PEIE signs deal with Mubadrah to operate Rusayl Industrial City
The Public Establishment for Industrial Estates (PEIE), also known as Madayn, has signed an agreement with Oman Investment and Development Holding Co (Mubadrah) for the latter to manage and develop Rusayl Industrial City.
The agreement was signed by H E Eng Ahmed bin Hassan al Dheeb, chairman of Madayn’s board of directors, and Hilal bin Hamad al Hasani, chairman of Mubadrah’s board of directors, according to a press release.
Through this agreement, Rusayl Industrial City will be the first industrial estate to be managed and operated according to the private sector’s regulations in the sultanate.
This comes in line with Madayn’s board of directors’ decision to adopt the programme of strengthening partnership with the private sector emanating from the system (law) of the Public Establishment for Industrial Estates issued by Royal Decree No 32/2015, as Madayn may contract one or more developers who are eligible and have technical, financial, and administrative efficiency to develop the zone or part thereof under an investment agreement.
H E Dheeb said that signing this agreement with Mubadrah to be the main developer of Rusayl Industrial City is the first step to gradually transform the rest of Madayn’s industrial estates. “This step will be evaluated and based on the results, the rest of the estates will be transformed according to an approved timeline that will last for four years.”
He said, “This comes in line with Madayn’s adopted approach to strengthen the public-private partnership (PPP), especially in the field of constructing, managing and operating the industrial estates and the economic areas through attracting major developers to all the new industrial estates. The PPP approach also opens the way for the private sector to work under the umbrella of Madayn as owners and developers of the economic areas of a variety of investment activities.”
As per the plan, the role of Madayn by 2022 will be linked to planning, regulating, monitoring and following-up.
The role of Mubadrah will be to develop, manage and operate as a main developer in the existing industrial estates, as well as attracting local and international developers as key operators of the new estates.
Hasani said that Rusayl Industrial City has been selected to be the first industrial estate to be managed and operated by Mubadrah for its representation of a successful model for all of Madayn’s estates, which are located across Oman.
He said, “In 2019, around RO50mn will be allocated to implement the expansion phases in Rusayl Industrial City and rehabilitate the existing phases.”
Hasani added that through the signed agreement and as of January 1, 2019, Mubadrah will manage and operate Rusayl Industrial City by leasing the land and its existing buildings and facilities.
“Additionally, Mubadrah will promote the city inside and outside the sultanate as well as set the rules and procedures for developing and operating Rusayl Industrial City following the approval of Madayn’s board of directors.”