Al Rusayl Industrial City is the first industrial city to be managed and operated according to the private sector’s regulations in the Sultanate

The history of the industrial cities in Oman goes back to 1983 when Al Rusayl Industrial Estate Authority was established by Royal Decree no. 51/83. A decade later, the Public Establishment for Industrial Estates – Madayn was established by Royal Decree no. 4/93, aimed at enhancing Oman’s position as a leading regional centre of manufacturing, ICT, innovation and entrepreneurship excellence.

Today, Madayn manages and operates seven industrial cities in Sohar, Raysut, Nizwa, Sur, Al Buraimi, Al Rusayl, Samail, in addition to the Knowledge Oasis Muscat and Al Mazunah Free Zone. Over the last two decades, the industrial cities in Oman have gone a long way towards creating a vibrant, sustainable business environment, attracting foreign investments to Oman, localising the national capital, increasing the market share of locally manufactured products and generating job opportunities for the local workforce.

Al Rusayl Industrial City is currently home to various industries including chemicals, batteries, electrical and building materials, fibre optic cables, foodstuff, textiles, garments, stationery, paints, among others.

The total area of Al Rusayl Industrial City has come close to 11 million sqm by the end of 2018 and is home to 309 projects. The total volume of investments in this industrial city has touched RO372mn and the number of national and foreign workforce has reached 21,881 during the same period.

Partnership with private sector

By the end of 2018, Madayn signed an agreement with Oman Investment and Development Holding Company (Mubadrah) for the latter to manage and develop Al Rusayl Industrial City starting from January 1, 2019. By this agreement, Al Rusayl Industrial City is the first industrial city to be managed and operated according to the private sector’s regulations in the Sultanate, which comes in line with Madayn’s board of directors’ decision to adopt the programme of strengthening partnership with the private sector (PPP).

Signing the agreement with Mubadrah to be the main developer of Al Rusayl Industrial City represents the first step to gradually transform the rest of Madayn’s industrial cities. The privatisation of the industrial cities’ management and operation embodies a significant step that would effectively contribute to boosting economic efficiency and ensuring the contribution of Madayn’s industrial cities to achieve a comprehensive and sustainable economic and social development. Over the coming years, the role of Madayn will be linked to planning, regulating, monitoring and following-up, while the role of Mubadrah will be developing, managing and operating as a main developer in the existing industrial cities, as well as attracting local and international developers as key operators of the new industrial cities.

Oman Investment and Development Holding Company (Mubadrah) is currently working on a number of value-adding projects at Al Rusayl Industrial City. These projects include the logistics project valued at around RO 1.6mn; new gates and entrances project with a value of RO2.5mn; and the project of developing and incorporating services to expand the industrial city with a total value reaching RO34mn. Furthermore, Mubadrah is also preparing to float a tender of B2 Phase to expand Al Rusayl Industrial City. The value of this tender is expected to touch RO15mn.

In addition to the construction, management and operation of all basic service facilities from sewage, water to electricity, Mubadrah will continue working on the sustainability and safety of the infrastructure and superstructure in Al Rusayl Industrial City and providing any new services that correspond to the market variables. Mubadrah will continue to provide best services to the Omani industrialists and investors in various economic activities to meet their requirements and offer an apt business environment in accordance to international best practices.

It should be noted that the growth rate noted in the total investments in the various industrial cities pertaining to the Public Establishment for Industrial Estates – Madayn has increased by 3.63 per cent in 2018 compared to the same period in 2017. The cumulative value of investments in these industrial cities has touched around RO6.57bn by the end of 2018, an increase of RO230mn compared to the end of 2017. During the same period, the number of workforce rose to 60,070 with an Omanisation rate touching 35 per cent. The number of investing projects in their various construction phases in 2018 has reached 2,211, of which 1519 are operating, 291 are under construction, and 401 projects have been allotted with space. The utilisation rate of the total space of all the industrial cities has touched 53 per cent.

Meanwhile, a total of 256 projects in their various phases have been localised in 2018, and around 509,000 sqm of Madayn lands have been leased to the investors. In addition, 5,264 job opportunities were provided in Madayn’s different industrial cities with a growth rate touching 10 per cent.

In the previous years, Madayn has been adopting training and development programmes dedicated to the factories and companies based in the various industrial cities with the aim of developing their capabilities in different areas.

Madayn Industrial Academy was established with the aspiration of giving a greater significance to the field of training and developing the human cadres. The academy will provide vocational and technical training programmes to develop the Omani cadres and raise their productivity. Madayn has signed an agreement with Petroleum Development Oman (PDO) to provide employment opportunities through training for employment, direct hire, redeployment and on-job training.