PEIE to invest RO117m in three industrial estates

31/12/2012 09:21 AST

The Public Establishment for Industrial Estates (PEIE) is investing RO117 million in the next three years for expanding three industrial estates Rusayl, Sohar and Nizwa in a move to meet the growing demand for industrial plots from entrepreneurs. In addition, plans are afoot to set up industrial estates in Samayil, Ibri, Musandam and in the Sharqia region, Hilal bin Hamed al Hasani, Chief Executive Officer of PEIE told Times of Oman on the sidelines of an award function to honour the winners of HM Cup for Best Factories.

"We are doubling the total area of existing Rusayl, Sohar and Nizwa industrial estates. The investment is for developing the industrial infrastructure within the industrial estates. The expansion programmes are now under implementation," added the PEIE chief.

PEIE is implementing the second phase expansion for developing a vast area of 3.5 million square metres in Rusayl industrial estate. The envisaged capital expenditure is around RO20 million for accommodating another 200 industrial units. Al Hasani said the expansion programmes of Rusayl, Sohar and Nizwa industrial estates would be completed by the end of 2015.

Referring to the progress in developing four green field industrial estates, he said PEIE is now trying to find a suitable location for Ibri industrial estate. "We have carried out a feasibility study for Ibri industrial estate. We expect around RO100 million worth of investment in food processing industry in Ibri." Since Ibri is also close to the Saudi border, industrial units can export their finished products to the large Saudi market. In fact, Ibri industrial estate will be eighth in the PEIE's network, after Rusayl, Raysut, Sohar, Sur, Nizwa, Buraimi and the proposed estate coming up in Sumayil. The main objective of setting up new industrial estates is to develop different regions and create employment opportunities for Omani youth.

The Samayil industrial estate, which is coming up 35 kms away from Rusayl, has already attracted significant investor interest. It is coming up in an area of seven to eight million square meters, according to PEIE sources. A consultant is helping PEIE for the master-plan design and layout of the proposed industrial estate. PEIE sources earlier said that the total cost of developing the Samayil industrial estate is estimated between RO25 million and RO30 million.

The industrial estate will house 300 industrial units in a vast area of 7.8 million square meters. Al Hasani also said that the Ibri industrial estate will be operational before the end of next year, while Musandam estate will be ready before the end of 2015. The PEIE chief said a total of 1,200 units are located within various industrial estates, which provide employment opportunities for 14,000 Omani nationals. The industries located within the estates have achieved an Omanisation rate of 41 per cent.

Times of Oman