Al Rusayl Industrial City in Oman: Investor Guide

Al Rusayl Industrial City is Oman’s oldest major industrial city and one of Madayn’s most established manufacturing locations. It opened in 1983 in Muscat Governorate and today accommodates more than 300 investments across chemicals, food production, electrical products, building materials, textiles, paints and other manufacturing activities.

For a foreign investor, Rusayl is mainly a location decision: it offers an established industrial ecosystem close to Muscat, but the investor still needs the correct company structure, approved business activities, industrial approvals, land or facility allocation and project-specific permits. For the wider location picture, see our guide to industrial cities in Oman.

What Is Al Rusayl Industrial City?

Al Rusayl was the starting point of Oman’s modern industrial-estate programme. The industrial city began operations in 1983, before Madayn itself was established, and its success later became part of the model used to develop industrial cities in other governorates.

Today it is a mature industrial location rather than a new greenfield development. This matters because a manufacturer entering Rusayl is locating alongside an existing base of factories, suppliers, workshops, logistics operators and industrial services instead of building within a largely undeveloped zone.

Location and Logistics

Rusayl is located in Muscat Governorate. Madayn highlights its proximity to major ports and airports and its road, sea and air connectivity to Gulf and international markets. For manufacturers that need access to the capital’s workforce, business services and transport network, this is one of Rusayl’s main practical advantages.

The location can suit companies importing raw materials, serving customers in Muscat, supplying other Omani industries or exporting part of their production. If the business model depends heavily on sales across neighbouring GCC markets, our guide on serving GCC markets from an Oman company explains the separate customs, distribution and licensing questions that still need to be considered.

Industries in Al Rusayl

Madayn lists a broad industrial mix in Rusayl rather than one dominant sector. Existing activities include:

• Chemicals and related manufacturing
• Batteries and electrical materials
• Building materials
• Fibre-optic cables
• Food manufacturing and processing
• Textiles and garments
• Stationery
• Paints

This diversity is useful for investors whose operations depend on local industrial suppliers or B2B customers. OPAZ also highlighted Areej Vegetable Oils and Derivatives as an example from Rusayl in its 2026 media briefing: the company had a production capacity of 240,000 tonnes and exported 80% of production to more than 30 countries.

Before choosing an activity, however, investors should confirm that the exact industrial activity can be licensed and allocated in the city. Oman Verified’s Business Activity Finder can help identify activity classifications, while the licensing and land-allocation decision remains with the relevant authorities.

Industrial Land, Facilities and Rent

Madayn currently publishes an annual industrial rent of OMR 1 per m² for Al Rusayl. It also describes the city as offering fully serviced industrial plots and facilities for different investment requirements.

The headline land rent should not be treated as the total cost of setting up a factory. A real industrial project may also involve company formation, engineering and design, construction, machinery, utility connections, environmental studies, building approvals, fire and safety requirements, staffing, insurance and working capital. Our Oman company setup cost guide covers ordinary company-establishment costs, but a factory budget must be built separately around the actual industrial project.

Madayn’s broader industrial-estate framework includes long-term land and facility leases and the use of usufruct agreements. OPAZ currently states that land and facilities may be leased for up to 30 years and renewed for a similar period, with rights relating to buildings, assignment and the involvement of new partners. The exact contract offered to a project should be reviewed before signing.

Infrastructure and Services

Rusayl is an established industrial city with basic infrastructure and business services already in place. Madayn identifies serviced plots, road access, utilities and support services as part of the location’s offer. Common-area maintenance is also listed as available.

Because industrial utility demand varies substantially, investors should not assume that a published national electricity or water tariff tells them the full operating cost of a specific factory. Power load, connection voltage, water demand, wastewater requirements and any special industrial treatment need to be assessed for the actual production process.

For technology-heavy businesses that do not require conventional industrial land, nearby Knowledge Oasis Muscat (KOM) is a separate Madayn-managed location focused on technology and knowledge-based activities. It should not be treated as part of Rusayl Industrial City simply because both are in the same broader Muscat industrial ecosystem.

