Aqar oman issue 3

Issue 3 AUG 2016 Oman’s exclusive real estate magazine

NEW BOARD ELECTED FOR ORA’S NEXT TERM LAND PLOTS FOR CITIZENS Need to enhance real estate partnership A platform for project marketing and investments

INTERVIEW WITH HE THE MINISTER OF STATE AND GOVERNOR OF DHOFAR

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what’s inside

Land plots for citizens

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Focus on tourism, entertainment projects

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A platform for project marketing and investments

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New roads to boost Dhofar’s growth

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Oman’s first integrated light industries city launched

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Aqar gets usufruct right to build tourism project in Duqm

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ORA holds seminar on ‘Management in a changing environment’

ORA holds Board meeting

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Unique Jasmine Complex launched

28 10 Need to enhance real estate partnership

3 Dear Readers, Warm welcome to you all to the third edition of Aqar Oman, the real estate magazine in Oman.

The topics in this issue, along with others, include more details about the recent Dhofar Real Estate Forum held in the city of Salalah, organized by Oman Real Estate Association. We are happy that this issue of Aqar also coincides with Khareef season in Salalah, Oman`s top tourism destination for both domestic and foreign tourists.

At the Oman Real Estate Association, we aspire to involve the whole Sultanate in our events and expand our services to cover all wilayats. The Dhofar Real Estate Forum which was held under the theme of “Real Estate Investment Prospects in Dhofar� substantiates this.

The good news is that the Omani Real Estate Market remains intact even as revenue from oil is weakening. The real estate policies in the country are tailored to suit the investors. We at the Oman Real Estate Association are grateful to the Ministry of Housing for its cooperation with us and also improving the transparency in the real estate market to an attractive level.

The real estate brokerage system is expected to correct and boost the market. Also the launch of Al Malak Association is a welcome move.

Not to forget the efforts of the Ministry of Housing which seeks to arrange and develop this important sector.

This edition of Aqar also contains a number of other topics related to the Omani real estate sector, including features on different recent events.

Also a word of thanks for all of you for the great support that you are extending to us. With warm regards

Mohammed Al Busaidi Chairman

Chairman

HE Mohammed bin Salim Al Busaidi

HoD Business Development Dept

Fatima bin Mohammed Al Gheilani

Editor in Chief

Mohammed bin Salim Al Hosni

Editor

Samuel Kutty

Mustafa bin Al Lawati

Business Development Department

Abdulaziz bin Shihab Al Shukaili Karen Jane Stephen Prem Varghese

Design

Ali Jawish

Magazine Editor

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ISSUE 3.AUG 2016

ORA HOLDS BOARD MEETING Oman Real Estate Association (ORA) board held a meeting on 23 May 2016 at Al Barza hall at Muscat College to apprise its members of the outcomes of its meeting with the Minister of Housing.

T

he meeting discussed the latest developments in the real estate sector and also examined the responses to the decision of the Minister of Housing on activating the new real estate price index.

During the meeting, Eng. Mohammed bin Salem Al Busaidi, Chairman of ORA presented an overview on the meeting with the Minister of Housing and discussed in detail the proposals on solutions to ensure smooth operation in the sector.

The chairman stressed on the need to create partnership between the public organizations and the Association, especially those involved in the real estate sector. He also emphasized on the importance of opening new channels for dialogue and communication.

This, he said, “will lead to taking informed decisions”.

After the ORA’s Chairman’s

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Presentation, Hassan Al Lawati, the Deputy Chairman gave presented an update on the launch of the real estate price index.

At the end of the meeting, the floor was opened for discussion and a questionanswer session to clear members’ doubts. The

participants thanked the ORA Chairman and board members for their efforts to solve the difficulties facing ORA members.

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ISSUE 3.AUG 2016

T NEW BOARD ELECTED FOR ORA’S NEXT TERM Oman Real Estate Association (ORA) has completed one year during which the board members spared no efforts to promote the services of real estate developers and brokers. The year has been full of activities including achievements, hard work, dedication and great aspirations. The board members have done their best to fulfil the aims for which the Association was set up and turn them into reality and promote the real estate sector in the Sultanate.

he general assembly of ORA held its annual meeting at 30th March at Al Barza hall at Muscat College in the wilayat of Baushar. The meeting elected the board members unopposed for the new terms 2016/2017.

The number of members has been increased to 11 from the present 10.

After meeting the quorum for the meeting, Eng. Mohammed bin Salem al Busaidi, Chairman of the Board of Directors delivered a speech where he thanked the participants for their attendance and highlighted the need to double the efforts to promote the performance of the association.

The meeting reviewed the chairman’s report for the year ending 31st December 2015 and plans for 2016. He also reviewed the achievements made during the current year and the proposed plans and activities.

The meeting then discussed the financial statements for the

7 year and the proposed budget for 2016. Salem Ba Omar, treasurer made a presentation on the final accounts and balance sheets, as prepared by the Association’s statutory auditors.

He also reviewed the proposed budget for 2016.

ORA agreed to appoint KPMG as statutory auditor for 2017 and set its fees for the year 2017. The ORA board has earlier received quotations from three auditing firms, of which KPMG’s was the lowest.

Increasing board members

The general assembly also approved a proposal to increase the number of board members from 10 to 11 after getting the approval of the Ministry of Social Development.

Fresh blood

The Association elected unopposed 11 members for 2016/2017 term. Two young members joined the board namely Hayan Al Lawati and Abdullah Aidaroos Al Hafiz, who already have good experience in brokerage and development.

