# Sur Industrial City: Coastal Industrial Land, Rent & Setup

> Sur Industrial City (1999) is a Madayn estate of about 36 million m2 in South Al Sharqiyah, around 200 km from Muscat. It offers natural gas, coastal plots with sea access and industrial land at OMR 1 per m2 per year, aimed at petrochemicals, mining and marine industries.

URL: https://omanregister.com/industrial-cities/sur-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:** South Al Sharqiyah
- **Established:** 1999
- **Area:** About 36 million m2; 7.8 million m2 developed (2025)
- **Focus sectors:** Petrochemicals, gas-based industry, mining, building materials, marine & fisheries
- **Industrial rent:** OMR 1 per m2 per year (Madayn, 2026)
- **Distance to Muscat:** About 200 km (Muscat–Sur Expressway)
- **Special features:** Natural gas supply; coastal plots up to 2 million m2

Sur Industrial City is a Madayn estate on the coast of South Al Sharqiyah, opened in 1999 and about 200 km from Muscat. It covers about 36 million m2, supplies natural gas and offers large plots with direct sea access, with industrial land at OMR 1 per m2 per year and up to 100% foreign ownership. It suits petrochemical, mining, building-materials and marine projects that need land, gas and a shoreline.

## Where is Sur Industrial City?

The city is in the Wilayat of Sur, South Al Sharqiyah Governorate, on the Arabian Sea coast south-east of Muscat. It is connected by the Muscat–Sur Expressway and the Al Sharqiyah Expressway, which also links it inland to Ibra and Al Mudhaibi. The Qalhat LNG complex is nearby, and the region has a long shipbuilding and fishing tradition.

There is no container terminal in the city yet. Most tenants move containers by road to Sohar Port in the north or Duqm in the south, or use their own marine facilities on coastal plots.

## Key figures

- **Established:** 1999.
- **Area:** about 36 million m2, of which about 7.8 million m2 was developed and 6.6 million m2 leased in 2025. Madayn lists about 1.3 million m2 of vacant developed land.
- **Investment:** cumulative investment of about OMR 2.3 billion; 118+ investments listed by Madayn.
- **Workforce:** about 2,740 workers, around 55% of them Omani (2025).
- **Recent activity:** six projects worth more than OMR 13 million localised in the first half of 2025.

## Which industries are in Sur?

Madayn lists LNG, urea, ammonia, ready-mix concrete, cement products such as bricks and tiles, marble, plastic bags, fishing and wooden furniture. Target sectors include petrochemicals, logistics, mining, pharmaceuticals, construction materials, and shipbuilding and maintenance, with land reserved for petrochemical and mining projects.

## Facilities and projects

- Roads, electricity, **natural gas**, water, wastewater and high-speed telecoms
- **Coastal plots of up to 2 million m2** with direct sea access
- A **shipbuilding and maintenance zone** in design (surveys done in 2025)
- A marine berth for general cargo and containers under study
- A **workers' village** and commercial area under development
- A wastewater treatment plant and fence rehabilitation completed in 2025; an updated master plan in preparation

## Incentives and ownership rules

- **Up to 100% foreign ownership** via an Omani [LLC](https://omanregister.com/company-types/limited-liability-company-llc/) or [SPC](https://omanregister.com/company-types/sole-proprietor-company-spc/).
- **Usufruct leases of up to 30 years**, renewable, with rights to sell or sublease buildings and add 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.
- Madayn's board can grant extra rent and fee reductions in cities needing special incentives; ask whether any apply in Sur when you apply.

## How to get land and a licence in Sur Industrial City

1. **Register the company** on the [Oman Business Platform (Invest Easy)](https://www.business.gov.om/); see [how to register a company online](https://omanregister.com/how-to-register-a-company-online/).
2. **Prepare a project profile,** including gas demand, sea-access needs, emissions and staffing. Large gas users may also need a separate gas supply allocation, so raise this early.
3. **Submit the investment request** through Madayn e-services or the Masar centre.
4. **Plot allocation** and notification.
5. **Sign the usufruct agreement** and pay first rent and guarantees.
6. **Permits:** Madayn building permit, environmental permit (often with an environmental impact assessment for heavy industry), industrial registration, and maritime approvals for any marine works.
7. **Build, connect utilities and recruit,** then apply for [work permits](https://omanregister.com/work-permit-oman/) and visas.

## Documents usually required

- Commercial Registration and company documents
- Passport copies of shareholders and signatory
- Feasibility study, process description and site layout
- Utility, gas and environmental data
- Power of attorney for a representative

## How much does it cost to set up in Sur 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 50,000 m2 industrial plot costs about OMR 50,000 a year in land rent. Other cost components are common area maintenance, Madayn licence and service fees, gas and power connections, environmental studies, marine works if needed, construction, registration and staff costs. Madayn quotes these per project.

## How long does it take?

Company registration takes a few days. Allocation of a standard plot can follow within weeks of a complete application; large coastal or gas-based projects take longer because of environmental studies and utility allocations.

## Pros and limitations

| Pros | Limitations |
|---|---|
| Natural gas available | No container terminal in the city yet |
| Very large plots with sea access | Smaller workforce and supplier base than Sohar |
| Low published land rent | Shipyard zone and berth still in design |
| Expressway link to Muscat | Not a free zone: duties on local sales |

## Nearby alternatives

- [Al Mudhaibi Industrial Area](https://omanregister.com/industrial-cities/al-mudhaibi-industrial-area/), inland in North Al Sharqiyah.
- [Duqm Special Economic Zone](https://omanregister.com/free-zones/duqm-special-economic-zone/) for port-based export projects with zone incentives.
- [Sohar Industrial City](https://omanregister.com/industrial-cities/sohar-industrial-city/) for a larger heavy-industry cluster next to a port.

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

## How Oman Register helps

Oman Register registers your company, prepares the Madayn application for Sur and coordinates the lease, environmental and industrial approvals. We also handle work permits and visas, and can help you compare Sur with Duqm for gas or marine projects.

## FAQ

**What makes Sur Industrial City different from other Madayn estates?**

It is coastal and has natural gas, with large plots of up to 2 million m2 that can have direct sea access. That makes it a fit for gas-based, mining and marine projects that need space and a shoreline.

**How much is land rent in Sur Industrial City?**

Madayn publishes OMR 1 per m2 per year for industrial land in Sur. Service, logistics and commercial warehouse land is OMR 3 and residential land OMR 2 per m2 per year, rising 15% every five years.

**Is there a port in Sur Industrial City?**

Coastal plots allow private marine facilities, and a ship repair zone and a general cargo and container berth were under study in 2025. For regular container trade most tenants use Sohar Port or Duqm by road.

**Can foreigners own 100% of a project in Sur Industrial City?**

Yes. Madayn allows up to 100% foreign ownership of projects in its industrial cities, through an Omani LLC or SPC.

**Which industries are in Sur Industrial City?**

Madayn lists LNG, urea, ammonia, ready-mix concrete, cement products, marble, plastic bags, fishing and wooden furniture, and has reserved areas for petrochemical and mining projects.

## Sources

- [Madayn — Sur Industrial City](https://madayn.om/sur-industrial-city/)
- [OPAZ — Industrial Estates (Madayn)](https://opaz.gov.om/en/zones/industrial-estates-madayn)
- [Oman Government Services — Renew lease contract (Madayn tariff)](https://gov.om/en/w/renew-lease-contract)
- [Times of Oman — Sur Industrial City localises six projects in H1 2025](https://timesofoman.com/article/163759-sur-industrial-city-localises-six-projects-worth-over-omr13mn-in-2025-first-half)