Foreign Ownership, Tax and Workforce

Madayn and OPAZ currently list 100% foreign ownership among the incentives available across Madayn industrial cities. This does not mean every industrial activity is automatically open without additional approval. The activity, legal form and any sector-specific restrictions still need to be checked. Our guide to 100% foreign ownership in Oman explains the wider mainland rules.

OPAZ also lists a five-year exemption from tax on net profit for qualifying industrial projects and exemptions relating to production inputs among Madayn incentives. Investors should confirm eligibility for their specific project rather than treating these as automatic. Outside any applicable exemption, Oman’s standard corporate tax framework remains relevant; see the current Oman tax guide.

Industrial projects must also plan for workforce localisation. Omanisation requirements can vary by activity, occupation and company circumstances, and restricted job titles can change over time. See our explanation of Omanisation in Oman before building a long-term staffing model.

Current Development and Expansion

Rusayl is mature, but it is not static. OPAZ’s April 2026 project update listed a Madayn Entrepreneurial Complex in Rusayl as an infrastructure project under implementation and also listed the UP Town Residential Area as a private-sector project under implementation. Because construction progress changes quickly, investors should verify the latest status directly before relying on these projects in a feasibility study.

Who Is Al Rusayl Industrial City Suitable For?

Rusayl is particularly worth evaluating for investors that need an established mainland industrial location close to Muscat rather than a new remote industrial site. Typical fits may include:

• Manufacturers selling into the Omani domestic market
• Industrial suppliers serving existing factories and B2B customers
• Food, electrical, materials, chemical and light-to-medium manufacturing projects
• Companies that value access to Muscat’s workforce and business-services base
• Projects needing a mature industrial ecosystem rather than a greenfield location

Rusayl may be less suitable when the project is primarily an export or re-export operation seeking a free-zone customs model, when a very large greenfield footprint is required, or when the activity does not need industrial land at all. In those cases, compare Oman’s free zones, Khazaen Economic City, other Madayn industrial cities, or a normal mainland commercial location before deciding.

Setting Up a Company for a Rusayl Industrial Project

Registering an Omani company and obtaining industrial land are related but separate steps. A foreign investor normally needs to align the legal entity, shareholders, approved activities, project description, site requirements and permits with the proposed industrial operation.

For the legal setup side, start with our Company Registration in Oman guide. For industrial projects, do not register a random activity first and assume the land application can be adjusted later. The activity list and proposed production process should match the project being presented to Madayn and other authorities.

Frequently Asked Questions

Is Al Rusayl Industrial City a free zone?

No. Rusayl is a Madayn industrial city on the Omani mainland. Free zones operate under a different structure and should be evaluated separately.

How much is industrial land in Al Rusayl?

Madayn currently publishes an annual industrial rent of OMR 1 per square metre for Al Rusayl. This is a land-rent figure, not the full cost of establishing or operating a factory.

Can a foreign investor own 100% of a company in Rusayl?

Madayn and OPAZ list 100% foreign ownership among industrial-city incentives. The exact business activity and any sector-specific restrictions still need to be checked before company formation.

What industries operate in Al Rusayl?

Madayn lists chemicals, batteries, electrical and building materials, fibre-optic cables, food products, textiles, garments, stationery and paints among the city’s industries.

Is Rusayl better than a free zone for manufacturing?

It depends on the business model. Rusayl can be attractive for mainland manufacturing and access to Muscat and domestic supply chains. An export-focused operation may need to compare customs treatment, tax incentives, logistics and land costs with free zones before choosing.

Does company registration automatically secure industrial land?

No. Company registration does not guarantee land allocation. The industrial project, activity, site requirements and relevant approvals must still be evaluated through the applicable process.

Official references: Madayn – Al Rusayl Industrial City and OPAZ – Industrial Estates (Madayn).