Sheikh Ahmed al Hassan retired from the board as he has much commitment over the coming period. The Board thanked him for his contributions and inputs during the previous term of the Association.

Electing executives

After the meeting of the general assembly, the first procedural meeting for the new board was held to name the administrators.

The board elected Mohammed bin Salem Al Busaidi as a chairman, Hassan Al Lawati as Deputy Chairman, Mohsen Hamad Al Masrori as Secretary and Salem Mohammed Ba Omar as Treasurer for the 2016/2017 term.

The Board elects Al Busaidi as a chairman, Al Lawati as Deputy Chairman

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ISSUE 3.AUG 2016

LAND PLOTS FOR CITIZENS The Technical Committee for Urban Planning recently held a meeting under the auspices of Eng. Seif Amer al Shaqsi,

Undersecretary of the Ministry of Housing. The meeting reviewed 44 new detailed layouts that provide more than 30,049 land plots

for different uses in Muscat, Dakhiliyah, North & South Al Batinah and North and South A’ Sharqiyah Governorates.

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he committee comprises a number of officials from different organizations as its members.

The meeting reviewed five land plots in Muscat Governorate that will provide 3,077 land plots for different

uses, eight at Al Dakhiliyah Governorate that will provide 7295 land plots for different uses. These include layouts of Ras al Jabal , Al Barkat in Adam ( 3797 land plots) , Tiwi in Sumail (969 land plots) , al Mudhabi (8) in the wilayat to Nizwa ( 738 land

plots) , Al Aqeer (1-3) in the wilayat of Bahla which will provide 370 land plots and Al Rihab in Manah , which will provide 766 land plots.

Seven layouts in Al Batinah The Committee reviewed seven layouts that provide

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3727 land plots for different uses in al North and South Al Batinah namely Khadra Alburasheed layout in the wilayat of Al Suwaiq (250), Wadi Mistil in Wadi al Maawel (250 land plots), Shazoon and Nakhl Heights in the wilyat of Nakhl (300) and Wadi al Sin al Al Maamur in the wilayat of Al Rustaq ( 2927 land plots).

The Committee reviewed 5 layouts in North A’ Shariqiyah Governorate that will provide 1660 land plots for different uses namely Barzaman & AL Jardaa (18), Al Kharis 3 and Sadirah village in the wilayat of Al Mudhabi (1435 land plots) in addition to Al Ghalaji in the wilayat of Al Qabil (225 land plots).

Al Dhahirah The Committee reviewed layouts in Al Dhahirah governorate that will provide 4837 land plots for different uses namely Shalashil and Al Gabilah Heights in the wilayat of Ibrai (4608 land plots) and the new city in the wilayat of Dank (229 land plots).

South A’ Sharqiyah The Technical Committee reviewed 15 layouts in South A’ Sharqiyah that will provide 9453 land plots for different uses namely Hail Al Jabli , Abu Qalaa, Al Aija 5 , Al Fulah , Wadi Al Saleh , Maslaq, Al Rafsa, Ras Al Hadd in the wilayat of Sur ( 7912 land plots), Falaj al Mashayehkh in Jaalan Bani Bu Ali ( 251 land plots), Azab

North A’ Sharqiyah

al Hayawanat in JBBA (501 land plots) and Doah layout in Masirah which will provide 789 land plots.

Making decision at the applications The Technical Committee for Urban Planning is in charge of revising and approving urban planning as per the rules and regulations in this regard. The Committee makes decision towards all applications for changing land uses or heights till approval of the national urban development strategy is approved.

The Housing Directorates and departments at the governorates shall submit the layouts to the municipal council to give opinion and refer to the Technical Committee.

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ISSUE 3.AUG 2016

NEED TO ENHANCE T REAL ESTATE PARTNERSHIP

The first real estate developer forum under the theme ‘Enhancing real estate partnership’ was organized by Oman Real Estate Association (ORA) under the auspices of Dr. Ali bin Masud al Sunaidi, Minister of Commerce and Industry in the presence of Sheikh Seif al Shabibi, Minister of Housing and some real state organizations and stakeholders.

he forum included presentation of a number of working papers and panel discussions bringing in many new ideas that can enhance public private partnership in this field. Apart from this, speakers highlighted the growth made by real estate sector over the past many years as well as the plans by the Ministry of Housing to regularize the real estate projects.

They also spoke about the integrated residential complexes and the upcoming tourism procts in the Sultanate.

PP a must not a complimentary At the beginning of the forum, Eng. Mohammed al Busaidi, Chairman of ORA said that if public private partnership has been a requirement during the past period, it has become a must now. He said that

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The first real estate price

index, the fruit

of cooperation between ORA and a number of real estate companies

more efforts are needed by all stakeholders to achieve the prospective aims towards economic diversification. “we need to continue the fiveyear development plans and to ensure collaboration of all efforts to achieve common interests�, he said.

According to him, ORA is committed to continue assistance to maintain and

activate the growth of real estate companies in Oman, as the real estate sector plays an important and vital role in the economic diversification strategy. The Real Estate Forum 2016 is held against the backdrop of the massive and continued growth in the real estate sector in the Sultanate of Oman.

He quoted the data from the National Centre for Statistics and

Information (NCSI) to bring home the growth of value of real estate transactions during 2015, which grew by 78 per cent or from RO 3 billion in 2014 to RO 5 billion in 2015.

ORA initiatives Since establishment in 2012, ORA has sought to achieve its aims by implementing a number of initiatives that regularize the

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ISSUE 3.AUG 2016

Partnership between the public and private sectors is a must and not a complimentary

real estate market and ensures its growth.

