# Al Mudhaibi Industrial City: Land, Rent & Setup Guide for Investors

> Al Mudhaibi Industrial City is a Madayn estate in North Al Sharqiyah that is still in its first infrastructure phase in 2026. It has attracted 14 projects worth about OMR 15 million and offers two rent-free years on industrial land.

URL: https://omanregister.com/industrial-cities/al-mudhaibi-industrial-area/
Updated: 2026-10-24
Publisher: Oman Register (omanregister.com) — company registration and residency services in Oman. Contact: +968 7733 3556, info@omanregister.com

## At a glance

- **Operator:** Madayn (Public Establishment for Industrial Estates)
- **Governorate:** North Al Sharqiyah
- **Established:** 2021 (inauguration year per Madayn)
- **Area:** 9-14 million m2 planned (sources differ); Phase 1 about 1.34 million m2
- **Focus sectors:** Food, light manufacturing, logistics, construction materials
- **Industrial rent:** Free years 1-2, OMR 0.5/m2 years 3-5 (Madayn, 2026)
- **Nearest ports:** Sur (coast) and Muscat-area ports by road
- **Status (mid-2026):** Phase 1 infrastructure about 7% complete

Al Mudhaibi Industrial City (also called the Al Mudhaibi Industrial Area) is a Madayn estate in North Al Sharqiyah Governorate. It is aimed at food processing, light manufacturing and logistics serving Oman's interior. Industrial land is rent-free for two years, and 14 projects worth about OMR 15 million had signed by mid-2026. Its Phase 1 infrastructure was still in an early stage of construction at that point.

## Where is Al Mudhaibi Industrial City?

The city is in the Wilayat of Al Mudhaibi in North Al Sharqiyah, inland in Oman's eastern interior. It lies on the road network that links the Sharqiyah towns (Ibra, Al Mudhaibi, Sinaw) with Muscat to the north-west and with Nizwa and Ad Dakhiliyah to the west. Muscat is roughly a two-hour drive away. Sur is the nearest coastal city, with [Sur Industrial City](https://omanregister.com/industrial-cities/sur-industrial-city/) and the LNG cluster at Qalhat. For container shipping, investors usually move cargo by road to the Muscat-area ports or to Sohar.

The location makes most sense for businesses supplying the Sharqiyah and Dakhiliyah markets, or processing local agricultural and livestock products.

## Area and development status

Sources give different figures for the size of the city, so treat the area as indicative:

- Madayn's city page lists a **total area of 14 million m2** and **2021** as the inauguration year.
- 2026 press reports describe a **planned 9 million m2** site, with Phase 1 infrastructure covering about **1.34 million m2**.
- Phase 1 includes about 14 km of internal roads, water, power, sewerage and telecom networks, reservoirs, fencing and gates, a **Madayn Entrepreneurial Complex** and a **Masar one-stop service centre**. It is valued at about **OMR 17.5 million** and was **about 7% complete in July 2026**.
- The first projects were localised in late 2024, and the Phase 1 construction contract was awarded in 2025.

In short, land can be leased now, but this is a city under construction. Expect build-out through the 2026–2030 plan period.

## Which industries does Al Mudhaibi target?

Madayn lists logistics, industrial, commercial, food, tourism and construction-related industries. The projects signed so far include electrical equipment manufacturing, furniture production and poultry processing. Future targets named in 2026 include food processing, pharmaceuticals, light manufacturing, and transport, maintenance and supply-chain services.

## Incentives and ownership rules

- **Up to 100% foreign ownership** in Madayn industrial cities.
- **Leases of up to 30 years**, renewable, with the right to sell or sublease buildings and add partners.
- **Rent-free first two years**, then OMR 0.5 per m2 for years three to five (industrial land, Madayn 2026).
- **Customs exemption on production inputs** for licensed industrial projects, subject to approval.
- **Corporate income tax** at the standard 15%. There is no free-zone tax holiday here.

## How to get land and a licence in Al Mudhaibi

1. **Register the company** (LLC or SPC) on the [Oman Business Platform](https://www.business.gov.om/) with the right activities. Our [online registration guide](https://omanregister.com/how-to-register-a-company-online/) walks through this.
2. **Prepare a project profile** with products, plot size, utility loads, staffing and environmental impact.
3. **Submit the land application** through the [Madayn e-Masar portal](https://eservices.emassar.om/e-services) or at a Masar centre.
4. **Receive plot allocation** and confirm your acceptance.
5. **Sign the usufruct agreement** and pay the initial charges and any guarantee.
6. **Obtain permits**: a Madayn building permit, environmental approval and, for factories, industrial registration with the Ministry of Commerce, Industry and Investment Promotion.
7. **Build, connect utilities**, then apply for [work permits](https://omanregister.com/work-permit-oman/) and visas.

