Oman Real Estate supplement 2014 by Ali Jawish

Al Bustan Palace â&#x20AC;&#x201C; A Ritz Carlton Hotel, 25-26 May 2014

Under the patronage of

His Highness Sayyid Shihab bin Tariq Al Said Adviser to His Majesty the Sultan

Oman Real Estate Association:

A catalyst for real estate growth

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A robust economic sector in the making

‘Comprehensive efforts to nurture long-term growth of real estate market’

Sultanate of Oman: Real estate market observations

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ORA: Driving excellence in the real estate sector

ORA – A voice and platform for Oman’s real estate market

Omran: Leading responsible development in Oman

Muscat retail landscape set for significant change

CEO Editor in Chief HOD Business Development Department Supplement Editor Business Development Department

Design Director

Regulations: A strong foundation for building

Cornerstones and milestones

H.E. Dr. Ibrahim Ahmed Al Kindi Abdullah Salim Al Shueili Bader bin Mohammed al Thanawi Conrad Prabhu Prem Varghese Irine Mariam Raju Karen Jane Stephen Abdul Aziz al Shukaili Ali Jawish 3

Oman Real Estate Association Concept

Aims

man Real Estate Association grew out of an initiative by real estate developers and brokerage offices in response to the turbulence witnessed in the real estate market over the past years in Oman, alongside concern over the lack of a clear vision and long-term strategy for the growth of this key economic sector. After garnering support from the different stakeholders, such as the Ministry of Housing, Ministry of Commerce and Industry, Ministry of Tourism, and Oman Chamber of Commerce and Industry, an application for the establishment of the Association was submitted to the Ministry of Social Development. Oman Real Estate Association was officially established vide the Ministerial Decision No. 108/2012 issued by the Ministry of Social Development on 19th March 2012.

Our Vision

o establish a real estate association that enjoys a highprofile status both regionally and internationally, to effectively contribute to the construction boom and be actively involved in drafting the requisite laws and regulations to govern this sector.

Our Mission

Study the real estate related laws and regulations, submit proposals that contribute to enhancing the real estate market, promote investments, maintain communications with decision makers and submit recommendations that serve the interests of the real estate market in the Sultanate of Oman.

Contribute to ensure prudent regularization of the real estate market through the introduction of suitable mechanisms for property valuation and opening official channels that ensure compliance of all stakeholders with the laws and regulations in force in the Sultanate of Oman.

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Be actively involved in developing plans and programmes that will optimize the level of Omanization within the sector and provide national manpower with the required high quality training that sustains a high level of Omanization. Develop a code of ethics for the real estate sector to safeguard the rights of all stakeholders against questionable practices. This code of ethics will enhance confidence in the Omani real estate market and encourage investors to invest in real estate market.

Coordinate among all stakeholders, hold regular meetings with them to discuss the latest developments and conduct researches and studies on the Omani real estate market.

Follow up on initiatives to address obstacles being faced by real estate practitioners and to provide advice on how to enforce the real estate laws and regulations in the Sultanate.

Encourage developers and investors to invest in projects that may provide suitable accommodation for limited income families. Enhance and protect the rights the members of the Association, promote their performance and ensure that they maintain the approved code of ethics and best practices.

o regularize, develop and imbibe best practice, enhance the performance of the real estate market, improve the level of transparency among real estate stakeholders in Oman and contribute to the creation of an investment-friendly environment in Oman by undertaking suitable activities in this regard.

Represent the Association in any public forums related to real estate, coordinate and cooperate with the domestic, Arab, regional and international associations to ensure the growth of the Omani real estate market. Promote professionalism, productivity and efficiency within the real estate market, and nurture a culture of professionalism among those working in this sector.

Our logo The logo of the Association takes its inspiration from traditional Omani architectural designs. It symbolizes the connectivity of the Omani real estate market and encourages all concerned to embrace this authenticity. This connectivity is also manifest as a sail boat that will help the Association to achieve its aims and goals. Represents the authenticity of the Omani architecture. It also symbolizes a castle. Connected shapes that symbolize fraternity among real estate stakeholders. The colours used are the colours of the Omani flag. The abbreviation in English is ORA The name in Arabic and English

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A robust economic sector in the making

O HE Eng. Mohammed bin Salim Al Busaidi

Chairman, Oman Real Estate Association

n behalf of my fellow colleagues and members of the Oman Real Estate Association (ORA), I extend to all of you a hearty welcome to this first-ever national forum that exclusively spotlights the real estate industry in the Sultanate of Oman. This two-day conference exemplifies our core aspiration to come together as a fraternity of professionals representing all of the stakeholders that together contribute to the vitality and success of the real estate and property market in Oman. The presence here in our midst of distinguished figures representing, among others, the regulatory, developer, investment, banking, construction, contracting, brokerage, property management, and consultancy services segments, bodes well for the success of this maiden conference on the real estate industry. As some of you are already aware, ORA grew out of a collective desire expressed by investors, developers and industry professionals to bring together all of the stakeholders on a common platform and make common cause in the sustainable and harmonious development of this sector. As the 2008 global financial contagion roiled markets abroad, Oman’s property market did take a beating. At this juncture, it dawned on many of us that the real estate market in Oman lacked cohesiveness and direction. Furthermore, unlike other sectors – such as banking, capital markets, telecommunications, and so on, which have their respective regulatory bodies – the real estate industry did not have an equivalent authority to regulate its growth. But given the right stewardship, vision and regulatory framework, the real estate

industry has the potential to flourish and drive economic growth like any other sector. After all, real estate underpins other industries, such as tourism and hospitality, residential and office, commercial services, shopping and retail, and so on. We joined hands to collectively launch our bid to form an umbrella body to serve the interests of the real estate market and its various stakeholders. The provisional Oman Real Estate Association (ORA) met with all of the criteria for registration as a non-government, non-profit grouping. The Board of Directors had extensive discussions with various government bodies with regard to the importance and objectives of the Association in driving the professional growth of the market. Approval for the formal establishment of ORA came in March 2012 vide a ministerial decision of the Ministry of Social Development. Today’s conference marks the crystallization of our vision and efforts to bring all of the players associated with the real estate market on a common platform to deliberate on the challenges and opportunities in driving forward the growth of this industry. A distinguished roster of speakers drawn from Oman and abroad will provide valuable insights with regard to the professional development of our industry. We hope to benefit from this enlightening exchange of perspectives to enrich ourselves as we begin the task of stewarding our young and promising industry to greater heights. On behalf of ORA, I thank His Highness Sayyid Shihab bin Tariq al Said for honouring us with his presence. Heartfelt gratitude to all of the various dignitaries for their distinguished attendance as well. I wish you two days of fruitful and rewarding deliberations. 5

