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Sandan Industrial Park launched in Oman

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The Oman-based Sandan Development has announced the official launch of its 250,000 sqm light industries park, which will cater to various commercial segments.

The Sandan Industrial Park will include 2,300 workshops and showrooms for building materials and the automotive sector, 450 offices and 1,400 residential units for workers.

Built at a reported cost of OMR100 million ($260m), the project is expected to be complete by mid-2018.

Units will be offered on direct sale and buyers will also have the opportunity to pay in interest-free instalments extending for 18 months.

Facilities available for the 15,000 people expected to reside in the park include a hypermarket, restaurants and hospitals.

Naser al Rashdi, CEO at Sandan Development commented saying: “The project is an unprecedented idea that emerged from the need of the sultanate for a modern and integrated city with a host of commercial activities and supported by all necessary services for residents.

“Our team made great efforts to this end. The project 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.”


Oman’s Gulfar Engineering wins $300m contract

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Galfar Engineering, the Omani contractor, has been awarded a $299.21 million construction contract by the Sultanate’s top oil and gas producer, it has announced.

The contractor will build a new central processing facility at Petroleum Development Oman’s (PDO) Yibal Khuff project, which is south west of Muscat, according to a bourse statement.

The contract duration is for 51 months and will include civil, mechanical, electrical and instrumentation works.

“We expect reasonable income from this project,” Gulfar added in the statement.

PDO is 60% owned by the Omani government, with 34% owned by Royal Dutch Shell, 4% by Total and 2% by Partex, the Portuguese oil and gas company.

Last year, the contractor posted a net loss of $74.93 million, on the back of a large provision for receivables. During the year, the contractor’s parent company provided $82.9 million towards the impairment of receivables.

A major portion of these provisions is for the Muscat Expressway and Central Corridor projects, the Muscat Daily, a local paper, said.

In a director’s report submitted to the Muscat Stock Market, Gulfar said that it had a confirmed order book of more than $1.6 billion at the end of 2015. Revenues for 2016 are expected to be more than 2015 levels, despite the challenging market environment.

It added that it had initiated a transformation programme that would allow it to achieve sustainable improvements in performance and operational efficiencies.

“Galfar’s board is fully committed to the rigorous implementation of the transformation programme over the next 12-18 months, with tangible results expected in the second quarter of 2016 and better operating results in financial year 2016,” the report added.

Top 10 Gulf mixed-use projects

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Jeddah Tower and Jeddah Economic City, Saudi Arabia
Project value: $21 billion

Soon to outrank Dubai’s Burj Khalifa as the world’s tallest building is the under-construction Jeddah Tower in Saudi Arabia. Crossing the 1km mark, the structure – formally known as Kingdom Tower – is being developed by the Jeddah Economic Company (JEC). JEC was established in 2009 to develop the 5.3 million sqm Jeddah Economic City, of which the tower will be the centrepiece.

Slated for completion in 2018, Jeddah Tower is being built at a cost of $1.2 billion and has the backing of Saudi billionaire Prince Alwaleed bin Talal. It will feature a 200-key Four Seasons Hotel, 121 Four Seasons serviced apartments, 61 residential floors, 318 apartments and the world’s highest observatory space. The wider city project on the Red Sea coast includes residential and commercial units, offices, entertainment and tourist facilities, and water sports activities.

The overall project, comprising Tower and City, is expected to house 200,000 residents at the end of the first two phases.


Mohammed Bin Rashid City – District One, UAE

Project value: $5.7 billion (AED21 billion)

In January 2014, Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum inaugurated District One at the ambitious MBR City, a mixed-use, leisure and sports development spanning over 54 million sqf of freehold land a few kilometres away from the Burj Khalifa. District One alone stretches across four million square feet of land.

Jointly developed by Meydan Group and renowned Indian developer Sobha Group, District One will have 1,500 luxury villas as well as leisure and retail attraction points. The villas will be delivered in four phases before the Expo 2020.

The development, launched in 2013, is the first development in the MBR City mega-project.

