Muscat, Oman: 17 June 2007: Cyclone Gonu, which recently swept through the Sultanate of Oman affecting businesses and residents alike, has left The Blue City urban development project unscathed. Reports from Al Sawadi Investment and Tourism (ASIT), the project developers, state that damage on 32 square kilometer site is negligible. The Blue City is one of the most important metropolitan developments underway in Oman and its first phase, underwritten by a US$ 925 million finance note on the Global Capital Market, is set to commence construction imminently.

Anees Issa, Chairman of ASIT said a combination of the project's geographical location together with the precautions taken by ASIT in advance of the cyclone hitting land, ensured The Blue City project offices and equipment survived intact and personnel were unharmed. All major utilities including the power station near The Blue City site were also unaffected.

"The impact of the storm front was more profound where wadi channels that carry water from the mountains during the rainy seasons meets the sea," said Issa. The combined effect of rising sea-levels and rainfall through the wadis meant some areas of Oman experienced a rise of eight metres in water above sea level.

"Thankfully, The Blue City is not on the path of any wadis, is 50 kilometres from the nearest mountains and is also above sea level. These three factors ensured that the project was not affected like others in Oman," said Issa.

"We also committed to an action plan with our contractors and suppliers to ensure that all possible measures to protect the site, equipment and personnel on the project were taken well ahead of the cyclone hitting the Oman coast.

"Equipment was removed to safer ground, site offices were closed and secured and personnel were moved inland. There was no damage to contractor facilities on-site and contractors were back on-site and operating immediately the storm had passed."

Issa concluded by stating that whilst it is unlikely a similar storm in the future will affect the project, the storm has proved that nothing can be taken for granted and The Blue City planning will include further contingency planning for any future cyclonic fronts.

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About The Blue City
Located on a natural peninsula 90 kilometres from Muscat, The Blue City is a 32 square kilometre (12.36 square mile) waterfront city being built along 16 kilometres (9.95 miles) of shoreline adjacent to the Gulf of Oman. Blue City is more than just a resort real estate development; the city is being designed and built to include all the elements needed for a thriving metropolitan community. When complete, the city will be home to 250,000 people who will live, learn, work, relax and play in surroundings that are harmonious with the existing Omani landscape, architecture and culture.

The organization behind the project is Al Sawadi Investment & Tourism Company (ASIT) which has the endorsement of the government of Oman to bring this massive urban development to life.

Blue City will serve as a growth engine for the Omani economy and will radically expand the tourism facilities in Oman. The city will generate large scale employment opportunities for Omani nationals, promote freehold property ownership for nationals and expatriates alike and serve as a hub for leisure activities in the sultanate.

For further information contact:
Kaja Weller
kaja.weller@hillandknowlton.com
Hill and Knowlton
Dubai
+971 (0)4 3344930

© Press Release 2007