PEIE sets up holding company to manage assets

Muscat - 

The Public Establishment for Industrial Estates (PEIE) on Tuesday announced a number of new plans and steps for further growth and development of industrial estates in Oman. 

The PEIE announced the establishment of a holding company which will manage its assets and increase the involvement of private sector in management and development of industrial estates.

At a press conference, PEIE officials said that in a time bound manner, it will limit its role to planning, regulating, monitoring and follow up with stakeholders by 2022. And, at the same time, PEIE will encourage and facilitate private sector to play a greater role in promoting industrial estates in the sultanate.

Hilal bin Hamad al Hasani, CEO of PEIE, said, “We have identified three major steps which would be taken to increase transparency, efficiency and the overall contribution of industrial estates in economic development of the country by involving private sector in every aspect of the business.”

Hasani said the PEIE will transfer all its assets to a holding company – Oman Investment and Development Holding Company. “Now this holding company will rope in specialised operators for managing, developing and promoting existing industrial estates,” he said.

Oman Investment and Development Holding Company is likely to start operations during the second half of 2018. “A time-plan has also been prepared to transfer all the existing industrial estates to the holding company gradually. This will be done in a way not to adversely affect the ongoing services to the companies, investors and clients,” Hasani said.

In efforts to encourage the private sector investment, the PEIE has also decided not to invest directly in the development process, and will seek cooperation from international operators for developing industrial estates in future.

“PEIE will open investment opportunity in the new industrial estates located in a number of Wilayats during 2018 and 2019 for the local and foreign private sector. In the coming period, the PEIE will attract local and international industrial developers to invest in the construction, management and operation of specialised investment areas,” Hasani said.

He said, to facilitate this PEIE has set up rules, procedures and legislative frameworks that grant developers ‘usufruct contract’ for up to 99 years. Another important decision is to open the way for the private sector to work under the umbrella of PEIE as owners and developers of the economic areas. Hasani noted that the main aim of these new steps is to ‘strengthen the partnership with the private sector’ in a smooth and effective manner in order to ensure that the contribution of industrial estates in the sustainable and comprehensive economic and social development of all.

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