# Mahas Industrial City, Musandam: Land Rent, Sectors & Setup Guide > Mahas Industrial City is Madayn's 1.5 million m2 estate in Khasab, Musandam, overlooking the Strait of Hormuz. It is operational, with about 20 projects and OMR 45.7 million of cumulative investment by end-2025, and suits building materials, packaging, food and light industry. URL: https://omanregister.com/industrial-cities/mahas-industrial-city/ 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:** Musandam (Wilayat of Khasab) - **Established:** 2017 - **Area:** About 1.5 million m2 - **Focus sectors:** Building materials, packaging, beverages, food, logistics, light industry - **Industrial rent:** 500 baisa (OMR 0.5) per m2 per year (Madayn, 2026) - **Nearest port:** Khasab Port; Khasab Airport nearby - **Investment:** About OMR 45.7 million, about 20 projects (end-2025) Mahas Industrial City is Madayn's industrial estate in the Wilayat of Khasab, Musandam Governorate, covering about 1.5 million m2 at the tip of the Strait of Hormuz. It leases industrial land at 500 baisa per m2 per year. By the end of 2025 it had about 20 projects and roughly OMR 45.7 million of cumulative investment, mostly in construction materials, packaging and beverages. ## Where is Mahas Industrial City? Mahas is near Khasab, the main town of Musandam, Oman's northern exclave on the Strait of Hormuz. Musandam is separated from the rest of Oman by the UAE, which shapes the logistics: - **Khasab Port** handles sea freight and regional trade across the Strait. - **Khasab Airport** has domestic flights to Muscat. - **The UAE border** is a short drive away by road. Trucks to mainland Oman transit the UAE, so allow for border formalities. The city mainly serves Musandam's own construction and consumer market, plus businesses that use Khasab's position for regional trade. ## Facts and development status - **Opened:** 2017 - **Area:** about 1.5 million m2. Expansion is being coordinated with other authorities to add logistics and service land. - **Projects:** about 20, employing 247 people, with about OMR 45.74 million of cumulative investment by end-2025 (OMR 4.18 million of it new in 2025) - **Completed in 2025:** roads, infrastructure and flood protection over about 1 million m2 (about OMR 5 million), an 80 m entrance bridge, a water tank and a sewage tank, and water, power and sewage networks - **Under way (2026–2030):** a Madayn Pioneer Complex with 10 ready-made factory units (about OMR 1.5 million), security monitoring and landscaping Mahas is operational, but small. Musandam's terrain limits flat land, so plots and expansion space are scarcer than in mainland estates. ## Which industries fit Mahas? Madayn lists general warehousing, ready-mix concrete, quarrying and crushing, asphalt, blocks, cement, marble and artificial stone, iron and wood products, oil recycling and vehicle services. Recent projects are in packaging, beverages and construction industries. The 2026 strategy adds food security, logistics, and light and medium industry. Local fisheries and mineral resources support processing activities. ## Incentives and ownership rules - **Up to 100% foreign ownership**. - **Leases of up to 30 years**, renewable, with rights to sell or sublease buildings and add partners. - **Customs exemption on production inputs** for licensed industrial projects, on approval. - **Low rent** of 500 baisa per m2 (2026). - **Ready-built SME units**, subject to availability. - **Corporate tax** at the standard 15%. Madayn estates are not free zones. ## How to set up in Mahas Industrial City 1. **Register the company** on the [Oman Business Platform](https://www.business.gov.om/) ([how to register online](https://omanregister.com/how-to-register-a-company-online/)). 2. **Define the project**: activity, plot or unit size, utilities and staffing. 3. **Apply to Madayn** through the [e-Masar portal](https://eservices.emassar.om/e-services) or a Masar centre, for land or a ready unit. 4. **Receive the allocation** and sign the usufruct or lease agreement. 5. **Obtain permits**: a Madayn building permit, environmental approval and industrial registration for factories. 6. **Fit out the site, 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 - Utility and environmental information - Power of attorney if an agent applies for you ## What does it cost? Published industrial rent: **500 baisa per m2 per year** (Madayn, 2026). A 2,000 m2 plot therefore costs about OMR 1,000 a year in rent before other charges. Also plan for: - the common area maintenance charge - Madayn application and permit fees, according to its current schedule - utility connections and consumption - construction or unit fit-out - extra freight and border costs for supplies coming through the UAE - registration, chamber and labour costs ## Timelines Registration takes days. Plot or unit allocation depends on what is available in a relatively small estate, so ask early. Construction in Musandam can take longer than on the mainland because of material logistics. ## Pros and limitations | Pros | Limitations | |---|---| | Among the lowest Madayn rents | Exclave: road freight crosses the UAE | | Khasab Port and Airport close by | Small local market and labour pool | | Infrastructure completed in 2025 | Limited flat land for large plants | | Ready units planned for SMEs | Higher input logistics costs | ## Nearby alternatives - [Al Buraimi Industrial City](https://omanregister.com/industrial-cities/al-buraimi-industrial-city/): on the UAE border, on the mainland. - [Sohar Industrial City](https://omanregister.com/industrial-cities/sohar-industrial-city/) and [Sohar Free Zone](https://omanregister.com/free-zones/sohar-free-zone/): for port-based manufacturing at scale. Compare all estates on the [industrial cities hub](https://omanregister.com/industrial-cities/). ## How Oman Register helps Oman Register registers your company, applies to Madayn for land or a ready unit in Mahas, and manages the permits, work permits and visas. This is particularly useful for investors who cannot travel to Khasab often. ## FAQ **What is the land rent in Mahas Industrial City?** Madayn lists industrial rent at 500 baisa (OMR 0.5) per m2 per year (2026). Service charges and fees are additional and set by Madayn. **Is Mahas Industrial City operational?** Yes. It opened in 2017, and roads, flood protection, water, power and sewage networks over about 1 million m2 were completed in 2025. About 20 projects were operating or under way at the end of 2025. **How do goods reach Mahas from the rest of Oman?** Musandam is separated from mainland Oman by UAE territory, so road freight crosses the UAE border. Sea freight can use Khasab Port, and Khasab Airport handles flights. **Are there ready-built units for small businesses?** Madayn advertises ready-made industrial units for SMEs. A Pioneer Complex of 10 factory units, worth about OMR 1.5 million, is being developed under the 2026–2030 plan. **Can foreigners own a business in Mahas Industrial City?** Yes. Up to 100% foreign ownership is allowed in Madayn industrial cities, through a company registered on the Oman Business Platform. ## Sources - [Madayn — Mahas Industrial City](https://madayn.om/mahas-industrial-city/) - [OPAZ — Industrial Estates (Madayn)](https://opaz.gov.om/en/zones/industrial-estates-madayn) - [Times of Oman — Cumulative investment in Mahas Industrial City tops OMR45mn (April 2026)](https://timesofoman.com/article/170246-cumulative-investment-in-mahas-industrial-city-tops-omr45mn) - [OPAZ — OPAZ begins developing new industrial cities (2025)](https://opaz.gov.om/en/media-center/news/2025/opaz-begins-developing-new-industrial-cities)