Raysut Industrial City is Madayn's industrial estate in Salalah, Dhofar Governorate, opened in 1992 about 4 km from the Port of Salalah. It covers about 4 million m2, rents industrial land at OMR 1 per m2 per year and allows up to 100% foreign ownership. The developed area is about 98% full, so it suits investors who are ready to wait for the expansion phases or take over existing space.
Where is Raysut Industrial City?
The city is in Raysut, west of Salalah city in Dhofar Governorate. It is about 4 km from the Port of Salalah, one of the region's main container transhipment hubs, and about 15 km from Salalah International Airport. Salalah city provides housing, banks and services, and the road north links Dhofar to the rest of Oman and to Yemen to the west.
The location serves two markets: Dhofar itself, and exports through Salalah Port to East Africa, South Asia and the wider region.
Key figures
- Established: 1992.
- Area: more than 3.99 million m2, with expansion to about 10.05 million m2 planned.
- Occupancy: about 98% of developed land (first half of 2026).
- Investment: cumulative investment above OMR 521 million by June 2026; Madayn lists 200+ investments.
- Workforce: about 3,680 employees, about 43% Omani.
- Recent activity: nine projects worth about OMR 6.5 million on 32,700 m2 in the first half of 2026, in food processing, iron manufacturing, mining and services. Five stalled projects were replaced with projects in targeted sectors.
Which industries are in Raysut?
Madayn lists school stationery and box files, ice, fish processing, frozen chicken, PVC pipes, steel fabrication, medical supplies, solar heaters, flour, fertiliser and vegetable oil. The current push is towards food and pharmaceutical industries, medical supply chains and a food industry cluster, using Dhofar's agriculture and fisheries and Salalah Port.
Facilities and expansion
- Serviced plots with common area maintenance
- Water and sewerage works for the second and third phases (2026)
- Planned infrastructure for new areas, a Madayn Entrepreneurial Complex for SMEs and a security system upgrade
- Masar service desk for Madayn approvals
Incentives and ownership rules
- Up to 100% foreign ownership through an Omani LLC or SPC.
- Usufruct leases up to 30 years, renewable, with rights to sell or sublease buildings and bring in partners.
- Customs exemption on production inputs and machinery for licensed industrial projects, on approval.
- Income tax at 15%; industrial companies can apply for the five-year non-renewable exemption under the 2017-amended Income Tax Law, subject to approval.
How to get land and a licence in Raysut Industrial City
- Register the company on the Oman Business Platform (Invest Easy); see how to register a company online.
- Ask Madayn about availability in the existing city and the expansion phases. Consider assigning an existing lease or subleasing a built unit.
- Submit the investment request with a project profile through Madayn e-services or the Masar centre.
- Plot allocation and notification.
- Sign the usufruct agreement and pay the first rent and guarantees.
- Permits: Madayn building permit, environmental permit and industrial registration.
- Build, connect utilities and recruit, then apply for work permits and visas.
Documents usually required
- Commercial Registration and company documents
- Passport copies of shareholders and signatory
- Project profile or feasibility study and site layout
- Utility and environmental data
- Lease assignment documents if taking over an existing plot
How much does it cost to set up in Raysut Industrial City?
| Item | Rate (Madayn tariff, 2026) |
|---|---|
| Industrial land | OMR 1 per m2 per year |
| Residential land | OMR 2 per m2 per year |
| Service, logistics, commercial warehouse land | OMR 3 per m2 per year |
| Rate review | +15% every five years |
Example: a 5,000 m2 industrial plot is about OMR 5,000 a year in land rent. Add common area maintenance, Madayn licence and service fees, permits, utility connections, construction, company registration, Chamber fees and staff costs. If you take over an existing lease, the price for the buildings is agreed with the current tenant.
How long does it take?
Company registration takes a few days. In Raysut the main variable is land: with developed plots almost fully let, allocation depends on expansion-phase handovers or on finding an existing tenant willing to assign. Register your interest with Madayn early and keep your project profile ready, so you can sign as soon as a suitable plot is released.
Pros and limitations
| Pros | Limitations |
|---|---|
| About 4 km from Salalah Port | Developed land about 98% occupied |
| Close to Salalah airport and city | Expansion phases still being serviced |
| Low published land rent | Far from Muscat (around 1,000 km by road) |
| Food and fisheries supply in Dhofar | Not a free zone: duties on local sales |
Nearby alternatives
- Salalah Free Zone next to the port, for export-led projects.
- Thumrait Industrial City inland in Dhofar, aimed at mining and light industry.
- Al Mazunah Free Zone on the Yemen border, also run by Madayn.
See all locations on the industrial cities hub.
How Oman Register helps
Oman Register registers your company, checks plot availability in Raysut with Madayn, and prepares the application or lease assignment. We then handle permits, work permits and visas, and can compare Raysut with Salalah Free Zone for your project.
Frequently asked questions
How far is Raysut Industrial City from Salalah Port?
About 4 km, and about 15 km from Salalah International Airport. That makes it one of the closest Madayn estates to a major container port.
Is land available in Raysut Industrial City?
Developed land is about 98% occupied (first half of 2026). New capacity depends on the second and third phases, where water and sewerage networks were being built in 2026, so ask Madayn for the timing of specific plots.
How much is industrial rent in Raysut?
Madayn publishes OMR 1 per m2 per year for industrial land. Service, logistics and commercial warehouse land is OMR 3 and residential land OMR 2 per m2 per year, with a 15% increase every five years.
Should I choose Raysut Industrial City or Salalah Free Zone?
Raysut suits projects selling mainly into Oman and the GCC under mainland rules. Salalah Free Zone suits export-oriented projects that want free-zone customs and tax benefits.
Can foreigners own 100% of a project in Raysut?
Yes. Madayn allows up to 100% foreign ownership of projects in its industrial cities through an Omani LLC or SPC.
Sources & official references
This guide is general information, checked against official sources at the date shown. Rules and fees in Oman change; we confirm the current requirements for your case before you apply.
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