ORA: Driving excellence in the real estate sector

man’s real estate industry boasts all of the essential characteristics of a viable economic sector that, if suitably nurtured, developed and regulated, can make a significant and sustainable contribution to the nation’s long-term growth and prosperity, according to the Chairman of the Oman Real Estate Association (ORA). A multibillion rial industry in its own right that has spawned an array of lavish mixed use tourism and residential schemes, the sector’s stable growth can only be sustained through a mix of initiatives and measures encompassing legislation, regulation, professional development and awareness building, said His Excellency Engineer Mohammed bin Salim al Busaidi. In remarks to Oman Daily Observer, HE Al Busaidi said the Oman Real Estate Conference 2014, which opens today at Al Bustan Palace – A Ritz Carlton Hotel, aims to impart strong new impetus to the establishment of a thriving economic sector centred on the country’s vibrant real estate market. The two-day forum has been organised by ORA in line with its goal to create the underpinnings necessary to position the sector’s growth and professional development into a full-fledged economic industry. Well-known events management firm Al Nimr Conferences is supporting ORA in the delivery of a successful event. “Through this forum, we aim to tackle a broad array of issues of significance to the real estate sector. Various speakers, spanning the government sector, corporate developers, property management and

brokerage firms, and individual investor segments, will offer their perspectives on the opportunities and challenges facing this promising industry. This knowledge-sharing exercise will help all of the stakeholders gain a better understanding of the strengths, as well as shortcomings, underlying this sector and chart the way forward for its development into a thriving economic sector,” HE Al Busaidi said. Deliberations during the two-day forum will primarily focus on principal themes: Real Estate Regulations & Legislation; Market Outlook – Challenges and Opportunities; Property Development and Management; and Financial and Investment Opportunities. Strong and coherent regulations are key to promoting stability in the real estate market, says HE Al Busaidi. “At present, we do have laws and regulations – some old, some recent – governing the industry. However, regrettably not all of them are fully implemented, while others have certain deficiencies that must be addressed. Moreover, there’s a multiplicity of government bodies that exercise a degree of regulatory authority over the property market, notably the Ministry of Housing, Ministry of Commerce & Industry, Muscat Municipality, Supreme Planning Council, Manpower Ministry, and so on. This is not conducive to the growth and wellbeing of the real estate industry. A unified authority, such as the Telecom Regulatory Authority for the telecom sector, the Capital Market Authority for the stock market and securities, and so on, would be preferable here too.”

Effective regulation of the property market is also necessary to safeguard the reputation and legitimate interests of all of the stakeholders concerned, the Chairman stressed. “There are instances of some developers who offer residential units to sale, although little is known about the antecedents of these investors, whether they have the requisite licenses, and so on. Before they are given permits to develop any property, it’s important to establish their credentials, determine their capability and financial strength to execute the project, and whether the end-users are getting the agreed product,” HE Al Busaidi said. A case in point, he noted, was the lack of legal clarity with regard to the formation of cooperative housing societies by the owners of residential units who have invested in, say, Integrated Tourism Complexes (ITCs). Issues to do with maintenance of common areas within ITCs, post the handover of the units to individual owners by the developer, still remain to be resolved, he said. A key objective for ORA is to inject professionalism in the workings of the industry with the ultimate aim of raising the profile of Oman’s real estate market to international standards. This drive to promote professionalism and best practices, he hopes, will have a positive impact across all aspects of the industry. An immediate goal for the Association is to nurture proficiency in brokerage services which, for want of effective enforcement of existing laws, lacks professionalism, the Chairman explains. “Although brokerage services are regulated by

law, enforcement of its provisions is still an issue. In part, it’s because there are multiple government bodies having a regulatory role, including the Ministry of Housing, Ministry of Manpower, and Ministry of Commerce and Industry.” The Association, says HE Al Busaidi, wants to see all of the brokers suitably licensed after receiving basic training in the fundaments of the real estate business. Brokers must operate out of licensed brokerage offices too, he added. Various speakers will also emphasize the importance of steps that need to be taken to ensure a degree of price stability in the real estate market, he said. “The real estate industry is essentially driven by a long-term outlook. Investors look for stability in property prices before they take a decision to invest. Stability, combined with the government’s continued investment in major infrastructure and economic initiatives, notably the Duqm Special Economic Zone, Oman National Railway Project, Airports and Seaports Modernisation, and so on, augurs well for the healthy growth of the real estate sector,” HE Al Busaidi said. Importantly, the conference proceedings will

help provide wider perspectives on how certain challenges faced by investors in the Sultanate can be suitably overcome. For instance, regulations with regard to foreign investment in the property market or the employment of foreign manpower have the potential to frustrate the project plans of investors. By inviting a cross section of views from local and international experts, it is hoped that suitable solutions for this concerns can be found. Broader issues concerning property development and management will be discussed in a dedicated session in the pre-lunch session on the first day. While opportunities linked to the implementation of Integrated Tourism Complexes (ITCs) will be spotlighted during this session, the Association is also keen to see investments in large-scale housing developments that cater primarily to local Omanis. “Residential units offered in ITCs are primarily targeted at foreign buyers. We in the Association

would welcome similar projects that offer affordable housing to Omanis. There are many developers eager to venture into this field, but would welcome some support from the government. Perhaps, the government could consider providing the land for such mass housing ventures and offering it as part of an open today. We hope to share ideas on this initiative and see how it can be taken forward,” HE Al Busaidi said. Also of significance is the session on Finance & Investment Opportunities related to the real estate sector – a topic that will be highlighted on Day 2 of the conference. Almost all of Oman’s commercial banks have unveiled products and services dedicated to the real estate and housing market. Islamic Banks and Islamic Windows too are following suit and have begun to roll of attractive products catering to this promising market, he pointed out.

ORA – A voice and platform for Oman’s real estate market

man Real Estate Association (ORA) has identified a trio of objectives that, it says, will underpin its current programme of initiatives and activities. According to Hassan Mohammed Juma, Vice Chairman of the Association, who is also Managing Director and President of ERA Real Estate Oman, the objectives collectively form the centerpiece of ORA’s mandate as an umbrella body representing the interests of the broader real estate stakeholder community in Oman. These broad goals were discussed at a recent meeting that was convened by the Association to underscore the importance of the first Oman Real Estate Conference 2014, which opens at the Al Bustan Palace – A Ritz Carlton Hotel today. “We see ourselves first and foremost as the voice of the real estate industry tasked with facilitating the growth of the sector by seeking better regulation in the collective interests of all the stakeholders,” he said. Towards this end, the Association aims to serve as a channel for communications with the various government bodies that have a role in the regulation and governance of the sector. It sees its role as a vital bridge between the industry and the official machinery. Equally, the Association seeks to serve as a platform for networking, discussion, and information sharing, as well as driving excellence and professional development, notably through training, coaching and mentoring initiatives. “We have plans, for example, to invite investors to come to Oman so that our members can explore opportunities for partnerships with them. At the same time, opportunities for mentoring and coaching will be pursued too,” the Vice Chairman said. At the meeting, there was broad consensus on the need to help members and their business develop professionally and thereby support the growth of a vibrant real estate industry in Oman. “Our goal is to develop ourselves first, rather than focusing on changing the system. We agreed that we should learn to better ourselves before seeking to improve the system. And in line with this philosophy, we felt that we should take advantage of opportunities

The Association aims to serve as a channel for communications with the various government bodies that have a role in the regulation and governance of the sector. Hassan Mohammed Juma Vice Chairman

rather than be weighed down by challenges,” Hassan Mohammed Juma noted. The Vice-Chairman said he was upbeat about the beneficial implications of the conference for the Association’s primary goal of seeking stronger regulation of the industry. “We already have laws and legislation in place, but these are not adequately implemented. In fact, we would like to see better regulation of real estate brokerage. At the moment, anyone can practice real estate brokerage with a license. This leads to the unwelcome perception that those without any professional skills can find employment as brokers. On the contrary, brokerage is a well-respected professional worldwide. With suitable regulation, it is possible to encourage young Omanis to explore rewarding career opportunities in the brokerage and property marketing business.” Weak regulation also has the potential to open the doors to dubious practices in real estate development, he warns. “In today’s times, anyone

can become a developer. It’s perfectly okay if one is developing some property for oneself. But if a project is being developed for sale to the general public, then it’s important that due diligence is carried out. For instance, it’s important to determine the credentials and capabilities of the developer in question, whether construction materials of prescribed specs, commitments to timely delivery, and so on. An Omani buyer, for instance, will be looking at investing in a property for the long term, and may obtain long-terms loans to fund the purchase. Due diligence and proper regulation will ensure that the latter’s interests are safeguarded.” Hassan Mohammed Juma also welcomed the Housing Ministry’s positive response to the Association’s proposal for the introduction of a Real Estate Index in Oman. “We have seen a lot of positivity from the Ministry with regard to our proposal. Their willingness to discuss it with us is gratifying. Hopefully, we shall be able to cooperate on this front.”

