The decision by the Public Establishment for Industrial Estates (Madayn) to amend its investment regulations now enables its industrial cities to enhance their competitiveness and give further impetus for investors, business owners and SMEs – local and overseas – to localise their businesses, according to Hilal bin Hamad al Hasani, CEO (pictured).
“This decision comes in continuity of Madayn’s role to diversify income sources and support the national economy through providing a set of incentives that contributes to the advancement of the business environment in the Sultanate,” Al Hasani said.
He pointed out that the new incentives open the way for real estate investors and developers to invest in Madayn’s industrial cities and allow them to build, operate, manage, sell and lease industrial and commercial buildings and units. The incentives also include allowing investors to rent buildings and facilities that are built on the leased lands; and the investors may involve new partners in the lease contract with Madayn, provided that the activity of the new partner complements the activity of the current investor. The amendments on the provisions of the investment regulations also include reduction of up to 70 per cent of the fees for licensing the activity in the industrial cities.
The amendments also comprise granting activity licenses for those holding Riyada certificate from the Public Authority for Small and Medium Enterprises Development, as well as reducing the fees for licensing the activity for small businesses that have not obtained Riyada certificate. The amendments also include granting a new development license, development license/sub developer, and development license/operator.
Moreover, Madayn’s board of directors is granted the authority to reduce the fees at a rate not exceeding 50 per cent and a period not exceeding five years for fees of licensing and the services offered by Madayn, and the rents of lands and facilities in the new industrial cities or those industrial cities that require exceptional incentives and advantages.
Cumulative investment in Madayn’s various industrial cities has touched RO 6.69 billion by the end of 2019, marking an increase of RO 123 million compared to the volume of investments at the end of 2018. The industrial cities now employ around 61,000 people while a number of projects in operation reached 2,313 by the end of 2019.