Industrial estates post strong growth in 2017

Oman’s industrialisation drive continues to witness massive expansion in the total number of leased areas, infrastructure projects, investments, number of projects and job opportunities in the industrial estates across the Sultanate, according to the Public Establishment for Industrial Estates (PEIE)’s latest report. The report highlights major achievements witnessed by the industrial estates that pertain to PEIE during 2017, comprising of Rusayl, Nizwa, Sumail, Sohar, Buraimi, Raysut, Sur, Knowledge Oasis Muscat (KOM) to mark Oman’s Industry Day celebrations on February 9, which commemorates the visit of His Majesty Sultan Qaboos bin Said to Rusayl Industrial Estate on February 9, 1991.

Rusayl Industrial Estate
A total of 17 contracts were signed in 2017 in the expansion project at Rusayl Industrial Estate with its total area reaching 9.96 million square metres. A consultancy tender was announced to rehabilitate the estate’s entrance, the road leading to the estate, and finding new entrances to the estate. Also, a consultancy tender was also announced to rehabilitate the estate’s infrastructure, and prepare a master plan for the estate including the new expansion. Additionally, an investment tender was announced to establish a commercial area. It should be noted that the total investment volume in the estate has touched OMR617.06 million. The number of national workforce in the existing projects in the estate has reached 5,377, while the number of foreign workforce has touched 13,933.


Sur Industrial Estate
An investment tender was announced for a sewage plant in Sur Industrial Estate, and the project is expected to be awarded in February 2018. The consultancy project for design and supervision of the planning and infrastructure services of the estate has also been announced, and the project is expected to be awarded before the end of the first quarter of 2018. A number of investment opportunities have been raised and they would be announced during the first half of 2018.

In addition, a feasibility study is under way to establish a port in Sur Industrial Estate. The results of the study are expected to be announced during the first half of the current year. Meanwhile, a total of 24 projects were localised during 2017, and four new factories have entered the production phase. Furthermore, a one-kilometre road was paved in cooperation with Khalid bin Ahmed and Sons LLC. The volume of investment during the last year has amounted to RO 1,214,853,191.64. The total leasable area is estimated at 23,661,200 square metres, of which 6,717,425 square metres are actually leased. The foreign workforce in Sur Industrial Estate has touched 2,499.


Sumail Industrial Estate

In Sumail Industrial Estate, 70 per cent of the infrastructure work was completed in 2017. It is expected to be completed during the third quarter of 2018. A tender for a construction of a 7-floor facility building was also awarded in cooperation with the private sector at an estimated cost of OMR5 million. The estate’s total area has touched 7.67 million square metres and the total leasable area has touched 4.48 million square metres. The actual leased area has touched 3,32 million square metres (74 per cent of the area) by the end of 2017. The investment volume of the estate has touched OMR87.10 million by the end of 2017. Besides, the number of workforce in Sumail Industrial Estate has reached 1,311, of which 367 are Omanis, representing 28 per cent of the total workforce.


Sohar Industrial Estate

The total investment volume in Sohar Industrial Estate has reached around OMR1.91 billion at the end of 2017. A total of 34 projects were localised during 2017, bringing the total number of localised projects to 321. These projects occupy an area of 10,56 million square metres of the leased area. Meanwhile, 67 per cent of the development work was completed in the seventh phase. The total developed area is estimated at 18.5 million square metres. The number of workforce has touched 15,413 by the end of 2017, of which 5,711 are Omanis with an Omanisation rate touching 37 per cent. Besides, the first phase of the residential city that targets 2,400 workforce has been completed, and 50 per cent of the 7-floor facility building has been achieved. The estate aims at expanding the industrial lands during 2018, which will contribute to increase the volume of investments in the estate, and offering job opportunities for the nationals.


Nizwa Industrial Estate
In Nizwa Industrial Estate, the project of completing works for the first and second phase of the estate’s expansion project has been awarded, and the consultancy work for the third and fourth phases has been awarded. The tender of the residential area in the estate has been announced. The total leased area in Nizwa Industrial Estate has touched 2,05 million square metres while the total investment volume has reached OMR249.13 million. The number of workforce in the estate has reached 6,014.The estate is preparing for the next phase to announce a tender of expanding the infrastructure of the third and fourth phases, in addition to localising projects for the remaining lands in the fourth phase.


Buraimi Industrial Estate
In 2017, Al Buraimi Industrial Estate has undertaken efforts to facilitate the flexibility of dealing with investors.The estate has achieved its goal in signing 10 contracts during the first half of the year, and 35 contracts during the second half of the year. The total area of investment in the estate has touched 2 million square metres, while the total investment volume has amounted to OMR218.46 million. The total number of workforce at Buraimi Industrial Estate has reached 1,860, with an Omanisation rate touching 30 per cent. During the next phase, the estate will allocate an area of 75,000 square metres for the construction of an integrated residential area for the estate’s workforce, and an area of 300,000 square metres will be allocated for the industrial workshops and stores.


Raysut Industrial Estate

The total investment volume in Raysut Industrial Estate has currently surpassed OMR415 million. Although the estate has reached to its maximum capacity in terms of the area, nevertheless the volume of investments is in constant growth as the companies are developing their production lines and capacity. By the end of 2017, the estate has registered more than 190 industrial, service and commercial projects, of which 84 projects are productive, while the remaining are under construction or in the preparation phase of commencing construction. These projects aim at recruiting Omanis. Currently, the number of Omanis working in the estate has surpassed 800. The final tender documents for the development of Raysut 2 have been completed. The project will be offered for tendering during the first quarter of 2018 and it is expected to be completed within 24 months once the work begins.


Knowledge Oasis Muscat

In 2017, the Knowledge Oasis Muscat (KOM) was awarded the Bid Quality Award in London for its commitment to quality, leadership, technology and innovation in the continuous search for excellence. KOM has also hosted and supported the Innovation Factory project, and localised China’s second largest telecom equipment and systems company – ZTE Communication. Meanwhile, a project was assigned to develop multi-level parking spaces, which will provide 780 parking spaces and will utilise advanced technologies. A project was also assigned to construct and manage the sixth and seventh buildings to accommodate the growing demand on the Knowledge Oasis Muscat. A number of projects are under preparation and study, including the use Internet of Things to manage the parking of visitors, brining renewable energy technologies to reduce the cost of energy consumption and contribute to the reduction of global warming, among other projects.


Al Mazunah Free Zone

A growing investment movement is being witnessed at Al Mazunah Free Zone as more investments were attracted to the zone and a number of contracts were signed by the end of 2017. An agreement was signed with a company to set up a hotel in the free zone. The cumulative number of companies that have signed contracts in the free zone has touched 160 of different nationalities. A number of investment applications are under study, and around 30 projects are under construction. During the same period, the free zone has witnessed an active commercial movement. The volume of re-exported goods surpassed 64,468 tonnes by the end of 2017. In addition, the number of re-exported vehicles exceeded 11,675 by the end of 2017. It should be noted that the drilling of four water wells in the free zone has already been completed. Moreover, a tender was issued by Oman Broadband Company to connect the fiber optic network in the area, which is expected to be completed by next April.


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