Muscat Home Show - Market Report by murali kannan

13-15 December 2011 Oman International Exhibition Centre Muscat, Sultanate of Oman

Market Report July 2009 - November 2010

Organiser:

P.O. Box 894, P.C. 115, Madinat Qaboos, Muscat, Sultanate of Oman Tel: +968-24783800 Fax: +968-24783500 E-mail: gec@globalexhibitionsoman.com Website: www.muscathomeshow.com Market Report 1

Table of Contents Lands distributed to 68,755 women

Oman Tourism in for boom with more hotels on the anvil

Oman: real estate rising

624 families get social housing project loans

Oman: boost for construction

Public expenditure touches RO94b: Macki

Tourism pact signed in Oman

The Wave, Muscat all set to launch first-of-its-kind villas

The Wave, Muscat sets up Lease Department

Limited edition villas released by Muriya

Iskan Oman launches freehold development in Salalah

Al Balushi Investment all set to unveil Mayar Al Khoud project

ERA to exclusively market Sohar project

Spanish group Assignia eyes prestigious projects in Oman

Healthy growth in Oman’s real estate

Baader launches upscale project

Oman’s marble export earnings exceed RO 40m in four years

Spanish giant lowest bidder for Duqm hotel

Boom in construction sector

New luxury hotel at Airport Heights

The Wave, Muscat, taking final shape

Alargan Towell Investment Co. launches ‘Beyout AlFaye’

118 housing units being completed

BankMuscat ‘baituna souq’ rejuvenates real estate market

The Wave, Muscat signs mortgage financing agreement with SCB

Construction firms line up for Duqm hotel contract

Nawras Mini Homes give chance toexperience new residential services

Strong rise in Al Jazeera Steel sales

Omran, Musstir tie-up for resort

Construction costs spring up

Luxury living in Saud Bahwan Palm Gardens villas in Sohar

Bank Sohar signs MoU with Zain Property Development

The Wave says 60pc work on waterways done

2 The Home Show

New projects signal tourism boom

Oman Arab Bank in alliance with Zain Property Development

OHB provides Maskan loans worth RO 3.57m

Better Homes begins Muscat operations

Muriya to showcase sample Jebel Sifah apartments soon

Mega tourism projects in Dhofar

Royal grant for housing scheme

HSBC Oman lowers mortgage rates

Infrastructure gets RO1b

Oman-German JV set to announce entry into real estate sector

Khimji’s Bait Al Ahlam launches Bagno Design showroom

Tourism, real estate sectors on cusp of sweeping growth

Extension underscores social role of Oman Housing Bank

Glorei signs agreement to build Maktabi 2 in Wattayah

BankMuscat’s baituna Souq to showcasearray of real estate projects

MoU inked for environmental tourist resort in Mirbat

Zubair Corp. plans hotel, residential complex

Muriya sales event to showcase Jebel Sifah and Salalah Beach properties

Standard Chartered launches mortgagescheme for residential properties

Oman realty sector to hit RO1.57b

Oman Cement’s new clinker project to come on line in Q2

Muriya sales event to showcase Jebel Sifah and Salalah Beach properties

Ruwi Master Plan’s first four-star hotel complex to be ready by 2011

Al Madina Real Estate signs pact for Poggenpohl Kitchens

1.18-billion rial real estate transactions

Deal signed for Salalah Beach Resort project

Oman construction sector to hit RO1.6b

Pacts inked for 500 houses

Barr Al Jissah residences near completion

Dar Al Zain sells out all villas in Phase I of the project

Zain Property launches RO 17m Seeb villa project

Construction of new Rotana hotel well under way in Salalah

Naseem A’Sabaa project ‘will bring in more investments’

First private Omani tourism complex project announced

Cement demand grows as construction sector thrives

42 Market Report 3

Lands distributed to 68,755 women Oman Observer - 10 November 2010

he Ministry of Housing has set aside in various regions and governorates of the Sultanate during 2009 as many as 153,077 pieces of land for various uses. Lands planned for residential use formed 89 per cent with a total number of 136,345 pieces. With respect to the lands granted to women, as per Royal Decree No 125/2008 to amend land entitlement, the ministry began distribution of land to women in various wilayats and regions where the number of women who got land since 1997 reached 68,755.

families. The number of cases approved in the Governorate of Muscat was 10 loans, 11 in Al Dakhiliyah, five in Al Sharqiyah, 22 in Al Batinah and two in Dhofar. One of the priorities of the ministry is to provide adequate housing for people as it continues to implement projects to build housing units in order to achieve stability for the citizens and linking them to their villages of origin, in addition to contributing to the development of local communities in different regions and villages.

Women in Muscat got about 15,538 pieces, 5,250 in North Al Batinah, 6,755 in south Al Batinah, 482 in Musandam, 7,232 in Al Dhahirah, 3,865 in Al Buraimi, 8,585 in Al Dakhiliyah, 12,409 in Al Sharqiyah, 1,053 in Al Wusta and 7,586 in Dhofar.

The total number of housing units that have been completed is nearly 1,587. During 2009 the ministry has completed the implementation of approximately (625) housing units at a cost of over RO 11 million in Muscat (164), Al Dakhiliyah (171) and Al Sharqiyah (290) housing units.

This programme grants loans without interest for low income citizens who earn between RO 130 per month and RO 250 at the time of submitting the application and their income does not exceed RO 400 when they get the approval. With regard to crafts men, their monthly income will be calculated over a period of one year.

The ministry is currently building (962) housing units in South Al Mabaila (17 units), (121 units and two sitting halls) in Governorate of Al Buraimi, (202) units in Al Dakhiliyah, (219 units) in Al Sharqiyah (192 units) in Al Wusta , and two sitting halls in Al Dhahirah Region.

The loan is granted for the purpose of building a house, buying a new one or expanding an existing house, and would be repaid in monthly instalments that do not exceed 25 per cent of the total income of the borrower. The number of beneficiary households during the same period was 50

The land registration system in the Sultanate is a part of the registration system of the realestate, a system in place in most countries of the world. It facilitates the transfer of the property easily and safely and aims to preserve and maintain the rights and the registration of property in the documents of the land register and to

encourage investment in all fields by facilitating conducting legal transactions and documentation of contracts. During 2009, the ministry registered a total of 69,167 pieces of land for the first time with various uses in various governorates and regions of the Sultanate. The number of lands that have been recorded for the first time for residential use was 54,796 pieces or 79 per cent of the total number of lands during 2009, followed by agricultural land by 13 per cent. The traded value of the property in the Sultanate in 2009 was about 1.2 billion. Fees from legal actions amount to about 26 million. About 83,221 warranty of titles were issued. In order to strengthen co-operation in the economic sphere between the countries of the Gulf and other Arab countries to encourage real estate activity among the GCC countries, Economic Unity Agreement between the GCC states provided for the treatment of GCC citizens in any of the member states the same treatment of its citizens, including freedom of properties ownership of various uses for the purposes of housing and investment in accordance with the terms of ownership. The number of GCC citizens who own properties in the Sultanate in accordance with the laws of real estate ownership in the Sultanate was 3,134 owners in 2009, most of them in Al Batinah Region by 43 per cent and 21 per cent in Al Buraimi.

Oman Tourism in for boom with more hotels on the anvil

he Sultanate of Oman has been attracting more and more inbound tourists which is reflected in the number of hotels being opened in the country, according to a chief 4 The Home Show

Oman Observer - 28 November 2010 official at the Ministry of Tourism. Mohammed al Toobi, UnderSecretary at the ministry, opined that the increasing number of hotels is a clear sign, among others, of the fact

that the Sultanate is one of the most sought-after tourism destinations in the region. He was speaking to the Observer after

opening the first Moghul heritagethemed hotel in the city, The Platinum, in Al Khuwair. He said hotels like this one, and many more in the pipeline, can give a fillip to the ever-growing tourism industry of the Sultanate. “I’m sure, the opening of more and more hotels in the country is a sign that the number of tourists are increasing thanks to the prudent and balanced approach of His Majesty towards all sectors including tourism”. The number of hotels and hotel apartments in the country, according to a recent study, has increased from 30 in 1990 to 195 in 2008, with an average

annual growth rate of 10 per cent.

uted to the surge tremendously.

Besides, the Sultanate has plans to increase the number of hotel rooms to 16,000 by the end of 2010 from the present number of more than 10,000, according to the tourism officials.

“The expansion of the Oman Air network of direct flights to Frankfurt, London, Paris, and Bangkok and several cities of India would attract greater traffic”

Added to that, in the next few years, Oman will add up to 5,000 rooms, refurbish Muscat and Salalah International Airports and begin construction of five domestic airports, according to experts in the hospitality industry. It is estimated that there will be an increase of tourists from the UK of at least 7.5 per cent year-on-year and Oman Air, the ‘high-flying’ national carrier of the Sultanate, has contrib-

The ministry has recently launched a marketing campaign to coincide with the country’s 40th National Day celebrations. Named ‘Beauty has an address’, the initial phase of the campaign concentrates on destination awareness promotions in the press, online and with trade partners highlighting the country’s traditional heritage as well as contemporary offerings.

Oman: real estate rising

man’s real estate sector is gathering momentum, with economic confidence driving higher domestic sales and amended property ownership rules drawing increased interest from foreign investors. Some RO1.3bn ($3.4bn) worth of property transactions were registered in the first nine months of this year, compared to RO1.1bn ($3.1bn) in the whole of 2009, according to data from the Ministry of Housing. Ownership deals by GCC citizens also grew by 40.7 per cent to 2300 in the first six months of 2010 while some 5800 mortgage contracts were signed with a total value of RO698m ($1.8bn). Meanwhile, a report by the hospitality research group PKF Consulting released in October noted growing interest in residential units located in integrated tourism complexes (ITCs) spread along the country’s coast. ITCs are the easiest avenue for foreign nationals looking to enter the local property market. Oman has largely opened up its real estate sector to foreign investors in the last decade, with the first major step a 2002 decision to grant GCC nationals the right to own property for residential or investment purposes. This was followed in 2006 with leg-

Oman Observer - 24 November 2010 islation allowing foreigners of other nationalities to directly own property within ITCs. These measures have helped fuel Oman’s real estate expansion and could serve as a yardstick for property development in the region, Hilal Ali al Sulaimani, general manager of Hilal Properties, told the Oman Observer last month. “When Oman formulated land ownership rules, the real estate scene in the Sultanate received a real fillip,” he said. Amendments to Omani land use laws issued by Royal Decree in September relaxed foreign shareholding restrictions, enabling public and closed joint stock companies with a minimum of 30 per cent Omani shareholding to own land. Significantly, the amendments allow these companies to engage in real estate development as a business object, a permission that was previously restricted to 100 per cent Omani and later 100 per cent GCC owned companies. This further opening up of the sector could add impetus to the market, which is already seeing growth due to domestic demand fuelled by economic growth and a young population.

Speaking at a recent property financing expo held by BankMuscat, Tyler Scott, a senior manager for sales and leasing with real estate brokers Engel and Volkers, said buyer confidence was returning and interest in a broad range of products was on the rise. “The Omani real estate market is quite distinct and quite characteristic of the country,” he said. “The property market has witnessed big adjustments and is presently enjoying good support.” While there were concerns that a big budget infrastructure programme launched by the state would divert construction capacity away from residential projects, the projects are unlikely to make long-term bottlenecks in supply, leaving the market free to build on its strong foundations. In the meantime, the government’s plans to boost transport and housing infrastructure under its “Vision 2020” programme have led to growing interest in the construction sector. The industry is valued at $3.7bn this year and should register growth rates of around 5 per cent in the next three years, according to the “Oman Infrastructure Report Q4 2010”, published in November by companiesandmarkets.com. Market Report 5

624 families get social housing project loans Times of Oman - 10 November 2010

n all, 624 families benefited from social housing project loans provided by the Ministry of Housing from January 1 to November 1. According to a report from the ministry, it has also approved the construction of 925 social housing units with utilities in a number of governorates and regions of the Sultanate. The ministry provides three programmes for the social housing project that aims at availing housing services for low income and social securities families and housing loans for low income bracket. The housing aid programme has been designed to assist low-income families whose income is less than RO129 and those who are covered by the social security system. The soft housing programme provides interest-free housing loans for low income families whose income is not less than RO130 and not more than RO250 at the time of application. The income for those who apply for

the soft housing programme should not be more than RO400 when the approval is granted. The RO20,000 soft loan is granted for building a house or buying new house or making extension to a current building. The loan is paid on monthly instalments not more than 25 per cent of the borrower’s salary. The number of families that benefited from the programme from January 1 to November 1 amounted to 121. The total money disbursed for 121 people was RO121,970,765. The Ministry of Housing also availed 115,360 land plots till September end in various parts of the Sultanate. According to the report, the local committees at the ministry received more than 16,925 applications for land plots. In all, 11,370 applications were registered and 15,284 land plots have been processed. By the end of September, the ministry registered 55,699 land plots for various uses for the first time in the

Sultanate. The value of the real estate contracts in 2010 hit more than RO1.3 billion. The fee collected from the completed transactions amounted to RO16 million including RO11 million from the sale transactions and more than RO4 million from mortgage. The number of real estate transactions till September was 65,604. The number of title deeds issued by the end of September amounted to 108,904. The number of real estate property owners from other GCC member states amounted to 2,685. The Ministry of Housing is currently implementing 808 housing units, mosques and public gathering areas, as well as, other facilities in different wilayats in the Sultanate at a cost of RO30,391,642. The Ministry of Housing has completed the construction of 743 housing units worth about RO21,157,240 in the wilayats of different governorates and regions in the Sultanate.

Oman: boost for construction

man’s government is ramping up infrastructure spending as part of a programme to stimulate the economy, with the construction sector and suppliers of building materials set to be the most immediate beneficiaries. In late September, local and international media reported that the government would increase its budget outlays for 2011 by some 11 per cent over this year’s $18.7bn, with most of the additional funding to be directed towards infrastructure and development projects. Recent projections suggest that the construction industry will grow by just under 6% annually for the next five years, though actual growth lev6 The Home Show

Oman Observer - 3 November 2010

els could be even higher due to the reported increase in budget outlays. With some $10bn worth of construction and infrastructure projects either at the initial development stage or planned before 2015, Oman’s builders will be kept busy in the foreseeable future. So too will the sector’s suppliers, with a number of Oman’s leading materials firms increasing output or looking to boost capacity. One segment of the construction materials industry gearing up for more activity is the steel sector. India-based producer Jindal Steel and Power (JSP) is planning to have a plant located within the Sohar Port and industrial complex up and running by in the

first half of next year. With an annual capacity of 1.5m tonnes, the factory’s output will not only serve the domestic market but further afield, according to JSP’s deputy managing director, Sushil Maroo. “It is a port-based plant,” Maroo told Indian media in early October. “It will be a gateway for us to growing markets. We will also ship the products to India and China from the plant.” Jindal is not alone in buying into the Oman steel sector. India’s Zoom Steel Company (ZSC) is also developing a plant in the north-eastern city of Sur. When brought online in late 2012, the $655m facility will be able to turn out 1.2m tonnes of steel billets

and blooms. Mirroring JSP’s plans for expansion, ZSC is also looking to use Oman as a platform from which to launch into international markets. Syed Gazanfar Abbas Safvi, the Director and Chief Executive Officer of ZSC, said the new plant’s close location to the port of Sur meant that it was well placed for exports as well as local sales. “First we will sell it in Oman. Then we go to the next circle of the GCC region, including Yemen,” Safvi said. “Thereafter, a bigger circle representing the rest of the world.” Oman’s cement industry is also eyeing growth. In mid-October, officials of the Al Madina Cement Company said the firm was on track to have a new plant completed and operational before the end of this year that would produce some 2,500 tonnes of cement per day, mainly Portland. Oman’s Raysut Cement also recently confirmed it has been in talks aimed at acquiring another regional producer, with a possible deal to be announced

within a month. Though the company has not revealed what firm it plans to buy, media reports have suggested it will be Ras Al Khaimah Cement, which operates out of the UAE.

board of directors, Abdullah Abbas Ahmed, said on October 24 that oversupply had been created “due to the huge inflow of cement from neighbouring countries.”

“We have been exploring acquisitions for some time now,” Raysut Cement Chief Financial Officer Samidh Mukhopadhyay said on October 24. “The important thing is the tonnage capacity. We won’t go for below 1m tonne capacity.”

Raysut’s chairman, Mohammed bin Alawi Ali Muqaibal, said that his company’s 21 per cent fall in profits was due in part to cheaper imports. “The decline in profit may be attributable mainly to the severe competition from the external markets coupled with demand recession in the export markets,” he said.

Though many construction materials’ producers in Oman are optimistic about both the local economy and prospects for improved export sales, they face stiff competition, with the Sultanate’s cement manufacturers coming under pressure in their own market from imports. Both Raysut and its main rival Oman Cement reported declines in pre-tax profit for the first nine months of the year compared to the same period in 2009. Oman Cement’s chairman of the

The pressure on domestic prices is likely to ease as the rest of the Gulf’s construction trade steps up activity, while Oman’s export markets for both cement and steel will also pick up as the Sultanate’s neighbours start to match its own building momentum. Though this may take some time, Oman’s material suppliers will be well placed to meet increasing overseas demand, having anticipated the revival of the construction industry and invested in new plants.

Public expenditure touches RO94b: Macki

he Sultanate’s total public expenditure touched RO94 billion during the last four decades, since the beginning of the Renaissance, said Ahmed bin Abdulnabi Macki, minister of national economy and deputy chairman of Financial Affairs and Energy Resources Council, yesterday. Speaking on the occasion of the 40th National Day, the minister said that the state investment was mainly for developing basic infrastructure facilities like roads and power and education, healthcare and water. Referring to the tremendous growth in basic infrastructure facilities, Macki said that the total length of paved roads by the end of 2009 touched 25,926km from as low as 15km in 1970. Similarly, power generation increased to 18,405 GW/

Times of Oman - 3 November 2010 hr in 2009 enabling the provision of electricity to almost all parts of the Sultanate. The potable water production also grew reaching 39,657 million gallons/ day. During the Seventh Five-Year Plan, the production size and extension of main and sub-networks in the various Sultanate regions increased. It is anticipated that the rate of production capacity of the desalination plants will total 143 million gallons by the end of this year. Also, distribution networks were added at the different regions with lengths exceeding 1,500km together with establishment of 81 new tanker filling stations to benefit from desalinised water and reduce use of underground water. Macki also noted that the government

of His Majesty Sultan Qaboos bin Said sought to provide a decent housing facility for citizens through the programmes of social housing, housing aids and easy-term loans. “The number of households benefited from these programmes during the previous five-year plans touched 25,698 at total cost of RO405.4 million.” He also said that foreign direct investments (FDI) totaled about RO5,029 million in 2009, indicating a growth of 15.3 per cent from that of 2008. As for foreign investment, new amendments were introduced in the laws related to foreign investments specifically in relation to securing foreign ownership up to 100 per cent and reducing tax rate from 30 per cent to 12 per cent, which makes the Sultanate as one with the lowest tax rate in the region. Market Report 7

Tourism pact signed in Oman Times of Oman - 1 November 2010

he Tourism Ministry and the United Real Estate Company, a Kuwaiti public joint stock company, yesterday signed an usufruct contract for the development of integrated tourist resorts in the Wilayat of Shaleem and on Al Halaniyat Islands under the trade names ‘Jnot’ and ‘Blatuz’. Dr Rajiha bint Abdul Amir bin Ali, tourism minister, said signing of the contracts will boost tourism in the country and attract more investments to the sector.

