Rusayl Industrial City: Land, Licences & Costs in Muscat

Rusayl Industrial City is Oman's first industrial estate, opened in 1983 on the western edge of Muscat and run by Madayn through its subsidiary Mubadrah. Industrial land rents at OMR 1 per m2 per year with up to 100% foreign ownership. The catch is space: about 95% of the developed land is taken, so it suits investors who can move fast, take over an existing unit or start small in the SME workshops.

Where is Rusayl Industrial City?

Rusayl sits in Muscat Governorate, in the Wilayat of Seeb, next to the Muscat Expressway and close to Muscat International Airport, Sultan Qaboos University and Knowledge Oasis Muscat. It is roughly 45 km from old Muscat. For sea freight, most tenants truck containers to Sohar Port in the north via the Batinah Expressway.

Being inside the capital is the main reason companies pick Rusayl: staff live nearby, suppliers and customers are close, and government offices are within half an hour.

Size, history and who is already there

• Established: 1983, a decade before Madayn itself (founded in 1993 as the Public Establishment for Industrial Estates).
• Area: Madayn lists about 10.9 million m2. About 6.8 million m2 was developed in 2024, and roughly 95% of it was occupied.
• Investment: cumulative investment passed OMR 767 million by the end of 2024. That year 17 new contracts were signed, covering more than 235,000 m2 and about OMR 49 million.
• Workforce: about 19,850 people worked in the city in 2024, with an Omanisation rate above 33%.

Main activities include chemicals, batteries, electrical and building materials, fibre-optic cables, food, textiles and garments, stationery, paints, filters and furniture, plus a growing logistics and services area.

What facilities are available?

• Serviced industrial plots with roads, water, power and telecoms, plus common area maintenance.
• Logistics land from a 500,000 m2 logistics expansion and a second development phase of about 2.4 million m2.
• Madayn Entrepreneurial Complex, built with the SME Development Authority: more than 60,000 m2 with workshop units of about 500 m2 for small and medium enterprises.
• Masar Service Centre, Madayn's one-stop shop for approvals, permits and licences, with banking, finance advice and medical checks on site.
• Commercial areas, restaurants, fuel stations and staff services; labour accommodation is on residential-zoned land at a separate rate.

Ask Madayn which built units are currently available. Because investors may lease out the buildings they put up, subleasing from an existing tenant is another common route into Rusayl.

Incentives and ownership rules

• Up to 100% foreign ownership of projects in Madayn cities. The company is formed as an LLC or SPC on the mainland.
• Usufruct lease of up to 30 years, renewable for the same period. You may sell or lease out the buildings you put up, bring in new partners, and your buildings are valued fairly when the lease ends.
• Customs exemption on production inputs and machinery for licensed industrial projects, on approval.
• Income tax: Oman's standard rate is 15%. Industrial companies may apply for a five-year, non-renewable exemption under the Income Tax Law as amended in 2017. Treat this as something to confirm with the Tax Authority, not a given.
• Freedom to operate around the clock.

How do you get land and a licence in Rusayl?

1. Register the company on the Oman Business Platform (Invest Easy) with the industrial or logistics activity you will carry out. See our guide on how to register a company online.
2. Check availability. Ask Madayn or Mubadrah which plots or units are free. In Rusayl, also look at leases that existing tenants want to assign.
3. Submit the investment request through Madayn's e-services (Masar) with your project profile.
4. Plot allocation. Madayn reviews the project and notifies you when land is allocated.
5. Sign the usufruct agreement and pay the first rent and any deposits.
6. Permits: building permit from Madayn, environmental permit from the Environment Authority, and industrial registration with the Ministry of Commerce, Industry and Investment Promotion for factories.
7. Build or fit out, connect utilities, then apply for work permits and residence visas.

Documents usually required

• Commercial Registration and company constitutive documents
• Passport copies of shareholders and the authorised signatory
• Project profile or feasibility study: products, process, plot size, power and water demand, staff numbers, emissions and waste
• Preliminary site layout
• Power of attorney if a representative applies

How much does it cost to set up in Rusayl Industrial City?

Published Madayn rates (tariff on the government services portal, 2026):

Other cost components to budget for, which depend on your project: common area maintenance, Madayn licence and service fees, building and environmental permit fees, utility connections, construction or fit-out, company registration and Chamber fees, and labour costs. SMEs holding a Riyada card can get reduced Madayn fees. There is no published all-in package price.

How long does it take?

Company registration usually takes a few days once documents are ready. Land allocation depends on what is free; in Rusayl the waiting time for a suitable plot can be the longest step. After signing, allow time for building and environmental permits before construction starts.

Pros and limitations

Nearby alternatives

• Knowledge Oasis Muscat for tech and office-based companies next door.
• Al Wadi Al Kabeer Industrial City for workshops and warehouses inside Muscat.
• Samail Industrial City about an hour inland, with more free land.
• Khazaen Economic City and the Muscat International Airport Free Zone if you want zone incentives.

Compare all Madayn locations on the industrial cities hub.

How Oman Register helps

Oman Register sets up your company with the right industrial activities, prepares the Madayn investment request and follows it through allocation, the lease and the permits. We then handle work permits and visas for your team, so you can focus on equipment and production.