Set for completion by 2018-19, District One will feature open and green space of city parkland, waterways, woodlands and a water park. It will also be home to the world’s largest crystal lagoon with 7km of lagoons and 14km of man-made beaches, alongside retail zones, leisure and sports attractions.

Sharjah Waterfront City
Project value: $5.4 billion (AED20 billion)

Sharjah Waterfront City is an AED20 billion ($5.4 billion) project being developed by Sharjah Oasis Real Estate Development. The mixed-use project, which will comprise 10 islands, is spread across 36km of coastline, with a total area of 60 million sq ft. It was officially launched at last year’s Cityscape Global in September.

Sharjah Waterfront City’s first two phases – comprising hospitality, commercial and residential elements – will be built at a total cost of AED9.35 billion ($2.5 billion). One of the highlights of the development will be a 1.5 million sq ft Crystal Lagoon water theme park.

The developer recently inked an agreement with Shaza Hotels, a Kempinski affiliate for the Shaza – Sharjah Waterfront City, a five-star hotel consisting of 300 rooms and 350 serviced apartments. An agreement has also been signed for The Dusit – Sharjah Waterfront City, featuring 200 hotel rooms and 200 serviced residences.

Diyar Al Muharraq
Project value: $3.2 billion

Diyar Al Muharraq is a master-planned city in Bahrain offering residential and commercial properties, hotels, schools and hospitals. The development’s offerings for local and foreign investors include commercial villa and showroom plots, residential building plots, light industry/logistics and warehousing plots.

“This is an exciting time for investors to participate in Bahrain’s flexible investment environment. Diyar Al Muharraq is perfectly placed to offer both commercial and residential opportunities for investors seeking to be part of Bahrain’s thriving economy,” says Abdul Hakeem Al Khayat, chairman of Diyar Al Muharraq.

The Diyar Al Muharraq development has been built in line with a set of environmental strategies and marine habitat enhancement schemes that encourage ecological regeneration.

The project will soon reach a milestone in its development with the upcoming opening of the $100 million Dragon City, built on 115,000sqm of land and set to become a re-export hub for Chinese-manufactured products. Dragon City will feature Dragon Mall, due to open by mid-December.

Omagine Project, Oman
Project value: $2.5 billion

US-based real estate developer Omagine signed a development agreement last year with the government of Oman for the $2.5 billion Omagine project. Omagine LLC, the company’s 60% owned subsidiary, will design, develop, own and operate the tourism and real estate project.

The Omagine project is set to include cultural, entertainment and residential components. The development will house a theme park containing seven pearl-shaped buildings, each approximately 60 feet in diameter; exhibition buildings; a boardwalk; an open air amphitheatre and stage; and open green areas. In addition, the project will feature a canal and an enclosed harbour and marina area, alongside retail shops, restaurants and hotels. Approximately 2,000 residences will also be developed for sale.

The project will be developed on 1 million sqm (245 acres) of beachfront land facing the Gulf of Oman, just west of the capital city of Muscat and approximately six miles from Muscat International Airport.

Bluewaters Island
Project value: $1.6 billion

Located off the Jumeirah Beach Residence coastline, Bluewaters Island, developed by Meraas, will feature retail, residential, hospitality and entertainment zones. The reclaimed island will be home to the much anticipated Dubai Eye, a 210m Ferris wheel being built at a cost of AED1 billion ($272 million). The Dubai Eye will offer views of the coastline and landmarks such as the Burj Al Arab, Palm Jumeirah and Burj Khalifa.

Bluewaters Island will also host a boutique five-star hotel and varied residential options. There will also be a souk, encircled by a promenade featuring alfresco dining outlets. The Island is anticipated to attract more than three million visitors per year.

In May 2015, Dubai’s Roads and Transport Authority (RTA) awarded a contract to build a bridge linking the island to the Sheikh Zayed Road. A footbridge will also be constructed to provide access the island from the JBR waterfront, in addition to a cable car service that will be available to shuttle visitors to and from the development.

Place Vendome, Qatar
Project value: $1.25 billion

Located in Qatar Entertainment City in Lusail, Place Vendome is a mixed-use development that will comprise hospitality, retail and entertainment elements. The 800,000sqm project will host two five-star hotels, serviced apartments, up to 400 different retail outlets and a central entertainment component showcasing attractions and special events.