‘Comprehensive efforts to nurture long-term growth of real estate market’ In a sign of the improving health of the real estate sector in Oman, property prices have returned to the levels that prevailed prior to the global financial crisis of 2008 HE Abdullah bin Salim al Mukhaini

Director General, Secretariat of Land Registry

By Amal Rajab

he Ministry of Housing has mounted a concerted and comprehensive effort to support the long-term development of the real estate sector, given its strong investment potential in Oman, as in other countries of the world. In line with the goal, the Ministry, in cooperation with other stakeholders, has drafted a new law to safeguard the legitimate interests of property buyers, according to His Excellency Abdullah bin Salim al Mukhaini, Director General, Secretariat of Land Registry, Ministry of Housing. The proposed law, which will be enacted in the coming period, requires developers to furnish a bank guarantee and open an account into which property buyers may remit their funds. However, the developer cannot access the funds unless they obtain the requisite approvals from the authorities concerned, HE Al Mukhaini said. Significantly, the Ministry is also collaborating with the National Center for Statistics and Information (NSCI) in weighing the feasibility of issuing a Real Estate Index for the sector, according to the official. Studies are underway to determine the scope, basis and other components upon which the proposed Index will be based. When eventually introduced, it will help inject a high degree of stability into the market, he said. Furthermore, a dedicated department will be establishment within the Ministry tasked with ensuring that existing laws and regulations governing this sector are scrupulously adhered to by all the industry players concerned. They will also closely monitor developments across the industry. A key part of their responsibility is to facilitate the work of investors developing mixed use tourism and residential complexes. They will also work to resolve problems and issues surfacing between property developers and new buyers. The department’s overall performance will be supervised by the Ministry, he said. Commenting on the outlook for the sector, HE Al Mukhaini said he envisioned a healthy and promising future for this key economic industry. Fuelling this optimism are the strong regulatory and legislative

underpinnings provided by the government to nurture the growth of a vibrant real estate industry in Oman. While some of these laws were enacted in the past, others have been revised to reflect changing times, as well as the current needs of the market, he said. The official noted in particular the law regulating brokerage offices which, while requiring no further amendment, needs to be suitably implemented and enforced. In this regard, the Ministry of Commerce and Industry and Ministry of Manpower and working together to ensure the rigorous implementation of its provisions, he added. In a sign of the improving health of the real estate sector in Oman, property prices have returned to the levels that prevailed prior to the global financial crisis of 2008, said HE Al Mukahini, adding that banks continue to lend to the sector. Reflecting the robust health of the sector, the number of property transactions has continued to soar. In April along, around 30,200 property contracts worth RO 389 million in value were transacted, yielding fees of approximately RO 5 million. Sales of property worth RO 102 million were concluded during this period. The Land Registry registered a total of 327,000 transactions during 2013, he said. Of this figure, 3,521 transactions involved GCC nationals. Around RO 2.3 billion in property sales were concluded last year, generating fees of RO 34 million to the national treasury. Commenting on other matters of significance, HE Al Mukhani said the Ministry was pressing ahead with efforts to prepare suitable areas in various governorates for eventual allotment and distribution as housing plots to citizens. Several hundred thousand applications have already been received by the Ministry from citizens. In regions like Muscat and Musandam governorates, the Ministry has already appointed private contractors to prepare construction-ready sites for allotment to citizens, he said. Further, in an effort to enhance service efficiency and delivery standards, the Ministry has set up branches of the Land Registry in various locations around the country in order to provide services

to citizens closer to home, as well as to service the needs of investors. Working hours have been extended from 8am to 6pm in Muscat Governorate to allow for the handling and processing of the large volumes of applications received in the capital region. Efforts are underway to introduce extended working hours in other areas as well, HE Al Mukhaini said. Importantly, the Ministry has made significant strides in digitizing its services in line with the government’s broader eGovernment strategy. This will allow for the provision of services online, he said, adding that the IT Department has been digitizing paper documents to allow for all transactions to be digitized. Paper documents will thereafter be archived, while all departments of the Ministry will be electronically connected. After the completion of the digitization process, information concerning the land holdings of citizens will be available electronically. The upgrade of the system will allow for disputes over property to be resolved speedily, he added. Satisfaction with the quality of services provided by the Ministry has burgeoned, said HE Al Mukhaini . Service delivery is not only expeditious, but efficient as well, with some transactions processed within an hour, thanks to an electronic land registry system now in place at the Ministry. HE Al Mukhaini is due to offer the government’s perspective on the importance of the real estate sector at the Oman Real Estate Conference 2014, which opens at Al Bustan Palace – A Ritz Carlton Hotel today. The Ministry’s participation in the forum, he said, underscores the attention accorded to the sector in terms of its economic importance and investment potential. Given the sizable number of contracts being transacted every year, the fees accrued to the Ministry are an important source of revenue to the national treasury, he said. Banks too have a flourishing lending business involving property. Ongoing cooperation between the Ministry and Oman Real Estate Association will help yield suitable solutions for problems being witnessed in this key market, he added.

Omran: Leading responsible development in Oman

n line with its mandate to deliver major tourism and hospitality related projects, Omran is also poised to make an immense contribution to the growth and development of the Sultanate’s real estate industry. After all, tourism and hospitality related ventures create valuable real estate in their proximity, in turn attracting investment in high-end commercial, retail and assorted service related businesses that ultimately fuel socioeconomic growth, create employment, and sustainable opportunities for local communities. This growth paradigm lies at the heart of Omran’s remit to undertake projects and manage tourism assets and investments that benefit local communities and the national economy while protecting Oman’s unique and fragile environment. The tourism and hospitality sectors have been identified as key economic drivers, and its role is to develop the infrastructure necessary to position Oman as an attractive tourist destination and competitive business platform. Omran oversees an impressive portfolio of projects to execute as developer, investor and asset manager, including the landmark Oman Convention and Exhibition Centre (OCEC), the innovative Alila Jabal Akhdar Resort, Atana Musandam Resort as well as joint-venture mega-project investments like Al Baleed Resort, Salalah Beach, Saraya Bandar Jissah and the Duqm Frontier Town planned community, among others. All of these ventures, without exception, have an