In 2015, the Association managed to publish the real estate price index, which is the outcome of cooperation between the Association and some real estate companies.

Cooperation is also maintained with the NCSI, the Ministry of Housing and other companies

Material plans to organize specialized forums for

real estate

developers and for real estate companies

to publish the index quarterly this year. The Association has also material plans to organize a number of specialized forums for the real estate developers and for the real estate brokerage companies. A number of these forums will be held outside Muscat Governorate.

‘Such forums provide ideal platform for sharing knowledge

and experience among private and public organizations.

Ministry of Housing plans During the forum, Seham Al Harthiyah, Director General of Planning and Development at the Ministry of Housing made a presentation titled ‘ Ministry of Housing Vision’. The presentation highlighted the efforts made by the Ministry to regularize the real estate market.

“We are trying to open new horizons for real estate investments in the Sultanate.

Such Forums help in accelerating growth in this key sector. It is also important to ensuring having reliable information therefore the Directorate General of Real Estate Development seeks to have a reliable database on the sector and to enhance communication with real estate investors and developers. To this end, we are also making efforts to launch the Directorate’s website, which will be rich in content and will provide all

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stakeholders with valuable information”, she said.

The establishment of the Directorate General for Real Estate Development comes in response to the needs of investor. The Directorate is developing a strategic plan to create integrated residential complexes that meet the needs of modern lifestyles at affordable rates within the reach of youths and families with medium income. The Directorate facilitates the procedures of serious investor.

Electronic programs by the Ministry Seham al Harthiyah pointed out that while the Ministry has introduced some e-applications, work is underway to avail more e-applications in the future.

The Ministry launched the real estate brokerage company’s registration and classification program and brought it live since last year. Efforts are done now to launch the real estate developer registration and

classification system as well as another program for registration of real estate projects, owners’ associations, building management and maintenance companies.

Integrated Residential Complexes Talal bin Seif al Umairi, Director of Integrated Residential Complexes presented a working paper on ‘ integrated residential complexes project’. At his presentation, he highlighted the latest developments of the project.

Tourism sector opportunities Sheikh Helal Ghalib al Hinai, Advisor of Green Tourism and acting manager of planning, follow up and information at the Ministry of Tourism presented a working paper on ‘ tourism and investment in the Sultanate, reality and future’. He highlighted a number of tourism projects in the Sultanate.

Launching Aqar Oman, second issue

The first Real

Estate Developer Forum is a

platform for exchange

of expertise

and sharing information

After that, there have been two sessions that focused on reviewing some tourism, residential and real estate projects in the Sultanate such as Sultan Qaboos Port Tourism Project, Al Irfan City and the Logistic Area in al Batinah.

Afterwards, the second issue of Aqar Oman was launched.

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ISSUE 3.AUG 2016

FOCUS ON TOURISM, ENTERTAINMENT PROJECTS The Real Estate Forum …. Opportunities and Challenges” was one of the most prominent events organized by Oman Real Estate Association (ORA) at Crowne Plaza Hotel, with the participation of experts and local real estate development institutions.

he forum discussed the major T challenges facing the sector, and was attended by officials

from government entities which are responsible for regulating the real estate sector in the Sultanate,

in addition to real estate development companies.

Thus, the forum was a great opportunity to discuss the ways of enhancing the sector’s contribution to Oman’s gross

domestic product (GDP), especially as the real estate is one of the sectors playing a prominent role in activating the government’s policy to diversifying the sources of income. Moreover, the real estate is one of the important sectors that contributes to attracting foreign capital.

The forum was held under the chairmanship of his Excellency Eng. Mohammed bin Salem Al Busaidi, Chairman of ORA, in collaboration with Al Nimr International Exhibition Organizers.

The event discussed the outlook for real estate sector in Oman and the world, with the participation of local real estate companies, institutions and experts such as Omran, Al Argan Towell Investment, Al Mouj Muscat and Al-Khonji Real Estate and Development, in addition to other institutions and experts, given that they are leaders and pioneers in the real estate sector.

The forum witnessed important recommendations for the development of real estate companies. Several participants submitted working papers, through which they put forward their visions about the future of real estate in the Sultanate and the importance of keeping up with

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Hilal Al-Hinai: Incentives and advantages of tourism projects, with usufruct of up to 50 years and land price starting from 50 baisas per square meter

Hassan Juma: We focused on the investments related to tourism, resorts and entertainment complexes as real estate is not limited to housing only. the global trend of focusing on entertainment besides housing.

Major real estate projects

During the forum, the Ministry of Tourism offered 14 areas on which major tourism projects can be established, giving top priority to five of them.

The Ministry said in its presentation, “A large land plot spreading over 10 million square meters was allocated for Oman Investment Fund, and some entertainment and hotel projects

will be built over this land. This move is part of the Ministry’s strategy until 2040 which aims to offer incentives and facilities for the purpose of activating the tourism sector, including usufruct of the land ranging between 25 to 50 years at prices of 50-300 baisas per square meter.”

In the presentation, Hilal bin Ghalib Al-Hinai, Green Tourism Advisor at the Ministry of Tourism, confirmed that the most prominent incentive offered to investors in the tourism sector is the exemption of income tax for

five years and the exemption of rent for three-five years, based on the nature of the project.

“The strategy aims to increase the number of tourists to 11 million and local visitors to 4.6 million by 2040,” he said.

Tourism as an economic driver

His Excellency Eng. Mohamed Al-Busaidi, Chairman of Oman Real Estate Association (ORA), confirmed that the association is committed to providing

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ISSUE 3.AUG 2016

Investment at Omran, joined the discussion and offered an integrated vision.

