Press Release
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The Oman Real Estate Portfolio, joint ventures of key GCC developers, has launched Al Badia Residential Project, Al Mazaya’s initial development in the Sultanate as a result of its strategic partnership to develop a series of projects in Oman with a special focus on Sohar. The project will be developed and marketed by Al Mazaya Holding, regional leading property developer, which holds a 40% stake of the portfolio.
Al Mazaya and its partners are willing to capture a significant chunk of the Omani buoyant real estate business which has began recording a rapid year on year growth, surging by at least 100%. This boom has resulted in an unprecedented rate of GCC and foreign investment inflow to the real estate sector in the sultanate, primarily in Muscat and Salalah, with special focus on developing the tourism infrastructure by constructing hotels, tourist cities and resorts. Investment in the residential sector has been active, too, with the launch of several mega projects announced by investors, most of whom are GCC-based developers. Consequently, total transaction volume on the Omani property market in 2006 was OMR 1.95 billion, (US $5 billion), with 109% increase comparing to 2005.
Al Mazaya and its partners’ new project is situated in Sohar, on Al Batinah Coast of the Gulf of Oman, an area of outstanding natural beauty, renowned for preserving Omani traditional heritage while occupying an important geographical location. The province is home to several major heavy industry projects, and to the Port of Sohar, which is increasingly becoming one of the most important hubs for logistic trade in the Middle East.
Commenting on the project, Rashid Al Nafisi, Al Mazaya Holding Chairman, said: “This move is a part of our strategic plan to expand across the GCC’s real estate markets, which has become a favorable investment destination. Our plans encompass most regional countries. Sohar was chosen to be home to our initial project in Oman, due to its numerous attractions that draw the attention of investors and tourists alike.
“Oman is witnessing an unprecedented real estate boom as a part of the ongoing real estate boom in its neighboring GCC countries. This country’s promising real estate market is poised for further growth in the coming years, as a result of the huge infrastructure projects announced by its government. This infrastructural development will include a marine network that connects to the UAE, KSA and Yemen.”
Positioned on an area of 19.4 thousand square meters, at a total cost of OMR 4.6 million, Al Badia Residential Project comprises 73 villas, a private sporting club, and a multi purpose hall. Inspired by the concept of simple, elegant and antique architecture, the stylish ancient design of the project will play its role in preserving the Omani architectural heritage. The project will have an extensive marketing plan that will follow the initial launch.
In conclusion Al Nafisi expressed his confidence in Oman’s buoyant real estate market, which is considered as one of the region’s more favorable investment destinations, particularly for other GCC-based investors who receive the same governmental facilities as Omani nationals; further boosting GCC investors’ confidence in the Omani real estate market.
Real estate investors and market observers have attributed this accelerated growth in the Omani realty market to the series of new laws and regulations issued by the government. These laws have given the nationals of any GCC country the same rights, facilities and incentives as the Omani national. All nationalities are allowed freehold ownership of property, according to the new regulations. Government corporations are endeavoring to attract direct foreign investment to the Sultanate by setting attractive incentives for investment and joining forces with foreign investors, as seen in the latest projects, most of which were joint ventures between government and foreign investors.