underlying real estate component that, prudently leveraged, has the potential to spur investment and development all around these projects. A number of hotels being developed by Omran either independently or in joint venture with strategic investors are due to come into operation over the course of this year. At the same time, construction work will kick off on a slew of other hospitalityrelated properties, underscoring the energetic pace at which Oman’s flagship tourism development company is driving investment in the Sultanate’s tourism sector. Luxury properties lined up for launch during the year including the Atana Musandam Resort in the north of the country, the Rotana Hotel as part of the Salalah Beach Resort in Dhofar Governorate, and the Alila Jabal Akhdar Resort in the country’s interior. Other ventures, including the landmark Oman Convention and Exhibition Centre (OCEC), and the Duqm Frontier Town will continue seeing some packages going out to tender this year. Sumptuous ventures Omran’s role in catalysing the growth of the tourism and hospitality industry is unmatched. The wholly government owned tourism investment and development company has a diverse portfolio of 12 projects – spanning luxury hotels, resort developments and other upscale hospitality ventures – currently under various stages of development. The most prestigious of these – the Oman Convention and Exhibition Centre (OCEC) – is

making excellent headway in its development. The world class complex, featuring a 3,200 seat lyric-style tiered auditorium, 14 meeting rooms, 2 ballrooms and 22,000 sqm of column-free exhibition space, is being developed in phases. Package 2 of the iconic development, comprising the exhibition halls, energy centre and structured car parking, among other components, is under construction and due for completion in 2016. The third package, centering on the convention centre and associated facilities, is expected to go out to tender this year. In all, four hotels will be built as part of the complex. Tenders for the construction of two of these hotels – 4-star and 5-star properties offering a total of 600 rooms, have already been floated. Two other 3 and 4-star hotels will be developed at a later stage. Best practices A significant highpoint for Omran this year was the soft opening of Alila Jabal Akhdar Resort, a five-star resort hotel located on the summit of Jabal Akhdar. The 86-room property, which also includes a spa and fitness centre, will add an upmarket element to this popular tourist destination. On the eve of its opening, the property bagged two prestigious awards that attested to Omran’s enduring commitment to sustainability. The ‘Sustainable Project of the Year’ and ‘Hospitality Project of the Year’, conferred during Construction Week Online. Com’s 3rd Construction Week Oman

Awards, recognized the Alila Jabal Akhdar Resort for exhibiting construction best practices, exemplary safety measures, innovative use of construction technology and techniques and incorporating sustainable, eco-friendly design and construction methods that go beyond the norm. “We are honored to receive these regionallyrecognised awards that further cement our position as the country’s leading development company and the region’s most responsible developer,” said Eng Wael Al Lawati, Omran’s Chief Executive Officer. “Through constant collaboration with our contractors, suppliers and partners, we were successfully able to overcome the rugged landscape’s challenges and bring a complex, unique and much anticipated project like this to fruition ahead of time and within budget in one of Oman’s most picturesque locations.” Eng. Al Lawati also said that the design, location,

construction technologies and materials used in the Alila Jabal Akhdar Resort project have all contributed to its uniqueness. He also stated that the resort has incorporated numerous elements that meet the criteria set by the US Green Building Council for Leadership in Energy and Environmental Design (LEED) Gold accreditation. Giving examples, he further added: “Due to the secluded location of the resort and the importance of available water resources for the local community, we designed an onsite Sewage Treatment Plant to process and recycle water from every potential source of water wastage, utilised gravel, paving and stone retrieved during excavation in construction and planted native plant species, accustomed to the climate and soil conditions of Al Jabal Al Akhdar throughout the site. This project has once again translated Omran’s commitment to creating memorable destinations in full harmony with the

natural environment.” Alila Jabal Akhdar Resort has been created with a deliberate attempt to maximise the use of local materials and minimise the energy footprint. The external skin is formed using non load-bearing stone masonry walls while the internal skin is made up of lightweight plasterboard walls. Solar panels on site also contribute 8% of the required energy, providing a renewable energy source for the project. ‘Shades of Oman’ Building on its successful track record in hospitality asset management, Omran established a hospitality operator company (National Omani Hospitality Company LLC) which has introduced ‘Atana’, a first of its kind Omani hotel brand that blends age-old local tradition with contemporary culture. Atana, a 4 star hotel and resort operator, aims to celebrate the diversity and integrity of the country and its people, enabling guests to explore a genuine Omani hospitality experience in today’s modern 21st century that has been designed and executed to extraordinary quality standards. “Since Omran’s inception, we have been guided by ambition and always wanted to establish an autonomous hospitality operating brand that is

Omran is a prominent asset manager and operator tourism assets in Oman. Regional and international investors have chosen Omran as their partner in developing mega mixed used projects and master-planned communities in addition to real estate developments and niche projects under various stages of development

distinctly Omani in style, spirit and character. A brand that contributes to domestic and foreign tourism, generates increased revenue for the country, plays a positive role in the Government’s Omanisation objectives and most importantly, supports Small and Medium Size Enterprises (SMEs) and the local community,” says Eng Wael al Lawati, Omran CEO. “Leveraging the company’s experience as hospitality asset owner, developer and operator, this ambition has now become a reality. We have successfully created Atana under the promise of ‘Shades of Oman’ to provide guests with an array of distinctive properties that are diverse and unique but deliver a compelling mid-tier hospitality experience that revolves around the Omani national character, culture, environment and people.” According to Eng. Al Lawati, Omran plans to rollout the brand to several of its current and upcoming assets and developments. The first Atana came to life early this year when an opportunity arose for Atana to operate an existing hotel, Golden Tulip Resort Khasab, as the agreement between Omran and the hotel operator expired and as a result, the resort became known since as Atana Khasab. Public areas at Atana Khasab’ have now been refurbished with rooms to follow to reflect the new identity. A number of design and service elements have also been introduced which have already been very well received by guests and the local community. He pointed out that over time, Atana Khasab will exude the new brand philosophy and experience in its entirety. Atana has also made agreements with local chefs, musicians, suppliers and organizations to be featured in its properties to reflect the brand’s philosophy and the fact that SMEs and local community support and engagement is part of Atana’s intrinsic DNA. Green buildings Affirming its commitment to working in harmony with the environment through an emphasis on green building principles, Omran became the first company to announce its support for the establishment of the Oman Green Buildings Centre (OGBC). The OGBC is a chapter of the Oman Society of

Engineers and aims to raise awareness on the importance of going green. The center and its partners will contribute to green building governance as well as provide professional advice to other companies in the industry. It is a non-government, non-profit organization on a mission to promote and apply green building principles in Oman. Eng. Wael al Lawati commented, “From the onset, Omran chose to be the first company to partner and assist in establishing the OGBC due to our deeply rooted belief in working in harmony with the environment. We remain committed to continue to build projects to the highest internationally recognized standards, subjecting them to the voluntary, consensus-based program, Leadership in Energy and Environmental Design (LEED) that provides third-party verification of green buildings. Omran has adopted a considered approach to construction ensuring that all our projects respect Oman’s environment, wildlife and natural resources.” The CEO added, “Green buildings do much more than preserve our environment. It reduces operating costs and improves the life-cycle of economic performance. In addition, ecologically friendly buildings improve overall quality of life of communities around the establishments and minimize strain on local infrastructure as well as improve occupants’ comfort and health.” Leading by example, Omran is currently building a number of projects to meet the aggressive LEED certification standards including the Oman Convention and Exhibitions Centre, Khasab Hotel and Alila Jabal Akhdar Resort. Alila Jabal Akhdar Resort’s project site was the latest to achieve the requirements for LEED qualification through incorporating ‘green’ elements that promote recycling, reusing and reducing throughout its design Omran is also a prominent asset manager and operator tourism assets in Oman. Regional and international investors have chosen Omran as their partner in developing mega mixed used projects and master-planned communities in addition to real estate developments and niche projects under various stages of development. Last September, Omran announced a partnership with the Oman National Investment Development Company SAOC (ONIDCO) and Dubaiheadquartered Al-Futtaim in the development and management of a planned super-regional mall in Muscat which will eventually become the capital’s largest retail, leisure and entertainment destination. The mall will be strategically located adjacent to the proposed Oman Convention and Exhibition Centre and aspires to become a leading, mixed-use retail destination that will be home to the first IKEA store in Muscat and other renowned global brands such as Marks & Spencer and Toys R Us. It will also feature an entertainment and food court complex. During its development phases, the project will create many new employment opportunities for Omanis and upon completion it will have the potential of becoming a key long-term employer for the Sultanate’s career seekers across a variety of sectors, from retail, marketing, sales, to catering and entertainment.