In addition, the forum shed light on the management of strategic facilities; a worksheet presented

by Alan Rowlands, CEO of Novus Community Management who discussed “the civil societies, how developed?” Saikat Bhattacharya, business analyst at Renaissance Services SAOG (RNSS), presented a worksheet on “the management of strategic facilities… trends and best practices”.

Forum in each two years

assistance sustainably as well as maintaining and stimulating the growth of real estate companies in Oman, especially as the real estate sector plays an important and vital role in the economic diversification strategy. “We in Oman Real Estate Association believe that the creation of this platform contributes to the growth of this strong industry that has a professional reference,” he said.

Topics of discussion

The first session of the forum covered some topics, including tourism as an economic driver.

The working paper included

“cases of international study” presented by Phil Taylor, managing director of the entertainment team, as well as “Madinat Al Irfane... development of new prospects for sustainable tomorrow” submitted by Eng. Ammar Al Kharousi, Development Director at Omran.

The working paper also touched upon understanding the challenges and increasing opportunities for developers and industry leaders, which was mentioned by Hisham Moussa, CEO of Al Argan Towell Investment. Salah bin Salim Al-Ghazali, Chief Executive for

Hassan Mohammed Juma, Deputy Chairman of Oman Real Estate Association, confirmed that the association holds a real estate forum each two years.

In each forum, specialists from Oman and outside Oman focus on certain topics.

“In this forum, we focused on two main topics; the first was the real estate opportunities related to entertainment resorts, and the second was the owner union and how to establish these unions; a new experience for the Sultanate and will be implemented sooner,” Juma said.

This forum focused on tourism real estate and resorts,

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Mohammed Al-Busaidi: We are committed to providing assistance sustainably to maintain and stimulate the growth of real estate companies. as well as investment in the entertainment resorts. Oman lacks entertainment complexes such as water village and others.

“Statistics confirm that 49 per cent of Oman’s population is less than 24 years, and this age group seeks to invest its time in various activities. Thus, this forum highlighted the importance of entertainment complexes, as well as their types and locations.

The entertainment complexes are considered part of real estate development because any park should have shops, hotels and other activities,” Juma said.

Owner unions

He explained that the forum discussed the owner union system, which is considered a new experience in Oman and will be implemented soon. The event also shed light on the importance of knowing the relevant experiences and practices in the world.

“We want to keep up with the future developments, as the real estate should not be limited to housing, but should also include all entertainment and service activities, exactly like grocery stores which were widespread in the 1980s, and then were developed into supermarkets, and then to hypermarkets currently”, Juma said.

“We want Omani real estate development companies to seize the opportunity and enter into this

kind of entertainment projects so as not to be outperformed by the foreign investor,” Juma added.

He concluded that the forum was attended by industry leaders and intellectuals to make comprehensive discussions about the opportunities and challenges facing the sector, as well as the creation of investment opportunities in the local real estate market and how this market would be the driver of domestic economy.

Participation of distinguished experts

Hisham Moussa, CEO of Al Argan Towell Investment, said, “This forum was one of the most important events witnessed by the local real estate sector this year, as it gathered real estate development leaders and officials from the government entities

regulating this sector, as well as experts from Oman and outside Oman.

Moussa also said the topics discussed in the forum had a significant importance in enhancing the role played by the sector in the country’s economic development.

Significant growth of the sector

The Real Estate Forum 2016 was organized amid the remarkable continued growth seen by the local real estate sector. The real estate transactions rose by 31 per cent to OMR 350.8 million in January 2016, according to the data released by National Center for Statistics and Information. The value of trading sale contracts increased by 24.7 per cent to OMR 119.2 million, and the sale contracts rose by 32.5%.

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ISSUE 3.AUG 2016

A PLATFORM FOR PROJECT MARKETING AND INVESTMENTS More than 18 real estate companies in the Sultanate joined hands to support the efforts made by Oman Real Estate Association to promote the real estate sector. s part of its emphasis on A the importance of corporate social responsibility and the need to support SMEs, ORA organized the first mobile Oman Real Estate exhibition 2016 at Muscat Grand Mall under the auspices of Eng. Mohammed Abu Bakr al Ghassani, Deputy Chairman of Majlis A’ Shura.

The exhibition is one of the services provided by ORA to

its members. The new board endeavors to organize a number of events and activities that are expected to promote real estate sector and enhance its growth in the coming period.

A platform for real estate projects

The exhibition provided an ideal platform for the real estate projects and the various

business and residential opportunities. The Association also seeks to promote the showcase tools used by real estate developers and brokers, as it believes that Oman is one of the fastest growing countries in terms of real estate at the region’s level.

The Association urged participants to use new methods for showing their products and services and to ensure better interaction with investors and customers as this will facilitate access to information about the units offered for sale.

Great Participation Among the companies that participated at the exhibition is ‘Sandan’ project which is the first of its kind integrated industrial project in the Sultanate, Savills Oman, Badr Real Estate Development, Salman Real Estate, Corner Stone Real Estate, Mumtalakat Arabia, Zawaya Development, Real Estate Souq Enterprise, Mamlakat Al Aqar, Aflaj International, Noor al Madina, Arabian Trust Properties, Desert Axis Real Estate, Amerat Gate Real Estate, Al Balsam, Alam Al Aqar magazine and other real

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More than 18 Oman

Real Estate

Companies

Participate in Mobile Real

Estate Exhibition at Grand Mall

estate services and hospitality companies.

During the exhibition ‘Aqar Oman’ magazine was distributed at the ORA’s counter. The magazine is a specialized in the sector is published by ORA in collaboration with Oman Establishment for Press, Publication and Advertising.

