Mahas Industrial City: Musandam’s Industrial Gateway on the Strait of Hormuz

Mahas Industrial City: Musandam’s Industrial Gateway on the Strait of Hormuz

Industrial Cities 24 September 2026 4 min readEdited by: NGIOM team

An industrial city located in the far north of Oman, in the Wilayat of Khasab, Musandam Governorate, near Khasab Port, Khasab Airport, and the border crossing with the UAE.

Overview of Mahas Industrial City

Mahas Industrial City is located in Musandam Governorate and was officially inaugurated in 2017. The city covers a total area of 1.5 million m². According to official data published on the Madayn website, the city currently hosts more than 17 active investments on the ground.

Active Sectors and Industries

According to Madayn data, Mahas Industrial City attracts activities including: general commercial warehouses, ready-mix concrete, crushers and quarries, asphalt production, the manufacture of blocks, cement, marble, and artificial stone, iron and wood industries, decorative products, oil and fluid recycling, and vehicle maintenance services.

Investment Incentives and Advantages in Mahas

The base industrial rental price in Mahas City, according to the Madayn portal in September 2026, is 500 baisa per m² per year. The general incentives provided by Madayn to all investors in this city, as listed on the official investment portal (invest.madayn.om) as of September 2026 and subject to change, include:

  • A five-year exemption from tax on net profit for qualifying manufacturing projects, then 15% (conditions are set by the authorities)
  • Full customs exemption (0%) on the import of production inputs, machinery, equipment, spare parts, raw materials, and packaging materials
  • 100% foreign ownership with the ability to sell, mortgage, or lease buildings constructed on the land
  • No restrictions on foreign exchange, imports, exports, or sales
  • Renewable land lease contract for 30 years
  • Support for employing trained professionals with up to 65% of non-Omani workforce
  • Full provision of water, electricity, natural gas, wastewater treatment, and high-speed internet
  • All approvals processed within Madayn itself through a single service center ("Masar") with professional support five days a week and land handover within a timeframe specified by Madayn

Strategic Location and Infrastructure

Overlooking the strategic Strait of Hormuz, Mahas Industrial City is located near Khasab Port and Airport, close to the border crossing with the UAE, and benefits from Musandam’s fishery, livestock, agricultural, and mineral resources.

The above incentives are intended for those planning a direct industrial project within Mahas: a factory, a major workshop, or a storage and logistics facility. If this is your project, NGIOM starts with you by reviewing the decision before commitment (market, location, and key requirements), then arranges the setup process, licensing, and coordination with Madayn once the decision is clear. The incentives themselves are granted by Madayn according to their terms, not by us.

However, there is another opportunity alongside direct industrial investment that investors often overlook:

The opportunity is not only inside the industrial city—but also around it

Investing within the industrial city itself is a relatively large-scale industrial project, suitable for those planning a factory or facility. However, around every active industrial city, workers, employees, and companies operate daily, all with daily needs: Where do workers have lunch? Where do they pray? Where do companies buy spare parts for their equipment? The size of this demand around Mahas, who currently meets it, and at what quality, are assumptions to be tested with data, not just announced figures. If validated, this represents an opportunity for medium and small investors with lower capital, with demand linked to an existing city, not a hypothetical market.

According to Madayn, Mahas Industrial City hosts more than 17 active investments. Each facility means workers and employees needing daily services, and companies requiring supply and maintenance; the actual number of these and the real demand size are measured in analysis, not assumed.

How NGIOM Supports You—No Matter the Size of Your Project

NGIOM provides analysis based on official data and updated maps: Madayn’s published information on its fourteen industrial cities (year of establishment, area, actual industrial sectors, industrial rent, and incentives), in addition to feasibility studies and direct coordination with Madayn for those planning a major industrial project within Mahas, and precise determination of the research scope—from one kilometer up to ten kilometers—for those planning a service project around it.

For small and medium investors: two separate, precise analyses, not a vague general one—what workers actually need (restaurants, pharmacies, mosques, banks, etc.), and what company owners actually need (maintenance, spare parts, insurance, etc.)—with a clear numerical gap for completely missing services within your area, and knowledge of your actual competitors there now by name and assessment, in a file delivered to you and reviewed with you.

Whether your project is a large factory inside Mahas Industrial City or a service activity around it, start by reviewing your decision with us, and we will provide you with the correct data from the very first step.

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Source: The official website of the Public Establishment for Industrial Estates (Madayn) and the investment portal invest.madayn.om, as of September 2026. Figures, incentives, and lease rates are subject to change; please check the portal before making a decision.

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