The ministry, in cooperation with the private sector, has already implemented or will commence a number of tourism projects in Dhofar — the Salalah Beach Resort, which is expected to open its first phase during the first half of 2011; the Commercial Tourism Complex, which is implemented by UREC; Sawdah Resort, which is expected to be completed in 2011; Al Baleed Tourist Resort, which is expected to begin its implementation by the beginning of 2011; and the development agreement of Aftelqyat Resort project, which will be signed

with one of the investment companies during the coming months. Dr Rajiha said the projects will contribute to the development of the tourism sector in Dhofar, and provide job opportunities. The project’s total area is two million square metres upon which each one will have beach hotels, villas, chalets, a full range of support services, recreational and special services for diving, fishing and marine sports.

The Wave, Muscat all set to launch first-of-its-kind villas

he Wave, Muscat is set to launch its first new villa product in nearly two years, a first of-its-kind design previously not offered in the project and which has been developed in response to customer feedback. The emphasis in the new design is efficient living space and added lifestyle community features such as mature green landscaping and garden walkways that connect residents through spacious parkland areas to the beach and recreational facilities. David Stafford, Vice-President of Sales and Marketing at The Wave, Muscat said: “There has been significant interest in the new designs from the local market since we first advertised the release but we are also seeing a number of new buyers from outside of Oman attracted by the country’s strong development fundamentals and the advantages of buying in an ITC project.” “The stability in Oman’s real estate market has not escaped savvy investors from across the GCC region including investment funds which are attracted to the diversity of the economy and strength of the property fundamentals.” 8 The Home Show

Oman Observer - 1 November 2010 “The new villa design offers buyers various competitive price points and alternative sizes in line with market expectations. This latest release follows the successful launch of the new apartment and townhouse designs earlier this year, when 95 per cent of properties were sold out in the first month of release.” Stafford added: “With increased maturity of the ITC market in the last two years coupled with the shift from speculators to end-users, The Wave Muscat continues to experience strong demand for high quality residential properties. Our vision to deliver a fully master-planned sustainable community and world-class tourism destination is progressing at a remarkable rate with golf course and phase 1 of the 400 berth marina due for handover next year.” The release of the purpose designed The Wave, Muscat villas is a new milestone in achieving this vision and the interest in the product is testimony to the demand in Muscat for high quality residential units in the new strategic development area of the capital.” A total of 70 villas will be released

comprising a range of unique floor plans with either garden, water or park views. The innovative designs increase usability of space while maintaining The Wave, Muscat’s industry benchmark of class leading interior and exterior finishes. The villas also feature spacious offstreet parking and garden walkways and a central community swimming pool and recreational area ideal for families. The marina and upcoming Retail Village are also located within easy walking distance of this release. A total of 36 townhouses will also be introduced to the market in the Luban and Acacia Block of Al Marsa Village in the marina precinct. Over the next 12 months, The Wave Muscat will hand over a number of its core lifestyle and tourism offerings, including the Sultanate’s first 18-hole PGA standard golf course, 400 berth Marina and phase one of the Retail Village, adding new dimensions to residential living within The Wave, Muscat’s growing and dynamic community. To date over 1,000 properties have been sold and more than 450 delivered with more than 300 families already calling The Wave, Muscat home.

The Wave, Muscat sets up Lease Department Oman Observer - 20 October 2010

he Wave, Muscat, the nation’s landmark freehold development and first Integrated Tourism Complex (ITC), has expanded its property management offerings with the formation of a new specialised Lease Department. David Stafford, Vice-President of Sales and Marketing at The Wave, Muscat, stated that the new department was launched in response to increased demand for a hassle-free tenancy and landlord service. “In a market categorised by a shift from speculators to end users, there has been increased demand for residential leasing over the last two years, and by leasing directly from the developer, tenants will be assured of the widest selection of premium properties,” said Stafford. The Wave, Muscat has already delivered over 500 villas, townhouses and apartments and the new Leasing Department is a natural extension of the value added services to help new owners rent their properties and

provide an easy and accessible option for those wanting to call The Wave, Muscat home. Headed by a number of highly qualified and experienced Senior Lease Consultants, the department will manage the entire renting process and will be responsible for promoting home owner’s properties to the marketplace. It will also offer key insights into the market and support prospective tenants in assessing the various home options that are available in the multibillion dollar fully master planned community. Stafford also said, “As the project matures, we are continuing to implement new commercial strategies to better serve our customers and complement our comprehensive property offering as the leading residential and tourism community in Muscat, Oman.” Stafford added, “Whether customers are interested in purchasing or leasing, The Wave, Muscat is an investment in quality living. We

are confident that with the current demand for ITC residential leasing, we will continue to present attractive housing solutions that meet the market demand.” According to an Oman Property News Report issued by residential and commercial sales experts, Cluttons Oman, The Wave, Muscat has set the benchmark for quality in the residential market and has proved to be a popular leasing option. The report said the development continues to present sound residential value and offer quality homes in a modern development, attributing the increased numbers of customers to lifestyle features including contemporary design, high quality finishing and green landscaped gardens. Cluttons Oman also said that price reductions experienced in the last two years have made properties within ITCs such as The Wave, Muscat more affordable and attractive while remaining in line with market realities and expectations.

Limited edition villas released by Muriya

uriya Tourism Development is offering exclusive, spacious villas for just 15 days in its two integrated tourism complexes ‘Jebel Sifah’ and ‘Salalah Beach’. ‘Majan’ and ‘Jabrin’ villas in ‘Jebel Sifah’ and ‘Salalah Beach’ respectively come with two to three bedrooms and plots of land starting from 1,500 square metres. The extensive area covered provides both space and privacy, an exceptional feature available in a limited number of villas. Each of the luxuriously designed two/ three bedroom villas will be fully furnished with private swimming pools, equipped with the best amenities and

Oman Observer - 13 October 2010 state-of-the-art fittings that will set them apart from other properties. Products by renowned international brands and high quality finishing such as modern electrical fittings and audio-visual equipment are included to create an ideal fully functional home. “Our focus has been mainly to think out of the box and present a unique product that exceeds the expectations of our customers — be it in concept or quality,” said Bahaa Kareem, Marketing Director of Muriya. Both projects ‘Jebel Sifah’ and ‘Salalah Beach’ are quickly taking shape. The portfolio of reputed hotels and

100 per cent free-hold properties have attracted many investors and continue to do so. Phase I customers will start receiving their villas and apartments by the first quarter of 2011. In ‘Jebel Sifah’, construction work is in progress over different stages in all 18 apartment blocks, with the majority approaching completion. The initial 63 villas have been designed in eight different styles, of which 41 approaching completion. The 55-room marina boutique hotel (Sifawy Hotel) is scheduled to be completed by the end of the year and will be managed by Muriya Hotel Division. High quality weather-resistant Market Report 9

pontoons have been put in place that will provide enough space for up to 150 boats. Similarly in ‘Salalah Beach’, work is rapidly progressing on the marina. The building structure of 47 villas has been completed. Construction of six blocks comprising a total of 186 apartments around the marina is also nearly complete. With 15.6 million square metres of prime beachfront area, high-end lux-

ury villas and apartments, two worldclass 18-hole PGA Golf courses, five 5-star hotels, two marina boutique hotels, retail outlets, restaurants, cafes etc, ‘Salalah Beach’ combines the best of both worlds — the natural beauty of the destination with modern facilities and amenities. Work on Rotana Hotel is already in progress and scheduled to be completed by early 2012. Muriya was established in 2006 when Egypt’s Orascom Hotels and Development (with 70 per cent stake) and

Omani government owned Omran came together in a joint venture. Since then, Muriya has announced four ambitious projects across the beautiful locales of Oman. Two of the ongoing projects are integrated tourism complexes (ITCs) offering free-hold properties — ‘Jebel Sifah’ and ‘Salalah Beach’. Moreover, Muriya also has extensive plans to develop’ City Walk’ in Muscat and work for the boutique hotel on ‘As Sodah Island’, is in progress.

Iskan Oman launches freehold development in Salalah

skan Oman’s Zahrat Al Khareef, Dhofar project, offering freehold ownership for Omani and GCC citizens, is the first of its kind and the largest in Salalah proper. Located in the Al Wadi area, the project covers an area approximately 29,000 sq metre 10-storey buildings with a gross built up area of 130,000 square meters will offer 586 living units in a mix of 1, 2 and 3 bedroom and duplex apartments. That apart, a club house equipped with a modern gymnasium and other recreational facilities, swimming pool, professionally designed landscape, and a commercial hub to service the community are also incorporated in the project design. A basement level car park will accommodate more than 600 cars. The designers of Zahrat Al Khareef, Dhofar have laid much emphasis on the environment with primary concern for eco-factors. Every building is conceived to be highly energy efficient. Provisions include use of solar energy, natural ventilation, water recycling systems, sky villas, green roof and a tropical garden. In 2008, when Iskan Oman Investment Company was set up, Iskan 10 The Home Show

Oman Observer - 4 October 2010

Group Chairman, Adil Mohammed al Bader, had said: “It is our commitment to actively contribute to our economy as well as our societies; Iskan Oman seeks newer and untapped avenues and translates them into viable opportunities generating lasting growth.” Today, the Zahrat Al Khareef, Dhofar project promises to promote a happy community living offering the convenience of proximity, space and leisure. Zahrat Al Khareef is set to change the skyline of this region, bringing along a trend in blending modern living with the natural environment that reflects the very essence of Salalah. Lush green trees, gentle breeze from the mountains, white sandy beaches are given. The added advantage is that all this is presented in an environment most suited for present day living. Zahrat Al Khareef, Dhofar is a unique investment opportunity developed to cater to all housing needs in a single complex. It is a one-of-a-kind residential complex offering convenience and security of living in a gated community. It offers a prime location — close to airport, schools, hospitals, shopping malls and an excellent environment — close to the Salalah Gardens and minutes away

from white sandy beaches. On Saturday, a number of agreements were signed with leading international and regional names in various fields of real estate — Savills, Special Technical Services LLC (STS) and Bank Dhofar. Savills is one of the world’s largest real estate firms, offering a broad range of specialist consultancy and transactional services globally. STS has been awarded the contract to construct Phase I of the Zahrat Al Khareef residential development by Iskan Oman. Bank Dhofar are financing partners for Phase 1 of the project. Speaking on the occasion, Dr Rashid Ali al Balushi, Managing Director of Iskan Oman said “The first phase of the plan includes 218 unique apartments, the commercial properties and amenities like the club house and swimming pool. The themed landscape of the project has been designed to reflect the very essence of Salalah”. Dr Rashid continued “Zahrat Al Khareef, Dhofar is a freehold project primarily catering to the interest of Omani and GCC citizens. It will bring a new phase to Salalah, one that will see the emergence of smart living and smart growth.”

Al Balushi Investment all set to unveil Mayar Al Khoud project Oman Observer - 4 October 2010

l Balushi Investment, a leading real estate company, is all set to unveil its much-awaited ‘Mayar Al Khoud’ a luxury residential project by this month. The first of its kind project in the Sultanate, which will bring a much sought-after variety in the Omani real estate and allow the public to enjoy a comfortable living experience.

LLC, said,” We are delighted to announce the timely delivery of residential units of Mayar Al Khoud project. We are highly conscious of the buyers’ keenness to move into their new homes that is set to offer a unique experience in community living with its exquisite features and ambience. We are proud to welcome them to our prestigious new developments.”

are very community like in a safe, secure and service oriented environment and this project is no different.

The project, which was launched in June 2008, with a vision to build contemporary living spaces for people in an exclusive and stylish environment will be composed of 58 stand-alone villas within a strategic location in the Al Khoudh area in Muscat. With close proximity to Muscat International Airport, leading shopping malls. the residents will enjoy easy access to all the city landmarks.

Set to occupy an area of 23,029 sq. m. and with a built-up area for each villa ranging from 288 to 363 sq. m., ‘Mayar Al Khoudh’ will feature four different villa designs each spanning 230 to 347 sq. m.

Mayar Al khoud offers its customers comforts such as state-of-the-art swimming pool, gymnasium, recreational spaces, walking tracks, children’s play yards, as well as exclusive shopping and recreational facilities.

The luxury residences will feature four to five bedrooms, a living room and family sitting area, five to six bathrooms and toilets, a dining room, kitchen, storage, laundry room, a maid’s room and two parking spaces. Al Balushi Investment has been instrumental in providing homes that

Mayar Al Khoud provides exclusive community living experience. The developer Al Balushi Investment provides round the clock managed facilities to all residents ensuring idyllic, undisturbed and secure living condition.

Delighted with the timely completion Hussain A Habib, Group General Manager, Al Balushi Investments

“We have every sought-after facility in this project and I am sure our potential buyers will be more than happy when they see what we have to offer”, Hussain added.

ERA to exclusively market Sohar project

RA Real Estate Oman, a pioneer real estate service provider in Oman, has entered into an agreement with Ministry of Defence Pension Fund, for exclusive marketing its prestigious project “Sohar Sawary Centre”, located in Sohar. Hassan Mohammed Juma, Managing Director of ERA Real Estate-Oman stated that they are delighted to embark on the marketing and leasing of such an eminent project and he express his gratitude to Ministry of Defence Pension Fund for choosing ERA-Oman for marketing this landmark project. The “Sohar Sawary Centre” spreads over 55,275 sq.m. of built-up area and the centre is poised to be grand with combination of Vivid Shopping Mall, Restaurants, Offices, Residential

Oman Observer - 23 September 2010 units with Club House, Swimming Pool and other amenities which will stand 6-storeys high and finished with finest modern finishes, which distinguishes this project from others. The Sohar Sawary centre is located in one of the most distinguished places of Sohar, which adds advantage to its features. This multi use centre, which compiles accommodation, shopping and work in one place is located on the Muscat-Dubai highway and close to Al Sallan Round about. Scheduled to be completed by the end of 2010, the Sohar Sawary Centre will be one of the largest foremost residential and commercial building in the Sohar region, comprising of luxurious fixtures, ample parking space, modern amenities and stateof-the-art security systems.

This huge project has great attraction in Sohar real estate sector, since its agglomerates unprecedented architecture and interiors, presence of a sports complex consists of a lounge Gymnasium, squash and tennis court, gymnasium, multipurpose hall, with a swimming pool and a baby pool, diversified sections of housing, employment, trade and entertainment all in one destination. Ismail Kamel, Head of Sales of ERA Real Estate-Oman stated that “Sohar Sawary Centre” is the perfect place for stay, shop, dine and work in one place, which you can find luxury and comfort, which has long sought to obtain them. The centre also features more than 250 basement car parking and more than 250 open car parking in front of the centre. Market Report 11

Spanish group Assignia eyes prestigious projects in Oman Oman Observer - 4 September 2010

panish company Assignia Infraestructuras is keenly targeting opportunities in Oman’s fast-growing construction and infrastructure sector. Assignia Infraestructuras is the parent company of a large international group with headquarters in Spain, dedicated to construction and services. The Spanish construction business classification system rates Assignia as technically and financially robust in implementing infrastructures and buildings of all types and budgets. “The Group has an active role in the development of tourism in Spain, being involved in key tourist projects. Currently Assignia has two ongoing luxury hotel projects with Paradores de Turismo, a Spanish government funded limited company with eight decades of history and which currently manages more than 90 hotel

establishments,” said Javier Álvarez, Middle East and Turkey Director of Assignia. “We believe that our experience can add value to the tourism projects of the Sultanate of Oman.” Assignia Infraestructuras participates in large-scale infrastructure projects — high speed railway lines, motorways and airports. It is a leading company in the services and infrastructures concessions sector, particularly in the area of health (where it has been awarded three hospitals on the BOT model) education and the environment. It is also present on the renewable energy market. The Oman Tourism Development Company (Omran) has received bids from 15 groups on 16 August for the contract to build the new Crowne Plaza Hotel resort in Duqm. Assignia Infraestructuras is the low bidder for a contract to build the new Crowne

Plaza Hotel Resort in Duqm on behalf of Omran. Since the proposed resort will cater to the special needs of corporate sector and business travellers, the hotel will have state-of-the-art meeting and conference facilities and will feature several dining options including a specialty dining restaurant, an all-day dining restaurant, a complete fitness centre with the latest in high-tech equipment, a spa, and tennis courts. Construction work on the first luxury hotel in Al Wusta region is expected to commence early next year, with the project slated for completion by early 2012. In addition to executing the hotel project, the successful contractor is expected to construct an access road to the property. The Assignia Group has been awarded with important contracts in Mexico, Venezuela, Colombia and Turkey.

Healthy growth in Oman’s real estate

man is known for its friendly and welcoming nature, thanks to its natural borders, coastal access to the Gulf of Oman and historical interaction with different cultures. It is unique in its landscape with an awe-inspiring splendour. The country is one of the fastest growing economies in the Gulf for the government’s prudent planning, calculated spending and investments in the non-oil sector. The opening of Oman’s real estate market is part of ‘The Vision 2020’ — an economic diversification plan aimed at helping the country gradually reduce its oil contribution on to the GDP. The real estate growth in the Sultanate is driven by strong and stable parameters. Omanis’ rising purchasing power has fuelled growing demand 12 The Home Show

Oman Observer - 2 September 2010 for residential units. Foreign investment, liberalisation of property laws and healthy tourism have all added to the country’s real estate growth. In December 2002, GCC nationals were given the right to own property in Oman for the purpose of residence or investment, through an accord on cross-border real estate ownership. Following this, in February 2006, all other nationalities were given the right to own properties in Integrated Tourism Complexes. With this, expatriate property owners are allowed automatically to get residency rights for themselves and their immediate families, by virtue of the property acquisition. Hilal Ali al Sulaimani, General Manager of Hilal Properties, says: “Ever since Oman formulated land ownership rules, the real estate scene in the

Sultanate received a real fillip. Omani freehold has been making waves and is on the threshold of making a new yardstick for property development in the region the freehold way.” According to him, the strength of Oman’s real estate stems mainly from both proactive government foresight and the nature of the market here. From the perspective of a real estate developer, who is seeking a safe investment option, Oman has all the potential to make a magnificent and sustainable destination. Oman’s growing population means housing demand is outstripping supply. More than half of the natives are predominantly young. This young generation has all the desire to build or purchase its own houses and has great purchasing power leading to a

higher demand for land. One of the crucial elements of Oman’s demography is its change in the family trends. Like elsewhere in the world, there is a shift from the joint family to the nuclear family system, especially in urban areas like Muscat, Salalah, Sohar or Sur. This makes young married couples looking forward to have their own houses, agrees Hilal. The growing number of expat workers in Oman is also fuelling the real estate boom. With the government’s expansion and diversification efforts gathering steam, several projects including industrial, manufacturing and construction are taking shape increasing the country’s dependence on foreign labour. This has again increased the demand for more residential, retail and business space. “Oman’s emergence as an attractive housing market is catering to a

distinct niche. Property developers are leveraging the country’s natural variety,” says an architect at a property firm. Planners take extreme care to keep Oman’s distinctive building style though we give a modern touch, he adds. Since Oman’s opening up, investment into the real estate market has been skyrocketing. The Wave Muscat took up the first initiative into this unchartered territory. It built a long strip of a beach in Muscat — an integrated tourism complex — where non-GCC nationals are allowed to buy real properties. Obviously, the demand and the rate growth in the capital area is more because of the higher population and higher income here. A number of projects including villas, apartments, retail and office space is nearing

completion in Muscat capital area. Development at Al Sarooj and Madinat al Sultan Qaboos has produced a number of high-end properties. Seeb with its dynamism, is being projected as a business hub with many companies having shifted their headquarters there or are planning to shift thanks to the availability of prurposebuilt buildings in the Airport Heights. Recently the government has designated a number of areas in the capital where apartment and office complexes of up to 12 stories are being permitted, a move expected to lead to a better supply of affordable housing. With the government investing more in tourism projects, foreign participation is increasing thanks to incentives like land at low cost, availability of beachfront plots, lucrative infrastructure to investors. This suggests phenomenal investor interest in Omani real estate projects.