New opportunities for companies and visitors

In a statement to Aqar Oman, Eng. Mohammed Salem Al Busaidi, Chairman of ORA said that the exhibition provided an ideal opportunity for the real estate company to showcase their projects in an attractive way. The exhibition provided visitors with the opportunity to

compare among the services and products offered by the different companies and select the best options for them.

It should be noted that ORA seeks to promote the display methods used by real estate brokers. The Association called on participants to utilize the modern display methods that ensure better interaction with investors.

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ISSUE 3.AUG 2016

NEW ROADS TO BOOST DHOFAR’S GROWTH The Governorate is famous for its seasonal weather, locally known as “Khareef” when it witnesses its best period with more rains, clothed in lush greenery and its hills surrounded by white fog. Light rains drizzle to cool the air. During this time, it is frequented by thousands of visitors, especially from within Oman and the neighbouring countries.

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alalah Tourism Festival takes place from 15 July to 31 August every year. The festival is part of Khareef (monsoon) that extends from the end of July until the beginning of September.

Dhofar Governorate stretches over an area of one third of Oman and forms the Sultanate’s southern part.

Dhofar includes a distinctive natural diversity where the coast blends

with the mountains and the desert in wonderful harmony so that the mountains look like a fertile crescent, rising to a height of 1,500 metres and then descending into a flat plain that embraces sandy beaches stretching for hundreds of kilometres.

The Omani government has devised a number of plans and programs to ensure sustainability of growth and modern development and to ensure

high quality work.

A number of road projects are underway at the governorate especially the dualization and lighting of the 36 km Taqa/Mirbat road.

The road starts from Al Haqq city roundabout in the wilayat of Taqa to Mirbat city entrance. The project includes five flyovers and a land tunnel in addition to a bridge south of Wadi Darbat.

It also includes a roundabout at the end of the dual carriage way and the beginning of the single lane road – Mirbat-Sadah-Hadbin.

Eng. Said Tabuk, Director General of Roads and Land Transport at the Governorate said that the dual carriage way includes two lanes, each 3.75 meter at each side.

The road is provided with 2.5 wide external road shoulders and 1.5-meter long internal road shoulder in addition to 4.5-meter wide road barrier and the lighting works. The project is expected to cost about RO 40.48 million. Almost 32 per cent of the project has been completed and it is expected to be completed by March 2018.

Qatbit/Marsdud road

Eng. Tabuk also said that a number of projects were also completed such as the design and construction of the 35 km long Qatbit/Marsdud road in the wilayat of Maqshan.

The road starts from Qatbit junction.

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Connecting rural to urban areas to enhance tourism and agricultural activities The 35 km long, Qatbit/Marsud road completed

Five flyovers and tunnels in Taqa/Mirbat road dualization project

The project also includes internal roads in the neyabat of Marsud. The road is 7 meter wide with 1 meter external should and 0.5 meter dust internal road shoulder. The project costs about RO3.12 million and is expected to be delivered initially in May 2016.

Qatqoot-Sirahkh-Ardit road

Eng. Said Tabuk pointed out that the design and construction of QatqootSirahkh-Ardit road in the neyabat of Tiwi Aateer of Mirbat has been completed. The 12 km long road project includes 6 km long internal roads. The 7 meter wide road, which is

expected to cost RO 691,673, will be delivered soon.

Mirbat Hasik road

The Director General of Roads and Land Transport in Dhofar Governorate pointed out that work is underway at the rehabilitation of Mirbat-Hasik road. The 125 km long road aims at reconstruction of rainwater discharge canals at the crossing with the Wadi.

The discharge channels have been designed as per the unified standards for road in the Sultanate – June 2010to ensure smooth operation during flooding. 65% of the road that cost RO21.455 million has been completed.

Work is underway as planned as the road is expected to be completed next year.

Raysut Salalah road

The 2.9 Raysut Salalah road rehabilitation project includes four lanes, two at each side with 3.65-meter long road shoulders for each land and two-meter wide external road shoulder. It also includes a single lane road for entering the Port in addition to three roundabouts. It includes all water discharge works, lighting, side barrier, white marking, traffic lights and all safety measures.

Almost 71 per cent of the project that costs about RO 4 million has been completed and is expected to be completed in August 2016.

Road maintenance

Eng. Tabuk pointed out that a number of road maintenance projects has been awarded in 2016 in Dhofar Governorate namely the maintenance of the asphalt roads including the asphalt road projects implemented by the Directorate General for Roads ( more than 6000 km long) at a cost of more than RO2.8 million. The project has been awarded in March 2016.

Dust roads

Eng. Tabuk added that the maintenance of the dust mountainous roads network in the governorate (1669 km long) has been awarded last March at a cost of RO2.799 million.

The tender for the maintenance of the dust desert roads network (1301 km long) at a cost of RO2.399 million has been awarded in March2016.

Importance of road sector

The road and land transport sector plays an important role in facilitating communication by expanding the main and sub road projects and connecting the rural to urban road.

This will enhance trade and business activities and also meet the needs of the residents at the different parts of the Sultanate and ensure that all Omanis share the benefits of the comprehensive development process taking place in the Sultanate.

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ISSUE 3.AUG 2016

OMAN’S FIRST INTEGRATED LIGHT INDUSTRIES CITY LAUNCHED Sandan, Oman’s first integrated light industries city, was officially launched recently under the patronage of Ali bin Masoud Al Sunaidy, Minister of Commerce and Industry.

The project design has been approved by the Ministry of Housing, Royal Oman Police and civil defence authorities. The project is expected to be completed.