Place Vendome, 11km from the centre of Doha, is developed by United Developers and slated for completion in the third quarter of 2017. The Parisian-inspired development will feature a canal running through it, creating an open plaza experience with cafés and restaurants overlooking the water.

The project is designed by AEB, and the main contractor is Qatar-based Construction and Reconstruction Engineering Co (CRC). Project management services are provided by Salfo, while MZ&P has been appointed structural consultant.

Al Khiran Development, Kuwait
Project value: $700 million

In March 2015, a Kuwaiti developer launched the $700 million Al Khiran Development, a mixed-use scheme at the heart of the Sabah Al Ahmed Sea City. Spread across 350,000sqm of waterfront, the resort-style project will include Kuwait’s first high-end Outlet Mall, two high-rise residential towers, a furnished apartments tower, a marina housing over 900 boats and a five-star resort-style hotel.

The 75,000sqm Outlet Mall, designed by RTKL, will house a mix of luxury and premium brands. The development will also be home to the Al Khiran Park.

“Kuwait is recognised as a country that has one of the world’s highest per capita incomes. It also remains one of the most underserviced markets in the GCC in terms of quality retail space,” says Mohammed Jassim Khalid Al Marzouq, chairman of Tamdeen Group.

“This is where Al Khiran will offer value, not just in terms of shopping, but an overall customer experience.”

Saraya Bandar Jissah
Project value: $600 million

Saraya Bandar Jissah is a $600 million tourism development being built on the outskirts of Muscat, surrounded by the Hajar Mountains. Construction work on the project, which is being developed in partnership between Omran and Saraya Oman, is making rapid progress, it was recently announced.

The luxury development will comprise five residential zones, a recreational facility, staff accommodation and two five-star hotels to be operated by the Dubai-based Jumeirah Group.

Within a site area spanning 2.2 sq km, Saraya Bandar Jissah will feature 398 residential units in five zones: Zaha, Nameer, Wajd, Na’eem and Safa. Over 2,500 workers were on-site at the project as of late 2015, from firms including Carillion Alawi, Leighton Middle East, Towell Construction, Ghantoot Transportation and General Contracting (GTGC), Bumi, Drake & Scull and Wolf.

“I am pleased to report that overall project completion is exemplary, in line with the planned timeline,” says Mohammed Al Hadeethi, senior construction manager at Saraya Bandar Jissah.

Riyadh Walk, Saudi Arabia
Project value: $320 million

The $320 million Riyadh Walk development will be developed jointly between Raj Real Estate Company, a subsidiary of Al Rajhi United, and Saudi-based Baseel Properties. Covering an area of 137,000sqm and with a 650m façade, the project will be located in the Al Nakheel neighbourhood in northern Riyadh, 3km west of the King Abdullah Financial City. It will include a mall, boutique hotel and leisure facilities, as well as offices and cultural areas.

“This project is a major step toward upgrading the commercial mixed-use projects in the kingdom,” says Ahmed bin Abdullah Bakarman, CEO of Baseel Properties Company. 

First Vehicles to supply 40 public buses to Oman

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First Vehicles, a part of UAE-based Swaidan Trading, has struck a deal to supply 40 VDL low-floor city buses to the Oman National Transport Company.

As part of the agreement, First Vehicles will also provide after-sales services for the buses, which will be used in public transport.

Established in 2015, Oman-based First Vehicles is a joint venture with Al Izz Group. The company offers high-end buses, passenger cars and commercial vehicles, along with maintenance services and spare parts.

“This is our first major contract in Oman and we are looking to expand our business here even further,” said Ajit Kumar, CEO of parent company Swaidan Trading. “We not only supply VDL buses but also offer a full maintenance service and supply spare parts in Oman. We have a big team of well-trained and highly qualified technicians already on the ground.”

Swaidan Trading, founded in 1979, is the trading arm of the Saeed & Mohammed Al Naboodah Group. The company is focused on the automotive, commercial vehicles, and heavy equipment sectors. Apart from VDL, Swaidan Trading also represents brands like Peugeot and Ashok Leyland.