Baader launches upscale project

he real estate market in Oman has already shown the signs of recovery while other countries of the GCC (Gulf Cooperation Council) are still struggling to get back on track. The market in Oman is completely different from other GCC markets and this is the best market in the region. This was stated jointly by Uto Baader, Deputy Chairman of Baader Projects, Hotels and Resorts and Siegfried Lingel at the launch of Al Bustan Residences yesterday. The project, which is offering 47 exclusively designed homes, is being done by the newly formed company jointly owned by Uto Baader, Chairman of Baader Bank and Siegfried Lingel, owner of German Merkur Bank headquartered in Munich as well as Silver Circle Overseas LLC, the company’s local partner. Announcing the launch of the project Uto Baader said, “We are proud to announce the launch of Al Bustan Residences – our first major upscale real

Oman Observer - 31 August 2010 estate development in Oman - and to cement the joint venture relationship with our Omani partner Silver Circle Seas, as well as Savills Oman.” “Savills Oman has a vast amount of experience within the region and is currently working on a number of prestigious projects within the Sultanate and we would like to welcome Savills Oman on board and look forward to a long and successful relationship,” he said. The project launch was hosted by all the three shareholders including Sayyid Salem Musallam al Bussaidy of Silver Circle Group. Baader Projects, Hotels and Resorts, a recent entrants in the Omani real estate market, are offering the villas for RO 245,000 at one of the most prestigious locations in Muscat opposite new Majlis A’Shura Building, Muscat Governorate and AL Bustan Palace Hotel. According to Christopher J Steel, Managing Director of Savills Oman, the unique Arab style villas are meant for GCC nationals and will

be ready for handover in 18 to 20 months. “The exclusive and luxurious new development will consist of a total of 47 of the most beautifully designed villas and linked villas all of which will be finished to the highest standards and furnished with the very latest fixtures and fittings,” he said. Commenting further he said, “Families will adore their new homes which will be surrounded by lush green landscaping and gardens. Some properties also have the luxury of their own private swimming pool allowing all members of the family to enjoy the outdoors in the privacy of their own home.” Project developer Baader Projects, Hotels and Resorts is backed by German investors and has been specifically built to develop tourism products and locations in Oman. The Company’s vision is to build a series of unique and distinctive projects that also fit with the development objectives set by Oman’s leadership offerMarket Report 13

ing some of the best opportunities in the GCC at this time. According to Christopher, members of the senior management team have extensive experience of investing in some of the most high profile projects around the globe and will draw on this strength now as it plans to establish

itself in the Omani real estate market. “The entry of Baader Projects to the local real estate market comes when the Omani real estate market has shown strong signs of improvement since the beginning of the year.” “The new project will provide homeowners with a unique proposition

very different from the Integrated Tourism Complexes that already exist in Muscat. Marketed at GCC and Omani residents this gated community will provide a limited number of homes aimed at the GCC’s elite in what will soon be one of the most exciting and vibrant locations in town,” he said.

Oman’s marble export earnings exceed RO 40m in four years

man’s marble export earnings have grown at about 20 per cent compound annual growth rate (CAGR) in the past four years to reach about RO 40.66 million in 2008. This is expected to increase further in the near future following continued efforts to boost Oman’s exports of marble products. As a part of the continuous efforts, the Omani Centre for Investment Promotion and Export Development (OCIPED) is all set to participate at the International Exhibition of Stone, Design and Technology from September 29-October 2 at Verona, Italy, said Faris Nasser al Farsi, Acting Director-General, Export Develop-

Oman Observer - 29 August 2010 ment, OCIPED. OCIPED will have a 15 square metres of exhibition booth under the banner Oman pavilion. So far four Omani marble and stone companies have confirmed participation in this exhibition. This is part of the initiative of the Directorate-General of Export Development of OCIPED to reach out to new markets, identify new business opportunity and partnership. OCIPED has obtained a Market Report on Natural Stone and Stone products prepared by the Centre for the promotion of imports from the developing countries (CBI), Netherlands during 2009 and have distrib-

uted the same among Omani marble and stone exporters. Al Farsi believes exporters will get an excellent exposure in understanding new technologies in marble mining, cutting, and packing by attending this exhibition. Since the Verona Fair is the largest marble and stone exhibition, Omani exporters will have an opportunity to meet with importers, distributors, building contractors from all over the world and understand their needs. Al Farsi hopes Omani Pavilion will attract a good number of visitors resulting in export opportunity for Oman.

Spanish giant lowest bidder for Duqm hotel

bid submitted by Spanish construction giant Assignia Infraestructuras turned out to be the lowest one for building a four star-hotel in Duqm under Crowne Plaza brand. As many as 15 local and international groups have submitted bids for building Crowne Plaza Duqm Resort, which will have 228 rooms, including 11 spacious executive suites and 6 smaller suites. Oman Tourism Development Company (Omran) - an investment arm of the government for developing 14 The Home Show

Times of Oman - 28 August 2010 tourism infrastructure -- is building the hotel mainly to cater to the needs of business travelers into the area – consultants, contractors, investors and project managers - who frequently visit Duqm to support the government-initiated port and ship repair yard there. Assignia’s lowest bid was for RO16.43 million. Galfar Engineering & Contracting, Larsen & Toubro (Oman) and Services and Trade Company stood second, third and fourth positions with their bid prices of RO16.70 million, RO16.79 million

and RO17.59 million, respectively. Other bidders for the project are Douglas OHI, Simplex Infrastructures Ltd, Abu Hatim, Federici-Stirling Batco, National United Engineering, Carillion Alawi, Oman Shapoorji Construction, Al Adrak Trading and Contracting, Erenport Insaat Sanayi Veticarte Anonim, International Contractors Co and Armenco. Armenco was the highest bidder with a bid amount of RO24.84 million. Apart from bid amount, the tender board will take into account various

other factors like the experience and reputation of contracting firms in successfully completing similar properties. Since the proposed Crowne Plaza Duqm Resort will cater to the special needs of corporate sector and business travellers, the hotel will have state-of-the-art meeting and conference facilities. Further, the hotel will feature several diverse dining options including a speciality dining restaurant, an all day dining restaurant, a complete fitness

centre with the latest in high-tech equipment, a spa, and tennis courts all of which will give business guests the opportunity to mix business with pleasure. Apart from executing the hotel project, the successful contractor is expected to construct an access road to the property. Construction work on the first luxury hotel in Al Wusta region is expected to commence early next year, with the project slated for completion by early 2012.

Omran signed an agreement with Intercontinental Hotel Groups (IHG) to operate the hotel project. Within the next five years, Duqum will be transformed into a major commercial port, with various facilities for ship repair facilities. The master plan for Duqum’s scale-up also includes designated areas for an airport, free trade zones and oil storage facilities as well as a fishing harbour complete with fishery related industries.

Boom in construction sector

Oman Observer - 27 August 2010

man’s construction sector is gathering steam, encouraged by economic growth and implementation of large-scale projects. The main driver behind rapid expansion of this sector has been government spending, which registered major rise in the recent years.

along with other GCC states. Oman’s private sector is taking the construction industry forward with billiondollar projects. The Global Group, which has businesses in construction, electrical and manufacturing has joint venture projects with Indian companies in Oman.

Along with investments made in the public infrastructure, and propelled by the growth in Oman’s information technology sector, the Sultanate has seen major undertakings in industry and tourism related projects. This phenomenon has again fuelled expansion of residential, retail and business space.

“Oman has everything to attract investors — the booming economy, liberalised policies, and a safe and pristine environment”, he says.

The Sultanate’s economic diversification is the driving force behind the development of sophisticated industrial projects. The state has been releasing much more land in the past few years, opening up regions across the country for development. Nirmal Thomas, Director of Global Group of Companies, acknowledges these factors for the boom in the construction sector. He says, “increased government spending on infrastructure and diversification policies do attract lot of investments in the country giving a boost to the growing economy.” The strengthening infrastructure now holds the Sultanate in good stead

It has been estimated that about 40 per cent of the Sultanate’s population is in the age group of 20 to 40 years. “The government’s goal of ensuring jobs for every Omani youth will be fulfilled with the setting up of new industrial projects. The youths have knowledge and skill,” adds Nirmal. The current Seventh Five-Year Pan has ambitious objectives of establishing a number of large-scale industrial projects. The plan also focuses on generating more jobs and setting up the principles of the economy that depend on knowledge and development of the role of the private sector in the national economy and increasing direct foreign investment. Port of Salalah, a world class transshipment hub, Sohar port and industrial area and the southern town of Duqm are the major areas now under focus. Development is progressing at

rapid pace for several heavy industry projects including metal and petrochemical plants at these places. Port of Salalah is situated right at the major East-West shipping lanes. It enjoys an attractive strategic location in the heart of the Indian Ocean Rim and caters to some of the world’s largest ocean going vessels. The location of the port holds true in transshipment. Technology, innovation, productivity and the dynamic management have made all the difference for the port. The industrial development of Sohar is remarkable with many international firms setting up projects thanks mainly to the services of the Sohar Port. Despite the global economic downturn that weighed down other ports in the wider region, this industrial port of Oman registered across-theboard improvement in its overall performance. Petrochemical products brought from the region can be stored in its facilities, if necessary, and transported to onward destinations — an activity that was once chiefly done at petrochemical hubs like Rotterdam, Houston, Singapore. This opens up opportunities for added value growth as downstream investors see the cost advantages of setting up operations in the vicinity because Market Report 15

of the competitive access to all their feedstock requirements. Duqm is characterised by its strategic location overlooking the Arabian Sea and not far from the international shipping lanes that link East and West. The first stage of the project includes a port, a dry dock, an airport, power and water desalination plants, roads, tourism utilities and infrastructure projects. Experts say the Duqm Port project will add value to the national economy and will contribute to diversifying sources of income by attracting major investments and industries.

The project is paving way for setting up of industrial areas and also special economic areas, which will lead to developing different sectors, logistic activities and other works, thus driving the national economy to achieve its goals as outlined by the government’s economic strategy. Government plans to build a railway line, upgrade Muscat and Salalah airports, construct domestic airports and infrastructure projects in different regions affirms the Sultanate’s commitment for growth. Since 2000, construction activities in the tourism sector have been picking

up at a dramatic pace, with several multibillion-dollar projects taking off. Residential demand has been endogenous to a great extent. Several reasons are seen behind this growth. Omanis now have desire either to build houses or buy them as their purchasing power has increased tremendously. The state has been releasing much more land in the past few years, indicating an increase in the construction of more residential buildings. High profile projects like The Wave, Blue City and Barr al Jissah have also contributed to the boom in the construction sector.

New luxury hotel at Airport Heights Oman Observer - 25 August 2010

onstruction work on a new luxury hotel will kick off shortly at Airport Heights, adding to a string of prestigious landmarks coming up around this rapidly developing suburb of Muscat Governorate. The five-star property, promoted by Azaiba Hotel LLC, will come up on a spacious plot of land adjacent to the newly unveiled headquarters of BankMuscat. Wellknown Omani construction firm, Galfar Engineering and Contracting, has won a contract to build the property at a cost of RO 7.067 million. The upscale hotel will boast in excess of 220 rooms and suites and all the amenities of a five-star property, including an array of diners, swimming pool, business centre, and a range of leisure and recreational facilities. The

project is slated for completion in the third quarter of 2012. Significantly, the luxury hotel will further reinforce the Airport Height’s image as an upcoming tourism, leisure and business district of the capital region. The property will complement the iconic Oman Convention and Exhibition Centre, which will come up a short distance away. Promoted by Omran, the tourism development vehicle of the Omani government, the sumptuous Convention and Exhibition Centre will act as a gateway to Muscat and will be an architectural landmark. The centre will have a seating capacity for 6,000. This includes 20 meeting rooms with varying seating capacity. Oman will

be able to host huge scale events and international conferences upon the development’s completion, attracting global and commercial ventures. Airport Heights will also be a hub for tourism and leisure, accentuated by the luxuriant fairways of the splendid golf course set up by Muscat Hills Golf and Country Club located within distance of the new property. A number of government ministries, leading banks, public sector organisations and corporate firms are also relocating to the Airport Heights stretch, described as one of only a handful of areas within the capital region still available for development. Adding to its appeal is the district’s proximity to Muscat International Airport, as well as other urban centres.

The Wave, Muscat, taking final shape

ot all real estate development projects in Oman have seen happy endings, but The Wave, Muscat, is comfortably placed with a fully master planned community which offers some of the most luxurious accommodation in the region. With more than 4,000 properties occupying a total area of 2,500,000 square me16 The Home Show

Times of Oman - 24 August 2010 tres stretching along 6km of natural beach it will include a string of manmade internal lakes. What is the current status of The Wave, Muscat? Notwithstanding the fact that the GCC real estate market is in a reces-

sion mode, The Wave Muscat has come out of this well and everything is progressing according to the plan. The very fact that over 900 units of The Wave, Muscat project have been completed and sold while 333 units are currently under construction speaks volumes about our confidence level. More than 500 properties have

already been handed over to their respective owners. The 333 units, now under construction, will be completed by the end of 2010. This is unprecedented in the GCC. Now that people have started to move in and more will follow suit in the coming months… what about supporting facilities for the residents? The Wave, Muscat is a fully master planned community and we will be providing several international retail offerings, including restaurants, shops and a small supermarket to support residents’ different needs. The commercial aspect is a key component to the overall development of our master planned community, especially at the dynamic Al Marsa waterfront village, which is the largest phase in the development and the cosmopolitan hub of the project. Several of our retail outlets in Al Marsa Village will be operational and open for the public by end of 2010, but the bigger offerings continue to emerge as the community grows. Kempinski Hotels, one of the leading luxury hotel groups worldwide, will be ready for operation in 2013. Another hotel property, Fairmont Hotels and Resorts, a global hospitality major, will

manage a resort-style hotel located close to the golf course. Both the hotels are at the final design stage at the moment. Construction for Oman’s first PGA Links golf course designed by the legendary Greg Norman is progressing. The first 9-hole facility is scheduled to open in early 2011 and the complete 18-hole standard course is expected to fully open in 2012. The 400-berth marina too is progressing at a rapid pace and according to plans. How did The Wave, Muscat handle the slowdown? As the case with any other major real estate project, the current economic conditions presented a number of serious challenges which required a review of our project and product offerings. During the initial stages of the downturn which occurred in late 2008, a detailed review of the Master Plan and product offerings was undertaken. During this review period, extensive research was conducted so as to ensure that The Wave, Muscat’s products would continue to meet the needs of its customers in a long term and sustainable manner. This resulted in new product offerings that would appeal to broader segments of the market and targeted more towards

end users rather than speculators. The first release of our new product occurred in March this year and was a resounding success. Did the slowdown see you rolling back expansion plans? No, expansion plans within the development are still on track, as prominent Integrated Tourism Complexes (ITC’s) such as The Wave, Muscat continue to present sound home buying and investment opportunities due to their diversity. As we offer a wide range of residential, leisure, entertainment and commercial facilities all in one central location, we can look forward to a steady and sustained growth for the future. Supported by the Sultanate’s new foreign freehold ownership laws, foreign investors are entitled to purchase freehold properties at The Wave, Muscat and non-Omani buyers can also apply for residency visas when purchasing property in accordance with Omani law, an essential element for potential foreign residents looking to make The Wave, Muscat their home. We are optimistic the project will continue to receive very strong support going forward.

Alargan Towell Investment Co. launches ‘Beyout AlFaye’

largan Towell Investment Company announced the completion of the ‘model house’ of its latest residential development in the Sultanate of Oman, Beyout AlFaye. Beyout AlFaye, worth approximately RO 12.5 million, is situated in the area of Al Khoudh, 15 km away from Muscat International Airport. The 126 unit project will offer 29,258m2 of residential and retail space with direct access to main highways and road networks. General Manager of Alargan Towell Investment Company, Ali Hassan Moosa said: “Beyout AlFaye is a

Oman Observer - 24 August 2010 development designed to reflect the demand of the Omani middle-income segment for quality residential units in the Sultanate.

In addition, the company has facilitated financing agreements with a number of leading banks in Oman to provide flexible payment options.

The development includes a commercial and retail component covering an area of 2,398m2 in addition to a number of services and amenities to serve the surrounding local community.”

Beyout AlFaye features 126 villas with a built-up area of 141 to 255 square metres, and includes six different layout designs to provide an array of choices and accommodate different lifestyles. The development is situated in close proximity of major chain supermarkets as well as various facilities such as the prestigious Sultan Qaboos University and Hospital. The expected completion of the Beyout AlFaye project is first quarter of 2012.

Alargan Towell holds a notable track record where the company has successfully developed many innovative and affordable residential properties and has expanded to encompass leisure and mixed-use projects in the Sultanate of Oman.

Market Report 17

118 housing units being completed Oman Observer - 16 August 2010

he Diwan of the Royal Court, represented by the Office of Sohar Development, continues executing 118 housing units ordered by His Majesty Sultan Qaboos to the families of social security and low-income people in the Wilayat of Sohar. The office is about to deliver the contractors 50 housing units in mountainous zones that were ordered by His Majesty during his last meet-the-people tour in Saih al Makarem in Sohar. The total number of units is 118 of which 78 were completed in the coastal areas and were handed over to their owners earlier this year. Work is under way on the implementation

of 21 housing units in the mountainous areas and 12 housing units in the coastal areas and plains. There is a study for 7 housing units that will be built during the coming period. The continued support of the government in the past years through its various programmes for the housing sector is the main reason for the provision of adequate housing. This has a clear impact on the development of a healthy residential environment to cope with the comprehensive development witnessed by the Sultanate in this prosperous era. These houses were designed to suit

the needs of these families. Nasser bin Said bin Ali al Muqbali said: “We thank Allah for this great blessing and we are thankful to His Majesty Sultan Qaboos and the Sohar Development Office for their great efforts in the implementation of our house. We were suffering in our old houses. Now these houses would protect us from summer heat, winter cold and rains.” Abdul Rahim bin Yusuf bin Ahmed al Balushi said: I work for a company and receive a relatively weak salary that doesn’t exceed RO 130. I live with my family that consists of 9 members. Thanks to Allah and His Majesty, we have a better life now.”

