march began with the establishment of Al Rusayl Industrial Estate Authority in 1983 by Royal Decree no. 51/83. The success story of the authority inspired the establishment of the Public Establishment for Industrial Estates – Madayn in 1993 by Royal Decree no. 4/93 to ensure continued development of the industrial sector and other related sectors.
Madayn manages a line-up of industrial cities and adopts a set of competitive strategies to attract both domestic and foreign investments. Today, Madayn is responsible for developing and managing seven prime industrial cities namely Sur, Suhar, Raysut, Nizwa, Al Buraimi, Al Rusayl, Samail, in addition to the Knowledge Oasis Muscat (KOM) and Al Mazunah Free Zone. Development of existing and new industrial cities is underway in a number of governorates in Oman.
By the end of 2018, the total investment volume in the various industrial cities pertaining to Madayn has touched 6,565 million Omani Rial. Moreover, the workforce in these cities arose to 60,070, of which 21,023 are national cadres. The number of investing projects during the same period has touched 2,211, which comprise 1,290 manufacturing projects, 286 logistics and service projects, and 635 commercial projects. It should be noted that the total area of the industrial cities has reached 104 million sqm during the same period with utilisation rate of up to 53%.
Madayn has begun to adopt a programme to strengthen Public-Private Partnership (PPP) in 2018 to support the private sector to become the leading sector and the main focus of the future plans of Madayn. The PPP programme aims at increasing Madayn’s contribution to the sustainable economic and social development in the Sultanate and achieving the aspirations of the manufacturing sector being one of the major and promising sectors for the economic diversification.
Madayn has also made efforts to restructure its legal system and re-engineer all its operations with the aspiration of enhancing competitiveness and attracting foreign and national investments. The issuance of the Royal Decree no. 32/2015 came to reflect the new role attached to Madayn as it would be linked to regulating and monitoring, and the role of developing will be through an active partnership with the private sector.
Recognised as the first body to offer such a long-time notion, developers are now granted with usufruct contract for up to 99 years. Besides, under the new investment regulations, the managements of the industrial cities in the various governorates have been granted with the authority to approve investment applications of up to 100,000 square metres of industrial lands. New regulations of investment have also been issued, in which environmental related aspects have been taken into consideration.
Enhance Oman’s position as a leading regional centre of manufacturing, ICT, innovation and entrepreneurship excellence.
Attract industrial investments and provide continued support, through regionally and globally competitive strategies, good infrastructure, value adding services, and easy governmental processes.
- Attract foreign investments to the Sultanate and localise the national capital;
- Stimulate the private sector to achieve sustainable economic and social development;
- Achieve environmental sustainability;
- Contribute to creating new job opportunities for the national cadres.
Our Advantages and Incentives
- Lease period of lands and facilities for up to 30 years, renewable for the same period;
- Right to sell constructions and buildings on the leased land;
- Right to lease the buildings and facilities built on the leased lands by investors;
- Right to involve new partners in the lease contract;
- Fair evaluation of buildings and facilities upon the termination of the lease contract;
- Rental value of OMR 1 annually per square metre for the first five years for industrial uses;
- Madayn industrial cities are outside the scope of the implementation of municipal law and regulations;
- Exemption from tax on net profit for a period of five years for industrial projects;
- Exemption from customs duties and taxes on production inputs;
- Income tax at a fixed rate of 15% per annum and fixed customs duties of 5%;
- Developed and equipped lands with basic services (water, electricity, telecom, roads);
- 65% foreign workers allowed;
- Transparent legal frameworks illustrating rights and obligations;
- Commitment to specific time periods to respond to service delivery;
- 24/7 operation possible in Madayn areas;
- 100% of foreign ownership allowed within Al Mazunah Free Zone and Knowledge Oasis Muscat (KOM – an ICT Park); 70% of foreign ownership in other industrial cities; 100% of Gulf ownership in all the industrial cities; value-added projects can receive 100% foreign ownership;
- Co-operation from government bodies through Masar Investment Window Project;
- No exceptional restrictions on import, export and sale activities;
- Freedom of banking transactions and remittances;
- Economic Agreements and Trade Blocs: Member of the Gulf Cooperation Council (GCC), member of the GCC Customs Union, Free Trade Agreement with the USA, member of the Greater Arab Free Trade Area (GAFTA), and bilateral international agreements with other countries worldwide;
- Export Markets: Omani products can be exported without any restrictions to the following markets: GCC common market, US market, and the Greater Arab Free Trade Area (GAFTA).
With the aspiration of offering an ideal environment for the local and foreign investors, Madayn offers a variety of value-adding initiatives for the investors. These include:
Oman Investment & Development Holding Company (Mubadrah)
With the objective of developing and improving the operational processes, competitiveness, infrastructure and facilities of the various industrial cities, Madayn established Mubadrah in 2017 to take over the construction, operation and management processes of the existing industrial cities. This will result in raising productivity, enhancing income, developing the industrial cities, and offering comprehensive services for the investors operating in these cities.
Industrial Innovation Centre (IIC)
Industrial Innovation Centre (IIC), which was established in Rusayl Industrial City in 2010 as a government body parented by The Research Council and Madayn, has been transformed into a company owned by Madayn. IIC aims at developing and assisting industrial progression through Research and Development (R&D). The centre plays a pivotal role in assisting SMEs in the area of innovation and research, and providing technical consultations and effective solutions for the development of existing industrial products.
Made in Oman Campaign
The campaign is designed to encourage consumers and organisations to buy Oman made goods and services, promote national pride in the manufacturing industry and highlight the economic importance of choosing and buying locally manufactured products and services. In line with this campaign, Madayn supports the Omani companies and factories to participate in local, regional and international exhibitions with the aim of broadening the markets of their high quality products.
National Business Centre (NBC)
NBC is an initiative launched by Madayn at the Knowledge Oasis Muscat (KOM) to offer promising Omani entrepreneurs a platform to develop their business ideas and advance them into growing ventures. The centre offers a premier platform for Omani entrepreneurs by providing business development support and guidance, training and mentoring, access to markets and industry experts, and state-of-the-art and fully equipped office space, meeting rooms and presentation facilities.
Shumookh Investment and Services SAOC
Shumookh Investment and Services is the investment arm of Madayn that endeavours to develop infrastructure projects and encourage investment in the industrial cities under Madayn. The vision of Shumookh is to develop globally competitive industrial infrastructure in Madayn’s industrial cities and create the best environment for the growth of industries in Oman through attracting strategic partnerships into infrastructure development projects.
Communication and Investor Service Centre
A well-equipped Communication and Investor Services Centre was initiated by Madayn to support potential and existing investors for setting up and managing their ventures through easy processes and strong CRM systems. The centre aims to achieve highest level of customer satisfaction by addressing the obstacles the investors may face through constant co-operation with other related government entities.