Regulations: A strong foundation for building By Charles Schofield

ver the past years Oman has witnessed a remarkable level of development rivalled by few countries. When we see new airports, factories, ports, and hotels come to life, you could be forgiven for thinking that these projects where built only with the steel and concrete by which they stand. But a key and often little thought about ingredient in every major project is the land on which it’s located and, of equal importance, the rights that attach to that land. In each project, there is an invisible web of rights that allows them to grow to where you see them today. Projects involve multiple parties with different interests, some competing and some aligned, which must be tempered and woven together to provide a workable framework. It is the laws and contracts that regulate the rights of the parties that provide this framework. Oman was the first country in the region to bring in private developers to undertake public infrastructure projects, with the Al Manah power project in 1996. A major international developer together with Oman partners and private financiers successfully built and constructed a power plant, which has since been expanded and continues to contribute power for the country’s needs. How can a company that has not grown and developed in a country, which may have had little business here in the past, have the confidence to invest large sums of money here? An investor will not simply rely on trust in its business partners or a country’s government, it will look to ensure that risks are understood and mitigated to the extent possible.

The challenges these issues present are often dealt with in the same way for a large multi-million dollar investment as for the building of a family house. If you were given a plot of land for building your house, for example, you would first want to make sure that the land was truly yours to build on. So to would your bank, which would also want to ensure it could sell the property to repay debt if there is any default. While this is a simple arrangement, the same concerns and considerations arise with all projects in one form or another. The structures get more complex the bigger the parties’ risks, but the fundamentals remain the same. A key issue in any project is the security to own or use the land in the way required for the project. In Oman, as in most parts of the world, there is a system of registering land ownership. Importantly proof of registered title, through a Mulkiya, provides conclusive evidence of who owns the land. The land register can also record lease rights. In Oman, leases for bare land take the form of a usufruct agreement, which can be registered with the Ministry of Housing. The act of registration ensures that any later buyer of the land is bound by that agreement. Many large projects depend on such long term arrangements. An investor today needs to know that the factory or hotel developed now will still be permitted on the land in 20 or more years. This security comes from registration of the usufruct agreement and the laws that back that up. The land register is fundamental to the continued development of the country. Without this certainty of title, it would prove a difficult task to convince investors and financiers to risk undertaking and

funding projects. Laws that regulate land development often protect the public interest. They may, for example, impose restrictions on the use of the land. Land too close to residential areas cannot be used for industrial developments, for example. Other important laws affecting land usage may take the form of building codes, environmental laws or civil defence requirements. Many different government bodies can be involved in making these rules. Ensuring these rules are clear and certain is of critical importance for projects. It is also not just the developer that needs secure rights over project land. Financiers require enforceable rights in case things go wrong. These might include the right to step in and take over a project or, at the most extreme, the right to sell the land to repay debt. A financier can, for example, register a legal mortgage. This allows a financier to prevent land being sold and, if there is a default on repayments, to require a sale of the land to repay unpaid debt. Without the ability to register these rights and a system to ensure that they are enforceable, many projects simply would not be able to proceed. Both the laws that regulate the use of land and the contracts agreed between the parties give security to all involved in the project process. While they may remain out of mind when we gaze on a completed project, they are just as important as the steel that provides the framework for the structures or the concrete that makes up the walls and floors. (The writer is the Head of Corporate Oman, Addleshaw Goddard Oman)

Sultanate of Oman: Real estate market observations By Christopher J Steel

man’s property market is at an exciting crossroads. It can move forward as a vital ingredient in the economic growth and prosperity of the country to everyone’s benefit. Conversely it could slow the pace of development and stifle the prospects of growth that are now clearly being felt by most industry sectors. Emerging from a period of relative stagnation following the global economic correction, Oman’s property market now faces many challenges that need to be addressed in a focused and forward thinking manner. If the Sultanate’s economy is to grow in line with its forecasts, real estate will benefit from being viewed as an industry in itself, not as a byproduct of other sector’s growth. Globally, real estate has added billions to many countries GDP’s and yet has continued to meet its underlying social responsibilities of housing the population for residential or commercial purposes. And one of the underlying factors in this industry growth apart from population growth – cross border investment. Oman has made great strides in opening up its doors for allow foreign direct investment into real estate. The Integrated Tourism Complexes were timely and their initial offerings attracted a healthy flow of foreign income into the country, adding to the wealth in an open yet controlled manner. Yet there is now a danger of their floundering under increasing amounts of bureaucratic procedures that have to be followed by buyers and sellers. Sometimes questionable regulations and as yet untested laws governing the management of these ITC’s are also

open to worldwide scrutiny and need resolving as priority if we are to continue to attract foreign investment to support these development’s full tourism potential. Several important and significant ITC developments are due to launch over 2014 and these will add to the Sultanate’s prominence as a strategic real estate player on the global stage. Oman should not be afraid of foreign investment into its real estate – it should welcome it with open arms. Foreigners can never physically take away the land, they can however add to the economy by owning a home, paying for their use of local services and adding to the all important retail industry here. The first quarter of 2014 has seen continued high levels of residential rental activity, particularly in the mid to high end budget sectors. A surge of new arrivals, most notably from the hydrocarbon industry sectors ensured demand for quality homes was high and supply, at times, was not sufficient to meet this demand. Properties within the ITCs, most notably The Wave, Muscat and Muscat Hills have leased fast, at rents considerably higher than in the preceding year. Values have in the main now returned to their 2009 peak levels, reflecting the re establishment of a demand / supply balance for most sectors of housing. Quality villas, especially in the ITC’s remain short in supply and this will likely lead to general rental increases over the year until such time as the villas currently under development are completed and enter the rental market. The newer establishing areas such as Bausher and Al Muna now offer attractive rental rates as compared to their more central neighbours. Improvements in accessibility,

