Transforming Oman’s Industrial Cities: What Major Initiatives Mean for Investors and Business Owners
MUSCAT, JAN 12 — The Public Establishment for Industrial Estates (Madayn) has announced 98 initiatives set for implementation during the 11th Five-Year Development Plan (2026–2030). These initiatives aim to expand Oman’s network of industrial cities and transform the first two clusters into internationally recognized smart cities.
Eng. Dawood bin Salim al Haddabi, CEO of Madayn, stated that the initiatives focus on three main objectives: enhancing the development and operation of industrial cities, promoting institutional excellence, and ensuring environmental sustainability.
In an interview with Duqm Economist, the newsletter of the Public Authority for Special Economic Zones and Free Zones (OPAZ), Al Haddabi outlined strategies to expand and upgrade industrial infrastructure nationwide. Key projects include Phase 1 infrastructure and utilities development at Al Mudhaibi Industrial City (approximately 2.5 million m²) and Al Suwaiq Industrial City (5 million m²), along with infrastructure works at Madha Industrial City covering over 348,000 m²— all greenfield clusters. Other priorities involve rehabilitating and master planning Al Wadi Al Kabir Industrial City, multi-phase infrastructure upgrades at Suhar Industrial City, constructing a marine berth and preparing a master plan for Sur Industrial City, and expanding water networks at Raysut Industrial City.
A crucial element is the Digital Transformation Execution Plan (2026–2030), which represents a strategic move to unify Madayn’s efforts under a comprehensive institutional transformation framework.
“The plan aims to execute 105 digital projects across 12 main pillars encompassing government digital transformation pathways, including digital readiness, experience, enablement, and innovation,” Al Haddabi explained. Targets include gaining international recognition for two industrial cities as smart cities, achieving 100% automation of priority services with full integration across government and private-sector platforms, and increasing investor satisfaction above 85%.
The digital plan incorporates advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), big data, and renewable energy into industrial cities’ core infrastructure. Initiatives include establishing smart operations centers for real-time performance monitoring, launching a unified digital investment platform integrating logistics and licensing, enhancing workforce digital skills, and developing a comprehensive training system focused on data analytics and AI.
Together, these 98 initiatives aim to advance Madayn’s industrial cities into their next phase of growth, building on strong momentum. By mid-2025, cumulative investments reached approximately RO 7.8 billion, reflecting 2% year-on-year growth. The total number of projects increased to 2,095, up 3%, while leased land across all industrial cities, Knowledge Oasis Muscat, and Al Mazunah Free Zone expanded to 34.6 million m²—an occupancy rate of 68% out of 61.6 million m² of developed land.
In the first half of 2025 alone, Madayn received 215 new investment applications and signed 124 contracts valued at over RO 80 million, covering more than 895,000 m², Al Haddabi added.
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Madayn’s ambitious 11th Five-Year Development Plan signals a transformative shift towards smart, sustainable industrial cities, unlocking significant growth opportunities for businesses in Oman’s industrial sector. Smart investors and entrepreneurs should focus on leveraging digital transformation, AI integration, and enhanced infrastructure projects to capitalize on the expanding market and rising demand for technology-driven industrial solutions. The focus on environmental sustainability and institutional excellence also creates risks for non-compliant players, emphasizing the need for forward-thinking strategies aligned with Oman’s evolving regulatory and technological landscape.