## Documents usually required

- Commercial Registration and company documents
- Owner and signatory passport or ID copies
- Project description or feasibility study and a layout sketch
- Utility demand and environmental data
- Power of attorney if a representative applies

## What does it cost?

The only published rate is the industrial rent above. Budget for:

- rent from year six onward (set in the lease)
- the common area maintenance charge (Madayn confirms one applies)
- Madayn application and permit fees, according to its current schedule
- utility connections and consumption
- construction and fit-out
- company registration, chamber and labour costs

Get the figures in writing for your plot before you commit.

## Timelines

Company registration takes days, and a Madayn land allocation typically takes a few weeks. Starting construction depends on Phase 1 handover in your sector of the city, which may run well into the plan period. Factor this into any financing or supply contracts.

## Pros and limitations

| Pros | Limitations |
|---|---|
| Two years rent-free, then low rent | Infrastructure only about 7% complete in mid-2026 |
| Serves the Sharqiyah and Dakhiliyah interior markets | Inland, with no port of its own |
| Planned SME complex and on-site Masar service centre | Published area figures are inconsistent |
| Early mix of Omani and foreign investors | Small supplier base for now |

## Nearby alternatives

- [Samail Industrial City](https://omanregister.com/industrial-cities/samail-industrial-city/): operational, between Muscat and Nizwa.
- [Nizwa Industrial City](https://omanregister.com/industrial-cities/nizwa-industrial-city/): an established estate in Ad Dakhiliyah.
- [Sur Industrial City](https://omanregister.com/industrial-cities/sur-industrial-city/): on the coast in South Al Sharqiyah.
- [Rusayl Industrial City](https://omanregister.com/industrial-cities/rusayl-industrial-city/): Muscat's main industrial estate.

Compare all estates on the [industrial cities hub](https://omanregister.com/industrial-cities/).

## How Oman Register helps

Oman Register sets up your company and prepares the Madayn land application for Al Mudhaibi. We follow up with Madayn on allocation and lease terms, and handle the licensing, work permits and visas, so your project is ready as soon as the infrastructure is.

## FAQ

**Is Al Mudhaibi Industrial City ready for factories?**

Not fully. In July 2026, Phase 1 infrastructure (roads, utilities, the entrepreneurial complex and a Masar service centre) was reported about 7% complete. Investors can sign for land now, but construction timing depends on handover of services.

**How much is land rent in Al Mudhaibi Industrial City?**

Madayn lists industrial land as rent-free for the first two years, then OMR 0.5 per m2 per year for years three to five. Later rent and service charges are set in the lease.

**How much investment has Al Mudhaibi attracted?**

Fourteen projects worth a combined OMR 15 million had been signed by mid-2026, split evenly between Omani and foreign investors. They include electrical equipment, furniture and poultry processing.

**Can foreigners set up 100% owned companies in Al Mudhaibi?**

Yes. Madayn industrial cities allow up to 100% foreign ownership, and the company is registered through the Oman Business Platform before land is allocated.

**Is Al Mudhaibi a free zone?**

No. It is a Madayn industrial city, so normal Omani customs and the 15% corporate tax apply. Licensed industrial projects can apply for customs exemption on production inputs.

## Sources

- [Madayn — Al Mudhaibi Industrial City](https://madayn.om/al-mudhaibi-industrial-city/)
- [OPAZ — Industrial Estates (Madayn)](https://opaz.gov.om/en/zones/industrial-estates-madayn)
- [Oman Observer — Al Mudhaibi Industrial City attracts RO 15 million investments (July 2026)](https://www.omanobserver.om/article/1192920/business/al-mudhaibi-industrial-city-attracts-ro-15-million-investments)
- [Oman Observer — Four industrial cities to come up under 11th Plan (2026)](https://www.omanobserver.om/article/1194390/business/four-industrial-cities-to-come-up-under-11th-plan)
- [OPAZ — OPAZ begins developing new industrial cities (2025)](https://opaz.gov.om/en/media-center/news/2025/opaz-begins-developing-new-industrial-cities)