The operation of Omans first Industrial City at 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).
Hilal bin Hamad al Hasani, Chief Executive Officer, 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.
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 on Monday. The two-day event has been organised by Ihraa Oman, with the support of Free Zone Watch.
Rusayl Industrial City, the oldest of Madayns manufacturing hubs, is now fully leased out, having grown from an area of around 3 million sq metres at inception to over 10 million sq metres 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.
Additionally, Madayn is working with Petroleum Development Oman (PDO) the largest energy producer in the Sultanate towards the establishment of an industrial park dedicated to oilfield related manufacturing and services. The proposed facility will be located close to the oilfield heartland of the Sultanate, he said.
Also in the works is a One-Stop-Shop that will ensure the speedy processing of applications from investors, said the CEO. The facility, which will be electronically integrated with government regulatory agencies, will be fully operational by the second quarter of 2020.
Integrated with the One-Stop-Shop dubbed Masar is a Soft Landing service exclusively catering to prospective international investors. This is designed for the benefit of those who would like to explore investment opportunities in our industrial parks, said Al Hasani.
Samayil Industrial City one of Madayns newest investments is now almost 70 per cent leased out. Covering an area of 8 million sq metres, the facility caters to medium size industries. Infrastructure will be substantially in place before the end of this year ahead of the parks formal inauguration on Industry Day next February, he added.
Madayns 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.
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