The Sultanate’s Blessed Renaissance Day this year coincides with the recent issuance of Royal Decrees promulgating a number of important laws on Foreign Capital Investment, Privatisation, Public-Private Partnership and Bankruptcy, all of which shall contribute to enhancing the competitiveness of the investment environment and encouraging investors to support the national economy, according to Hilal bin Hamad al Hasani, CEO Public Establishment for Industrial Estates (Madayn).
For the tenth year in a row and despite the economic status and variables at local, regional and global levels, Madayn has witnessed continued growth. Al Hasani informed that the growth rate that was seen in the total investments in Madayn’s various industrial cities increased by 3.63 per cent in 2018 compared to the same period in 2017. The cumulative value of investments in the various industrial cities has touched around RO 6.57 billion by the end of 2018, noting an increase of RO 230 million compared to the end of 2017.
During the same period, the size of the workforce rose to 60,070 workers, with Omanisation 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 the industrial cities has touched 53 per cent.
A total of 256 projects in their various phases have been approved in 2018, and around 509,000 sqm of Madayn leased to the investors. In addition, 5,264 job opportunities were created as a result.
Mubadrah
Al Hasani pointed out that Oman Investment and Development Holding Company (Mubadrah) has established Al Rusayl Industrial City Company and has commenced its operations as of January 1, 2019. Mubadrah has also established companies specialised in asset management and integrated services during the same period. Work is also underway to establish a marketing company.
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.
“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,” Al Hasani said.
Mubadrah, he noted, represents the main pillar of Madayn’s approach to strengthen Public-Private Partnership (PPP) but is not the only one. “The approach aims at attracting international developers to the new industrial cities across the various Sultanate’s governorates, in addition to granting development licenses to the Omani private sector for establishing its economic areas under Madayn. The approach also incorporates the launch of a project that aims at providing all government services to the developers and investors. It is worth mentioning that work is advanced at all levels of this approach.”
Madayn is also working to launch Masar Investment Window in all of its industrial cities in 2019. “Masar will represent a platform for all the services required by the investors. Work is already advanced on this initiative and a tender was floated for the engineering works to implement Masar offices,” he added.
It is worth to mention that the one-stop-station at Al Mazunah Free Zone has officially commenced its operations recently. Business owners and investors can now have access to a set of services related to investment activities which shall be completed within a period of not more than three hours.
Shumookh
Commenting on the major projects of Madayn’s investment arm Shumookh Investment and Services, Al Hasani stated that the company has expanded significantly in recent years and has started to invest in various sectors. Shumookh has established a company specialised in heritage and tourism in cooperation with a group of international partners specialised in the development, maintenance and operation of various world heritage sites and recognised assets in UNESCO. The company is currently putting its final touches on several projects to develop a number of archaeological sites in the Sultanate and Zanzibar through PPP approach.
Shumookh in cooperation with Nafath Logistics Services will develop and operate the access management system to the industrial cities falling under Madayn’s domain. This shall organise, manage and monitor cargo vehicles as well as passenger vehicles coming to the industrial cities through the use of smart gates and trucks, which will consequently save time, speed up the process and enhance security in these cities.
Shumookh has also established a company to manage investment funds in cooperation with major investing companies in the industrial cities and their associated companies. This company aims mainly at investing in SMEs after conducting feasibility studies to determine the current and future directions of these enterprises. This shall allow these SMEs to grow and achieve profits during an investment period ranging from 4-6 years.
Growth Indicators
Madayn’s industrial cities are currently witnessing major projects with economic and social results in various governorates of the Sultanate. These industrial cities are recording growing indicators regarding the volume of investments, number of projects and workforce, and expansion of areas.
“Oman Investment and Development Holding Company (Mubadrah) is currently working on a number of value-adding projects to Al Rusayl Industrial City,” Al Hasani said, adding “These projects include the logistics project valued at around RO 1,600,000; new gates and entrances project with a value of RO 2.5 million; and the project of developing and incorporating services to expand the industrial city with a total value reaching RO 34 million. 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 RO 15 million.”
