Public Establishment for Industrial Estates’ Recent Decisions

Oman

Recently the Public Establishment for Industrial Estates (“PEIE”) issued two decisions. The first decision (Decision No 168/2020) amended some provisions of the regulation of tenders by PEIE and the second decision (Decision No 169/2020) amended some provisions of the regulation of investment of PEIE.

In this article, we look at the PEIE’s mandate first and then briefly at each of the new decisions in turn.

PEIE’s Mandate

PEIE was established by Royal Decree No 4/1993 and is today managed by Mr. Hilal Al Hasani (CEO). PEIE is responsible for developing and managing industrial land in the following locations:

  • Rusayl
  • Raysut
  • Sohar
  • Nizwa
  • Buraimi
  • Sur
  • Sumail
  • Al Mazunah Free Zone
  • Knowledge Oasis Muscat

The nine estates are suitable for manufacturing, warehousing, distribution and offices. PEIE’s vision is to “enhance Oman’s position as a leading regional centre of manufacturing, ICT [information and communications technology], innovation and entrepreneurship excellence”.

Recently, PEIE has signed a memorandum of cooperation with Petroleum Development Oman (PDO) to establish an industrial estate within the industrial and logistics complex in Marmul. PEIE is aiming to finance, develop, operate and attract investments to Marmul, which is located within PDO's concession area.  The industrial estate in Marmul is expected to focus mainly in attracting investments in the oil and gas sector.

Decision No 168/2020

This amendment relates to Article 62 of the Regulation of Tenders of PEIE (Decision No 11/2017) which now states that the committee (the public tender committee, internal tender committee or procurement committee) shall prepare the minutes of its work including the award decision and a copy of such minutes shall be sent to the department (the tendering and procurement department) or the administrative affairs department, as appropriate, to complete the process.

Decision No 169/2020

These amendments are related to the Provisions of the Regulation of Investment of PEIE (Decision No 220/2017) and include amendments to some provisions, the addition of new provisions and amendment of the fees and services schedule.

The amendments expanded the competencies given to the Supreme Committee for Investment of PEIE. Article 5 of Decision No 169/2020 adds a new paragraph to Article 183 of Decision No 220/2017 which states that the Supreme Committee may reduce: (i) the licensing fees and costs of the services provided by PEIE, (ii) the rents and (iii) the cost of new establishments in new areas or areas which require investment attraction, in each case, to grant exceptional incentives and benefits at a rate that does not exceed 50% for up to five years based on the recommendation of the Supreme Committee provided that such recommendations includes an indication of the impact of such reductions in fees and costs of services.

The fees and services schedule has been changed, some of the previous services have been expanded on and are now described in more detail and their fees are broken down into more specific services. Small and medium enterprises can now benefit from some of the reduction in licensing fees and service costs.

Conclusion

PEIE is expecting that these amendments will encourage more investors to invest in one of its nine estates. Each estate that PEIE controls has a different set of incentives for investors and, therefore, investors can choose the estate which best suits their business activities.

If you have any questions relating to PEIE, please get in touch with us.

Article co-authored by Bassam Al Raisi.