finance & economy

Nasser Al-Mabsali: Ibri Industrial City — Promising investment opportunities spread out in 10 million sqm

November 28, 2022

Muscat: Since July 2020, the Public Establishment for Industrial Estates (Madayn) has started the construction of Ibri Industrial City in the Wilayat of Ibri in Al Dhahirah Governorate, in a total area of ten million square metres. The establishment of this city came within the framework of the plans of the Sultanate’s government - implemented in this regard by Madayn - which aims to distribute economic development to the various governorates of the Sultanate. Two years after its establishment, Ibri Industrial City has gone a long way of development. In an interview with Madayn magazine, Nasser bin Hamoud Al-Mabsali, Director General of Ibri Industrial City, tells us about what the City has achieved.

Initially, Al-Mabsali said that the completion rate in the implementation of the project of establishing Ibri Industrial City amounted to about 50% in the infrastructure project for the first phase. The project aims to develop about 3 million square metres and is proceeding according to the implementation plan set by Madayn.“This project is to prepare the infrastructure, including road works and service network works such as sewage and rain networks, and protection works from wadis water. The sustainable alternative energy has been used in 303 lighting poles. Road works, water and sewage networks are currently being completed” he explained.

Al-Mabsali said that the total area of the Industrial City - which is located on the road leading to the border crossing between the Sultanate of Oman and Saudi Arabia is 10 million square metres. “The development of the first phase has begun in an area estimated at 3 million square metres distributed over several industrial, commercial and logistical sectors. The number of localised projects reached 23 projects in an area of 250,000 square metres. The volume of investment for localized projects amounted to about OMR9,095,000. As for the types of sectors in the Industrial City, the Industrial City has been planned on (warehouses sector, building materials, oil and gas services, foodstuff, multiple industries sector - light and medium industries),” he added.

Incentives and privileges in the City

When asked about the incentives and privileges that Madayn granted to investors to enhance investment opportunities in Ibri Industrial City, the City’s Director General said: Ibri Industrial City was granted a package of incentives in order to attract a larger number of investors to start new investments. The incentives are as follows:

An exemption from the rental value for a period of two years for all new projects.

This would be followed by a reduction in the rental value for the next 3 years by 50% for contracts concluded during the period from 2021-2024.

Reducing all fees by 50% for all new projects during the period 2021-2024.

There are also incentives and advantages enjoyed by the investors in Madayn, which make Madayn a stimulating environment for investment. Such incentives and advantages are:

Lease contract for a period of thirty years, renewable for a small fee.

Exemption of production inputs from taxes and customs duties.

Income tax exemption for five years for industrial projects.

The right to mortgage or sell the buildings and constructions erected on the leased land.

The right to enter partners in the lease contract.

A fair evaluation of the buildings, constructions and equipment erected upon the expiry of the lease contract.

Investment areas outside the scope of application of municipal law and regulations.

Steps to obtaining localisation in the Ibri Industrial City

We asked Al-Mabsali: What are the steps for obtaining localization in Ibri Industrial City?

He replied: The investor can visit the Madayn website and apply online, or visit a branch of Masar centres and apply for localization easily. The application will be dealt with in record time by Masar Center.

Submission of an investment application:

Required Documents:

Application letter

Commercial registration papers (added to it the activity number).

Certificate of affiliation with the Chamber of Commerce and Industry.

An initial plan showing how to use the land.

Providing a brief overview of the project.

Addition:

1. The application for localisation of the project shall be submitted through Madayn website www.madyn.om

2. The application shall be reviewed by the competent department in the region to ensure its completeness. If there are deficiencies, the investor would be notified of the deficiencies.

3. After the application is completed, it is transferred to the Investment Committee by the competent department.

4. The investment committee in the region will study the application and issue its recommendations or decisions.

5. The investor will be informed of the committee’s decision.

When asked how did the establishment of Ibri City affected the people of Al Dhahirah Governorate and what is the size of the job opportunities it can provide,he said: “Ibri Industrial City is located directly on the road linking Ibri Industrial City and the Empty Quarter land port. Ibri Industrial City is 20 km away from the center of the Wilayat of Ibri and 130 km away from the Empty Quarter land port. There is a great demand for the logistics sector and warehouses in order to serve the trade exchange between the Sultanate and the Kingdom of Saudi Arabia. Certainly, the projects that will be established will benefit both countries and will provide job opportunities for Omani youth.”

timesofoman

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