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he minister praised the efforts to develop a project for light industries, asserting that the project is a step forward in quality offerings and it will provide the market with many opportunities and huge investments.

A host of businessmen, entrepreneurs and government officials attended the inauguration ceremony at the Grand Hayat

Muscat.

The city is expected to host 2,200 workshops and exhibitions for building materials and automotive.

On all, 400 offices and 18,000 residential units for workers. The accommodation is placed above the shops in spacious areas, which will take care of the transportation issue.

Said Nasser al Rashdi, CEO, Sandan said, “We are targeting

the SMEs to start with and so we have smaller units. Everyone who is running a small business whether it is in construction, automobiles can now have their own unit in the park.

The difference between us and any other industrial area in Oman is that we are purpose built. Our shops are designed for the businesses interested people are specializing in. For the car showrooms the parking space, the water supply and drainage capability are all calculated for. The city is designed in such a way that it suits everyone. We have designed as per the experience of the current business owners.”

Great turnout

After the official launch, the Sandan team started offering all units available for sale. The event saw a big turnout of investors, businessmen, entrepreneurs, traders and the youth, who wanted to take part in a great success story.

The turnout has been great and exceeded expectations Nasser al Rashdi, CEO of Sandan Development, said the project, which is 100 per cent Omani-owned, was on the drawing boards for two years as the vision was for an integrated project of the highest global standards.

He said, “Our team made great efforts to this end. The project

23

Sandan

The project

launches the first

extends over

integrated light

250,000 square

industries city in

meters and cost

Oman

RO100 million

management team has been in talks with concerned bodies and entities to offer special services for entrepreneurs and investors. We aim to help young Omani entrepreneurs establish their businesses in the area.�

Ideal Location

“The first-of-its-kind project will be constructed over 250,000 square metres of landŘŒ located 5 kilometres away from the Al Mabela exit on the express way.

Payment facilities

All units of the project will be

offered for direct sale; and buyers have the opportunity to pay in interest-free instalments extending for 18 months.

First of its kind in Oman

The CEO of Sandan Development added that the project is the first of its kind in Oman and that his company will not withdraw after handing over the sold units to buyer but rather will stay to provide logistic support and address any emergency.

He noted that the project will open wider horizons to set up similar projects in the different parts of the Sultanate.

Sandan, the first experience of the private sector in industrial cities with 100% Omani investments Meeting requirements

The project is expected to give a shot in the arm for the real estate sector and will encourage other private sector organizations to replicate the success story.

Moreover, Sandan Development has complied with all requirements set by the Directorate General for Real Estate Development, which has provided direct supervision to the project.

The park will host 2,300 workshops and showrooms for building materials and the automotive sector, 450 offices and 1,400 residential units for workers.

24

ISSUE 3.AUG 2016

AQAR GETS USUFRUCT RIGHT TO BUILD TOURISM PROJECT IN DUQM

The Special Economic Zone Authority in Duqm (SEZAD) granted Al-Khonji Real Estate & Development LLC “Aqar” the usufruct right to construct a tourism project that includes hotels, residential and commercial complexes, and an amusement park.

T

he usufruct agreement was signed by HE Yahya bin Abdullah Al-Jabri, Chairman of the Board of Directors, SEZAD while Mohammed bin Abdullah Al-Khonji, Chairman of the Board of Directors and CEO signed on behalf of Aqar The signing of this agreement comes as a part of the SEZAD’s efforts to encourage

Omani investors to invest within the Sultanate, and in accordance with the efforts of the government to diversify the national income and identify rewarding investment opportunities to the national private sector.

As per the agreement, Al-Khonji Real Estate & Development LLC “AQAR”

was granted the usufruct right to develop a land area of approximately 661 thousand square meters to construct a touristic and real estate project to be executed in numerous phases, with a total approximate cost of 390 million Omani Rial, and it is expected that the project will create almost 4 thousand direct jobs when it is completed.

The project consists of many phases, and according to the company´s statement, the first phase will include the construction of a 3-stars hotel, which is expected to be finalized in the first quarter of 2019.

The project also includes the construction of a commercial complex, villas and residential units, which would be offered to both local and foreign investors, hence becoming the first project with units offered for sell in the Special Economic Zone in Duqm.

According to the master plan, the amusement park will be finalized by 2020 and the health complexes by 2022.

25

Aqar sets up a tourism and real estate complex over 661,000 square meters in Duqm

The project costs RO390 million and generates 4,000 job opportunities

SEZAD Provides Attractive Facilities

Mohammed bin Abdullah al Khonji, Chairman and CEO of Al Khonji Real Estate Development “ Aqar’ expressed his happiness over signing the agreement with SEZAD and affirmed that the company is committed to implement the project within the period of the scheduled timeframe..

He added that SEZD symbolizes the vision of His Majesty Sultan Qaboos towards diversifying the sources of national income and ensuring that all parts of the

Sultanate enjoy the fruits of the development process.

He noted that SEZD has large potentials for success such as high quality infrastructure including the dry-dock, the port, the airport, the road network and other facilities. SEZD also provides scores of incentives that encourage investors to invest in the area.

During the signing ceremony, Aqar Development provided a financial donation to support training and rehabilitation programs in the area. The donation is part of the company’s corporate social responsibility.

Major Aqar projects

AQAR has stood out in the past few years as one of the leading Omani companies in the real-estate sector, and had developed various commercial and real estate complexes in the Governorate of Muscat, most notably Rimal 1 and 2 and The Office.

