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Al Hasani: transforming Oman

Al Hasani: transforming Oman



Madayn industrial cities spur growth in Oman

The nine industrial cities and associated hubs have so far attracted investments totalling $17 billion, with foreign investors contributing around 49 per cent

November 2019

The total cumulative investments in various industrial cities in Oman has touched RO6.57 billion ($17.08 billion) by the end of 2018, according to statement issued by the Public Establishment for Industrial Estates (Madayn).

“The cumulative value of investments in the various industrial cities has touched around RO6.57 billion by the end of 2018, noting an increase of RO230 million compared to 2017,” Hilal bin Hamad Al Hasani, chief executive officer (CEO) of Madayn said.

Madayn is managing and operating nine industrial cities throughout the Sultanate, in addition to the IT Park known as Knowledge Oasis Muscat (KOM) and Al Mazunah Free Zone.

The nine industrial cities and associated hubs have so far attracted investments totalling $17 billion, with foreign investors contributing around 49 per cent of this tally.

During the same period, the number of workforce employed in these various industrial cities also rose to 60,070 with an Omanisation level touching 35 per cent, said the statement.

According to Madayn, the total number of investment projects in various phases of developments across the sultanate in 2018 stood at 2,211. Out of these 2,211 investment projects, more than 1,500 are currently operating, and another 291 projects are under construction.

Besides this, spaces have been allotted for another 401 projects across the country in various industrial cities. The utilisation rate of the total space allotted for industrial cities touched 53 per cent mark last year.

Al Hasani informed that a total of 256 projects in their various phases have been localised in 2018, and around 509,000 sq m of Madayn lands have been leased to the investors. In addition, 5264 job opportunities were provided in Madayn’s different industrial cities with growth rate touching 10 per cent.

‘For the tenth year in a row and despite the economic status and variables at local, regional and global levels, Madayn has witnessed an important growth,” said Al Hasani.

He said that Oman Investment and Development Holding Company (Mubadrah) has recently set up Al Rusayl Industrial City Company, which has already commenced its operations and is also working in the direction to establish a marketing company.

On future projects, Al Hasani said that Mubadrah is also preparing to float a tender of B2 Phase to expand the Al Rusayl Industrial City. The value of this tender is expected to be around RO15 million.

“Mubadrah is undertaking efforts to attract international developers and operators in accordance with best practices for the development of industrial cities. What’s more, the role of Madayn will be linked to regulation and monitoring aspects,” Hasani said.

Additionally, the properties of Shumookh Investment and Services, Shumookh Plastic Products and Industrial Innovation Centre, and the shares of Infoline Company, Majis Industrial Services, and Port of Salalah Development Company have been transferred from Madayn to Mubadrah.

 

AL RUSAYL INDUSTRIAL CITY

Meanwhile, a recent report has indicated that the operation of Oman’s first Industrial City at Al Rusayl in Muscat Governorate will be placed in private hands under a Public Private Partnership (PPP) arrangement within two years, according to the head of the Public Establishment for Industrial Estates (Madayn).

According to a report in Oman Observer, Al Hasani said the initiative is part of a broader effort by the government-owned operator of the nations network of industrial cities, among other assets, to attract private investment and engagement in this key sector.

“We are working on the transformation to a PPP model with Rusayl Industrial City being the first industrial park that will be transformed into a company, said the CEO. Although presently owned and operated by Madayn, sometime soon within the next two years we will float 49 per cent of the equity for private sector investment,” he said in the report.

Al Hasani made the announcement at the Oman Economic, Industrial & Free Zone Summit 2019 (OEFZS), which was held at the Oman Convention and Exhibition Centre, last month. The two-day event has been organised by Ihraa Oman, with the support of Free Zone Watch.

Al Rusayl Industrial City, the oldest of Madayns manufacturing hubs, is now fully leased out, having grown from an area of around 3 million sq m at inception to over 10 million sq m presently. Its growth has been fuelled by its location within the capital city, its proximity to Muscat International Airport, as well as the sizable population clusters in its close vicinity, said Al Hasani. To help attract strong private partners, Madayn is offering attractive incentives, including concessions ranging from 10 99 years, he said.

Outlining developments that will buoy Madayns strong growth, currently averaging 6 per cent per annum, Al Hasani is preparing two new Industrial Cities for execution by the private sector.

“We have floated two new industrial estates to be developed by the private sector in Thamrait (Dhofar Governorate) and Shinas (North Al Batinah Governorate). The respective feasibility studies have been completed, while the specific types of investments for either industrial park have been identified as well,” he said in the report.




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