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 approximately RO 372,554,229 and the total number of national and expat workers has reached 21,881 during the same period.
The infrastructure project of Samayil Industrial City, which is valued at RO 40 million, has been completed, Al Hasani noted. The road works have been implemented on a length of 46.290 km in two phases. The implemented infrastructure services include those related to rainwater, drainage, water, electricity, and telephone networks, a sewage plant with a capacity of 3,600 m3 for phase one, and two water tanks each with a capacity of 2,500 m3.
The official inauguration of Samayil Industrial City will take place in 2019. Furthermore, the volume of investments in Samayil Industrial City has touched RO 155,646,735 and the localised projects has reached 166 (existing, under construction, and those allotted with space) by the end of 2018.
As for Raysut Industrial City, Al Hasani commented that the expansion project (Raysut 2) has officially began. This project includes construction of roads, sidewalks, pedestrian paths, water networks, sewage networks and station in addition to fire extinguishing systems, street lighting, irrigation and landscaping works. By the end of 2018, the total volume of investments in Raysut has touched RO 422,368,159, and the number of projects has amounted to 202 projects (existing, under construction, and those allotted with space). The number of workforce has reached around 3,358, and the total area has touched 3,810,479 sqm.
Al Hasani stated that the total cost of infrastructure development project in Sur Industrial City is RO 10 million. The project, which covers 2.4 million sqm, comprises design and construction of industrial, commercial, residential and educational infrastructure facilities, in addition to executing studies on environmental impacts and security requirements of the industrial city.
Port development
“We are receiving many requests from investors and business owners who are willing to localise their projects to find a commercial port that meets their needs, especially that Sur Industrial City is strategically located on the Indian Ocean, and the nearest port to this city is Sohar Port which is more than 450 km away,” he said.
By the end of 2018, the total volume of investments in Sur Industrial City has touched RO 2,031,805,543. The number of projects has amounted to 134 projects (existing, under construction, and those allotted with space). Besides, the number of workers has reached around 4074, and the total area has touched 36,100,000 sqm.
The CEO of Madayn explained that there are currently several projects carried out by Madayn in Nizwa Industrial City. These include the supplementary works for phases 2 and 3, sewage plant, and consulting services for assessment and maintenance of the gas network. By the end of 2018, the volume of investments in Nizwa Industrial City has rose to RO 479,945,066, and the total area has touched 3,111,295 sqm. The number of projects has amounted to 141 projects (existing, under construction, and those allotted with space), and the number of workforce has reached 5,450.
As for Al Buraimi Industrial City, the Board of Directors of Madayn has agreed to grant this industrial city additional investment incentives and advantages in order to encourage investors and business owners to develop their projects and benefit from the industrial city’s features such as its strategic location close to several airports and international ports inside and outside the Sultanate. These additional incentives and advantages include the reduction of the annual rent of industrial, commercial, service and residential activities in addition to the fees of practising these activities. These incentives and advantages aim at meeting the challenges that face investors and business owners at the current and future stages.
Al Hasani pointed out that the volume of investments in Al Buraimi Industrial City has touched RO 219,614,674 and the total area has reached 5,561,156 sqm by the end of 2018. The number of projects has amounted to 461 projects (existing, under construction and those allotted with space), and the number of workforce has reached 1,860.
Al Hasani emphasised that Al Mazunah Free Zone has witnessed a qualitative leap in the past period in terms of the provided services and incentives, as well as the growth seen in the indicators.
“The volume of imported goods to the free zone has touched nearly 150,000 tons by the end of the first half of 2019, noting an increase of nearly 100 per cent compared to the same period last year. Besides, work is under way in the development of phase 2 of the free zone as the completion rate has reached 40 per cent,” he said.