Incentives for private sector

Over the past years, SEZAD has made all-out efforts to encourage private sector investments. Park Inn Duqm hotel of Al Birwani Holding Group

is one of the major tourism projects in the area. Renaissance Services, a MSM listed company, is also building Al Nahda village to accommodate 16,000 people.

The first phase of the project is expected to be completed during the coming few months.

An agreement has been signed by the Special Economic Zone Authority in Duqm (SEZAD) and Al Tamman Holding Company to construct an international school in Duqm.

SEZAD also signed an agreement with Truck Oman Projects and Oilfield Services Company, one of the group companies of Truck Oman acquired the right of use of land for the construction of an integrated center for logistics, which includes the warehouse offices, maintenance workshop and storage areas for equipment and machineries for oil and gas fields.

SEZAD also, granted Marina Duqm Company of the Golden Group a land usufruct in the Special Economic Zone in Duqm (SEZD) for the construction of a tourism façade. This would include hotels, mall, residential complexes, entertainment center, water amusement park and a number of other tourist services and facilities.

26

ISSUE 3.AUG 2016

ORA HOLDS SEMINAR ON ‘MANAGEMENT IN A CHANGING ENVIRONMENT’ A seminar on ‘Management in a changing environment’ was conducted by Oman Real Estate Association (ORA) as part of its efforts to build national capacities in real estate field and provide update on the latest developments regarding regularizing the sector.

T

he seminar was held at Sultan Qaboos Grand Mall Lecture Hall and the participants included real estate brokers and others.

Speakers were Ismail Kamel CEO, Operations at ERA, Ahmed al Nadabi, Director of Pre-Paid Services at Muscat Electricity Distribution Company and Saleem al Balushi, Assistant Director General at the Directorate General of Real Estate Development.

At the beginning of the seminar, Eng. Mohammed bin Salem al Busaidi, Chairman of ORA thanked participants and sponsors for their

support to this seminar.

He highlighted the effects of the decision taken by the Directorate General of Real Estate about the average prices at the first quarter of 2016. He also stressed on the need to enhance partnership between the Association and the different stakeholders.

Dealing with change

Ismail Kamel, CEO Operation at ERA Company then presented a working paper under the theme ‘ dealing with change in your life and work’. He emphasised the need to be always ready for change in your

personal and professional life.

“We need to accept change and implement such change as quickly as possible when the need arises because fear of change is one of the main reasons that may hamper success”, he said.

Prepaid meters

Ahmed al Nadabi, Director of PrePaid Services at Muscat Electricity Distribution Company presented the second working paper on ‘ prepaid meters. He highlighted the types of such meters and the benefits they bring to the company and customers. He pointed out that the meters that are supplied by the company are among the best meters used in the world.

He made a demonstration to participants how to recharge such meters and how they eliminate a number of problems faced by property owners due to failure of the tenants to pay the utility bills in time. He also briefed on how such meters will reduce the number of cases referred to the court due to failure to pay utility bills.

Al Nadabi in a question answer session clarified the participants’ doubts about these meters.

E-real estate brokerage

Saleem Al Balushi, Assistant Director General of the Directorate General of the Real Estate Development presented a working paper on the latest developments of the e-real estate brokerage system which will be launched very soon by the Directorate. He pointed

27

E-Brokerage will promote real

estate growth

and enhances transparency,

says Saleem Al

Fear of change hampers success, says Ismail Kamel

Balushi

out that the Directorate is racing against time to implement the system as soon as possible after it had completed all the procedures and formalities from its end. “The Directorate is waiting for the approval of other stakeholder

to activate the system soon’, he furthered.

He said that the system is expected to eliminate many negative practices from the real estate sector in the Sultanate and enhance real estate activity. It will

Prepaid

meters provide customers

many benefits,

says Ahmed Al Nadabi

also promote transparency at the market which in turn will attract fresh foreign investments to the Omani market.

He thanked the real estate offices and brokers for their positive response and their registration at the system which will allow them to receive authorized broker cards from the Ministry.

He advised the real estate brokers and offices to prepare for the system. He added that the system will be regularly updated to ensure its smooth operations and that it serve all needs.

At the end of his presentation, he answered the so many questions raised by participants on the new system.

At the end of the seminar, ORA Chairman thanked participants and hoped that they would have benefited from their participation.

He also promised them to organize similar seminars as they provide ideal platform for sharing experiences on the best practices.

28

ISSUE 3.AUG 2016

UNIQUE JASMINE COMPLEX LAUNCHED Taameer Investments launched Jasmine Complex, a unique investment project in terms of location, design and elegance at Al Khuwair. he project launch was done at T a special gala held under the auspices of Dr. Ali bin Masud al Sunaidi, Minister of Commerce, Industry, and Deputy Chairman of the Supreme Council for

Planning, in June last. Sheikh Salem bin Ahmed Al Ghazali, Chairman of Taameer Investment SAOG, senior public and private officials, businessmen and local and world media persons were

Taameer

Investment Company Launches Jasmine

Complex

also present on the occasion.

The opening ceremony included a presentation on the history of the project from inception till completion. The project, located in the busy Al Khuwair district, provides unique ownership experience at different rates for Omanis and GCC nationals.

The project consists of residential and commercial units, offices, ballroom, business centre, spacious shopping mall and a health center. The complex represents the true meaning of

29

The complex wins a number of awards and provides first class residential and office spaces.

mixed-use complex which is carefully designed to meet the high standards of social and professional lifestyle.

Jasmine Bags Awards Jasmine Complex bagged a number of prestigious awards in recognition of its unique design and novelty. The complex is located near Radisson Blu Hotel about 30 minutes away from Muscat International Airport and 15 minutes away from Al Qurum Commercial and the ministries area

The project offers private and public parking space to serve the offices, residents and the visitors.

