The Public Establishment for Industrial Estates (Madayn) has signed an agreement with Oman Investment and Development Holding Company (Mubadrah) for the latter to manage and develop Rusayl Industrial City. The agreement was signed by His Excellency Eng. Ahmed bin Hassan Al Dheeb, Chairman of Madayn’s board of directors, and Hilal bin Hamad Al Hasani, Chairman of Mubadrah’s board of directors.
Through this agreement, Rusayl Industrial City will be the first industrial estate to be managed and operated according to the private sector’s regulations in the Sultanate. This comes in line with Madayn’s board of directors’ decision to adopt the programme of strengthening partnership with the private sector (PPP) emanating from the system (law) of the Public Establishment for Industrial Estates issued by Royal Decree no. 32/2015, as Madayn may contract one or more developers who are eligible and have technical, financial, and administrative efficiency to develop the zone or part thereof under an investment agreement.
First Step
Commenting on this agreement, H.E Al Dheeb stated that signing this agreement with Mubadrah to be the main developer of Rusayl Industrial City is the first step to gradually transform the rest of Madayn’s estates. “This step will be evaluated and based on the results, the rest of the estates will be transformed according to an approved timeline that will last for four years,” Al Dheeb said, adding: “This comes in line with Madayn’s adopted approach to strengthen Public-Private Partnership (PPP), especially in the field of constructing, managing and operating the industrial estates and the economic areas through attracting major developers to all the new industrial estates. The PPP approach also opens the way for the private sector to work under the umbrella of Madayn as owners and developers of the economic areas of a variety of investment activities.”
Al Dheeb added, “Through this agreement, we seek to continue developing the industrial estates of Madayn, as the recent indicators show an increased growth in the volume of investments, number of workforce and the area of leased lands. The privatisation of the estates’ management and operation represents a qualitative leap that effectively contributes to raising economic efficiency through a dynamic method that ensures the contribution of Madayn’s estates to a comprehensive and sustainable economic and social development.
As per the time-plan, the role of Madayn by 2022 will be linked to planning, regulating, monitoring and following-up, while the role of Mubadrah will be developing, managing and operating as a main developer in the existing industrial estates, as well as attracting local and international developers as key operators of the new estates.
Successful Model
On his part, Hilal bin Hamad Al Hasani, Chairman of Mubadrah’s board of directors, pointed out that Rusayl Industrial City has been selected to be the first industrial estate to be managed and operated by Mubadrah for its representation of a successful model for all of Madayn’s estates which are located across the Sultanate. “At the same time, Rusayl Industrial City needs to accelerate the pace of its many operations especially those related to the rehabilitation of infrastructure, public utilities and acceleration of the required services,” Al Hasani said, adding: “In 2019, around RO 50 million will be allocated to implement the expansion phases in Rusayl Industrial City and rehabilitate the existing phases.”
He added that through the signed agreement and as of January 1, 2019, Mubadrah will manage and operate Rusayl Industrial City by leasing the land and its existing buildings and facilities. “Additionally, Mubadrah will promote the city inside and outside the Sultanate as well as set the rules and procedures for developing and operating Rusayl Industrial City following the approval of Madayn’s board of directors. Moreover, the company shall contract with qualified service providers in addition to managing and organising the operations defined by the agreement including the management and operation of the existing buildings in the industrial city,” he added.
In addition to the construction, management and operation of all basic service facilities from sewage, water to electricity, Mubadrah will continue working on the sustainability and safety of the infrastructure and superstructure in Rusayl Industrial City and providing any new services that correspond to the market variables. “With regard to the establishment, management and operation of Rusayl Industrial City and the implementation of infrastructure, superstructure or public utilities, and the development works or part thereof, will be in accordance with the development plan approved by Madayn,” Al Hasani pointed out.
As for the estates where there are general implementation plans, Mubadrah will take care of completing the implementation in coordination with Madayn. The development covers all infrastructure, superstructure and management operations including roads, water, telecom and electricity networks, and rainwater drainage, in addition to the establishment of residential areas and tourist resorts to serve the investing companies. This is in addition to the establishment and implementation of logistics projects, power plants, water desalination plants, drilling of wells, purification plants. The services of these projects shall be exclusively serving the estates pertaining to Madayn and in coordination with the competent authorities.
Keeping abreast of developments
Mustafa bin Maqbool Al Lawati, acting CEO of Mubadrah, emphasised that the establishment of Mubadrah comes as a key outcome of the PPP approach that corresponds to the economic changes and developments that are triggered at local, regional and international levels. “Mubadrah aims at continuing to provide best services to the Omani industrialists and investors in various economic activities to meet their requirements and offer an apt business environment in accordance to international best practices. The company shall offer a suitable working and living environment for the workforce in all Madayn’s estates through designing and launching strategic development and redevelopment projects and ink strategic partnerships with local and international developers,” Al Lawati said.
Al Lawati also added that Mubadrah will invest in basic services, especially in the field of generating electricity from solar panels and providing electricity at competitive prices to companies and investors in the industrial estates through coordination with the competent authorities. “We have already started negotiating with international companies in this field and work is underway to obtain licenses from the competent authorities in the Sultanate. We expect for this project to be progressed in 2019,” he informed.
Al Lawati stated that Rusayl Industrial City Company is the first operating company of Oman Investment and Development Holding Company (Mubadrah), which will start its operations by the beginning of 2019. “The investors shall feel the change in various aspects. The working hours of the management of Rusayl Industrial City shall be in line with the working hours of the private sector, which is up to 4.00 pm,” he added.
It should be noted that Rusayl Industrial City has witnessed during the past decades a series of transformations that made it be one of the most demanded estates for investment. The Royal Decree no. 51/1983 was issued to establish Rusayl Industrial Estate Authority and implement the first industrial estate in the Sultanate. Rusayl Industrial Estate was inaugurated on December 4, 1985, under the patronage of His Highness Sayyid Thuwaini bin Shihab Al Said, Personal Representative of His Majesty the Sultan at that time. Starting with a total area estimated at 1,000,000 sqm and four productive projects, the total area of the estate has touched up to 11 million sqm and the number of projects has reached 297 by the end of the first half of 2018. The major industries in Rusayl Industrial City include chemicals, batteries, electrical and building materials, fiber optic cables, foodstuff, textiles, garments, stationery, paints, among others.
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