He added that by the end of 2018, the total investment volume in Al Mazunah Free Zone has touched RO 106,346,453, and total area has reached 15,362,305 sqm. The number of projects rose to 236 projects (existing, under construction, and those allotted with space), and the number of workforce has reached 620.
For the tenth year in a row and despite the economic status and variables at local, regional and global levels, Madayn has witnessed continued growth. Al Hasani informed that the growth rate that was seen in the total investments in Madayn’s various industrial cities increased by 3.63 per cent in 2018 compared to the same period in 2017. The cumulative value of investments in the various industrial cities has touched around RO 6.57 billion by the end of 2018, noting an increase of RO 230 million compared to the end of 2017.
During the same period, the size of the workforce rose to 60,070 workers, with Omanisation 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 the industrial cities has touched 53 per cent.
A total of 256 projects in their various phases have been approved in 2018, and around 509,000 sqm of Madayn leased to the investors. In addition, 5,264 job opportunities were created as a result.
Mubadrah
Al Hasani pointed out that Oman Investment and Development Holding Company (Mubadrah) has established Al Rusayl Industrial City Company and has commenced its operations as of January 1, 2019. Mubadrah has also established companies specialised in asset management and integrated services during the same period. Work is also underway to establish a marketing company.
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.
“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,” Al Hasani said.
Mubadrah, he noted, represents the main pillar of Madayn’s approach to strengthen Public-Private Partnership (PPP) but is not the only one. “The approach aims at attracting international developers to the new industrial cities across the various Sultanate’s governorates, in addition to granting development licenses to the Omani private sector for establishing its economic areas under Madayn. The approach also incorporates the launch of a project that aims at providing all government services to the developers and investors. It is worth mentioning that work is advanced at all levels of this approach.”
Madayn is also working to launch Masar Investment Window in all of its industrial cities in 2019. “Masar will represent a platform for all the services required by the investors. Work is already advanced on this initiative and a tender was floated for the engineering works to implement Masar offices,” he added.
It is worth to mention that the one-stop-station at Al Mazunah Free Zone has officially commenced its operations recently. Business owners and investors can now have access to a set of services related to investment activities which shall be completed within a period of not more than three hours.
Shumookh
Commenting on the major projects of Madayn’s investment arm Shumookh Investment and Services, Al Hasani stated that the company has expanded significantly in recent years and has started to invest in various sectors. Shumookh has established a company specialised in heritage and tourism in cooperation with a group of international partners specialised in the development, maintenance and operation of various world heritage sites and recognised assets in UNESCO. The company is currently putting its final touches on several projects to develop a number of archaeological sites in the Sultanate and Zanzibar through PPP approach.
Shumookh in cooperation with Nafath Logistics Services will develop and operate the access management system to the industrial cities falling under Madayn’s domain. This shall organise, manage and monitor cargo vehicles as well as passenger vehicles coming to the industrial cities through the use of smart gates and trucks, which will consequently save time, speed up the process and enhance security in these cities.
Shumookh has also established a company to manage investment funds in cooperation with major investing companies in the industrial cities and their associated companies. This company aims mainly at investing in SMEs after conducting feasibility studies to determine the current and future directions of these enterprises. This shall allow these SMEs to grow and achieve profits during an investment period ranging from 4-6 years.
Growth Indicators
Madayn’s industrial cities are currently witnessing major projects with economic and social results in various governorates of the Sultanate. These industrial cities are recording growing indicators regarding the volume of investments, number of projects and workforce, and expansion of areas.
“Oman Investment and Development Holding Company (Mubadrah) is currently working on a number of value-adding projects to Al Rusayl Industrial City,” Al Hasani said, adding “These projects include the logistics project valued at around RO 1,600,000; new gates and entrances project with a value of RO 2.5 million; and the project of developing and incorporating services to expand the industrial city with a total value reaching RO 34 million. 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 RO 15 million.”
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 approximately RO 372,554,229 and the total number of national and expat workers has reached 21,881 during the same period.
