Madayn offers new package of investment incentives

Business Saturday 16/May/2020 16:23 PM
By: Times News Service
Madayn offers new package of investment incentives

Muscat: The issuance of the decision to amend provisions of the investment regulations offers an added value for the industrial cities to enhance their competitiveness in the investment environment and gives an impetus for investors, business owners and SMEs from inside and outside the Sultanate to localise their businesses in the industrial cities, noted Hilal bin Hamad Al Hasani, Chief Executive Officer of the Public Establishment for Industrial Estates – Madayn.
“This decision comes in the 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 partnership complements the activity of the current investor. The amendments on the provisions of the investment regulations also include a reduction of up to 70 per cent in 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.
Al Hasani emphasised that the efforts undertaken by Madayn in partnership with the relevant bodies in the Sultanate have resulted in growing industrial investment demands despite the economic conditions witnessed by the world at the current stage. Through offering a variety of incentives, Madayn has succeeded in attracting major industrial companies and value-added investments into the Sultanate as the cumulative investment volume in Madayn’s various industrial cities has touched OMR6.69 billion by the end of 2019, marking an increase of OMR123 million compared to the volume of investments at the end of 2018. The number of workforce in the industrial cities pertaining to Madayn has reached around 61,000 by the end of 2019 compared to 60,000 at the end of 2018. Moreover, the number of projects in their various execution phases has reached 2,313 by the end of 2019.