Rental Movements – 2005 to Present - High quality 2-bedroom apartment

Rents reflect Omani Rials per calendar month based on one year letting

Rental Values - Historic commercial rents and rental predictions

(Rates per square meter per month)

particularly as a result of the Muscat Expressway have made these previously “secondary” areas highly demanded over recent months and they are fast evolving as preferred living zones. The impact of the ITC’s, primarily The Wave and Muscat Hills Golf & Country Club on the rental sector has grown significantly over the last 12 months. Now firmly established as favoured expatriate rental locations, there continues to be a high demand for quality villa and apartments at either development. Particularly for villas, demand is now

outstripping supply and upward rental movement has commenced. Whilst already priced higher than the comparative non ITC villas, we anticipate growth of up to 20% over the next 12 months, reflecting the lack of available rental property, compounded by the fact that there is only very limited new stock entering the market within the next 18 months. Employment growth is a key to all industry success. The ability to provide office space to meet employment growth targets is critical and the attraction of global corporates to assist in this is essential. Availability of office space is a key factor in country choice for MNC establishment and Muscat now faces an alarming shortage of quality commercial office space that meets the requirements of incoming and expanding corporates. The commercial Office sector has followed a consistent performance cycle over recent years. As the commercial office leasing market is primarily driven by newly arriving/expanding Multi National Companies (and to a lesser extent by expanding Domestic Groups), any new office space take up can be closely correlated with the activities of these market groups. If these groups slowdown in growth or entry, a natural decline in demand will likely occur. Currently, there is an estimated 720,000 square meters (approx) of graded offices space in Muscat (A & B) and Grade A office space accounts for approximately 34 % (245,000 square meters) of this space. Industry projections show that there will be a real demand for over 1 million square meters of Grade A office space by 2018. Yet future stock addition of Grade A space (based on work commenced on site) is estimated at only 132,000

square meters. Clearly an undersupply position is in the making, one which will lead to a potential obstacle in attracting the much needed MNC investment into the country. What will however most likely happen however is there will be a sudden awakening of the need to develop such space and developers will scramble to build on every available piece of land. This cyclical development trend, most often with a 2-3 year time lag over which period of undersupply rents will rise dramatically can however be avoided. A more controlled demand/supply position still allows growth but avoids unsettling periods of “boom and bust” and can be achieved by proper industry forecasting and planning. The need for regulating the real estate market in Oman is well acknowledged and welcomed. Great strives are being made in this direction but it is the setting of standards and upholding of same that will meet with success, not necessarily arbitrarily imposed rules and regulations. Eminent bodies such as the Royal Institution of Chartered Surveyors can provide the framework for such standards by implementation of the ethics as set out in the “red and blue books” governing the standards for valuers and brokers to adhere to. Consumers of real estate services will appreciate and benefit from these standards. Those real estate individuals that fail to follow these standards will over time fall by the way side as the industry evolves into a respected and valued part of the economy. (The writer is the Managing Partner of Savills Oman)

Muscat retail landscape set for significant change By Ian Gladwin

he Omani capital currently has an estimated retail supply of approximately 350,000 sqm of gross leasable space across the shopping malls in Muscat. This compares to a population of 1.2 million in Muscat Governorate, which translates into roughly 0.3 sqm of retail space per capita. While this is similar to the level of retail provision in Qatar, Bahrain and Kuwait, it remains significantly lower than that of the neighbouring UAE, in particular Dubai where retail space per capita is amongst the highest in the world. The four largest malls in the capital account for 40% of the total gross leasable retail area across the city: Muscat City Centre, Markaz Al Bahja, Muscat Grand Mall and Qurum City Centre. The retail sector in Muscat is, however, about to witness significant expansion, with a strengthening pipeline of shopping mall developments. Of the larger malls currently under construction in Muscat, The Avenue and Panorama Mall, both of which are in Bausher and the dedicated military personnel mall in Mawaleh are together expected to increase the supply of larger scale retail mall space over the next 12 months by over a third. In addition to this, there are currently proposals for three further mega malls, which would be vast retail destinations in their own right, akin to what is already on offer in Dubai. These include Majid Al Futtaim’s ‘Oman Mall’ in Bausher, the Al Futtaim Group’s ‘Muscat Festival City’ in Airport Heights and Al Jarwani Group’s ‘Downtown Muscat Mall’ in Mabellah. There is also the proposed OMR 50 million

expansion of Muscat Grand Mall, which was announced last summer: the extension will provide room for around 100 retail units, spread across an additional 30,000 sqm of floor space. The cinema complex is also set to expand as part of the project. The current pipeline of malls-to-be is likely to put retail rents under strain and also test the market’s ability to absorb the significant amount of new retail space now waiting in the wings. In an increasingly congested and competitive retail landscape, a clear understanding of the consumer target market and well-matched tenant mix will be the key to success for Oman’s growing list of malls. Our experience shows that higher-end luxury brands have thus far generally been unsuccessful in Oman: we consider that this is strongly linked to the relatively low levels of disposable income in the Sultanate when compared to its Gulf Cooperation Council (GCC) peers. In contrast, hypermarkets and retail outlets focusing more on “value” perform strongly. Achieving the appropriate balance between luxury and “regular” retailers will be central to the success of Muscat’s new shopping malls. This was recently evidenced by the tenant reconfiguration exercise undertaken at Markaz Al Bahja. A shift away from high end retailers, with a focus on more “value brands” helped to drive a significant uplift in the mall’s footfall. Away from Muscat’s larger malls now looming, an emerging niche sector that we expect to grow rapidly are neighborhood malls. The development of these smaller community shopping malls has been limited to date, however the scope for a number of these, in the region of 3,000 to 10,000 sqm, bolted on to

Gross leasable area at Muscat’s largest shopping malls (sqm)

Existing Muscat City Centre

56,500

Qurum City Centre

20,600

Tilal Grand Mall

45,000

Markaz Al Bahja

20,500

Zakher Mall

15,800

Al Araimi Complex

12,000

Under construction The Avenue

80,000

Panorama Mall

21,000

existing residential communities is tremendous. The car culture prevalent in much of the region means that malls are often a car journey away, so being able to service the needs of immediate surrounding population groups will almost certainly ensure the success of smaller retail schemes. A good example of a neighbourhood retail mall is the Al Marsa Village Retail Centre at The Wave which is expected to open later this year. The development will be anchored by a 1,500 sqm Waitrose supermarket, four restaurants, three coffee shops, 30 retail units, a gymnasium, several health and beauty service specialists and some limited office space. “High street” retail remains extremely popular both from a retailer and consumer perspective in the more established and densely developed parts of the city. The focus of these streets is generally on local and value outlets rather than international brands. They are aimed at the requirements and spending power of the local population rather than being more “aspirational” as is generally the case with the larger malls. Demand from tenants and rental values in these locations remain very strong even for relatively low grade units. With a significant supply of larger scale retail mall space either under construction or in the pipeline, we would expect to see future retail development opportunities being smaller, with a focus on neighbourhood malls, which will go some way in helping the ongoing evolution of the retail sector across the Sultanate. (The writer is the head of Head of International, Cluttons and Oman representative for the Middle East Council of Shopping Centres)

Cornerstones and milestones A snapshot of key developments and trends in Oman’s rapidly expanding tourism, hospitality and real estate sectors The Wave Plaza Hotel is unveiled Taameer Investment, one of Oman’s leading investment companies, recently unveiled its upscale hospitality project, entitled ‘The Wave Plaza Hotel’, at a ceremony held at the Grand Hyatt Muscat. HE Sheikh Saif bin Mohammed al Shabibi, Minister of Housing, was the guest of honour at the launch ceremony. Overlooking The Wave Muscat’s splendid marina, The Wave Plaza Hotel will comprise 200 hotel rooms and suites. It will include restaurants, a business centre, multi-function rooms, rooftop recreation facilities and a fitness centre. Shaza Hotels, a chain of the Kempinski group, has been selected by the developer to manage and operate the hotel. Total investment in the property is estimated at RO 25 million, with construction due to commence in the third quarter of this year. Suleiman bin Masoud al Harthi, CEO of Taameer Investment, commented: “The company’s investment in this vital project comes after a careful study and conviction of the attractive investment climate in Muscat, particularly with the tourism sector growing steadily and the demand for four-star hotels increasing rapidly. The launch coincides with the completion of the first stage of the expansion of the Muscat International Airport.” Hawazen Esber, CEO of The Wave, Muscat added, “The Wave Plaza Hotel will be an additional tourism component in our world-class destination, adding to the vibrant harbour-side piazza. The prime location of the hotel on the marina end of the main boulevard will enhance our new retail precinct, ‘The Walk’, which opens next month.”

