Sohar Industrial City: Factory Land, Rent & Setup Steps

Sohar Industrial City is a Madayn industrial estate in North Al Batinah, set up in 1992 and now covering about 28–29 million m2 next to Sohar Port. Industrial land rents at OMR 1 per m2 per year, foreign investors can own 100% of their project, and the city already hosts close to 400 investments. It suits manufacturers that want port access and room to grow but sell largely into Oman and the GCC rather than only exporting.

Where is Sohar Industrial City?

The city is in the Wilayat of Sohar in North Al Batinah Governorate, on Oman's northern coast. It has direct road access to Sohar Port and Sohar Airport and sits on the Batinah Expressway, which runs south to Muscat (roughly a three-hour drive) and north towards the UAE border. Muscat International Airport is reached by the same expressway.

This puts it inside Oman's biggest heavy-industry cluster, alongside the port's refineries, aluminium and steel plants, and close to Sohar Free Zone.

Key figures

• Established: 1992.
• Area: Madayn lists 28.9 million m2; a 2026 Madayn update gives 28.4 million m2 total and about 11.4 million m2 leased.
• Investment: cumulative investment of about OMR 2.3 billion. In 2025 the city signed 48 projects worth more than OMR 105 million on over 2 million m2.
• Workforce: about 13,300 people.
• Phases: Phase 7 infrastructure has been completed; a study on rehabilitating Phases 1 to 6 was due in 2026.

Which industries are there?

Madayn lists marble, paper recycling, foodstuffs, detergents, leather, furniture, toothpaste, beverages, ice cream, resins, glass, steel bars and engine oil. Recent and planned projects add:

• Ladayn plastics complex, marketed with OQ, using locally produced polymers (about OMR 33.7 million invested on more than 181,000 m2)
• a large steel plant in Phase 7
• a consultancy for an integrated aluminium cluster
• a 97 MW solar farm

Facilities

• Serviced plots with roads, power, water, drainage and common area maintenance
• A residential complex for workers with basic services
• Logistics services and a security gate system for truck traffic
• Wastewater treatment and flood protection
• Masar service desk for Madayn approvals and government procedures

Ask Madayn about built units and vacant plots; the Madayn investment portal lists available land by city.

Incentives and ownership rules

• Up to 100% foreign ownership of projects, with the company registered as an LLC or SPC.
• Usufruct leases up to 30 years, renewable, with the right to sell or sublease your buildings and add partners.
• Customs exemption on production inputs and machinery for licensed industrial projects, on approval.
• Income tax at the standard 15%; industrial companies may apply for a five-year, non-renewable exemption under the Income Tax Law as amended in 2017, subject to Tax Authority approval.

How do you get a plot in Sohar Industrial City?

1. Register the company on the Oman Business Platform (Invest Easy) with the industrial activity. See how to register a company online.
2. Prepare a project profile: products, capacity, plot size, power, water and gas demand, staffing, emissions and waste.
3. Submit the investment request through Madayn e-services or the Masar centre.
4. Plot allocation and notification by Madayn.
5. Sign the usufruct agreement and pay the first rent and guarantees.
6. Permits: Madayn building permit, environmental permit from the Environment Authority, industrial registration with the Ministry of Commerce, Industry and Investment Promotion.
7. 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
• Feasibility study or project profile with site layout
• Utility load estimates and environmental information
• Power of attorney if a representative applies

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

Example: a 10,000 m2 industrial plot costs about OMR 10,000 a year in land rent. On top come common area maintenance, Madayn licence and service fees, permit fees, utility connections, construction, company registration, Chamber fees and labour costs. These vary by project and are quoted by Madayn on application.

How long does it take?

Company registration takes a few days when documents are complete. Allocation depends on plot availability and the review of your project, typically several weeks. Environmental approval for heavier industries can take longer and should be started early.

Pros and limitations

Nearby alternatives

• Sohar Free Zone for export-led projects wanting free-zone benefits.
• Al Suwayq Industrial City, a new estate further south on the Batinah coast.
• Al Buraimi Industrial City on the UAE border, with discounted rent.
• Rusayl Industrial City if you need to be in Muscat.

Compare all estates on the industrial cities hub.

How Oman Register helps

Oman Register registers your company with the correct industrial activities, prepares the Madayn investment request and follows up on allocation, the lease and environmental approval. We also handle work permits and visas, and can compare Sohar Industrial City with Sohar Free Zone for your business model.