BankMuscat ‘baituna souq’ rejuvenates real estate market

he second ‘baituna souq’ organised by BankMuscat successfully concluded on Friday with prospective home buyers, leading property and real estate developers, who attended the 3-day event, terming the event as a true reflection of the rejuvenation of the real estate market in Oman. Organised as part of BankMuscat’s ‘Oman Celebrates’ campaign commemorating the Sultanate’s 40th Renaissance anniversary, ‘baituna souq’ was aimed at fulfilling the bank’s aspiration to facilitate a ‘home for every family’. The participating companies, which showcased attractive real estate projects included Zain Property Development, E&V, Eamaar, Golden Group, Muscat Homes, Al Qandeel, Better Homes, ERA, Eqarat, Alargan Towell and Oman Housing Bank. BankMuscat’s ‘baituna’ home finance served as the hub of activities offering attractive interest rates, quick and convenient approval process, 18 The Home Show

Oman Observer - 8 August 2010 specialised mortgage advisory and loan facilitation across 126 branches for properties from all leading developers. Sadiq al Zaabi, Head, Consumer Products, said: “BankMuscat is gratified that the 2nd ‘baituna souq’ turned out to be a unique opportunity for citizens and residents to consider an array of attractive home options. We thank all participating real estate and property developers for strengthening their association with ‘baituna’ home finance and thereby fulfilling BankMuscat’s aspirations to facilitate a ‘home for every family’. All these companies have a wealth of expertise and experience in the development of successful real estate projects in Oman. BankMuscat remains committed to supporting these projects and citizens in acquiring choice homes.” Tailor-made ‘baituna’ home finance facilitates purchase and construction of new homes as well as land for residential use. Home finance is made available for all Omanis,

GCC nationals and expatriates as well. The bank also offers refinancing of housing loans. To maximise the reach and effectiveness, ‘baituna souq’ was held on a weekend, when the venue, Muscat City Centre, has the highest footfalls. Representatives of the participating companies were available under one roof for one-to-one meetings with potential home buyers, thereby opening a channel of contact with interested customers. Tyler Scott, Senior Manager, Sales and Leasing, Engel and Volkers, said: “The 2nd ‘baituna souq’ is a positive development. BankMuscat provided a unique opportunity to rejuvenate the property market. The confidence of BankMuscat in the property market was visible at the exhibition. The event has encouraged a lot of Omanis and GCC nationals to seriously consider real estate options in the Sultanate.” “The Omani real estate market is

quite distinct and the products on offer are also quite characteristic of the country. The property market in Oman has witnessed big adjustments and is presently enjoying good support. The market is well established and is affordable. We interacted with a number of interested and prospective clients who showed keen interest in some properties. There is no doubt that the market has been energised by this exhibition. The confidence is back among customers to invest in the property market. We congratulate BankMuscat for providing support and bringing together all leading property developers and consultants under one roof,” Scott added. Dawood Hamed Mubarak al Shahi, Sales Officer, Alargan Towell Investment Company, said: “The second ‘baituna souq’ was a good business opportunity as we were successful in converting a few queries

into firm deals. Alargan Towell has several projects on hand, which are prime properties in Muscat. Though the number of people who visited the event was not very high, those who turned up were serious clients who made proper evaluation of projects on offer. The exhibitors as well as visitors reflected the favourable property market conditions in Oman.” Ismail Kamel, Head of Sales, Era Oman, said: “The response from the exhibition has been quite encouraging. The event was very well arranged and the support of BankMuscat to the real estate sector is proving beneficial for all.” The Sultanate’s real estate sector is presently witnessing favourable trends with the total real estate transactions touching RO 992 million in the first half this year compared to RO 617 million in the same period in

2009, an increase of 60.8 per cent.A number of integrated tourism projects which allow property purchase by foreign nationals are offering attractive investment opportunities. Foreign investors in these projects enjoy free hold property ownership and residency visa. The complementing factors in favour of Oman include a growing, affluent population and a modern, open economy offering an abundance of business opportunities. The Omani property market is showing strong signs of growth and has bucked regional trends as reflected in ongoing projects across the Sultanate. Experts believe that this is a very exciting time for the real estate sector with excellent prospects and opportunities for both residential developments and integrated tourism projects. They affirm that Oman offers some of the best property options in the GCC at this time.

The Wave, Muscat signs mortgage financing agreement with SCB

ffering lucrative loan opportunities to potential home buyers and complementing its wide range of strategic partnerships with leading financial institutions, The Wave, Muscat, the Sultanate’s landmark freehold development, has signed a mortgage financing agreement with Standard Chartered Bank (SCB). The Agreement was finalised during a commemorative signing ceremony held at the Integrated Tourism Complex’s Sales Centre, attended by senior officials from both parties. As part of the Agreement, Standard Chartered Bank will offer up to 80 per cent of the value of the property, with a maximum loan period of up to 25 years, and a very competitive interest rate as low as 5.99 per cent per annum. “Our new agreement with Standard Chartered Bank presents another opportunity to facilitate essential home

Oman Observer - 8 August 2010 purchasing processes through strong consumer banking partnerships that offer buyers of all nationalities affordable and adequate financing schemes,” stated Abdulla al Shidi, Deputy CEO at The Wave, Muscat. “We aim to realise the aspirations of the Omani people and residents of our beloved nation, therefore it is crucial that we unremittingly offer genuinely competitive housing loans, presenting full turnkey solutions from advanced purchase to support services.” Ravneet Choudhry, CEO at Standard Chartered Bank, said, “We are proud to be associated with one of the most prestigious developments that is increasingly forming in the heart of Muscat. This partnership will make our products available to all The Wave, Muscat’s home buyers and will meet their various financial necessities. We look forward to assisting them to obtain the house of their dreams.”

He added, “Standard Chartered Bank places particular focus and emphasis on providing the highest level of personalised services to its customers which we hope The Wave, Muscat’s customers will also have an opportunity to experience.” The agreement with Standard Chartered Bank is part of The Wave, Muscat’s mission to build a truly sustainable multi-cultural community by making residential property ownership more accessible, attainable and convenient to local and foreign home buyers. With a focus on high levels of durability and flexibility, this partnership also complements The Wave, Muscat’s existing affiliations with other chief financial establishments in the Sultanate in efforts to meet customer’s myriad monetary requirements and accommodate the home purchasing process, allowing prospective buyers greater access to its diverse product portfolio ranging from apartments and townhouses to villas. Market Report 19

Construction firms line up for Duqm hotel contract Oman Observer - 2 August 2010

onstruction work on the Wusta region’s first luxury hotel at Duqm is expected to commence early next year. More than 30 local and international construction firms are preparing to bid for a contract to build the beachfront property, which will cater primarily to business investors, executives and government officials supporting the development of a major industrial and commercial hub at Duqm, anchored by a world-class port and dry dock complex. Omran, the wholly government owned tourism development firm, is developing the four-star property on a 10-hectare plot overlooking the Arabian Sea. The site is located a short distance from Duqm Town, and not from where the government is building a giant port facility, incorporating the

Sultanate’s first ship repair yard. Built in traditional Omani style, the four-storey structure will feature 213 guestrooms and suites, as well as a complete range of dining, leisure, and recreational amenities. As a property oriented principally towards business travellers, Duqm hotel will also be equipped for meetings, conferences and banquets. Omran has roped in leading hotel chain InterContinental Hotels Group (IHG) to operate the property under the prestigious ‘Crowne Plaza’ brand. This follows an agreement signed by Omran with IHG in August 2008 for the development of the Duqm hotel. The contract to build the hotel, estimated to cost in excess of RO 25 million, has evinced the interest of a large number of local, regional and international contracting firms. Companies that have signalled a

desire to participate in a competitive tender for the construction contract include: Douglas OHI, BAM International, Carillion Alawi, Oman Shapoorji, Galfar, Makyol, Bahwan Contracting, Wade Adams, Erenport, Al Turki Enterprises, Taylor Woodrow, Simplex Infrastructures, Larsen & Toubro (Oman), Mapa & Gunal, National United Engineering, Al Adrak, Abu Hatim, Teejan, Armeno, Federici-Stirling BATCO, Nagarjuna Construction, DSME Construction, Assignia Infrastructuras, China No. 4, and Ramco-Zecon. Bids close on August 16. In addition to executing the hotel project, the selected contractor will also construct a graded access road to the property, besides providing supply and electricity connections. With a construction timeframe of around two years, the project is slated for completion by end-2011 or early 2012.

Nawras Mini Homes give chance to experience new residential services

Oman Observer - 31 July 2010

awras is welcoming residents from across Oman to come and explore its new Home Broadband and Voice services by visiting one of the company’s latest Mini Home expos, now open to the public at a variety of popular locations. From trendy shopping malls to local supermarkets, Nawras teams have set up five different Mini Home locations where visitors can see firsthand the quality of voice services and surf the broadband Internet connection all while relaxing on the living room sofa.

of eager visitors have already begun experiencing the Nawras Home Broadband and Voice services, and even more are getting the chance to play with us on a trial basis,” says Pradeep Kumar, Trade Marketing Manager at Nawras.

Nearly 25 Nawras trainees are on hand to welcome customers, drawing upon their know-how to explain the uses and benefits of the new services, discuss price options, and offer free demos of the products. “Hundreds

The campaign is running until August 6 with the demo areas open from 10 am-10 pm daily in the areas of City Centre (Seeb 2), City Centre (Qurum 3), Lulu Hypermarket (Darsait 4), Lulu Hypermarket (Ghobra 5), and in

20 The Home Show

“We believe that the latest technology should also be user-friendly, and at the Mini Home we are pleased to show visitors just how simple it is to enjoy Nawras plug and play packages,” he said.

the central Nawras Store in Salalah. To celebrate the release of its exciting new fixed services, Nawras is also offering customers incredible discounts on many of its latest home broadband products, including double data allowances, half-priced modems and more. “We are seeing a great response from people across the Sultanate as visitors discover the many options available in selecting Nawras packages suited to their individual needs,” adds Kumar. “Experiencing the system firsthand also gives us the chance to listen to our customers as we strive to build a close relationship with them and offer a pleasingly different communication experience.”

“More than 1.9 million Nawras customers are currently enjoying the unique products and services of the

telecommunications provider, now offering residential customers in Oman a choice in fixed services for

the very first time,” a company press release said.

Strong rise in Al Jazeera Steel sales

l Jazeera Steel Products Co SAOG has reported an impressive 87 per cent growth in steel sales during the first half of this year. Revenues soared to RO 32.076 million this year, from RO 17.161 million during the same period last year. Total production of steel products jumped 93 per cent to 107,671 metric tonnes (MT) this year, from 55,801 MT during the first half of last year. Sales, in volume terms, were 79 per cent higher at 105,266 MT this year, from 58,778 MT during the first six months of last year. As a result of the strong growth in sales, Al Jazeera posted a net profit of RO 1.155 million during the first half of 2010, compared to a loss of RO 2.084 million during the corresponding half of 2009. Commenting on the company’s performance during the first half of the year, Sulaiman M Shaheen al Rubaie, Chairman, stated in the Chairman’s Report: “From the beginning of this year, hot rolled coils (HRC) and billet prices, the two key raw materials used in our products, were buoyant and continued their upward trend through the beginning of the second quarter. The continuous rise in prices of HRC and billets was due to the persistent increase in raw material prices for

Oman Observer - 29 July 2010 steel making, supported by an overall increase in demand with restocking taking place. Nevertheless, the market was not able to sustain this growth in demand for a long period, and both HRC and billet prices have come down by 20 per cent as compared to the first quarter. The volatility in raw material prices affected regional demand and most traders took a very cautious stand in building up inventories, while the construction sector in the UAE has not fully picked up to pre-crisis levels. Due to the wider application of Al Jazeera’s pipe products and the reputation that your company enjoys in the international market, we were able to improve our sales despite these adverse circumstances.” Al Jazeera’s merchant products, which primarily cater to infrastructure development, saw a significant downturn, the report said. Sales were affected negatively by “dumping” from international producers. “Also, unlike our pipes, with our limited merchant product variety we were not able to cater to some of the other product categories demanded during this quarter. Currently, developments are going on to cover a broader spectrum of products, which are expected to be available from the

fourth quarter of this year. With a wider range of products, the demand for merchant bars is expected to translate into much higher levels of capacity utilization during the last quarter,” the Chairman stated. Demand for Al Jazeera’s pipe products remained positive not only in the GCC market, but also in North America, according to the Chairman’s report. The company has in hand a stable volume of orders for exports outside the GCC, compared to the same period of 2009. Export sales are expected to maintain the same trend in the coming months. “The increase in demand is coupled with the easing of the recession and the restocking carried out by traders across the world. However, once again a very cautious approach is being taken to protect the company if a downturn occurs,” Al Rubaie stated. “With our excellent product and quality standards, we have been able to achieve higher volumes in the second quarter compared to the previous year second quarter and we are expecting growth in the remaining quarters. To achieve these goals, we have to be more vigilant and aggressive in procuring our raw materials at the right price and time in order to meet the market demand and optimise profitability,” he added.

Al Anwar Ceramic to boost capacity Times of Oman - 29 July 2010

l Anwar Ceramic Tiles Company (AACT), which has a dominant position in the domestic ceramic tiles market with its popular Al Shams brand, is planning to expand its installed capacity by six million square metres in two phases. This will

take its total capacity to 16 million square metres per annum.

lion,” said AACT Managing Director A. Shamsuddin.

”We have finalised our next expansion plan. This will be in two phases of three million each —enabling a total investment of about RO12 mil-

He said that his company is in discussion with the government for availing additional natural gas to feed the new production line and the immediate gas requirement is for three million Market Report 21

square metre capacity. “We should be able to get a positive response from the government.”

market, where it invested significantly in strengthening branding and merchandising platforms.

In case of a difficulty in getting additional natural gas, the company has another option of using LPG. However, the company has to invest additional money for converting LPG into natural gas to feed the factory.

“We have achieved the position of the lowest cost producer of ceramic tiles in the region; consistent with our strategy,” he noted.

“It takes only 12 months to complete the (first phase of three million square metres) expansion, after getting government permission for gas,” he noted. Shamsuddin said that his company has a good presence in other GCC markets with exports accounting for 55 per cent of total volumes. Al Anwar Ceramic Tiles Company has a strong presence in the domestic

Shamsuddin said that the company is anticipating a sales revenue of RO18 million this year, as compared to RO15.89 million posted for 2009, while pre-tax profit is expected to move up to RO6.2 million from RO5.61 million. Referring to the demand situation, he said, “We expect some uncertainties to prevail in the immediate short term, which could make market conditions difficult. We expect the intensity of Chinese price competition to ease given their own cost, currency and

freight increases.” According to Shamsuddin, the overall size of the ceramic tiles industry in the GCC region is estimated in the region of 125-150 million sq meters per annum and roughly half of this demand is met by local GCC manufacturers and the rest by imports. “Saudi Arabia and the UAE are the two large markets,” Shamsuddin noted. The GCC continues to remain a net importer of ceramic tiles, and the factors that fuel demand include opening up of property ownership for foreigners, growth in tourism, and the growing young population that props up demand for housing units. The company’s strategy is to maintain its status as a low-cost regional producer going forward, which will help them challenge the prevailing competition in the region.

Omran, Musstir tie-up for resort

mran, the investment company developing tourism assets and infrastructure in Oman, and its joint venture partner, Musstir LLC, on Thursday celebrated the laying of the foundation stone for the Al Baleed Resort. A ceremony was held under the auspices of Abdul Aziz bin Mohammed Al Rowas, cultural affairs advisor to His Majesty the Sultan, and attended by Dr Rajiha bint Abdul Amir bin Ali, the minister of tourism and Omran Chairperson, and Sheikh Mohammed bin Marhoon bin Ali Al Ma’amari, minister of state and governor of Salalah, and a number of guests; members of the, State Council, Majlis Al Shura Council, and other distinguished honorees of the state of Dhofar. The resort will become a key attraction of Al Baleed, the cradle of culture and trade in the Dhofar region of Oman. The rich history of the ancient city will offer visitors an unforget22 The Home Show

Times of Oman - 25 July 2010

table experience, teamed with the warm Omani hospitality. Mohammed Al Rawas said, “I am delighted to be attending this significant ceremony especially that it coincides with the commemoration of Oman’s Fortieth Renaissance Day, celebrating the wise leadership of His Majesty Sultan Qaboos. The laying of this foundation is a further step in enriching the region of Salalah, and sets an example of how to create sitesensitive luxury, whilst conserving our natural environment. I would like to congratulate Omran and Musstir on their foresight and the synergy of their visions to create luxurious and sensitive havens that respect the authentic habitats of Oman.” The resort is a joint venture between Omran and Musstir LLC, an MB Holding company specialising in real estate management and development. Work will start on the site in November, 2010 and anticipated to be complete by December, 2012.

The extensive landscaped resort will feature 106 one, two, and three bedroom chalets, most with their own courtyard swimming pools. The main hotel building will house 30 guest rooms, recreation facilities, spa, F&B outlets; themed restaurants and function areas. Dr Rajiha said, “This will be another strong tourism attraction for Oman and a fantastic accomplishment for Omran and Musstir. This project supports our aim to enrich and further strengthen the structure of the Sultanate’s tourism and it will develop the tourism potential of the Dhofar region. This is in line with our vision for development, with tourism expected to be one of the largest sectors contributing to our nation’s growth by 2020.” Al Barwani said, “As a socially responsible organisation, we remain committed to sustaining and adding value to our society, the environment and the economy.”

Construction costs spring up Times of Oman - 15 July 2010

rices of construction material in Muscat have registered a sharp increase of 3.2 per cent in the first quarter of 2010 compared to last year, the Ministry of National Economy’s statistical bulletin has showed. The report shows building costs galloped despite a decline of 1.3 per cent in the price of cement during the first four months of this year compared to the fourth quarter of last year. Also, the construction material price index

sprang up 1.4 per cent in this year’s first quarter compared to last year’s fourth quarter, it said. The data indicates that the first quarter of this year saw a 0.4 per cent rise in price of wood compared to fourth quarter of 2009 due to a 4.3 per cent rise in plywood price. Glass prices rose 8.5 per cent due to the rise in the glass fibre products by 20.2 per cent and glass mirrors by 21.4 per cent.

The data also shows electrical equipment & appliances registered a 7.9 per cent rise in the first four months this year compared to the last four months of 2009 due to a 9.3 per cent rise in price of electrical appliances used for protection of electrical circuit. Prices of stones, sand and gypsum, on the other hand, declined 5.4 per cent together with aluminium, which is down 3.5 per cent. Prices of other metals also declined 1.6 per cent.

