A Guide on Industrial Estates in Oman

by Zaara 12, Sep 2022

industrial estates in oman

In 1983, the government of Oman initiated its first Industrial Estate to achieve long-term development objectives, creating a business-friendly environment, providing employment opportunities for the citizens, and exploiting the raw materials.

The PEIE (also known as Madayn) offers various facilities, including land and building for industrial development, restaurant and banking facilities, hotel accommodation for guests and staff, telecommunication, and retail stores.

Facilities and Incentives Provided by the Oman Industrial Estates

The industrial estates in Oman are operated by the Public Establishment for Industrial Estates (PEIE). The benefits are as follows

  • The lease period is 30 years on land, and the facilities are renewable for the same period.
  • You will have the lease right for the remaining period of the contract
  • Precisely involve new partners in the lease contract
  • A fair evaluation of buildings and facilities upon the termination of the lease contract
  • The rental value of OMR 1 annually per square meter for the first five years for industrial uses​
  • Exemption from tax on net profit for five years on all projects
  • Exempted from taxes and customs duties on inputs regarding production
  • Income tax is to be paid at 15% per annum and fixed customs duties at 5%
  • Developed and equipped lands with essential services (water, electricity, telecom, roads)
  • The percentage of foreign workforce touches up to 65%
  • Transparent legal frameworks illustrate the obligations and rights
  • Freedom to work around the clock
  • Foreign ownership of 100% in all industrial cities.

The Different Fields for Industries in Oman

For company registration in Oman, the different industrial estates in the Sultanate are as follows:

1. Sohar Industrial Estate

This was established in November 1992 and is ideally located midway between Muscat and Dubai. Also called Oman's garden city, Sohar Industrial Estate offers tenants easy access to domestic and international markets.

The production on the estate includes marble, foodstuffs, detergents, leather, furniture, toothpaste, beverages, ice cream, resins, glass, steel bars, and engine oil.

2. Rusayl Industrial Estate

Situated 45 km from Muscat, it was established in 1983. It provides its tenants with the factory and office space, electricity, water, gas, sewage treatment, road network, banks, clinics, etc.

Rusayl is also home to the Customs Department and Royal Oman Police offices.

3. Sur

This Industrial Estate is situated in the Al Sharqi region, 300 km from Muscat. The estate was established in 1999, and its principal tenants include Oman LNG, the National Gas Company, and Oman India Fertilizer Company (OIFC).

Sur in natural gas and its associated industries and services, given the nature and international stature of the estate's key tenants.

4. Raysut

It was established in 1992 and is in the southern region of Dhofar. This industrial estate is located near Port Salalah. The government has begun to supply the area with subsidized gas.

It is home to manufacturers, such as box files, fish processing, frozen chickens, steel fabrication, medical supplies, solar heaters, flour, fertilizer, and vegetable oil.

5. Buraimi

Established in 1998, Buraimi Industrial Estate is in the Al-Dhahira government in the western part of the Sultanate and is on the border with the United Arab Emirates.

It offers various opportunities to tenants to exploit domestic or/and emerging B-2-C and B-2-B markets, mainly in the Gulf region and Central Asia.

6. Nizwa

It was inaugurated in 1994 and is located 180 km away from Muscat. This industrial estate plays a vital role in accelerating development in Oman.

It is home to manufacturers producing ceramics, plastics, plywood, tea packaging, mineral water, water tanks, ferrous casting, oil services, and foodstuffs.

7. Sumail

Sumail Industrial Estate is in Al Dakhiliyah governorate, about 45 km from Muscat International Airport. It was established in 2010, and the management is making significant efforts to accelerate the implementation of the infrastructure projects from this Industrial Estate.

8. Knowledge Oasis Muscat (KOM)

Inaugurated in 2003, KOM is Oman's flagship technology park. It is committed to creating an environment where budding entrepreneurs, small and medium-sized enterprises, and established multinationals can coexist, innovate, and flourish within a Middle East setting.

9. Al-Mazunah

This Industrial Estate commenced its operations in 1999 and is in Oman's southern region of Dhofar near the Yemen border. Al-Mazunah offers excellent opportunities to trade goods through Oman and Yemen and locates warehouse facilities.

In addition, Yemeni employees can work in the zone without a visa, and workers can cross the estate without the usual border procedures.

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FAQs

The PEIE was established by which law?

The Royal Decree No. 4/1993.

Mention the Oman industrial free trade zones among the above industrial estates.

Al-Mazunah and Sohar.

What are the benefits for Yemeni employees in Oman?

The Yemeni employees can work in the zone without a visa, and workers can cross the estate without the usual border procedures.

When was the Knowledge Oasis Muscat industrial estate inaugurated?

2003.

What are the opportunities in the Buraimi Industrial Estate?

It offers various opportunities to tenants to exploit domestic or/and emerging B-2-C and B-2-B markets, mainly in the Gulf region and Central Asia.

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