5 June 2005
MUSCAT -- A $15 billion property development project in the Sultanate of Oman called the "Al Madina Al Zarqa" or"The Blue City" was launched in Muscat yesterday.
The seafront development, covering 35 square km, is located at a place called Barka, about 45 minutes drive from the Omani capital. Work on the project, which will take 10 years to complete, will start in the third quarter of this year.
This major project is promoted by Al Sawadi Investment & Tourism (ASIT) LLC. Major shareholders in ASIT are AAJ Holdings Company, Bahrain and Cyclone LLC, Oman. Speaking at a news conference ahead of the formal launch later in the day, Anees Issa, chairman and managing director of Al Sawadi, said Blue City would be a city-cum-resort. When completed, 200,000 residents are expected to live in it. Foreigners purchasing property in the Blue City would be given freehold ownership besides renewable residence visas for the buyer and close relations like wife/husband, children and parents.
Issa also said the Blue City project, besides promoting the Sultanate as a residential destination, will considerably expand Oman's growing tourism industry. After its first phase is completed, the Blue City's five beach resorts, with a total of 2,000 hotel rooms, will create about 7,000 direct jobs and 25,000 indirect jobs. The first phase, which is expected to cost $1.8 billion, will also see the construction of about 1,000 homes.
Ahmed Abubaker Janahi, vice-chairman of Al Sawadi and CEO of AAJ Holdings, said ASIT, which is current 30 per cent Omani owned, is likely to be listed on the Oman Stock exchange in the near future.
Janahi also said, besides homes and hotels, the Blue City project will include facilities for healthcare, education and sports. Hotel operators like Marriott, St. Regis of Starwood, Raffles and Campbell Grey have shown interest in running the hotels to be built in Al Madina Al Zarqa, he said.
The project will be managed by ReeMoon company of Bahrain, who are also consultants for the Bahrain Financial Harbour project. The architects are AJVisions of Bahrain, a subsidiary of ReeMoon.
Heiko Achilles, CEO of ReeMoon, said the design of the city-cum-resort and the architecture of its buildings will reflect Oman's distinctive character,
Mohsin bin Khamis Al Baloshi, under-secretary of Oman's Ministry of Tourism, said the Sultanate is the Gulf region's newest tourism destination. Besides its natural beauty and historical sites, life in Oman is peaceful and slow. The Blue City, when completed, will be another reason for tourists to visit Oman, he added.
Finance for the full project will be arranged by Oppenheimer of North America LLC. Jerald A. Belofsky, chief executive officer of Oppenheimer, said.Bear Stearns have been chosen as placement agents for the bonds which are expected to be issued to raise funds for the Blue City project.
Oman received 1.5 million visitors in 2004 which is expected to double in the next three to five years. The Sultanate has about 6,000 hotel rooms at present, which is expected to reach 10,000 by the year 2010.BY P.S. NAIR
© Khaleej Times 2005