In Profile: Adnan Nalwala on the Gulf MEP business

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In February 2016, Oman-based MEP contractor Akar Technical Services announced that it had completed two major projects in its portfolio – Meydan Heights Villas in Dubai and the Khasab Hotel in Musandam, Oman. The delivery of these projects was indicative of the continued growth of the sub-contractor, a subsidiary of the Al Ansari Trading Group, following a period of sustained investment and effort by its senior management team.

Established in 1994, Akar primarily operates in the MEP and landscaping sectors, delivering projects in both Oman and the UAE. With a number of major projects in the pipeline for 2016, Adnan Nalwala, executive director of Akar, sat down with Big Project ME to discuss the company’s remarkable run over the last few years.

“We’re a 20-year-old company, and we have two primary activities that operate under the Akar name – landscaping and MEP. The business was started by my father, and it is part of the Al Ansari Group, which was formed in 1975,” he recaps.

“Akar has been growing steadily for the last 20 years, but in the last five years we’ve really changed gears. We used to be a company of around 300 people. Today we’re 900 plus, closer to 1,000. Also, in the last year we’ve become an integrated management systems company. That’s kind of like an ISO certification, but it’s not just ISO – we look after the environment, health and safety, and also all the processes within the company.”

Nalwala puts the surge in the company’s growth over the last five years down to a number of factors, but identifies some key project completions as game-changers. “Some of the projects that we’ve completed [over the last three years] are of size and they are quite high-profile. One of them was the Khasab project in Musandam, Oman. We completed that last year, and it was one of our landmark projects, it was the first hotel project that we have done.”

“It required a lot of intense project management skills, as there were a lot of challenges. It’s in a remote place, so shifting materials and maximising worker output [were key]. Also, the engineering specifications were of a higher quality as it’s a hotel and you have to have best practices over there,” he says, adding that the completion of a project like this, for a high-profile client like Omran, really put Akar on the construction industry map.

“Last year was satisfactory for us, because we completed the projects we wanted to. We also bagged two projects that were of size. In that way, everything is a function of scale and size. The kind of projects we take on, if we get two or three projects a year, then that’s more than enough for our capacity in turnover.”

Another major reason for the company’s success was its care in choosing the right partners and clients, Nalwala says, pointing out that a number of contractors have run into problems when their payments don’t come in on time.

“That creates a lot of pressure for contractors, because they’ve got to make payments to suppliers and they have to pay out salaries and all that. There’s a lot of outflow commitments, so if you don’t have good clients, then it’s pretty much a disaster!

“In the current environment, banks are also becoming a lot more stringent about project financing, based on who your clients are. So it’s very important, in fact it’s imperative, that you choose your clients intelligently.”

Another factor in the growth of the company has been a change in perceptions and attitudes in the market, Nalwala adds. Traditionally, clients would give the MEP packages to the main contractor, especially in Oman, which remains a fairly conservative market. However, the last few years have seen contractors gain a greater understanding of the value of MEP on a project, and they have been taking a more active role in nominating MEP subcontractors.

“Clients have now understood that MEP is a large part of the value of the contract, and they have been directly subcontracting or nominating the MEP contractors,” says Nalwala. “When you get directly involved with the client, and when you provide value engineering propositions to the client, when you save money and they save money, then they get very happy.”

“I feel that being a nominated subcontractor has changed the way contracting is done, because it now allows the MEP contractor to suggest to the client where they can save money, and it really can save a lot of money on a project.”

This was evident in the recently completed Meydan Heights project, where the MEP contract was given directly to Akar, despite there being a main contractor already on the project. “This gave us a chance to open dialogue and talk to the client, where we can tell them, ‘Look, money can be saved here.’ Otherwise, if you’re in the main contractor’s fold, they may not have that dialogue with the client.”

Despite being reluctant to talk about financial figures and market share due to shareholder confidentiality agreements, Nalwala says that Akar is one of very few nominated MEP contractors, asserting that the company appears in most tier-one client registration lists, which means that it is qualified to execute large jobs. This is borne out by a client list that includes the likes of Omran, Aldar, Emaar, Nakheel, the Ministry of Public Works and the RTA.