Luxury living in Saud Bahwan Palm Gardens villas in Sohar Oman Observer - 6 July 2010

illas at Saud Bahwan Palm Gardens, Sohar have been designed with modern lifestyles in mind. A fact evidenced in every facet of its structure and the many thoughtful conveniences that are built into them. Understandably, it is fast becoming the popular choice of Sohar’s discerning customers — Omani and expatriate alike. At Palm Gardens villas, the emphasis is on spacious comfort. These 3 and 4 Bedroom villas feature spacious rooms with central ducted AC, maid’s room with wardrobe and attached toilet, air-conditioned kitchens with large work areas and Storerooms. Kitchens are large and loaded with features — plenty of cabinets, 5 Burner gas cooker hob with smoke extractor, built-in dish washer, builtin electrical oven to just name a few. All bedrooms feature built-in ward-

robes with extra storage space on top. Every villa has a covered terrace balcony and master bedroom attached with a separate full-length balcony and walk in closet. A comfortable family lounge adds to your comfort. Covered car parks and large lawn for evening get together enhance your convenience. Each complex offers a host of worldclass facilities and conveniences including a separate clubhouse for the villa complex. The dedicated clubhouse has integrated temperature controlled swimming pools, separate children’s pool, Multi-purpose halls with pantry and store facility and lawns for parties, fully equipped gymnasium, steam and sauna, squash/ tennis/basketball courts, games rooms for billiards and table tennis, poolside lawns for parties etc. These spacious clubhouses are built over a plot area of over 4000 sq.mts.

Highest levels of safety is assured to residents with 24-hour security, CCTV for common areas, fire alarm system, intruder alarm system in villas, video/audio door phones etc. Other facilities include: key telephone system in villas, central piped gas and satellite system, jogging tracks, play gardens with equipment for children, car parking area for visitors, etc. together with a dedicated round-theclock onsite maintenance team. Located in the heart of Sohar, the Palm Gardens villa is fast becoming one of the most sought after addresses in Oman. While convenience, build quality and sheer luxury are key considerations, so is the trust and reliability that customers attach to the property developer — The Saud Bahwan Group, Oman’s best-known business house with diversified interests and a reputation for unmatched customer care.

Bank Sohar signs MoU with Zain Property Development

ank Sohar has signed a memorandum of understanding with

Oman Observer - 5 July 2010

Zain Property Development to extend housing finance to customers keen to

invest in the Zain projects at Dar Al Zain at Sur Hadid — Seeb and at Zain Market Report 23

Heights, Ruwi. The MoU was signed by Dr Mohamed Abdulaziz Kalmoor, Chief Executive Officer, Bank Sohar and Mohamed Abdulla Moosa, Chairman of Zain Property Development last week at the head office of Bank Sohar. Senior Management members from both sides were present to witness this signing ceremony. “With the signing of this MoU, Bank Sohar will extend Housing Loan Finance to customers eager to invest in Zain’s housing projects at Seeb and at Ruwi,” explained Dr Kalmoor. “A home for every person in Oman is a cherished national goal. This MoU makes it convenient for customers to invest and own a home of their choice and realise their aspirations with ease and minimum of formalities. Our initiative will make the process of owning a home an achievable goal.”

Mohamed Abdulla Moosa, Chairman of Zain Property Development commented: “Zain Property Development always keeps the interest of the buyers at the fore front, which is why I am pleased that this MoU with Bank Sohar has been signed as it will offer customers of Dar al Zain or Zain Heights properties an affordable financing facility at competitive rates”. “Bank Sohar’s ‘Al Bait Al Mumayaz’ Home Solutions is one of the first products launched by the bank when they opened for business,” said Khalfan Rashid al Tal’ey DGM Retail Banking. “The Home Solutions have significant highlights and are customer-friendly. They are marketed directly to customers, offered through the bank’s branch network and through exclusive arrangements with leading real estate and property developers. Al Bait Al Mumayaz’ Home Solutions has been developed to meet the

specific requirements of our customers and takes care of all aspects of a home purchase.” Al Tal’ey added that Bank Sohar’s memorandum of understanding with Zain Property will work to the advantage of customers who are in the market for a property purchase. “Customers can select their home and come to Bank Sohar to make it possible.” Zain Property Development is an Omani family business specialising in providing affordable luxury housing to middle-income families and couples. The developer recently handed over Phase I of their debut development ‘Dar al Zain’, 62000 square meter townhouse and villa community based at Seeb. Zain Property Development recently commenced construction of their second project; ‘Zain Heights’, a luxurious apartment complex in the Mumtaz district of Ruwi.

The Wave says 60pc work on waterways done

he Wave, Muscat has announced that more than 60 per cent of construction on its internal waterways is nearing completion and progressing. This is in line with the residential occupations in the initial construction sector, and this phase is expected to be complete by end of 2010. The waterways, which weave across five km of the residential sectors in a curve fashion with widths up to 30 metres, have bridges connecting the waterfront properties throughout the development and are already home

Oman Observer - 2 June 2010 for fish and other sea life.

As a prime architectural feature that blends with unique marina views, the waterways are an exquisite lifestyle component for residents and visitors to live and relax by the water, bringing together the multitude of features available at The Wave, Muscat. The waterways are envisaged to enhance a genuine sense of community in line with the development’s core objectives to form a truly integrated, harmonious and environmentally sustainable community.

With construction of the seawater pump stations progressing, the master planner’s objective is to complete the internal waterways in several phases with the first sections near the main residential entrance already in place. The Wave, Muscat has also taken proactive steps in its efforts to conserve the environment by preventing harmful algae and red tide growth, through utilising the latest circulation and water monitoring technology to guarantee that the water is changed every 72 hours to keep it cool, clean and clear.

New projects signal tourism boom

four-star hotel coming up in Al Khuwair is among the many properties currently under way in Oman which signal the country’s booming tourism business. 24 The Home Show

Oman Observer - 1 June 2010

S A Salman Rizvi, general manager of an upcoming property named ‘The Platinum’ in Al Khuwair, said: “Our new four-star hotel, set to open soon, is yet another sign of Oman’s boom-

ing tourism sector.” Even as the construction is nearing completion, The Platinum is receiving a very good response from prospec-

tive customers “largely because tourism is booming in the Sultanate.” The Sultanate’s tourism sector continues to flourish in the face of international economic meltdown, Salman added. Experts say other projects currently under way are a 5-star hotel in Al Buraimi, Jabal Saifa Resort, Salalah Beach Resort, The Sport City at Al Musannah, Hayout Resort in Khasab, Haraf Resort in Khasab, a tourist camp in Nakhal, a tourist restaurant in Darsait, and the newly opened fourstar Butterfly Hotel Suites in Sohar, to name only a few. Around nine new hotels are coming

up in the Batinah Region in view of the booming tourism business. Some of the projects in the pipeline include Al Aiga Hotel in the Wilayat of Sur, Firaq Hotel and Restaurant in Wilayat of Nizwa, a Convention and Exhibition Centre in Bausher, an Eco-tourism Resort in Ras Al Hadd, Abu al Nakheel Resort in Barka, in addition to many other projects in different parts of the country. European and regional Arab tourists have appreciated the fusion of rich Islamic heritage and ultra modern luxuries in The Platinum, which is only 10 km from the Muscat Interna-

tional Airport and is mere five minutes drive to the magnificent Sultan Qaboos Grand Mosque, government ministries, embassies and commercial business district. Unlike most hotels, The Platinum boasts of separate facilities for men and women such as gymnasiums, swimming pool, steam bath and jacuzzi, all situated on the roof top overlooking the city. The Platinum has 85 rooms and suites, esthetically designed, spacious and luxuriously furnished to delight the discerning taste of GCC, Asian and European tourists.

Oman Arab Bank in alliance with Zain Property Development

n agreement has been signed between Oman Arab Bank and Zain Property Development recently at the head office of Oman Arab Bank in Ruwi, with the presence of Rashad al Shaikh from the bank and Mish’al Mohd Abdullah Moosa, Managing Director of Zain Property Development. Established in 2008, the company specialises in developing affordable, quality real estate. The agreement means that Zain Property Developers’ customers purchasing either Dar al Zain villa or townhouse or a Zain

Oman Observer - 26 May 2010 Heights apartment have the option to approach Oman Arab Bank for a competitive housing loan. “At Zain Property Development we are committed to providing safe, secure and affordable housing to Omanis. The agreement with Oman Arab Bank assists this commitment by making our properties even easier to afford.” Oman Arab Bank, one of the leading banks in the Sultanate, has always strived to provide a complete home financing solution to its valued

customers. “We are delighted to be associated with Zain Property Development as we believe that our partnership would allow Omani families to own an affordable home at competitive pricing,” added Rashad al Shaikh. In addition to Al Dar housing loan the bank has developed several products and services to meet its customer’s financial needs such as Markabati Auto loan product, in addition to the growth account and Hassad saving scheme which gives an opportunity to win exciting cash prizes.

OHB provides Maskan loans worth RO 3.57m

he number of Maskan loans provided by Oman Housing Bank (OHB) during the first quarter of the current year reached 118 subsidised loans with a value of RO 3,572,100 as part of the efforts exerted by the bank to provide loans for the category of people whose salaries are more than RO 600 monthly. The greatest share of 34 loans were allocated to Muscat governorate with as much as RO 1,012,400, whereas

Oman Observer - 25 May 2010 the number of loans distributed in Dhofar Governorate was 12 with a value of RO 465,800. In Al Buraimi Governorate, the number of persons who benefited from OHB loans was four with a value of RO 165,400 and in Musandam Governorate one Maskan loan worth a value of RO 29,200 was allocated. The number of loans funded by OHB in Al Sharqiyah region was

19 at a value of RO 504,300, while the loans funded by the bank in Al Batinah Region were 32 at a value of RO 953,000. In Al Dakhiliyah region, OHB offered 16 loans at a value of RO 442,000. “Maskan” is one of the residential loans offered by OHB for funding many purposes like building, purchasing and expansion of houses in order to complete home construction projects. Market Report 25

Better Homes begins Muscat operations Oman Observer - 22 May 2010

etter Homes, the UAE’s largest real estate agency, has opened its doors in the Sultanate of Oman, signing up with Mohamed and Qaboos al Khonji Group of Companies. Opened for business in March 2010, Better Homes will be operating in Oman from the heart of the capital. Offering a mix of residential and commercial property services, the brokerage aims to provide quality inventory matched with first-rate customer service, benefits which are still lacking in certain areas in the region. “The launch of the Muscat office comes at an interesting time as

Oman’s property market opens to freehold foreign ownership opportunities”, said Harry Buitelaar, General Manager, Better Homes Oman. “Despite a global slowdown, real estate in Oman has shown a high degree of resilience, maintaining a steady rate of growth” added Buitelaar.

been limited to tourism-related developments. Outside the hotels and Integrated Tourism Complexes, developers are constructing private and corporate residential, commercial and retail projects for a fast growing economy and an anticipated increased population.

2010 is also expected to witness the launch of several large mixed-use projects in an effort to diversify the economy and expand Oman’s housing and commercial real estate stock.

“The banking sector will be permitted to sell mortgages, placing home ownership within reach of most income-earning nationals and expatriates — allowing Better Homes to assist in sales, leasing and property management activities for residential and commercial property within Oman”, added Buitelaar.

With real estate activity in Oman is set for significant mid-term growth, Oman’s property boom has not

Muriya to showcase sample Jebel Sifah apartments soon

ebel Sifah, the integrated tourism complex being developed by the Muriya Tourism Development, has started to take shape, providing a glimpse of what the destination will look like. Spread over an area of 6.2 million square metres and surrounded by turquoise waters and the Hajjar mountain range, the destination offers a choice of the view you would want to enjoy. Construction work is in progress at different stages in all the 18 apartment blocks, while finishing work is nearing completion on five blocks. A mock-up apartment is being completed, with the interiors done up, to give a realistic insight on design and space. The mock-up apartment will be open for public in a couple of days. The 63 villas, part of the initial release will be designed in eight different styles of which 41 are nearing completion. In the first quarter of 2011, phase I customers will start receiving the handover of their villas 26 The Home Show

Times of Oman - 22 May 2010 and apartments. Bahaa Kareem, marketing director of Muriya Tourism Development said, “all the apartments and over 70 per cent of the villas have been sold out. The owners are 70 per cent Omanis and the remaining 30 per cent constitute expatriates mainly from France, Germanany and Switzerland.” With the construction work in full swing, Muriya will soon announce the release of new units and schemes. Selective hotel-managed new apartments and villas will offer a unique rent back guarantee programme and will be operated by top brand hotels, a first of its kind associated with freehold properties in Oman. The new villas to be released will have new convenient sizes. An on-site sales office will be set up soon, to further enhance the service to the customers, including site visits. Muriya has also set up a home design department, and are providing owners furniture packages, interior finishing, audio-visual packages, landscaping and upgrade options.

The roads leading to Sifah will be widened for safe access to the destination. The internal roads within the project have already been laid out, providing clear access to the properties and the marina. Final revetment for internal roads will be finished by beginning of next year. The central hub of ‘Jebel Sifah’ is the marina that will be bustling with an array of activities surrounded by lively restaurants, cafes and apartment blocks with narrow, shaded, cobbled roads when completed. Even so, a lot of thought and attention has gone into the planning to ensure that the feel and look of the place remains open and uncluttered, at the same time aesthetically pleasing. The marina was flooded in November 2009 and will be soon ready for berthing boats. High quality weatherresistant pontoons have been put in place that will provide space for up to 150 boats. A promenade will weave through the lively marina town that will also accommodate a marina boutique hotel

having 55 rooms. Nearing completion, the marina hotel will open in the first quarter of 2011 and will be managed by Muriya Hotel Division. Muriya has secured a portfolio of the most reputable and prestigious hospitality brands for Jebel Sifah that include Four Seasons Hotels and Resorts, Banyan Tree Hotels and Resorts and Angsana Resorts and Spas, Missoni Hotel and the fourth hotel will be operated by a famous French

hotel company. In partnership with the iconic fashion house of the same name, Hotel Missoni will be stylish, intimate, contemporary and eclectic in design. The property with 250-room keys will be designed by Michael Graves and Rosita Missoni will oversee the interiors. Construction for the Missoni Hotel is scheduled to start in 2010. Muriya was established in 2006 when

Egypt’s Orascom Hotels and Development (with 70 per cent stake) and Omani government-owned Omran formed a joint venture. Since then, Muriya has announced four projects across the beautiful locales of Oman. Work is ongoing on two projects that are integrated tourism complexes (ITCs) offering freehold properties — ‘Jebel Sifah’ and ‘Salalah Beach’. In addition, Muriya will also be developing a city complex in Muscat and a boutique hotel on ‘As Sodah Island’.

Mega tourism projects in Dhofar Oman Observer - 19 May 2010

number of mega tourism projects are under way in the Governorate of Dhofar. These include the Shatti Salalah Resort (first phase) which is undertaken by Muriya Tourism Development Company. The resort comprises of three hotels, a marina, golf course, a shopping mall, villas and hotel apartments. Muriya Tourism Development Company is also implementing Jazirat As’Sowdah Resort in Al Halaniyat Islands which includes a specialised environmental tourism resort comprising of a total of 32 hotel units. The tourism shopping mall, ‘World of Salalah’, is being constructed by Kuwait’s Real Estate Consolidated company. It includes a tourism complex which consists of restaurants, a world-class central market Carrefour, cinemas, snooker and bowling halls, amusement e-games and hotel apartments. This was announced in a statement to Oman News Agency here yesterday by Khalid bin Musalam al Rowas, Director-General of Tourism

in Dhofar. With regard to other future projects, Al Rowas said that the Consolidated Real Estate Company of Kuwait is currently studying the construction of an integrated tourism resort in Niyabat al Shuwaimiyah. Oman International Development and Investment Company is currently studying the construction of a tourism resort in Aftailquot district, he said. A number of projects are still under review, including construction of an environmental resort in the Wilayat of Mirbat. An MoU was signed between Wahat al Yasmin Trading and Contracting and Alila International Hotels, in addition to other projects which include development of Al Mughsayl district and ‘Al Fazayih District’, he explained. It’s worth noting that the Tourism Ministry has implemented a number of projects in the Dhofar Governorate which included ‘Al Morouj Theatre’ that accommodates about 6,000 spectators, the ‘Youth Housing’ project in Sahalnawt district

in Salalah, developing ‘Al Murnaif Cave’ in Al Maghsayl, building a café for visitors, paving the 12-kmlong ‘Taiq Cave-Jabal Samhan road, besides undertaking the development of some tourism attractions (first phase) such as the viewing site at Iteen Cave, Hamrair Pass, Jarziz and Sahanawt springs. The ministry has also financed a number of projects in the Dhofar Governorate, such as, the 8-km-long Iteen dual carriageway under the supervision of the Office of the Minister of State and Governor of Dhofar, in addition to construction of 15 water closets (WCs) at different tourism sites, being undertaken by Dhofar Municipality. In conjunction with Dhofar Municipality, the ministry has also contributed towards lighting of Al Mughsail beach, financing some 26-km-long roads at springs and wadis, such as, Wadi Darbat, Wadi Athum, Tubruq and Jarziz Springs and Wadi Sha’boun under the supervision of the Regional Municipalities and Water Resources Ministry.

Royal grant for housing scheme

is Majesty Sultan Qaboos has issued a Royal grant allocating RO 200 million to finalise all social housing applications as at the end

Oman Observer - 3 May 2010 of 2009. This was announced by Ahmed bin Abdulnabi Macki, Minister of National Economy and Deputy Chairman of the Financial Affairs and

Energy Resources Council. To mark the 40th Anniversary of His Majesty the Sultan’s assumption of Market Report 27

power, His Majesty has allocated RO 200 million to clear all pending housing applications for those who meet the conditions for housing applications and who are registered in the Ministry of Housing till the end of 2009, Macki added. Macki told Oman News Agency that the Royal grant stipulates that the amount of RO 40 million will be dispensed annually throughout the 8th Five-Year Plan from 2011 till 2015. Macki underlined the keenness of His Majesty the Sultan that all citizens all over Oman should enjoy a decent and stable living to help them contribute to the socio-economic development of the Sultanate. Shaikh Saif bin Mohammed al Shabibi, Housing Minister affirmed that the Royal grant of His Majesty to finalise pending housing applications underlines His Majesty’s

keenness to provide the citizens all over the Sultanate with convenient housing. Al Shabibi told Oman News Agency (ONA) that the number of pending applications for housing assistance scheme stood at 12,339 as at the end of 2009. He added that the grant will cut short the period of waiting and expedite the processing of applications owing to availability of financial assistance (RO 40 million a year) to be dispensed throughout the 8th FiveYear Plan starting from 2011 to 2015. Al Shabibi pointed out that the committees concerned at the ministry will study all the housing assistance applications to ensure that they conform with relevant conditions prior to their approval and the floating for tenders for bidding. The Housing

Minister valued His Majesty’s grant for social housing assistance scheme beneficiaries, citizens with limited income and social security families. He described the Royal grant as a kind gesture from His Majesty to the faithful Omani people who are used to his generosity. He said that the Royal grant reflects His Majesty’s keenness to help achieve the goals of the Ministry of Housing. The housing assistance scheme has been one of the housing schemes pursued by the ministry during the blessed renaissance led by His Majesty the Sultan. A great deal of families have benefitted from this scheme. Considering the circumstances of beneficiaries, the government’s assistance is deemed a non-refundable grant to the citizens, Al Shabibi explained. — ONA

HSBC Oman lowers mortgage rates Oman Observer - 26 April 2010

SBC announced yesterday it is decreasing mortgage rates for home finance for customers, effective immediately, in line with its commitment to be the Best Place to Bank. Customers can now take advantage of HSBC’s revised rate at 5.99 per cent from the previous 7.5 per cent when purchasing a ready property, the lowest home finance rate in Oman.

to Muscat region but is also extended to some areas in Al Batinah region including Barka, Buraimi and Shinas. Ewan Stirling, Chief Executive Officer, Oman, HSBC said, “HSBC is very much open for business, and wants to provide flexibility and choice for customers who are looking to own a home.

