Oman-based Public Establishment for Industrial Estates (Madayn) has signed an investment agreement with Al Alia Investment and Industry Company to establish a vehicle trade centre on a total area of 53,000-sq-m at Al Mazunah Free Zone. 

 

The project, which is estimated at a total value of RO 400,000 ($1 million), will be specialised in trading, re-exporting and repairing vehicles, and providing a variety of automobile related services. 

 

The agreement was signed by Said bin Abdullah Al Balushi, director general of Al Mazunah Free Zone, and Abdulmalik bin Hilal Al Bahri, chief executive officer of Al Alia Investment and Industry Company.

 

Commenting on this agreement, Said Al Balushi, director general of Al Mazunah Free Zone, stressed that automobile and auto parts industry is one of the key sectors that the free zone is currently focusing on its development. “Significant efforts are being made by Al Mazunah Free Zone to attract companies specialised in trading new and used vehicles,” 

 

Al Balushi added: “The vehicle trade centre shall stimulate other automobile related businesses such as vehicle repair workshops, spare parts, vehicle wash businesses, and related SMEs to provide their services. Besides, the project aims at providing job opportunities, boosting other economic sectors as well as stimulating the transportation sector and the Omani ports through which these vehicles are imported.”

 

On his part, Abdulmalik bin Hilal Al Bahri, CEO of Al Alia Investment and Industry Company, pointed out that the project aspires to add an economic value through an integrated centre that serves the automobile sector and warehouses. “Al Mazunah Free Zone presents an attractive investment environment in a strategic location, and this project shall play a role in providing job opportunities for the Omanis,” Al Bahri commented.

 

The total number of incoming vehicles to Al Mazunah Free Zone touched 2,066 by the end of March, marking a growth rate that exceeds 500 per cent and an increase of 1,736 vehicles compared to the same period of 2019. Since the beginning of April this year, an increasing trade movement has been observed at the free zone. The second quarter of the current year is expected to witness major increase in the volume of goods and vehicles entering the free zone.

 

The strategic location of Al Mazunah Free Zone on the border of the Sultanate and Yemen makes it the Gulf gateway for transit trade to Yemen and Eastern Africa. General incentives are offered to the investors in the free zone, including customs’ exemptions, 100 per cent foreign ownership, no minimum capital requirements, and Omanisation rate stands at 10 per cent. Other incentives include easy access of individuals and investors to the free zone without entry visas being required for Yemenis, facilitation of employing Yemeni workforce without work visa being required, in addition to other incentives.

 

Madayn recently announced that the one-stop-station at Al Mazunah Free Zone is now offering all the services that are required by the investors. These services include obtaining and approving certificates of origin, and applying and renewing membership certificates. A variety of services related to investment activities can be accessed and transactions can be completed within a period not exceeding three hours through the one-stop-station. The one-stop-station at the free zone includes several public and private bodies such as the Ministry of Commerce and Industry, Ministry of Manpower, Oman Chamber of Commerce and Industry, and insurance companies. Through the one-stop-station, Madayn aims at saving time and effort as well as facilitating the services offered to the investors and business owners. - TradeArabia News Service