The infrastructure project of Samayil Industrial City, which is valued at RO 40 million, has been completed, Al Hasani noted. The road works have been implemented on a length of 46.290 km in two phases. The implemented infrastructure services include those related to rainwater, drainage, water, electricity, and telephone networks, a sewage plant with a capacity of 3,600 m3 for phase one, and two water tanks each with a capacity of 2,500 m3.
The official inauguration of Samayil Industrial City will take place in 2019. Furthermore, the volume of investments in Samayil Industrial City has touched RO 155,646,735 and the localised projects has reached 166 (existing, under construction, and those allotted with space) by the end of 2018.
As for Raysut Industrial City, Al Hasani commented that the expansion project (Raysut 2) has officially began. This project includes construction of roads, sidewalks, pedestrian paths, water networks, sewage networks and station in addition to fire extinguishing systems, street lighting, irrigation and landscaping works. By the end of 2018, the total volume of investments in Raysut has touched RO 422,368,159, and the number of projects has amounted to 202 projects (existing, under construction, and those allotted with space). The number of workforce has reached around 3,358, and the total area has touched 3,810,479 sqm.
Al Hasani stated that the total cost of infrastructure development project in Sur Industrial City is RO 10 million. The project, which covers 2.4 million sqm, comprises design and construction of industrial, commercial, residential and educational infrastructure facilities, in addition to executing studies on environmental impacts and security requirements of the industrial city.
Port development
“We are receiving many requests from investors and business owners who are willing to localise their projects to find a commercial port that meets their needs, especially that Sur Industrial City is strategically located on the Indian Ocean, and the nearest port to this city is Sohar Port which is more than 450 km away,” he said.
By the end of 2018, the total volume of investments in Sur Industrial City has touched RO 2,031,805,543. The number of projects has amounted to 134 projects (existing, under construction, and those allotted with space). Besides, the number of workers has reached around 4074, and the total area has touched 36,100,000 sqm.
The CEO of Madayn explained that there are currently several projects carried out by Madayn in Nizwa Industrial City. These include the supplementary works for phases 2 and 3, sewage plant, and consulting services for assessment and maintenance of the gas network. By the end of 2018, the volume of investments in Nizwa Industrial City has rose to RO 479,945,066, and the total area has touched 3,111,295 sqm. The number of projects has amounted to 141 projects (existing, under construction, and those allotted with space), and the number of workforce has reached 5,450.
As for Al Buraimi Industrial City, the Board of Directors of Madayn has agreed to grant this industrial city additional investment incentives and advantages in order to encourage investors and business owners to develop their projects and benefit from the industrial city’s features such as its strategic location close to several airports and international ports inside and outside the Sultanate. These additional incentives and advantages include the reduction of the annual rent of industrial, commercial, service and residential activities in addition to the fees of practising these activities. These incentives and advantages aim at meeting the challenges that face investors and business owners at the current and future stages.
Al Hasani pointed out that the volume of investments in Al Buraimi Industrial City has touched RO 219,614,674 and the total area has reached 5,561,156 sqm by the end of 2018. The number of projects has amounted to 461 projects (existing, under construction and those allotted with space), and the number of workforce has reached 1,860.
Al Hasani emphasised that Al Mazunah Free Zone has witnessed a qualitative leap in the past period in terms of the provided services and incentives, as well as the growth seen in the indicators.
“The volume of imported goods to the free zone has touched nearly 150,000 tons by the end of the first half of 2019, noting an increase of nearly 100 per cent compared to the same period last year. Besides, work is under way in the development of phase 2 of the free zone as the completion rate has reached 40 per cent,” he said.
He added that by the end of 2018, the total investment volume in Al Mazunah Free Zone has touched RO 106,346,453, and total area has reached 15,362,305 sqm. The number of projects rose to 236 projects (existing, under construction, and those allotted with space), and the number of workforce has reached 620.
Source Link: www.omanobserver.om
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