In addition, financing increased to 80 per cent of the value for ready property and 70 per cent for land or under construction property.

Price valuations are currently very attractive in the housing market and our new reduced rate will make it easier for end-users to obtain affordable mortgage finance.

HSBC mortgage offer is not limited

“We understand that investor con-

fidence has been low, however we believe that owning a home continues to be an extremely important decision for residents of the Sultanate. It is also key to point out that in attractive locations across Oman, buying a home can be cheaper than renting. “With our new rate reduction, higher loan to value and a variety of options at competitive prices, we continue to support the Omani housing market as well as what is important to our customers.” HSBC mortgages are available to expatriates and nationals with loan terms of up to 25 years.

Infrastructure gets RO1b

he government plans to spend RO1 billion on infrastructure projects this year as the Sultanate’s economy is expected to grow six per cent this year, Minister of National Economy and deputy chairman of 28 The Home Show

Times of Oman - 26 April 2010

the Financial Affairs and Energy Resources Council, Ahmed bin Adulnabi Macki said yesterday.

oil exporter’s economy, which grew 3.7 per cent while other economies declined, he said.

The effect of the global financial crisis has had a limited effect on non-Opec

Macki, who was recently awarded an honorary doctorate in econom-

ics from Seoul National University of Technology in South Korea, was speaking at the Oman Economic Forum’s second edition. Later, he was also honoured with a lifetime achievement award at the forum’s award ceremony as a recognition of his leadership and achievements in the development of Oman’s economy, the forum organisers said

in a statement. “Our national economy’s resilience to the crisis has everything to do with the fact that Oman boasts an economic community that supports diversification and one which encourages local and international investment,” Macki said. The first day of the two-day forum

also stressed on the government’s five-year economic plan to transform industries with minimal public sector involvement, thereby enabling the private sector to move forward. The government is developing a number of sectors such as manufacturing, tourism and an eight per cent growth in the tourism sector is an encouraging sign, he said.

Oman-German JV set to announce entry into real estate sector Oman Observer - 25 April 2010

aader Hotels & Resorts, a company backed by leading German investment bank Baader Bank, is set to shortly announce its arrival in the Sultanate with the planned launch of a new upscale residential housing development in Muscat. Baader Hotels & Resorts has been created in association with local Omani business partners to develop real estate and integrated tourism projects in Oman.

across Europe. Baader Hotels & Resorts Deputy Chairman, Baader said: “We are delighted to be launching our new company in Oman at what is a very exciting time for the Real Estate sector with excellent prospects and opportunities for both residential developments and integrated tourism projects.

The newly formed company is jointly owned by Uto Baader, Chairman of Baader Bank and Siegfried Lingel, owner of German Merkur Bank headquartered in Munich as well as Silver Circle Overseas LLC, the company’s local partner. Lingel is also the Consul General of Mozambique in Germany whilst Uto Baader also assumes the position of Vice-Chairman of the Board of Directors of Gulf Baader Capital Market SAOC, part of a listed investment company here in Oman.

Our project is unique and strongly supports the objectives set by Oman’s leadership to provide decent housing to its citizens.” “Oman offers some of the best opportunities in the GCC at this time and we are looking forward to announcing our first major development within the next few weeks — a residential development here in Muscat.” “Our company has very strong financial foundations with the backing and support of Baader Bank, one of Europe’s most successful and largest stock broking banks that has operated for over 25 years”

All parties bring to the region a wealth of expertise and experience in the development of successful real estate developments in primary locations

Their entry into the Omani real estate market comes following advice from Savills Oman advising investors to purchase property in Oman now

before it is too late. Baader Hotels & Resorts was established following the initiative of Uto Baader, Chairman and founder of Baader Bank Munich and was specifically created to develop tourism products and locations in Oman. Baader Bank Aktiengesellschaft is among the leading German investment banks, and is headquartered in Munich with a net worth of $235 million. The Bank was established in 1983, employs more than 350 people and is a member of seven German stock exchanges. It is also a member of Paris, Zurich, Amsterdam and Vienna stock exchanges as well as Virt-X, the trading platform for leading European companies in London and Eurex, the derivatives exchange in Germany. Baader Bank Aktienge-sellschaft also recently became a member of the London Stock Exchange. Baader Bank has extensive experience of investing in some of the most high profile projects worldwide and will draw on this strength to develop a number of high end projects from around the world.

Khimji’s Bait Al Ahlam launches Bagno Design showroom

he 6th Bait Al Ahlam outlet in the Sultanate was opened at Al

Oman Observer - 21 April 2010 Ghubra on Monday by Italian Ambassador Cesare Capitani. This new

outlet will feature a very comprehensive range of creative bathroom Market Report 29

solutions under the Bagno Design concept from Italy. Bagno in Italian means ‘Bathroom’. Bagno Design is a new concept for medium and high end bathroom solutions; it brings together an array of products from different manufacturers from across Europe, providing customers with a unique opportunity to choose the best of designs and products from top class sanitary-ware manufacturers. Bagno Design is a name synonymous with luxury bathrooms and tiles around the Middle East and Asia regions. Bait Al Ahlam Bagno Design showroom at Al Ghubra will showcase leading designer brands in Tiles, Sanitaryware, Accessories, Luxurious Mirrors, Jacuzzis, and Steam Rooms etc from leading brands such as Apape, Apaiser, Bertocci, Art

Cream, Bossini, Bonqio, Bati, GSI, Effegibi, Bugnatese, Geberit, Fantini, Galassaia, Nicolazzi, Hoesch Design, Vado, Reginox, Simex, Sanit Zucchetti, Wagner Ewar, and Stone forest. Hritik Khimji, Director, Khimji Ramdas, said: “The new Bagno Design showroom is in line with KR Infra Group’s strategy to provide high-end bathroom solutions to its discerning customers. Our customers will now get to use the best in bathroom fittings and accessories to experience a new level of luxury.” One of the main attractions of the showroom is the Dream Light showerhead from Bossini. This Showerhead reflects the beneficial effects of seven colours on the body and mind. Colours have always been part of our world and are a vital force and source of energy. The Chromo-therapy

stimulates the body and the mind and helps to restore natural balance. Vado has introduced a new stylish showerhead appropriately named as ‘Sculpture’ comprising of six flexible tentacles. Sculpture allows the consumer to bend, twist and shape the form into any position. The shower-head is distinctive in design and structure providing a fresh slant to bathroom design. N S Vijaya Kumar, CEO — Khimji Ramdas Infrastructure Group said: “The new Bait Al Ahlam Bagno Design showroom concept has been well received in Asia and Middle East. He added that “Villa Owners, Architects, Consultants should plan their visit to our new facility before finalising their bathroom designs; and examine our quality luxury product line for giving a creative edge to their bathrooms.”

Tourism, real estate sectors on cusp of sweeping growth

he Sultanate’s growing popularity as the region’s leading tourism destination, together with the country’s improved mortgage market, is a clear indication that this is the best time to invest in real estate, according to a study. Property developers and real estate agents in the Sultanate saw renewed confidence in the sales market in the first quarter of the year, mainly due to the major role banks have played through their improved mortgage facilities, says a study conducted by real estate agency Savills Oman. Oman has emerged as the region’s leading tourism attraction with the development of its integrated tourism complexes such as Barr-Al Jissah residences, Muscat Hills Golf & Country Club and The Wave, Muscat. While these projects were not totally unscathed by the global economic downturn of 2008 they have fared better than their regional counterparts. 30 The Home Show

Oman Tribune - 19 April 2010 The report says it is an excellent time to buy real estate in the sultanate. “There is no doubt in my mind that now is an opportune time to buy real estate in Oman. If investors wait longer they will almost certainly miss the boat,” says Chris Steel, Managing Partner, Savills Oman. “With projects such as the expansion of Muscat International Airport, the emerging Royal Opera House, Shura Council’s Houses of Parliament building, and several existing new tourist developments due to come on line, now is without a doubt a unique time for investors to maximise their returns.” Steel said property values have remained firm and the promise of ownership for all nationalities has been delivered. The Wave Muscat has already handed over the first phases of their development including the first apartment block Almeria South, and this month Muscat Hills & Country Club saw the handover of the first of

its villas to excited owners. Most major banks in Oman are providing mortgage facilities to nationals and expatriates. HSBC, Bank Muscat and National Bank of Oman have continued to be active lenders, most recently joined by Standard Chartered Bank. Such favourable trading conditions are bound to attract new entrants to the market and a major new real estate and tourism development operator is expected to announce details of its entry into the market and its first major development in the Muscat area within the next few weeks, says the report. As other countries within the region struggle to recover from the effects of 2008, Oman is forging ahead with increased government and private investments in areas such as private equity, integrated tourism developments, infrastructure and real estate.

“Savills Oman has seen a surge of interest from international investment organisations over the past few months wanting to penetrate Oman’s real estate market. This interest is supported by the developments Oman currently has underway to diversify into new markets now and

in the future, and investors are keen to captialise on the benefits these projects will bring to the country and the region,” says Steel. He says property market is very excited about the imminent arrival of new players in the Omani market and

it is looking forward to using local expertise to assist with new developments. Savills Oman said it intends to leverage the knowledge and expertise of its senior management team to develop tourism related real estate products in the Sultanate of Oman.

Extension underscores social role of Oman Housing Bank Oman Observer - 18 April 2010

arwish bin Ismail al Balushi, Secretary General, Ministry of Finance and the Board Chairman of Oman Housing Bank (OHB), has hailed the extension of the tenure of the bank by a further 20 years, as set out under the recently promulgated Royal Decree 36/2010. The step, he said, will further reinforce the bank’s mission in enabling Omanis secure subsidised housing loans. “His Majesty the Sultan’s sublime confidence reflected in extending OHB’s tenure confirms the great successes achieved by the bank during

the past years in providing appropriate housing facilities for citizens in the different wilayats of the Sultanate and assisting the efforts of the government aimed at ensuring a decent life for them in the prosperous reign of His Majesty,” Al Darwish said. “The bank also managed, through its board, executive management and all the staff, to achieve the desired balance between providing soft, easy and subsidised housing services, achieving positive results and maintaining the financial status of the bank by adopting conservative policies and

finding various alternatives that provide wide options for the citizens according to their income levels,” he added. Since its establishment in 1977, OHB disbursed a total of 29,613 loans of a total value of RO 509,275,687 as of end-December 2009. Low income citizens were the biggest beneficiaries, accounting for 87.2 per cent of the total (25,827 loans) with a total value RO 414,641,429. Further, 81.4 per cent of the loans, totaling RO 225.602 million were disbursed to applicants outside of Muscat Governorate.

Glorei signs agreement to build Maktabi 2 in Wattayah

lobal Omani Development & Investment Co. (Glorei) has signed an agreement to build ‘Maktabi 2’ project in Wattayah. The project consists of developing 22,000sqm of office spaces, exhibition halls and other facilities and supporting services, for a total cost of $25 million. The project will take around 18 months and will contribute in the economic development of the country, focusing on commercial, residential, and tourism complexes. The contract was signed by Sheikh Mohammed Oufit Al Shanfari, chairman of Glorei, together with Fuad Abdullah Al Kindi, CEO of Ibn Khaldoon and Al

Times of Oman - 31 March 2010 Madaein Engineering Consultancy and Syam Sunder, CEO of Larsen & Turbo, the two companies implementing the project. Mohammed Abu Baker Al Ghassani, the CEO of Glorei, said: “The Maktabi 2 project represents one of the leading projects equipped with the latest technology making it a unique smart office in Oman. The company seeks to use local products and materials in all its projects in order to reduce cost, ensure quality and reduce carbon emission. We aim to compensate our environment against the carbon emission from our offices by several initiatives calling

for environment protection by using eco-friendly materials. The project selection process is based on the locations that are consistent with the principle of sustainable development, saving water and energy and preserving the atmosphere.” Prior to investment, Glorei evaluates the market with a clear vision intending to find successful investments that fulfil the economic and investment market conditions. Al Ghassani said, “The current economic situation looks good following the international financial crisis that had a strong impact on several ecoMarket Report 31

nomic sectors.” He commended the government for advertising various projects according to plans thus reducing the impact, and as oil prices have regained its record levels all these elements encourage investment.

On another note, Glorei also inaugurated its business centre (Maktabi 1) in Al Khuwair in the presence of the company’s board of directors. The project consists of large office spaces and provides safe and comfortable working environment for the companies entering the market or expanding its business in Muscat or

in the Sultanate in general, or international companies requiring offices for a short or limited period. The offices are available in various sizes and are fitted with several services, including reception, high speed Internet, meeting rooms with video conferencing, parking and public relations.

BankMuscat’s baituna Souq to showcase array of real estate projects Oman Observer - 22 March 2010

ommitted to fulfilling the aspirations for a ‘Home for every Omani’, BankMuscat, the leading financial services provider in the Sultanate, has organised a first-ofits-kind event aimed at facilitating home deals for prospective buyers interested in properties offered by leading real estate developers. Saleh bin Mohammed al Farsi, Under-Secretary at the Ministry of Housing, will inaugurate the first-ever baituna Souq which brings together leading real estate and property developers and several thousands of prospective buyers at Muscat City Centre, Seeb on March 25 and 26. The state-owned Oman Housing Bank is also participating in the event. Sulaiman al Harthy, Group DGM — Consumer Banking, said: “The ‘Oman Celebrates’ campaign launched by BankMuscat as part of the 40th anniversary celebrations of the Sultanate’s Renaissance led by His Majesty Sultan Qaboos bin Said is aimed at offering innovative products and services catering to varied requirements of the largest banking

family in Oman. Complementing government efforts, BankMuscat remains committed to supporting citizens in acquiring choice homes.” BankMuscat’s tailor-made baituna home finance facilitates purchase and construction of new homes as well as land for residential use. Finance is primarily offered to Omani nationals, though baituna products also provide financing for GCC nationals and expatriates. The Bank also undertakes refinancing of housing loans. Al Harthy said: “The real estate sector is a major component of the national economy and the Bank will extend all possible support to achieve the objective of a house for every Omani. BankMuscat is committed to the revitalisation of the real estate sector and enhance its role in the national economy.” Al Harthy added: “In view of the continued government support to various development programmes, the real estate sector in Oman reflects a growing demand for residential units. BankMuscat is presenting baituna Souq

as a unique co-marketing opportunity aimed at offering citizens an array of home deals. All the participating real estate and property developers have long association with BankMuscat’s baituna Home Finance.” To maximise the reach and effectiveness, baituna Souq’ is being held on a weekend, when the venue has the highest footfalls. The participating companies will be available for oneto-one meetings with potential home buyers, thereby opening a channel of contact with interested customers. The residential segment assumes importance in light of the growth in population as well as the buoyant economy. The government distributed 142,916 plots at the beginning of 2008, of which 88.3 per cent were used for residential purposes. The deregulation in property ownership rights granting foreign ownership to GCC and non-GCC nationals has also attracted Oman as an investment destination. Due to strong regulations in place, the Omani real estate sector was protected from adverse effects of the global financial crisis.

MoU inked for environmental tourist resort in Mirbat

l Yasmin Oasis Trading and Contracting and Alila International signed an MoU on Tuesday 32 The Home Show

Oman Tribune - 17 March 2010 for the operation of an environment tourist resort in the Wilayat of Mirbat in Dhofar Governorate. The MoU was

signed by Alila International CEO Mark Adilson and Al Yasmin Oasis chairman Mohammed Bin Aqil Ba

Omar. Mohammed Bin Aqil Ba Omar said the project comprises a comprehensive environment tourist resort at Khaisah Aqian in the Wilayat of Mirbat. The project, which will be set up over 400,000sqmt area, includes hotel rooms, villas, chalets, marine park, diving club, health club, restaurant, crafts market and cultural village. The project, which will cost around 30 million rials, will be completed in 36 months. He added that the project would generate a number of job opportunities in the field of environmental tourism and would have positive outcome on

the craftsmen and fishermen in the local communities and on the tourism and food suppliers as well. The plans for this project were done in collaboration with leading experts and consultants in this field. The project takes into consideration the needs of visitors for such project. A tourism environmental open area that overlooks the sea has been selected to meet the needs of the different categories of visitors. Mohammed Ba Omar said the project would contribute to the many efforts undertaken by different authorities with the tourism ministry at the foremost to make the Sultanate an

international tourist hub. He added that the project, when completed would enhance the accommodation capacity in the Sultanate in general and the governorate in particular. On his turn, Mark Adilson expressed his happiness for signing the MoU and praised the eco-diversity of the Sultanate. He also said the company would operate two other resorts in the Sultanate, namely Al Jabel Al Akhdhar Resort and Musandam Resort. The company operates more than 20 resorts in India, Vietnam, China, Indonesia, Laos, Thailand, the Maldives and Malaysia.

Zubair Corp. plans hotel, residential complex Times of Oman - 15 March 2010

iversified business group Zubair Corporation plans to build a new budget hotel in Muscat in addition to a retail-cum-residential complex, a top official said. “We are looking into it,” director of tourism, Ziyad Al Zubair said. The group would, however, would not go ahead immediately due to the general slowdown in the real estate market in Oman but would start working on the projects once the market improves, he said. “It will be on mass scale and really depends on timing”. The proposed hotel would target the value-conscious business traveller as well as leisure tourists and the group may even look at using the ‘Traders Hotels’ brand of the Shangri-La Hotels and Resorts, the Hong Kongbased luxury hotel group, Zubair said. Traders Hotels branded properties are

located in major business centres in Asia and the Middle East. Zubair Corporation already has a management contract with the Shangri-La Hotels and Resorts for its Barr Al Jissah Resort & Spa, a luxury resort with 680 rooms spread over 124 acres by the sea in Muscat. Zubair is looking at more than 20 per cent growth in its guest arrivals at its Barr Al Jissah property in 2010, Arbind K Shrestha, general manager of the resort said. The three-hotel resort had about 80,000 guest arrivals in 2009 as compared to 100,000 during the previous year as the global financial crisis affected the tourism industry globally, he added. Leisure travellers account for about four-fifth of the total number of guests from more than 50 countries across the world while business travellers

make up the rest in the three-anda-half year old property, Shrestha pointed out. The property, by virtue of being part of the Shangri-La network of 65 hotels worldwide, benefits from the 1.5 million member strong loyalty program of Shangri-La Hotels and enjoys an average guest return ratio of 30 per cent, the officials said. The city of Muscat has more than 1,600 hotel rooms in the luxury category and the current economic scenario would not allow the hotels to raise their average room rent in order to boost revenues, Zubair added. The Barr Al Jissah Resort & Spa employs 1,075 employees from 40 countries and plans to hire more and take the level of native Omani employees up to 50 per cent of its total staff strength from the present 32 per cent, Zubair said.

