In recent years, a change in law regarding foreign freehold ownership has resulted in foreigners being allowed to own property in designated integrated tourism areas. Land prices in Oman are estimated to be roughly 50 per cent of those in Dubai, and 65 per cent of those in Bahrain.
In terms of real estate the recent trend has been towards ownership of apartments. In the commercial property sector the recent increased movement of foreign firms in to Oman has resulted in a major shortages in commercial properties. However, the retail success of neighbouring Dubai has meant that the Omani retail sector is developing less quickly.
Construction projects
Oman has its fair share of ambitious development schemes, and much is hinged on a Development Plan that will see many of these schemes completed before 2020.
Of the large-scale developments currently under construction, the €20bn Blue City has to be the most exciting. But The Wave, Shalam Yiti and Oman’s first rail line have also been grabbing the headlines in recent years.
- Blue City was launched in 2005 and is being built on over 35sq km of some of Oman’s most breathtaking beaches, about 100kms north of the capital city, Muscat. The first phase of the 15-year project, AL-Madina Al-Zarqa ($1.8bn) is due for completion in 2009. When completed in 2020, Blue City is expected to accommodate 200,000 people.
- The Wave is a $1bn tourism Joint Venture involving the Omani Government, Majid Al Futtaim Investments (MAFI) and the Omani Pensions Fund. It is due for completion in 2012.
- Salam Yiti is a $1.7bn mountainside resort project located between the Al Hajar Ash Sharqi Mountains and the Gulf of Oman. The development is also only a 15-minute drive from Muscat. Spread across 420-hectares and rising to a height of 140m above sea level, and it will include golf courses and marinas. Salam Yiti is being developed by Sama Dubai and is scheduled for completion by 2013.
- Oman is quite unique in the world in that it has no railway network. In early 2008, the Omani Government unveiled plans for the country’s first rail line. The line will initially be used to transport goods, with passengers on board at a later stage. While it is still very much at planning stage, the line is planned connect the Sohar Port with Birka on the outskirts of Muscat, covering a distance of 200km. It will then be extended to Duqm, where there are plans to develop a new seaport and airport at a later stage.
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