Raysut Industrial City is Madayn’s established industrial location in Dhofar Governorate, close to Salalah, the Port of Salalah and Salalah International Airport. It serves mainland manufacturing and industrial projects in southern Oman and should not be confused with Salalah Free Zone.
For investors, Raysut is most relevant when the project needs a Dhofar manufacturing base, access to the Omani mainland market, proximity to Salalah’s logistics infrastructure or a position close to southern Oman’s food, fisheries, minerals and industrial supply chains. For a national comparison, see our Oman Industrial Cities guide.
Raysut Industrial City: Key Facts
- Operator: Madayn
- Location: Dhofar Governorate
- Opened: 1992
- Published industrial rent: OMR 1 per m² annually
- Current investments: 200+
- Original developed footprint: about 3.9 million m²
- Expanded city area: over 9 million m² reported by OPAZ in 2025
- Main sectors: fish processing, frozen food, PVC pipes, steel fabrication, medical supplies, flour, fertilizer, vegetable oil and related industries
Madayn’s current city profile still shows 3.9 million m² as the total area. OPAZ reported in 2025 that additional land had expanded the wider city area to more than 9 million m². Investors should therefore distinguish between the older developed footprint and the newer expansion area.
Raysut Industrial City Is Not Salalah Free Zone
Important distinction: Raysut Industrial City is a Madayn mainland industrial city. Salalah Free Zone is a separate free-zone jurisdiction. The two locations are close geographically, but their customs treatment, tax incentives, land arrangements and target business models are different.
A company should not choose between them simply because both are in the Salalah/Raysut area. A mainland factory serving Oman may have very different needs from an export-processing or re-export operation. If the business model is still unclear, compare the wider Oman Free Zones guide before making a location decision.
Location and Logistics
Madayn describes Raysut as strategically located in southern Oman, close to the Port of Salalah and Salalah International Airport. This creates a practical base for factories importing raw materials, exporting finished goods or supplying Dhofar and southern Oman.
Port proximity does not make Raysut a free zone. Mainland imports still follow the relevant customs process unless a specific industrial exemption applies. See our Customs Clearance in Oman guide for the separate import and Bayan framework.
Industries in Raysut
Raysut has developed a broad industrial base. Madayn currently lists school stationery, box files, ice production, fish processing, frozen chicken, PVC pipes, steel fabrication, medical supplies, solar heaters, flour, fertilizer and vegetable oil among the city’s industries.
This makes Raysut particularly relevant to food and fisheries processing, construction materials, medical manufacturing, plastics and industrial supply activities. The exact industrial activity still needs to be checked before company formation and land application; Oman Verified’s Business Activity Finder can help identify the activity classification.
For food and temperature-controlled projects, the wider operating model may also need cold-storage and food-safety approvals. Our guide to cold storage businesses in Oman covers those requirements separately.
Industrial Land, Expansion and Rent
Madayn currently publishes an annual industrial rent of OMR 1 per m² for Raysut Industrial City. The current city profile shows 3.9 million m², but OPAZ announced in 2025 that the total area had expanded to more than 9 million m² after approximately 5 million m² of additional land was added.
The new area should be treated as expansion capacity, not automatically as immediately available serviced land. OPAZ stated that design work for the new areas was scheduled to begin in 2025, and its April 2026 project update showed a water pumping station and connection line for Raysut expansion still under implementation.
As with other industrial cities, land rent is only one part of the investment budget. Construction, machinery, utilities, environmental approvals, fire and safety requirements, staffing and working capital can materially exceed the land lease. Our Oman company setup cost guide covers normal company-establishment costs, while a factory requires its own project budget.
Infrastructure and Utilities
Madayn describes Raysut as having integrated industrial infrastructure and transport access. Earlier development phases added roads, water networks, drainage and wastewater infrastructure, while more recent projects have focused on rehabilitation and expansion.
Investors should still confirm utility capacity for the specific project. Power demand, water consumption, wastewater characteristics, gas requirements and environmental classification can vary significantly between a food-processing plant, a steel facility and a pharmaceutical factory.
Foreign Ownership, Tax and Workforce
Madayn and OPAZ list 100% foreign ownership among the incentives available across Madayn industrial cities, subject to the exact activity and applicable restrictions. See our guide to 100% foreign ownership in Oman for the wider mainland framework.
OPAZ also lists a five-year tax exemption on net profit for qualifying industrial projects and customs exemptions for qualifying production inputs among Madayn incentives. Eligibility should be confirmed for the actual project. For the general tax framework, see our Oman Tax guide.
Industrial projects also need a realistic workforce plan. Omanisation requirements and occupation restrictions can affect staffing as the project grows. Our Omanisation guide explains the broader framework.
Who Is Raysut Industrial City Suitable For?
- Manufacturers serving Dhofar and the wider Omani mainland market
- Food, fisheries and cold-chain related manufacturing
- Medical-supply and pharmaceutical-related industrial projects
- Steel, plastics and construction-material businesses
- Factories that benefit from proximity to the Port of Salalah
- Projects that need a southern Oman production base rather than a free-zone trading structure
Raysut may be less suitable for a business whose primary requirement is duty-free re-export or a long free-zone tax holiday. In that case, compare Salalah Free Zone. For other mainland industrial options, compare the other Madayn industrial cities.
Setting Up a Company for a Raysut Industrial Project
Registering an Oman company does not automatically secure industrial land or an industrial licence. The legal entity, approved activities, production process, land requirement and project approvals should be aligned before the investor commits to a site.
Start with our Company Registration in Oman guide, then assess the industrial-location and project-approval requirements separately.
Frequently Asked Questions
Is Raysut Industrial City the same as Salalah Free Zone?
No. Raysut is a Madayn mainland industrial city. Salalah Free Zone is a separate free-zone jurisdiction.
How much is industrial land in Raysut?
Madayn currently publishes an annual industrial rent of OMR 1 per square metre. Final availability and project terms must still be confirmed.
How large is Raysut Industrial City?
Madayn’s current profile shows 3.9 million m², while OPAZ reported in 2025 that the city’s wider area had expanded to more than 9 million m² after additional land was allocated.
What industries are already in Raysut?
Madayn lists fish processing, frozen food, PVC pipes, steel fabrication, medical supplies, flour, fertilizer, vegetable oil and other manufacturing activities.
Can a foreign investor own 100% of a company in Raysut?
Madayn and OPAZ list 100% foreign ownership among industrial-city incentives, subject to the activity and any applicable restrictions.
Official references: Madayn – Raysut Industrial City and OPAZ – 2025 expansion update.