The question that next arises is: where does the company go from here? While he admits that the current market situation makes predicting the future something of a lottery, Nalwala insists that the foundations laid over the last few years will bear fruit, as Akar’s relationships with UAE and Omani clients continue to develop and strengthen.

“The way this contracting business works is that you are, at the end of the day, driven by price. Clients look at L1 most of the time, but what has happened is that because of the relationships we’ve built with consultants, and the scale of the projects we’ve done, we’re allowed to go and talk to clients, even if we’re L2 or L3. It’s not all the time, but a good 50% or 60% of the time, the client does give us a second hearing, and if we’ve matched the price, they sometimes give it to us.

“The point I’m trying to make is that we have been growing, and because they see our resources, because they see a financially steady company, they also feel that we can deliver. Now that we’ve done projects of different sizes, scale and nature – we’ve done towers, villas and hotels – they know that the experience this team will bring will be a lot better.

“That’s how we’re positioning ourselves – by being able to talk to the client and consultant directly, by telling them not to be driven only by price, but by telling them that we have the resources and experience to execute their projects [better than others]. That’s the way I’m trying to drive the business,” Nalwala outlines.

It is because of this approach that he says there are no immediate plans to grow Akar beyond the UAE and Oman, especially since he believes there’s plenty of room for growth, given the continued investment and focus on the hospitality industry in both countries. “Now that we’ve done the Khasab hotel, we’re also an approved contractor for hotels, and it’s something we’ll try and do more projects of.”

Furthermore, with Oman and Dubai following different pathways to development, Nalwala points out that there are plenty of opportunities for Akar to expand its expertise and work on different types of projects.

“There are two major differences between the two markets. Dubai has gone through a lot more property development, where they want external people to invest. That’s why MEP and landscaping requirements have been much higher. That’s not been the case in Oman, which hasn’t had as much property development for investment going on.

“The second difference is that Dubai has gone down the skyscrapers and towers route, whereas Oman doesn’t have that. That reduces the MEP load in a building. It’s a function also of what the governments and countries are spending on.

“But the flip side is that there’s a lot being spent on infrastructure work in Oman. They’re building huge roads, water networks and so on, so yes, MEP needs in Oman have been a lot less and a lot simpler, because they don’t have towers and they don’t have as many property developments where FDI happens,” he concludes.

The Khasab Challenge

Located in the picturesque Musandam peninsula, the Khasab hotel is a four-star property in line with Oman’s drive for eco-friendly tourism. Constructed in compliance with LEED requirements, the project achieved a silver rating for the quality of build. Akar carried out the complete MEP works, complying with stringent LEED requirements, Adnan Nalwala says.

Another major challenge was the remote location of the project, which meant the MEP team faced very particular challenges.

“To go to Khasab, you have to go through three borders. So right from the time of planning the materials, we needed to also plan the procurement a lot earlier than usual. We needed to have a lot of paperwork done ahead of time so that the materials could land in time for the project to go ahead as planned. In terms of logistics, planning and supply chain management, that was one big issue we had.

“The second challenge was the kind of output we were getting from the workers over there. It’s a very sandy and windy place, so we had to take special care with all the HSE requirements, and we had to put in some extra safety engineers and precautions to ensure that no accidents took place.

“Finally, the third challenge was that a lot of the materials, because it’s a special kind of hotel, were specified from Dubai. So that meant that we had to get those products into Oman from Dubai. That involved a lot of paperwork and even the clients had to get involved, from both parties, at the Oman and UAE border. It may not seem like a big deal, but there was a lot of planning behind the project that was needed for it to be done on time,” he explains.

Akar’s other MEP Projects for 2016

• Three residential buildings for Meraas Development LLC
• A tower project in Al Barsha for Lahej and Sultan Group
• Three buildings in IMPZ for RS Realty FZ LLC

Gulf Muscat United launches iTower in Oman

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Property development and investment firm Gulf Muscat United has launched sales of office space within its iTower development in Oman.