Muriya sales event to showcase Jebel Sifah and Salalah Beach properties

Oman Observer - 14 February 2010 uriya, Oman’s leading premium property brand, is host-

ing a four-day sales event spotlighting investment opportunities linked to its

prestigious Jebel Sifah and Salalah Beach developments. Market Report 33

During the event, set to take place at the developer’s Muscat Sales Centre in Al Sarooj between February 15 and 18, 2010, Muriya will also unveil a package of exclusive offers and attractive payment terms — applicable for a limited period only. During the promotion, interested buyers can explore a remarkable range of purchase options of Muriya’s

extensive choice of villas and apartments, which are available now at unmatched prices. Investors can also take advantage of a diverse selection of payment methods that can extend up to seven years. Moreover, any villa or apartment purchased during the four-day promotion will come fully furnished upon delivery, courtesy of Muriya.

“The upcoming event is yet another demonstration of our commitment to offering investment opportunities at great value, within our Jebel Sifah and Salalah Beach properties. We are going the extra mile in making it possible for prospective investors and homebuyers to own a piece of real estate in some of the most desirable locations in Oman. By taking advantage of our unbeatable pricing

Standard Chartered launches mortgage scheme for residential properties Oman Observer - 8 March 2010

o meet the rising demands for residential properties in the Sultanate, Standard Chartered has for the first time in Oman introduced a complete mortgage solution, targeted at residential owners. It complements Standard Chartered’s current array of retail finance products. “Standard Chartered has been committed to the Sultanate of Oman for over 40 years; part of this commitment revolves around building a sustainable economic environment for the benefit of the country,” said Ravneet Chowdhury, Standard Chartered CEO for Oman.

“With a forecast GDP growth of 3.8 per cent in 2010, the bank is well placed to support the rising demand for residential mortgages. We have been building our expertise globally in the mortgage business for several years and are pleased to be extending our product capabilities into this market.” Bikram Rishi, Head of Consumer Banking Standard Chartered Oman said, “We continuously improve our product offerings to deliver real benefits for our customers. Our focus has always been to build a retail banking platform that deepens our customers’ banking experiences while contribut-

ing to the development of our mortgage portfolio. We are pleased to offer an alternative mortgage solution for our Omani market.” The mortgage facility offers flexibility to home owners to purchase completed properties or refinance their fully paid residential properties with an 80 per cent loan to value at a competitive introductory rate of 5.99 per cent per annum. The facility is open to both Omani nationals and non-Omani residents, offering mortgages up to 800,000 Omani rials for villa properties and 600,000 Omani rials for apartments.

Oman realty sector to hit RO1.57b

he construction industry in Oman is expected to grow by 2.7 per cent to reach RO1.57 billion by 2013 as the government would continue to spend on infrastructure projects aiming for diversifying the economy, Global Investment House (Global) said in its latest GCC Real Estate Sector Report. The Omani economy is expected to grow by three per cent in real terms in 2010 benefiting from high crude oil prices and ongoing government spending, it said. Besides, economic performance is expected to get bolstered by higher tourist arrivals and 34 The Home Show

Times of Oman - 2 March 2010 increased foreign direct investment, thereby benefiting all the sectors of the economy including real estate and construction, the report said. With respect to residential units, Global held a stable view on the segment due to favourable demographics. Oman would require around 20,000-25,000 new units over the next few years to keep up with its growing population in which about 43 per cent are less than 14 years of age, it said. The Kuwait-based firm also held a similar view on the office space

segment in the Sultanate for the short term as it expected a flattening demand in 2010 with a marginal tendency to pick up towards the end of the year depending on actual economic performance. However, on a longer term, it might witness a correction with the delivery of 200,000 square metres of office space in Muscat by 2012. “Matching such supply with increased demand will be linked to economic performance,” Global noted in the report. Although Global held a stable view for the residential and office space

segment in Oman, it held a negative view for the hospitality segment in the country as the global economy were yet to recover from the recessionary pressures completely.

On the demand side, it foresaw a decline in tourist arrivals in Oman in the medium term through 2011 as more than two-fifth of Oman’s tourist count is from developed economies. Meanwhile, on the supply side, it

warned of an oversupply situation as the major projects in Muscat are expected to add about 5,500 rooms. to the already existing 4 and 5-star rooms through 2012.

Oman Cement’s new clinker project to come on line in Q2

man Cement aims to bring a new clinker manufacturing plant into operation in the second quarter of this year. The project, involving an investment of 62.7 million Omani rials, will boost the com-pany’s clinker production capacity by 4,000 tons per day. Last week, the company announced a 93.2 per cent jump in profit before tax of 27.363 million Omani rials during fiscal 2009, against earnings of 14.109 million Omani rials a year earlier. Qahtan bin Yarub al Busaidy, Chairman of the Board of Directors, attributed to increased earnings to higher price realisations during 2009, as well as lower procurement costs of imported clinker, discontinuation of cement imports, and increased investment income. Cement production during 2009 rose 3.6 per cent to 2.075 million metric tons, as against output of 2.003 million tons in 2008. The company produced 1.161 million tons

Oman Observer - 28 February 2010 of clinker during the year, as against 1.182 million tons produced in 2008. Clinker imports however slumped 28.8 per cent to 656,887 tons last year, from 922,343 tons in 2008. Cement sales during 2009 increased slightly to 2.178 million tons in 2009 from 2.153 million tons a year earlier. In value terms, 2009 sales yielded revenues of 68.284 million Omani rials, which was 7.5 per cent higher than earnings of 63.522 million Omani rials in 2008. “This increase is due to the increase in the volume of sales and improvements in the average selling price of cement, as compared to the average selling price during the year 2008,” he stated. Strong domestic demand for cement allowed prices to remain stable throughout 2009. But increasing cement supplies at low prices from

neighbouring countries threatens to put prices under stain, said Al Busaidy. Commenting on the outlook for this year, the Chairman stated: “The demand for cement in Oman for the year 2010 as part the report of a study done for the company indicated a marginal decline over the 2009 level. The new production line, which is expected to be in operation in the second quarter of 2010, will help the company reduce the procurement level of imported clinker, thereby resulting in a major cost reduction.” In addition to the ongoing expansion of Oman Cement’s clinker capacity, the company is also upgrading its packing plant. Four Autopac machines for automatic truck loading, as well as two Rotopacker machines, out of three envisaged, have been erected and commissioned. A new limestone quarry for high-grade limestone, with an estimated reserve of 50 million tons, is also being developed.

Muriya sales event to showcase Jebel Sifah and Salalah Beach properties

uriya, Oman’s leading premium property brand, is hosting a four-day sales event spotlighting investment opportunities linked to its prestigious Jebel Sifah and Salalah Beach developments. During the event, set to take place at the developer’s Muscat Sales Centre in Al Sarooj between February 15 and 18, 2010, Muriya will also unveil a package of exclusive offers and attractive payment terms — applicable

Oman Observer - 14 February 2010 for a limited period only.

upon delivery, courtesy of Muriya.

During the promotion, interested buyers can explore a remarkable range of purchase options of Muriya’s extensive choice of villas and apartments, which are available now at unmatched prices. Investors can also take advantage of a diverse selection of payment methods that can extend up to seven years. Moreover, any villa or apartment purchased during the four-day promotion will come fully furnished

and payment terms, potential investors -- Omanis and expatriates alike -- can now fulfil their dreams of owning homes in truly world-class communities here in the Sultanate,” said Niazi Mostafa, Vice-President of Real Estate, Muriya. Located 45 km from Muscat, Jebel Sifah is spread over an area of 6.2 million square metres of the beachfront. On completion, it will rank among the most sought-after properties in Oman, offering residents outstanding luxury and an unmatched lifestyle. The development features luxurious residences including villas and apartments, an estimated 200-berth Inland Marina and a Marina town, two boutique marina hotels, four international 5-star hotels, retail shops, cafes and restaurants.

Salalah Beach on the other hand is located in the uniquely distinctive Dhofar region in the southern part of the country. Set on an area of 15.6 million square metres with 8.2 kilometres of beachfront, the development will eventually be home to high-end villas and apartments, two world-class 18hole PGA Golf courses, an estimated 200-berth Inland Marina with a Marina Town and five top hotel brands among which are Club Med, Rotana and Movenpick Hotels & Resorts. “In addition to promoting our properties, this event is also an opportunity for us to simply engage with our customers. Our professional and courteous staff — who will be available from 10 am to 9 pm on all four days of the promotion — will take interested buyers through our numer-

ous offerings, as well as understand their needs, and deliver customised financing solutions tailored to their specific requirements,” added Bahaa Kareem, Marketing Director, Muriya. Muriya was established in 2006 when Egypt’s Orascom Hotels and Development (with 70 per cent stake) and Omani government-owned Omran (with 30 per cent stake) came together in a joint venture. Since then, Muriya has announced four ambitious projects in beautiful locales around Oman. Two of the ongoing projects are integrated tourism complexes (ITCs) offering freehold properties — ‘Jebel Sifah’ and ‘Salalah Beach’. In addition, Muriya also has extensive plans to develop a city complex in Muscat and a Boutique Hotel on ‘As Sodah Island’.

Ruwi Master Plan’s first four-star hotel complex to be ready by 2011

Oman Observer - 31 January 2010

he first project of the Master Plan for ‘Beautiful Ruwi’ — a four-star hotel–cum shopping mall — launched recently is all set to be ready by 2011.

features 140 rooms, including 6 suites and 134 rooms, 3 theme restaurants, a 24-hour coffee shop (lounge), 3 conference halls with advanced facilities, swimming pool, and a health club.

The RO 6 million West Gate Palace Hotel project, currently under way, is in line with His Majesty the Sultan’s vision for a ‘Beautiful Ruwi’, announced in Royal Decree 05/2010, which envisages the removal of old buildings and re-planning of the City of Ruwi. This was announced yesterday at a press conference addressed by Sulaiman al Salhi, Chairman, Gulf International Investment Co. (GIC).

The ground and mezzanine floors offer 80 shops (50 per cent of them are designed for ‘gold shops’, 30 per cent exclusively for ladies and kids items and the other 20 per cent for electronics and other general products. The property envisages parking facilities for over 140 cars. The shopping section is scheduled to be up and running by July 2011, while the hotel will be ready by December 2011.

His other partners, including K K Hussain, Director, and Mohammed Ashraf, General Manager, were also present on the occasion. Ashraf, Managing Director, GIC, said, “the architectural view of the West Gate Palace Hotel will change the present view and skyline of the ‘Ruwi High Street, near KM Trading, replacing the earlier landmark, the erstwhile Papoo Market”. Hussain said the hotel

In response to a question by Oman Observer, Husaain said in addition to the three million rials from the promoters, GIC has taken a loan of three millions rials from Oman Development Bank for the project.

36 The Home Show

The construction of the project is being carried out Kehlan Trading and Contracting LLC, who had successfully completed several major proj-

ects including the KM Trading. JLP Associates of J L Lawrence Paul, who will become a partner of GIC by July this year, would manage the hotel. The company, which has plans for 40 per cent Omnaisation, said as per the Omani Labour Law those who will be sent abroad for training will have to work for the hotel for a minimum of four years. Hussain said the Gulf International Investment has also planned three hotel projects for Ghubra, Seeb and Salalah, in addition to three projects in India. Hussain said Ruwi, the commercial and main business district of the Sultanate, is all set to witness the replacement of narrow streets with old buildings, some of them built in early 1970s, with a brand new look as the master place progresses. As the first project of the Ruwi Master Plan, the West Gate Hotel Place in the heart of Ruwi will help advance the vision for a new beautiful Ruwi with a modern business environment and infrastructure.

Al Madina Real Estate signs pact for Poggenpohl Kitchens

l Madina Real Estate and Quality Furnitures have signed a contract for Poggenpohl Kitchens to be installed in the new Al Tilal mega Complex at Ghubra Roundabout. Al Madina Real Estate pursues its resolve to give their customers and tenants the highest quality apartment by installing premium modular kitchen manufactured by Poggen-pohl, Germany, in the 359 well-appointed apartments at the Tilal Complex. Poggenpohlâ&#x20AC;&#x2122;s high standards and superior finish will go a long way in enhancing and adding to evolved state of living in the mixed development at Al Khuwair and is one of the reasons why Quality Furnitures brought Poggenpohl to Oman. Kitchens and bathrooms are the

Oman Observer - 26 January 2010 key selling or renting features in residences, so with the installation of kitchens from the most recognisable and eco-friendly kitchen manufacturer, (Poggenpohl only use water based lacquers, paints and stains and only use sustainable forests for their wood), Al Madina not only focuses on maintaining high quality, but also makes it easier for potential buyers and tenants to choose the Tilal Complex over other residential buildings in Oman and protecting the planet at the same time. â&#x20AC;&#x153;The complex will also have the largest shopping mall in Oman with shops, restaurants and a food court. In addition, there are plans for a luxury hotel to be added to the complex,â&#x20AC;? a

press release issued yesterday said. All Omani Property Developers have to upgrade their properties to a higher standard to encourage buyers and tenants and Al Madina Real Estate is showing the way by upgrading their complex with the help of Quality Furnitures and Poggenpohl. Quality Furnitures is fully equipped to design, supply and install kitchens from individual villas to large estates or complexes using the latest design software. Al Madina Real Estate SAOG caters to versatile clientele and has shown it is not only the celebrities and ultra rich who can have a Poggenpohl kitchen but by adding a Poggenpohl kitchen in the Tilal Complex they are providing the finest of kitchens to every one of their customers.

1.18-billion rial real estate transactions

he total value of the real estate transactions in the Sultanate in 2009 amounted to 1.188 billion rials with a fall of 52.6 per cent compared to 2.5 billion rials in 2008. According to Abdullah Bin Salim Al Mukhini, Secretary of Property Registration at the Ministry of Housing, the total fees collected at the secretariat and property registration departments at housing departments and directorates in the wilayats and regions of the Sultanate in 2009 was 25 million rials with a fall of 56.4 per cent compared to 59 million rials in 2008. Al Mukhini said of the 224,078 realty transactions registered across

Oman Tribune - 25 January 2010

the Sultanate last year, 50,001 were in Muscat governorate, 11,608 in Dhofar governorate, 64,532 in Al Batinah region, 39,275 in Al Sharqiyah region, 26,891 in Al Dakhiliyah region, 21,364 in Al Dhahirah region, 6,194 in Buraimi governorate, 3,168 in Musandam governorate and 1,045 in Al Wusta region. The total number of title deeds issued in 2009 was 137,562 with a decrease of 17.7 per cent compared to 167,155 title deeds issued in 2008. A total of 67,683 new title deeds were issued in 2008 with a fall of 38.1 per cent compared to 109 new title deeds issued in 2008. The number of title deeds issued to

the citizens of other GCC countries was 3,295 with a decrease of 14.2 per cent compared to 3,841 title deeds issued to them in 2008. Al Mukhini also said 47,688 sales contracts worth over 415 million rials were signed in 2009. The total fees collected from such contracts amounted to 12 million rials with a fall of 64.1 per cent compared to 34 million riyals collected in 2008. As many as 950 exchange contracts were signed in 2009 with an increase of 18.2 per cent compared to 804 signed in 2008. The total fees collected from these amounted to 46,000 rials with an increase of 7.5 per cent increase compared to 43,000 rials collected in 2008.

Deal signed for Salalah Beach Resort project

he Salalah Beach Resort is one of integrated tourism projects

Oman Observer - January 8, 2010

that will develop tourism sector in the Sultanate by providing 320 hotel

rooms and other facilities designed to attract a big number of tourists, Market Report 37

said Tourism Minister Dr Rajha bint Abdulameer. An agreement was signed at the Chedi Muscat Hotel yesterday for the management of the Salalah Beach Resort between Muriya Tourism Dev’t and the French Club Med company. Dr Rajha said that the Salalah Resort implementation started two years ago and that it has a great tourism and real estate potentials. She explained that construction work in the project is progressing as planned. Dr Rajha added in a statement to journalists that signing an agreement with Club Med company comes after signing two similar agreements with world groups such as Rotana and Movenpick to manage two hotels within the Salalah Beach Resort. She pointed out that the project will attract tourists and

investors throughout the year. Samih Sawiris, Chairman of Muriya Tourism Development, said: “The beauty of Salalah has been attracting international tourists for many years and the addition of Club Med to the Salalah Beach Development will add a new level of world class accommodation resort. Muriya Tourism Development aims to harness Oman’s tourism potential with developments that harmonise natural beauty and human comfort and luxury”. Henri Giscard d’Estaing, Chairman and Chief Executive Officer (CEO) of Club Med said, “This exquisite project on the Salalah Coast will be the first Club Med resort on the Arabian Peninsula, the only part of the world where Club Med was not yet operating. It will be one of the

most beautiful and achieved flagships of the new Club Med, which aim at being the worldwide specialist of all inclusive, multicultural, friendly and upscale holidays. The project includes luxurious apartments and villas, world golf courses, five hotels (fivestar), two hotels, yacht anchorage for 200 boats, recreational areas, shops, restaurants and cafes.” The town of Salalah offers an authentic taste of Arabia, its traditional lifestyle and values expressed in the glowing architecture, aromatic food and the scent of frankincense and sandalwood. Built along the sea shore and around lagoons, it is one of the most picturesque and sought after destinations in the GCC, enjoying a temperate climate through most of the year, and rainfall due to the south-east monsoon known as the Khareef.

Oman construction sector to hit RO1.6b Times of Oman - 8 December 2009

he Sultanate’s construction in dustry is expected to hit RO1.57 billion by 2013 — a 2.7 per cent annual growth, and demand is likely to remain high, according to a report by Business Monitor International (BMI), a Middle East-based research company. The report also estimates that the construction industry in Oman will account for 5.2 per cent of the gross domestic product (GDP) in 2009, which represents real growth of 2.67 per cent year-on-year. A review of the current trends reveal that technology is a crucial factor in the development of buildings, infrastructure and transportation facilities amid the growing clamour of sustainability. Industry experts feel the Sultanate’s major projects will fuel activities in

the construction arena as new office space, commercial projects, more hotels and infrastructure will be the result of the Oman 2020 plan. Additionally, Oman’s specific market requirements and changing demographics will attract further investment in real estate development. Oman currently has a population base of between 2.5 and three million and it is growing at 2 per cent per annum. With a rapidly expanding population and demand for infrastructure projects, OMNIX International, a regional technology service provider and integrator is eyeing the growing demand for more cost-effective and resource-efficient buildings and infrastructure in the Sultanate. “Amidst the current economic climate, firms in Oman need interoperable and flexible technology tools for

building information modeling (BIM) that can help them deliver projects more quickly and cost-effectively,” said Jayant Deshpande, Director, OMNIX International LLC. “The 2010 versions of our software bridges communication between extended design and construction teams. These tools will help our customers more efficiently and productively solve their design and construction challenges”. The updated software in Autodesk’s BIM portfolio includes 2010 versions of popular products including Revit Architecture, Revit Structure, as well as Revit MEP. Designed to help increase industry adoption of the BIM process, products under Autodesk’s 2010 portfolio is focused on helping project teams across disciplines to innovate, analyse energy performance and increase productivity.

