INVESTMENT: The planned project to host up to 15,000 people and to have biggest gathering of auto showrooms
Muscat - The Sultanate's first integrated light industry city in Oman financed by the private sector sees immediate demand from auto industry.
At a cost of RO 100m the city will be constructed over 250,000 sqm located just five km away from Maabela exit at the Express Way. The city is planned to host 10,000 to 15,000 people. Sandan is the developer of the project, which is expected to have the biggest gathering of auto showrooms in Oman.
The project design has been approved by the Ministry of Housing, Royal Oman Police and civil defence authorities. The execution is scheduled to kick off in June 2016 and by the middle of 2018 the project is expected to be completed.
According to Saleem Hassan al Balushi, Assistant Director General of the Directorate General of Real Estate Development at the Ministry of Housing, this is the first industrial city that is located in the Muscat area that is bringing together sellers, industries and investors.
He said, "The Ministry of Housing will be following up with the project at every step and especially in the terms and conditions when it comes to investments and SMEs ensuring it is with structure maintained by the government," added Al Balushi. There are plans in the pipeline to promote SMEs especially in the students' level.
The city is expected to host 2,200 workshops and exhibitions for building materials and automotive. On all, 400 offices and 18,000 residential units for workers. The accommodation is placed above the shops in spacious areas, which will take care of the transportation issue.
Said Nasser al Rashdi, CEO, Sandan said, "We are targeting the SMEs to start with and so we have smaller units. Everyone who is running a small business whether it is in construction, automobiles can now have their own unit in the park. The difference between us and any other industrial area in Oman is that we are purpose built. Our shops are designed for the businesses interested people are specializing in. For the car showrooms the parking space, the water supply and drainage capability are all calculated for. The city is designed in such a way that it suits everyone. We have designed as per the experience of the current business owners."
"Last week the used car dealers were introduced to the project and within four hours all our car showrooms were sold out," said Al Rashdi enthusiastically. The idea of having more than one thousand cars together is very lucrative for the dealers said the CEO because when them being placed to each other ensures that people are going to come to them. There are 50 car showrooms together usually they are scattered pointed out Al Rashdi.
The owners of the project have invested in land.
"We have enough cash flow in addition to the project being self-financing. It is not going to be rented it is based more on the appraisal concept. So people can buy their own units", said Al Rashdi.
All the units of the project --workshops, offices, trade shows and residential units will be offered for direct sale with buyers having the opportunity to pay in interest-free instalments extending for 18 months.
© Oman Daily Observer 2016