Saraya Bandar Jissah launches work on five-star hotel Construction of a 206-room five-star hotel recently began at the RO 230 million Saraya Bandar Jissah development, an Integrated Tourism Complex located on the outskirts of Muscat. Leighton Middle East Contracting LLC, the local arm of Habtoor Leighton Group (HLG), one of the leading diversified international contractors in the region, has been appointed for the hotel construction with a contract worth around RO 30 million. Saraya Bandar Jissah development, spread over 2.2 square kilometers, will include two five-star beachfront luxury hotels that will be managed by the Jumeirah Group, the internationally-renowned luxury hotels and resorts operator. The resort hotel features world-class facilities and services such as a beachfront ballroom for weddings and events, spa, sports activities including a dive centre, and specialty restaurants offering various international cuisines. This hotel project, part of the first construction phase along with the 110-room boutique hotel, the design of which is very much in line with the history of Oman, will be completed in 2017. The two hotels will together form the major leisure components of Saraya Bandar Jissah. Saraya Bandar Jissah, will be home to 398 exclusive residential units, including spacious hilltop villas, stylish townhouses and luxury apartments. The delivery date for the first phase of the project, which includes the hotels, the recreational facilities and three residential zones, is 2017. The second phase, which consists of two residential zones, will be

completed in 2020. Carlson Rezidor Duqm property set for summer launch Carlson Rezidor, one of the ten largest hotel groups worldwide, has announced that its newest property in the Sultanate – the Park Inn by Radisson Hotel and Residence Duqm – is scheduled to welcome its first guests during summer. The launch will further build on the success of the existing Park Inn by Radisson Hotel Muscat, which is popular for its modern design and cool amenities, such as a rooftop swimming pool and fitness centre. The property, owned by Duqm Beach Hotel LLC – a subsidiary of MB Holding – is currently under construction at a site about 8 kilometres from the airport and 10 kilometres from the Port of Duqm. It offers 50 one-bedroom chalets, 9 two-bedroom villas, 13 one-bedroom and 2 two-bedroom apartments. The design and the character of all 73 accommodation units and the entire hotel will be inimitably Park Inn by Radisson, designed for the new generation traveller. The hotel will grow by another 46 units in the next 5 years. The future-forward and trendsetting property will also offer an all-day dining restaurant, signature RBG grill restaurant, meeting rooms, business centre, kids’ corner, tennis court, beauty salon/ spa, gym, free high speed internet throughout the hotel, indoor and outdoor bars as well as an outdoor swimming pool. “The Middle East is an important development market for Carlson Rezidor. We aim to further strengthen our core brands in the region - Radisson

Blu is covering the contemporary upper upscale segment; Park Inn by Radisson the dynamic midmarket segment targeting the growing clientele of Gen X and Y,” commented Mr. Wolfgang M Neumann, President & CEO The Rezidor Hotel Group. Park Inn by Radisson Hotel and Residence Duqm is scheduled to launch on 1st August 2014. Al Madina to invest in tourism and real estate project Local developer Al Madina Real Estate SAOC signed in March an agreement with SEZAD for the lease of land for the establishment of a tourism, commercial and residential project in Duqm. The company plans to invest around RO 70 million in the construction of a commercial centre, golf course and hotel apartments in Duqm. The project will be implemented in four stages, and has the potential to generate around 1000 jobs for Omanis. Rotana’s first Oman property opens Rotana, the leading hotel management company in the Middle East, Africa, South Asia and Eastern Europe, announced in March the opening of Salalah Rotana Resort, the first five-star property in Salalah Beach and the largest in the city by room size and the largest free-standing hotel in Oman. The hotel’s 400 rooms & suites are set in between an elaborate network of manmade waterways that connect all waterfront hotels and residential areas in Muriya’s Salalah Beach Resort to the Indian Ocean. Speaking at the opening, Samih Sawiris, Chairman of Muriya and CEO of Orascom Development, said, “Salalah Rotana Resort is a ground-breaking project

in Oman. Utilising the experience gained by Orascom when developing the pioneering El Gouna resort in Egypt, Muriya has integrated the natural landscape into the design of the hotel to combine traditional architectural aesthetics with Venetian waterways to create a desert oasis. The partnership between Orascom and Omran has allowed Muriya to deliver a landmark resort in Salalah as an example of the commitment of all parties. The resort is peerless in the Sultanate of Oman as the largest hotel in the country and will serve the growing demand for high-quality accommodation in Salalah as tourism continues to grow in the city.” Omer Kaddouri, President & CEO of Rotana commented: “We are excited to begin a new journey today at the first hotel to be operated by Rotana in Oman. This stunning property is the 50th hotel to be operated by Rotana and represents the half-way mark in the award-winning hospitality group’s plans for 100 hotels by 2020. Salalah Rotana Resort is the Sultanate’s newest and largest hotel.” . IHG launches Holiday Inn Hotel Al Seeb In January, IHG (InterContinental Hotels Group) opened Holiday Inn Muscat Al Seeb in the heart of capital’s new business district, making it the third IHG hotel in the city. The modern and sleek hotel has 185 rooms, each with a 32-inch LED TV, an iPod docking station and access to free Wi-Fi services. A comfortable workspace in the rooms offers a relaxing and spacious environment, with views over the outdoor pool and terrace area. The hotel’s ballroom, boardroom and meeting rooms offer flexible spaces

for customised events and meetings, catering for up to 250 people. Guests have a choice of restaurants: the all-day dining restaurant Omede provides international cuisine throughout the day and the Halwa Lounge Café offers guests a real taste of Omani drinks and delicacies. Oppenheimer Pinto, General Manager, Holiday Inn Muscat Al Seeb commented: “The team are very excited to be welcoming guests to Oman’s newest hotel. With our close proximity to the airport and to the attractions of Old and New Muscat, the hotel is a great place to stay whether you’re here for business or leisure.” Holiday Inn Muscat Al Seeb marks the re-entry of the renowned brand to Oman. In 1977, Oman was the home of the first Holiday Inn property in the Middle East with Holiday Inn Resort Salalah, before the property was converted to Crowne Plaza Resort Salalah. Pascal Gauvin, IHG’s Chief Operating Officer, for India, Middle East and Africa commented: “Oman played a key role in the launch of the Holiday Inn brand in the Middle East region so it is fantastic to be able to bring the brand back to a country where it has so much history. With tourist numbers to Oman on the increase we are confident that Holiday Inn Muscat Al Seeb will offer a comfortable and quality option for visitors to Muscat, and play a key role in the city’s future too.” This hotel will become IHG’s sixth hotel in Oman, and joins two other IHG properties in the capital: InterContinental Muscat and Crowne Plaza Muscat.

