Al-Rusayl Industrial City: Oman's Oldest Industrial City

Al-Rusayl Industrial City: Oman's Oldest Industrial City

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

Oman's first industrial city (1983), close to Muscat. We review its industrial character and main sectors.

Overview of Rusayl Industrial City

Rusayl Industrial City is located in Muscat Governorate and was officially inaugurated in 1983. The city covers a total area of 10.9 million m², making it the first and oldest industrial city in the Sultanate. According to official data published on the Madayn website, the city currently hosts more than 300 active and operational investments on the ground.

Key Sectors and Industries

According to data from Madayn, Rusayl Industrial City attracts key activities including: chemicals, batteries, electrical materials and building materials, fiber optic cables, food products, textiles and garments, stationery, and paints.

Investment Incentives and Advantages in Rusayl

The base industrial rental rate in Rusayl Industrial City, according to the Madayn portal in September 2026, is 1 Omani rial (OMR) 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 facilities built on the land
  • No restrictions on foreign exchange, import, export, 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 delivery within a timeframe specified by Madayn

Strategic Location and Infrastructure

Located in the heart of Muscat Governorate, Rusayl is considered the starting point of modern manufacturing in Oman since 1983, with fully serviced infrastructure and direct proximity to the capital.

The above incentives are intended for those planning a direct industrial project within Rusayl: a factory, a major workshop, or a storage and logistics facility. If this is your project, NGIOM begins by reviewing your decision before commitment (market, location, and key requirements), then coordinates with you on the establishment process, licensing, and liaising with Madayn once your 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 is often overlooked by investors:

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 operational industrial city, workers, employees, and companies are active daily, each with daily needs: Where do workers eat lunch? Where do they pray? Where do companies buy spare parts for their equipment? The size of this demand around Rusayl, who currently meets it, and at what quality, are assumptions to be tested with data, not just published figures. If validated, this represents an opportunity for medium and small investors with lower capital, with demand linked to an existing city rather than a hypothetical market.

According to Madayn, Rusayl Industrial City hosts more than 300 established investments. Each facility means workers and employees who require daily services, and companies that need supply and maintenance; the actual number and size of this demand are measured through 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 data on its fourteen industrial cities (year of establishment, area, actual industrial sectors, industrial rental rates, and incentives), in addition to feasibility studies and direct coordination with Madayn for those planning a major industrial project within Rusayl, and precise definition 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, detailed analyses—not a vague general overview—of what workers actually need (restaurants, pharmacies, mosques, banks, etc.), and what company owners actually require (maintenance, spare parts, insurance, etc.), with a clear numerical gap for services completely absent within your scope, and knowledge of your actual competitors there now by name and evaluation, all delivered and reviewed with you in a dedicated file.

Whether your project is a large factory inside Rusayl 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 rental rates are subject to change; please check the portal before making a decision.

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