Pacts inked for 500 houses

heikh Saif bin Mohammed Al Shabibi, housing minister, signed

38 The Home Show

Times of Oman - 24 November 2009 in the wilayat of Nizwa 30 agreements to construct 500 housing units

in a number of wilayats of Oman at a cost of more than RO18.5 million.

The agreements come within the framework of the social housing program for low income families, an initiative adopted by the government in a bid to improve the standards of living of the Omani families and assisting them to have social instability by availing them proper housing. The agreements included the construction of 155 housing units in the Al Sharqiyah region, 236 in the Al Wusta region, 79 in the Al Dakhiliyah region, 24 in Muscat governorate and six in the Al Batinah region. The agreements include the con-

struction of 155 housing units worth RO6,024,910 in a number of wilayats of the Al Sharqiyah region. They include the construction of 62 housing units in the wilayat of Sur at a cost of RO3,601,427, six housing units in Belad Sur at a cost of RO141,470, six housing units in the wilayat of Sur (first stage) at a cost of RO196,133, seven housing units at the wilayat of Sur at a cost of RO117,746, seven housing units at the wilayat of Sur (second stage) at a cost of RO195,818, five housing units at the wilayat of Ja’alan at a cost of RO155,451, four housing units at Belad Sur in the wilayat of Sur at a

cost of RO117,873, four housing units in Belad Sur at the same wilayat at a cost of RO126,971. The agreements also included seven housing units in Al Khaba village (first stage) in Dima Wa Al Tayyeen at a cost of RO.164,893, eight housing units in Khaba village (second stage) at a cost of RO177,622, seven housing units in the wilayat of Sur (third stage) at a cost of RO225,435, four housing units in Dima wa Al Tayyeen at a cost of RO173,250, five housing units in Ja’alan (second stage) at a cost of RO119,704, and five housing units in Sur at a cost of RO116,632.

Barr Al Jissah residences near completion

t seems the realty sector have fi nally started responding to the positive hues in the local market. Barr Al Jissah luxury residential development yesterday announced the near completion of its Phase II — comprising three compounds with 71 units including 15 villas and 56 townhouses. “In today’s real estate market global investors and buyers look for credibility of the project, political and economic stability, friendliness of the local population and uniqueness of the environment,” said Jose Lora, chief executive officer, Juthoor Real Estate at a press conference hosted by Zubair Corporation and Juthoor. Owners of the property are a mix of Omanis, expatriate Arabs, European and North American investors. “The completion of the phase is an important landmark, but other additions including a retail concept in the heart of the resort will help ensure that Barr Al Jissah is a truly integrated tourism complex,” said Ziyad Al Zubair of the Zubair Corp. Talking about the occupancy Lora said, out of 71 units, two properties are left to be sold. “High networth individuals still believe in real estate despite the downturn. In most cases

Times of Oman - 25 October 2009 25 per cent of their investment portfolio constitutes real estate. Especially in the current market they look for value deals,” he added. Barr Al Jissah Residence is one of the few real estate projects in Oman that has been open to international investors like the Wave and the Blue City, which also offer freehold property ownership. At the event it was also announced that Juthoor Real Estate, who were appointed as the strategic construction and real estate consultant for the residential project have now also been appointed by the Zubair Corp. to manage Al Mazaar Souq at the Shangri-La resort complex. Al Mazaar Souq property comprises 51 retail shops, two international restaurants, an amphitheatre with an open-air arena and a major game area. The project is part of Moham-med Al Zubair’s vision, for a fully integrated world-class leisure, residential and tourism project at Barr Al Jissah. Al Mazaar Souq shopping destination will showcase the Sultanate’s heritage, art and culture. Lora added that it was a sign of the quality of the project and the confidence that the Zubair Corp. has in the robustness of the Omani and regional economy that had led to the ongoing development and implementation of

new additional stages of the Barr Al Jissah development. The residents of Barr Al Jissah will also have free access to the services and facilities of its three hotels. Speaking on behalf of the Shangri-La Hotel, Resort General Manager Arbind K. Shrestha said, “We are looking forward to the development of Al Mazaar Souq that will offer a new addition to the range of services and facilities the resort can offer our local, regional and international guests.” Despite the downturn Shangri-La’s hospitality business was on track. “The Hotel has been witnessing occupancy levels higher than the industry average due to its location advantage and services,” said Lora. The occupancy levels have been above 60 per cent and even went to 80 per cent during holiday seasons and festivals. “We are starting to see the recession bottoming out and expect growth in the third quarter of 2010,” he said adding the growth in realty would be a slow process. Talking about the future plans Lora said, Juthoor would focus on the Oman market for the time being, although it has got enquiries from places such as Saudi Arabia, Bahrain and Abu Dhabi. Market Report 39

Dar Al Zain sells out all villas in Phase I of the project Times of Oman - 19 October 2009

ar Al Zain, the debut development project launched by Zain Property Development recently, exceeded all sales expectations with all the 36 five-bedroom villas in Phase I of the project being sold out. These villas are expected to be completed by June next year. Sales have now begun for Phase II of the project, which comprises 43 residential units of single, twin, three and four bedroom villas. Future phases will be announced in the coming months. Commenting on the success of the development, Mish’al Mohammed Abdullah Moosa, managing director of Zain Property Development, said: “The extraordinary turnout and interest that has accompanied the launch of our Dar Al Zain project high-

lights the importance of our vision to provide high-quality, affordable residential units for families in the Sultanate. The recent launch of Phase I villas provided us an opportunity to show visitors and potential buyers not only the quality of the finished villas, but also the quality of the on-going implementation and finishing stages of the project.” “At Zain, we arevery committed to our target customers and throughout every stage of the project’s design and construction we have taken steps to ensure that the homes remain suitable and affordable for these families. We feel that we have identified a gap in the market for affordable homes in which families can reside without having to settle on the high standard of living to which they are entitled,” he added.

Zain Property Development is a family business established in 2008. Dar Al Zain is the debut development from the developer and covers a 62,000 square metre site in Al Seeb. The RO17-million project’s ultimate aim to cater to Omani families is evident from every aspect of the development. From the practical yet idyllic project location, conveniently situated just 15 minutes from Muscat International Airport, and yet only a two-minute drive from the picturesque Seeb beach to the extensive facilities planned to complement the site, the developer’s preoccupation with all things for family is clearly apparent. The project requires a booking deposit of only RO5,000, followed by gradual bi-monthly instalments of 10 per cent.

Zain Property launches RO 17m Seeb villa project

ar Al Zain, an affordable, family orientated villa and townhouse development, measuring some 62,000 square metres, at Seeb was launched in an unveiling ceremony of the show villa yesterday. Last night’s launch showcased Phase I of the development whose name ‘Dar Al Zain’ appropriately translates as “House of Beauty’, including the completed show-villa. The project will be completed in four separate phases; Phase I will consist of 36, 5 bedroom twin villas and will be ready as early as June 2010. Phase II will deliver 46 homes of a variety of town-house and villa styles, including 3, 4 and 5 bedroom properties. Phase III will consist of 18 luxury individual villas and Phase IV will see a mixture of 84, 3 and 4 bedroom homes. The project is planned to be completed by the fourth quarter of 2012. 40 The Home Show

Oman Observer - 7 October 2009 Founded in January 2008, Zain Property Development is an Omani family business, and their debut development was designed to reflect these qualities on every level. “Dar Al Zain was designed and constructed around the requirements of the Omani community; more specifically, Omani middle income families looking for a safe, clean and comfortable community in which to live,” said Mishal Moosa, MD of Zain Property Development.

the developer’s preoccupation with all things family is clearly apparent.

The RO 17 million project’s aim to cater for Omani families, is evident in almost every aspect of the development. From the practical yet idyllic project location, conveniently situated just 15 minutes from Muscat International Airport, and only a twominute drive from the picturesque beach of Seeb; to the extensive facilities planned to compliment the site,

Moosa elaborated “Our goal is to make life easier for these families by providing them with affordable homes. Our properties reflect the character of the Omani community; our villas, for example, are built according to traditional Omani architectural style and yet also display the same quality of design and construction as ‘luxury’ developers”.

Dar Al Zain will be a secure, gated development, giving peace of mind to resident families, and will feature a variety of carefully planned facilities such as a child-care day centre, a fully equipped gymnasium and pool, beautifully maintained gardens and an array of retail and food outlets carefully considered to compliment family life.

Construction of new Rotana hotel well under way in Salalah Oman Observer - 30 August 2009

oundation work on the sea-facing Rotana hotel within the Salalah Beach project under development by Muriya Tourism Development Company, is under way. ‘Salalah Beach’ project is set to include some of the most exclusive five star hotels amid its stunning beachfront scenery. Oman will experience the hospitality of some of the worldwide renowned brands for the first time such as Rotana, Movenpick Resort & Spa Salalah and Club Méditerranée. The Rotana Hotel in Salalah Beach is designed by well known architect, Rami El Dahan from the prominent El Dahan & Farid Engineering Consultants. The company has over 29 years of experience working in architecture with emphasis on the use of locally available construction materials. They have successfully accomplished numerous projects in large and small scale residential, hospitality, commercial and religious projects as well as rehabilitation and restoration projects. Construction work on the

Rotana is proceeding with 3,683 m3 already excavated and more than 300m3 concrete for the foundations. The total land area is 263,000 square metres square with 520 metres of beach length. The project includes a main building and nine hotel clusters complemented with swimming pools, sports facilities with lagoon views and a beach restaurant. Scheduled to be completed by 2011, the hotel will incorporate 396 room keys and 47 real estate units. “Salalah is a destination that has been attracting tourists from around the world. The international brands we are bringing in ‘Salalah Beach’ will play a fundamental role in harnessing the country’s tourism potential. Rotana at ‘Salalah Beach’ will be a signature hotel property for Rotana brand as well as Muriya, and will complement our beachfront hotels,” stated Cyril Piaia, CEO of Muriya. Rotana is one of the leading hotel management companies within the Middle East and North Africa

(MENA) region, and has a portfolio of 68 properties across 26 cities delivering the best of Arabian hospitality. Founded in 1992, the Rotana Group offers a unique understanding of the culture and communities of the Middle East. This is combined with the expertise of a team contributing over 35 years of international experience in the service industry. In a short span of time, it has grown to be one of the leading hotel management companies in MENA. ‘Salalah Beach’ is set in the pristine natural environment of the Dhofar region and is known for its temperate climate and beautiful landscape. With five 5-star hotels, 2 marina boutique hotels, two 18-hole PGA Golf Courses, 200-berth inland marina and marina town, retail, restaurants and cafes, ‘Salalah Beach’ will also incorporate luxurious freehold real estate properties. Upon completion, it will provide the perfect setting for a self contained town and an ideal holiday destination.

Naseem A’Sabaa project ‘will bring in more investments’

aseem A’Sabaa, an Integrated Tourism Complex (ITC) project in Muscat, costing over $ 1.5 billion, will create more employment opportunities and bring in more investment to the Sultanate, said the project developers. Oman-based Amouage Hotels and Resorts and Malaysia-based Bandar Raya Developments Berhad (BRDB), one of the leading developers, which signed a joint venture recently to build the ITC project, said that Naseem A’Sabaa, which will be a landmark project, would pave the way for new investment opportunities.

Oman Tribune - 3 August 2009 Radiance International, a company specialised in investment procurement, master planning, tourism development projects and real estate development projects played a major role in bringing the Omani and Malaysian companies on a common platform for the joint venture. Moreover, it also created the initial conceptual master plan for Naseem A’Sabaa. The beachfront ITC project, which will be built on 400,000 square metre land, hardly 10 minutes from the Muscat International Airport neighbouring The Wave project, will have residential villas, condominiums,

two five-star hotels, a marina, marina apartments and commercial blocks. “The Naseem A’Sabaa project is targeted at Omanis, GCC and other nationals,” Dato Jagan Sabapathy, Chief Executive Officer, BRDB, said. The project, which will be completed in five years, will be of immense economic significance to the Sultanate,” he said. “Naseem A’Sabaa will have two hotels, a five star and a seven star, with around 600-650 rooms,” His Highness Sayyid Khalifa Bin Taimur Al Said, Chairman of Radiance Market Report 41

International told Oman Tribune on the sidelines of a press conference to announce the signing of the joint venture. The joint venture was signed after two years of negotiations. Amouage Hotels and Resorts is the first private Omani company to set up an ITC project, he said. “The project will pave the way for enhancing business relations between Oman and Malaysia,” he said. “Naseem A’Sabaa will have a marina to serve the residents of the gated community. It will also have a shop-

ping centre, office and commercial blocks,” he said. The ITC project will offer 100 per cent freehold property rights to all buyers, including expatriates and foreign nationals, he said. “The project will generate sales of around $2.5 billion,” Mohammed Al Khaldi, Chairman of Amouage Hotels and Resorts said. Amouage’s vision is to develop an ITC project, which will be an asset for the Sultanate, he said. BRDB is primarily involved in the development and management of prime

residential and commercial properties in Malaysia. The company, which is one of the established property development companies in Malaysia, was listed on the Kuala Lumpur Stock Exchange in 1968. BRDB is best known for its property development projects in Bangsar, Kuala Lumpur’s affluent suburb, including the Sri Penaga apartments, the luxury Bangsar Hill bungalows and so on. BRDB is also expanding its presence globally having embarked on a 325-acre high-end mixed use development in Lahore, Pakistan.

First private Omani tourism complex project announced Oman Observer - 29 July 2009

Malaysian real estate developer and an Omani landowner have signed a joint venture to build an integrated Tourism Complex (ITC) called Naseem A’Sabaa. Officials of the two companies, namely Bandar Raya Developments Berhad (BRDB), Malaysia, and Amouage Hotels and Resorts LLC, said the Naseem A’Sabaa would be built on a 400,000 square metre area in Al Athaiba. This is way above the smallest size (200,000 square metres) allowed for an ITC project in Oman. Muhammad al Khaldi, Chairman, Amouage Hotels and Resorts, said the project is expected to generate sales worth $2.5 billion and will be up and running in the next five years. The joint venture has been concluded following almost two years of negotia-

tions. Naseem A’Sabaa is a beachfront ITC project hardly 10 minutes from the airport neighbouring The Wave project. It will have residential villas, condominiums, two five-star hotels, a marina, marina apartments and commercial blocks. The Naseem A’Sabaa project will be designed to target Omanis, Gulf nationals and a select group of Europeans, Dato Jagan Sabapathy, Chief Executive Officer, BRDB, told the Observer in response to a question. Sabapathy said the project is of great economic significance to Oman as it will a go a long way in creating new economic opportunities. Preliminary planning for the project has just begun. Dato Muhammad Zamri, Ambassador

of Malaysia, underlined the project’s importance, saying it is set to be a unique one and quite different from the existing ITC projects in the Sultanate. Radiance International LLC, an investment procurement and real estate projects company, played a key role in bringing the Omani and Malaysian sides on a common platform for concluding the joint venture. Sayyid Khalfan bin Taimur al Said, Chairman, Radiance, said: “BRDB is one of the leading top five developers from Malaysia and Amouage Hotels and Resorts is the first private Omani company to go in for an ITC project, where non-Omanis are allowed to own land and property.” Amouage’s vision is to develop a unique complex, which blends the architecture of Oman and Asia.

Cement demand grows as construction sector thrives

ement sales by the Sultanate’s two principal cement manufacturers grew by significant margins during the first half of this year, un42 The Home Show

Oman Observer - 28 July 2009 derscoring the construction sector’s pivotal role in sustaining the economy through the current global downturn. Half yearly financial results released

by Oman Cement Company and Raysut Cement Company in recent days show increases averaging 17.5 per cent in cement sales during the first

half of this year, compared to figures for the corresponding period last year. “It has been business as usual — where cement sales are concerned — this past six months,” an industry executive commented to the Observer. “Demand has been growing by 10-12 per cent, with all segments of the building construction sector continuing to perform well. In particular, ongoing infrastructure projects of the government have helped maintain the momentum of cement consumption.” Oman Cement and Raysut Cement account for almost all of the Sultanate’s domestic cement requirements, although small quantities of bagged cement are imported by road from the United Arab Emirates (UAE) or via Oman’s commercial ports. Releasing its financial results for the half year ended June 30, 2009, Oman Cement announced a 17.35 per cent increase in cement sales, which jumped to 1.133 million metric tonnes during this period from 0.9966 million metric tonnes during the same period last year. This year’s volumes also included 89,794 metric tonnes of cement that was imported to meet the domestic demand. The growth

in cement sales boosted revenues by 32.1 per cent to RO 35.549 million during the first half of this year, from RO 26.902 million last year. Net profit after tax jumped a hefty 46 per cent to RO 11.178 million this year, as against RO 7.642 million during the corresponding period last year. “The demand for cement in Oman continues to remain at a high level. This situation is expected to continue in the near future. In order to meet the demand for cement, the company is continuing to procure clinker to produce additional cement. The average price of imported clinker is expected to be lower in 2009 as against the 2008 prices,” Qahtan bin Yarub al Busaidy, Chairman of Oman Cement stated. To meet the demand growth, Oman Cement imported 242,696 tonnes of clinker to supplement its own production of 602,220 tonnes during the first half of 2009. Total cement produced rose seven per cent to 1,028,808 tonnes this year, as against 961,563 tonnes during the first half of 2008. Raysut Cement too posted similarly upbeat sales results for the first half of 2009. Domestic cement sales climbed 18.3 per cent to reach 1.581 million

metric tonnes. Exports during this period amounted to 352,654 tonnes, taking the company’s total deliveries of cement to 1.581 million tonnes this year, as against 1.395 million tonnes during the same period in 2008. While clinker production fell slightly on account of kiln maintenance shutdowns, cement production was lower by 30.6 per cent to 1.026 million tonnes this year because of planned maintenance and rehabilitation works on some of the plant’s cement grinding cements. The shortfall was made good through imports amounting to 724,368 tonnes of cement. “Going forward, despite the negative factors affecting the economy, we expect that the measures taken by the Sultanate to inject more liquidity through the banking system will ease the impact of the crisis and achieve sustained economic development over the whole year. We therefore project demand for cement to continue growing albeit at a slower rate of 6-8 per cent for the financial year, and Raysut Cement will continue its efforts to meet the demand of the market,” Mohammed bin Alawi Ali Muqaibal, Chairman of Raysut Cement stated.

Market Report 43