Oman Real Estate Conference 2014: Programme Schedule

Day One: Sunday, 25th May 2014, Majan Ballroom 9:00 – 9:05

INTRODUCTION

9:05 – 9:30

WELCOMING ADDRESS: ORA’S ROLE AS CATALYST FOR REAL ESTATE GROWTH

HE Eng. Mohammed Salim Khalifa Al Busaidi, Chairman, Oman Real Estate Association

9:30 – 9:50

KEYNOTE ADDRESS

H.E. Sultan bin Salim Al Habsi, Secretary General, Supreme Council for Planning, Sultanate of Oman

REGIONAL TRENDS & OPPORTUNITIES IN REAL ESTATE & DEVELOPMENT Elaine Jones, Real Estate Adviser

9:50 – 10:30

DISTRIBUTION OF TOKEN & TOUR OF THE EXHIBITION WITH THE CHIEF GUEST

11:55 - 12:20

THE CHANGING RETAIL LANDSCAPE IN MUSCAT: DEVELOPMENT & OPPORTUNITIES

Key regional retail trends: Muscat consumer profile. Key trends in the Muscat market: A value driven sector, Growth of super/hypermarkets, Rapid expansion of retail mall supply. Market gaps & opportunities for retail development. Importance of the tenant mix and management. Rental structures

Ian Gladwin, Head of International, Cluttons and Oman representative for the Middle East Council of Shopping Centres

12:20 – 12:50

NETWORKING BREAK PROPERTY DEVELOPMENT & MANAGEMENT

12:50 - 1:15

(Followed by Refreshment & Networking)

THE IMPACT OF INFRASTRUCTURE DEVELOPMENT TO OMAN’S REAL ESTATE SECTOR

REAL ESTATE MARKET OUTLOOK IN OMAN – CHALLENGES & OPPORTUNITIES

1:15 – 2:20

10:30 – 10:40

INTRODUCTION BY THE CHAIRPERSON Elaine Jones, Real Estate Adviser

10:40 – 11:05

MUSCAT REAL ESTATE MARKET: KEY TRENDS & OPPORTUNITIES

Key population, demographic, labour force and economic drivers of Oman’s real estate market Key trends and prospects in Oman’s hospitality, office, retail and residential sectors Key real estate market opportunities and risks

Martin Cooper, Director, Real Estate Consulting-Middle East, Deloitte, UAE

11:05 – 11:30

OPPORTUNITIES & CHALLENGES OF ITCs IN OMAN Hawazen Esber, Chief Executive Officer, The Wave Muscat

11:30 – 11:55

MOVING FORWARD: OPPORTUNITIES & CHALLENGES IN OMAN’S REAL ESTATE

Chris Francis, Director - Strategic Consulting, Jones Lang LaSalle MENA, UAE

Senior Executive from Hill’s Middle East Project Management Group

INDUSTRY LEADERS PANEL: WHAT IS OMAN’S COMPETITIVE EDGE IN THE REGION & WHAT SHOULD BE THE STRATEGY TO STIMULATE GROWTH IN THE REAL ESTATE SECTOR? Moderator: Elaine Jones, Real Estate Adviser

Panelists:

Sheikh Hamood Al Hosni Chief Executive Officer, Saraya Bandar Jissah Eng. Wael Bin Ahmed Al Lawati, Chief Executive Officer, OMRAN Sulaiman Bin Masoud Al-Harthy, Chief Executive Officer, Tameer Investment SAOC Hassan Mohammed Juma, Vice Chairman, Oman Real Estate Association & Managing Director, ERA Oman Chris Francis, Director - Strategic Consulting, Jones Lang LaSalle MENA, UAE

Key Discussion Points:

How is the Oman’s real estate market performing post the global/regional economic crisis? What is our competitive edge and vision to create growth in the real estate? How the country’s up-coming mega projects (infrastructure & commercial) will impact the real estate sector?

2:20 – 2:30

WRAP-UP & CLOSING REMARKS BY THE CHAIRMAN 22

Day Two: Monday, 26th May 2014, Majan Ballroom 8:00 – 9:00

REGISTRATION & WELCOME COFFEEE

(Pre-function area)

9:00 – 9:10

RECAP OF THE PREVIOUS DAY PROCEEDING & INTRODUCTION OF THE CHAIRPERSON Martin Cooper, Director, Real Estate Consulting-Middle East, Deloitte, UAE

REAL ESTATE REGULATIONS & LEGISLATIVE UPDATES

9:10 – 9:35

OVERVIEW OF THE REAL ESTATE REGULATORY FRAMEWORK IN OMAN & LEGISLATION UPDATES H.E. Abdullah bin Salem Al Mukhaini, Secretary of Land Registry, Ministry of Housing, Oman

9:35 – 10:00

THE ROLE OF STANDARDS & REGULATION IN DRIVING TRANSPARANCY, MARKET CONFIDENCE AND SUSTAINABLE INVESTMENT Adoption and enforcement of international standards & its role in driving investor confidence in real estate markets. Examining the international standards pyramid and how the various standards interlink. How a robust legal framework is required to underpin the market and provide confidence to all stakeholders.

Robert Jackson, Regional Director - MENA, Royal Institution of Chartered Surveyors

10:00 – 10:25

LEGISLATIONS & DISCIPLINES FOR REAL ESTATE AGENTS, GOOD OR BAD? Jeff Foo, President, Institute of Estate Agents, Singapore

10:25 – 11:00

REAL ESTATE REGULATION IN THE UK: LESSONS LEARNT

How real estate regulation in the UK deals with key issues such as land right registration, landlord/ tenant relationships, structured and multiple title ownership (apartments and units), building codes, foreign ownership of land Comparing the UK regulatory approach with equivalent regulations under Oman law. UK experience and the extent to which lessons can be learnt

Charles Schofield, Head of Corporate Oman, Addleshaw Goddard

11:00 – 11:25

REAL ESTATE REGULATION IN UAE: LESSONS LEARNT Marwan Bin Ghulaita, Chief Executive Officer , Real Estate Regulatory Agency (RERA), UAE

11:25 – 12:00

POLICY MAKERS & REGULATORS PANEL: REGULATION – CONNECTING THE GOALS OF BOTH REGULATOR AND INVESTOR Moderator: Martin Cooper, Director, Real Estate Consulting-Middle East, Deloitte, UAE

Panelist:

Elaine Jones, Real Estate Adviser Marwan Bin Ghulaita, Chief Executive Officer, Real Estate Regulatory Agency, UAE Abdul-Haq Mohammed, Regional Head of Real Estate, Trowers & Hamlins, Oman Senior Officials from the Ministry of Housing, Oman*

12:00 – 12:30

NETWORKING BREAK FINANCE & INVESTMENT OPPORTUNITIES

12:30 – 12:55

TOPIC TO BE ANNOUNCED SOON

Eng. Khamis Mubarak al Kiyumi, Vice Chairman, Al Madina Investment & Chairman of Shaza Muscat Co., Oman

12:55 – 1:20

INVESTMENT OPPORTUNITIES IN DUQM ECONOMIC ZONE

Saleh Hamood Ali Al Hasni , Investors Service Specialist, Special Economic Zone Authority Duqm, Oman

1:20 –2:00

INVESTORS & DEVELOPERS PANEL: WHAT ARE THE REAL ESTATE INVESTORS & DEVELOPERS LOOKING FOR? CHALLENGES & PROSPECTS

Moderator: Martin Cooper, Director, Real Estate Consulting-Middle East, Deloitte

Panelists:

Eng. Khamis Mubarak al Kiyumi, Vice Chairman, Al Madina Investment & Chairman of Shaza Muscat Co., Oman * Sulaiman Al Harthy, General Manager, Meethaq Islamic Banking* Saleh Hamood Ali Al Hasni , Investors Service Specialist, Special Economic Zone Authority Duqm, Oman Philip Paul, Head of Country, Cluttons Oman*

2:00 – 2:10

WRAP-UP & CLOSING REMARKS BY THE CHAIRMAN 23

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