Muscat: The Public Establishment for Industrial Estates – Madayn signed on Tuesday an agreement with Al Hashemi and Al Rawas Trading and Contracting Company to implement the infrastructure development project for Raysut Industrial City (Raysut 2) at a total cost of RO 4 million for an area of one million square meters.
The agreement was signed Eng Ahmed bin Hassan al Dheeb, Chairman of Madayn’s board of directors, and Salah Salem bin Mohiyaddin bin Saif, Chief Executive Officer of Al Hashemi and Al Rawas Trading and Contracting Company.
Commenting on the agreement, Al Dheeb said that the agreement of expanding Raysut Industrial City comes as result of the industrial sector’s requirements in Dhofar governorate and the constant demand by the investors to localise more projects in Raysut Industrial City.
“This agreement shall provide new infrastructure services and develop the existing ones. All the industrial cities that fall under the umbrella of Madayn are receiving great demands due to their strategic locations across the Sultanate, which eventually stimulate investment and business development,” Al Dheeb noted.
He added, “As for Raysut Industrial City, it is strategically located close to the Port of Salalah and it offers a lineup of incentives and services to those wishing to localise their businesses and commence their industrial projects. In fact, Madayn undertakes constant efforts to carry out feasibility studies for the expansion of the industrial cities and consequently develop plans based on these studies when suitable lands are available.”
On his part, Eng. Musallam bin Mohammed al Shehri, assistant chief executive officer of Madayn for Operations, stated that Madayn is currently working to implement a number of mega projects to develop infrastructure in all of its industrial cities across the Sultanate. “
Raysut Industrial City’s phase 2 infrastructure development project comes as part of these projects which have economic and social dimensions that directly contribute to a comprehensive and sustainable development,” Al Shehri said, adding: “The investment operations in these expansions have already begun, as the lease ratio has touched nearly 90% of the total areas that have been identified for the project.
This is a clear indication of the high demand by local and foreign investors to expand their businesses especially after the issuance of Madayn’s new investment regulations, which have simplified the procedures and offer a package of incentives to transform the industrial cities in the Sultanate into an attractive investment environment.”
Al Shehri pointed out that through this project and as per the agreement, Madayn will establish an integrated network of roads, pavements, drainage systems, fire extinguishing systems, and irrigation systems over 7.9 km. Additionally, water networks will be provided over a distance of 8.3 km. The project will also include the provision of communication and gas networks, in addition to a wastewater treatment plant with a capacity of 1,000 cubic meters per day. Moreover, the project will take into consideration the implementation of advanced technology in lighting, and latest specifications and technologies for services’ networks and systems within Raysut Industrial City. The project is expected to be completed during the third quarter of 2020.
Under the new investment regulations of Madayn, the managements of the industrial cities in the various governorates of the Sultanate have been granted with the authority to approve investment applications of up to 100,000 sqm. In addition, a period of ten days has been identified to give a response back to the investor, and a period of thirty days from the date of the application’s approval has been set to sign the contracts and complete the investment procedures in the industrial cities pertaining to Madayn.
The investment policy has been modified, beginning from the prior approvals from the competent authorities to the requirements for practicing investment activities. The practice of investment activities in the industrial cities has been linked to a practice license that is renewed annually, and shall be granted and renewed only to investors who meet the requirements. Among these requirements is meeting the Omanisation rates in the job opportunities.
The new regulations also define the rights of investors and their obligations, as well as Madayn’s obligations towards the investors. Moreover, the regulations include specific time limits for granting approvals and licenses. In case the response does not get delivered during the indicated timespan, the investor and developer shall receive this as an approval, noting that the lease period for investors last for 30 years and can be renewed for the same period.
It should be noted that Raysut Industrial City was inaugurated in 1992 with a total area of 1,500,000 sqm and six projects. By the end of the first half of 2018, the total area of the industrial city has touched 3,810,479 sqm with 194 operating projects. A variety of industries are present in Raysut Industrial City including food industry, plastics and packaging, bottling of drinking water, medical products, iron formation, warehouses, and logistical support.