The design

and world-class

The project offers private and public parking space to serve the offices, residents and the visitors. The building will feature high quality electric escalators and lifts to facilitate movement inside. To create a high-quality product, Taameer Investment has designed the project according to the highest international standards, paying attention to the green areas and the availability of all services, shops and residences to make a perfect place to work and live in. “Jasmine Complex is one

of the unique investment developments in the Sultanate in terms of location design and elegance. There is no doubt this project will achieve many goals and will add many benefits to the national economy, business and the local community as it will offer attractive packages of investment products, including residential, commercial and office units, along with a mall,� commented Sheikh Salem bin Ahmed al Ghazali , Chairman of Taameer Investments.

ensures

meeting the

best practices

to provide safe environment

30

ISSUE 3.AUG 2016

Slump in real estate transactions R

eal estate transactions in the sultanate have registered a sharp decline of 30.3 per cent in the first quarter of 2016 compared to the same period last year, according to a report issued by the National Centre for Statistics and Information (NCSI).

The traded value of mortgage contracts slumped 40.2 per cent to RO619.1mn from last year’s RO1.035bn.

Traded value of barter contracts logged a significant 59.5 per cent growth to touch RO5.9 million.

The total value of real estate transaction in the Sultanate

during 2015 stood at RO4.140 billion including RO2.765 billion for mortgage agreements, RO1.365billion for sale contracts and RO18.6 for the barter contracts.

Dull economic conditions Eng. Mohammed bin Salem Al Busaidi, Chairman of Oman Real Estate Association (ORA) said in a statement to Oman News Agency last June that the market is affected by the remarkable decline in oil prices.

He pointed out that the sector is watching the economic conditions at the coming period and whether

there will growth and continuation of the public expenditure or not.

These factors have big effect on the trends of the market.

He added that despite the supply at fair rates at the local market, everybody is still watching. He noted that the reasons behind the decline in the value of traded transactions is also attributed to increasing the fees of the Ministry of Housing and the Municipality from 3% to 5%.

He stressed the importance of implementing the real estate and e-linkage law with the Ministry of Housing and expediting

31

Real estate transactions in the Sultanate fall 30.3 per cent in the first quarter of 2016

the organization of residential projects and offering new products such as selling units for expatriates at some blocks and residential layouts to benefit from the amounts transferred by expatriates. Moreover, companies should be allowed to own more than one property as this will give a shot in the arm to the market.

Mortgage contracts The statistics released by NCSI pointed out that 2,599 mortgage contracts worth RO 253.7 million were signed across the Sultanate during March 2016 compared to 2175 contracts in February and 2195 contracts in January 2016.

The number of sale contracts during March 2016 stood at 6,708 worth of RO 104.1 million at the level of the Sultanate’s governorates compared to 5947 contracts in February and 8308 contracts in January worth of RO119.2 million.

The collected fees from such real estate transaction during the first quarter of this year stood at RO14.6 million compared to 11.48 million during the corresponding period last year.

The value of the collected fees from legal transactions in 2015 stood at RO51.5 million.

The statistics pointed out that as of the end of the first quarter 2016, the Ministry of Housing issued 71,021 title deeds compared to 61,918 during Q1, 2015; a growth by 14.7% including 488 for GCC national; a decline by 39.5% compared to the same period last

RISE IN LAND AND TENANCY AGREEMENT REGISTRATION FEES The municipal fee on all tenancy agreements has been increased from three per cent to five per cent with effect from February according to the decision No 20/2016 by Eng. Mohsen bin Mohammed al Shaikh , Chairman of Muscat Municipality. .The Decision 20/2016 also states, “The tenant can pay the fee on behalf of the landlord upon mutual consent.”

The Ministerial Decision No 13/2016 also specifies that the registration of the sale contract wills by non-relatives and not firstdegree relatives will be 5% of the value of the land.

The decision also comes into force from first of February 2016.

H.E Sheikh Seif bin Mohammed al Shabibi,Minister of Housing issued the ministerial decision No 8/2016 which bans the

year.

In 2015, the Ministry of Housing issued 223,275 title deeds including 2288 for GCC nationals.

More than 13,000 land plots in four month According to the NCSI report, the ministry allotted 13,215 plots; a growth by 10.5% compared to the same period last year.

Dhahirah ranked first among the governorates with 2,425 plots allotted from January till April, a 376.4 per cent increase. South Batinah and Dakhliyah were allotted the second and third largest number of residential plots at 2,307 and 2,176 respectively

issuance of title deeds of transferring ownership without forming owners’ association in accordance with the Royal Decree No 48/89 issuing the system for owning flats and floors as well as its executive regulation issued by the Ministerial decision No 50/89.

The ministerial circular allows the issuance of title deeds for the new projects only after the owner submits the articles of association for the owners’ association and the management of the property.

The circular also bans any transaction that transfers ownership of the real estate unit unless documents about forming the owners’ association are submitted to prove that it has been registered with the Ministry.

while North Batinah saw a six per cent fall in allotments.

The number of allotments declined by 44.4 per cent in Dakhliyah during the first fourmonths compared to last year.

North Sharqiyah recorded a 70.9 per cent rise in the number of allotted plots at 2,097 while South Sharqiyah posted a 50.8 per cent decline with 261 plots.

The number of lands issued in North Batinah rose by 67.4 per cent to 1,855 while Buraimi recorded a 228.8 per cent increase, taking the number of allotted plots to 217.Musandam came last with 15 land plots.