The seven-storey 17,454 sqm development located in the Bausher area of Muscat will consist of 71 offices ranging from 42 sqm to 1,550 sqm, three levels of underground car parking and restaurants and shops on the ground floor.

Prices of office units start from OMR 39,500 ($102,597) and have a projected handover date set at early 2018.

The iTower has a focus on ‘smart’ design, with energy efficiency set to be achieved by thermal insulation and airtight construction methods used in the facades.

“The iTower was conceptualised to be the smartest office tower in Oman, allowing SMEs and corporates freehold ownership of their own office space, versus the ongoing costs of renting,” said Mehdi Borhani, chairman of Gulf Muscat United.

“The availability of quality office space in Muscat is very limited, and the opportunity to enjoy freehold ownership for commercial office space even more limited. The central location of the iTower in Bausher is the perfect location for office professionals, this area is rapidly taking shape as the new downtown for Muscat.”

Gulf Muscat United also signed a contract with Sheikh Nasser bin Mohammed Al Hashar, Vice Chairman of construction company Durat Al Sahil.

Borhani added: “We are very pleased to be working with Durat Al Sahil LLC as their projects around the Sultanate are a true reflection of their expertise and attention to detail. We are confident they will do an outstanding job to deliver iTower to our exacting standards.”

Oman to build new oil storage terminal near Duqm

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The state-owned Oman Oil Company (OOC) plans to spend between $300-400 million on the first phase of a major oil storage terminal on the country’s southeastern coast, a senior government official said on Saturday.

Mohammad bin Hamad Al Rumhy, Oman’s minister for oil and gas, said the terminal will be located at Ras Markaz, about 70km from Duqm, where the government is developing a port and industrial zone.

“OOC will continue to develop the project and increase the number of tanks, according to the level of demand in the oil storage market. Our ambition for Ras Markaz is to (make it) one of the largest oil storage hubs worldwide,” Al Rumhy was quoted as saying by Reuters.

He added that the terminal, which is near major shipping routes through the Red Sea to Asia and Africa, would not be financed by the state but through borrowing from banks, including international ones.

In its first phase, the storage facility will have a capacity of between six and 10 million barrels of oil and serve an oil refinery planned for Duqm. Capacity could be expanded to as much as 200 million barrels, Al Rumhy said, without giving timelines for its construction.

Dubai’s Majid Al Futtaim to invest $1.3bn in Oman

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The Dubai-based retail developer Majid Al Futtaim has announced it will be investing 515 million rials ($1.33 billion) in Oman over the next five years, in a move it says will create 42,000 jobs.

The conglomerate plans to invest 275 million rials ($714.2m) in the Mall of Oman project, 45 million rials ($166.8m) in City Centre Sohar, and 15 million rials ($38.9m) in My City Centre Sur.

The rest – some 180 million riyals ($467m) – will be invested in existing retail, leisure and entertainment businesses such as Magic Planet, Carrefour and VOX Cinemas.

Mall of Oman will contain 350 outlets and 137,000 sqm of retail space, a snow park, a Carrefour hypermarket and a 292-room hotel. On completion in 2020, it will be the largest retail outlet in the sultanate.

City Centre Sohar will consist of 100 retail outlets when it opens in 2018 and My City Centre Sur will be the company’s first community mall in Oman when it opens in 2017.

Since 2001, Majid Al Futtaim has already invested 190 million rials in Oman and has created 23,000 jobs on its construction projects and operations.

“We are proud to renew our commitment to be the leading GCC investor in the Sultanate through our OMR 705 million investments, which include the development of Mall of Oman, City Centre Sohar, and My City Centre Sur, as well as additional investments from our retail, leisure and entertainment businesses,” said Alain Bejjani, Chief Executive Officer of Majid Al Futtaim Holding.

The plans build on the company’s existing developments in Oman, which include City Centre Muscat, which received a OMR 35 million expansion in 2015, City Centre Qurum, which opened in 2008, and Al Mouj Muscat.


Shaza to launch four-star Mysk hotel brand in Oman

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Hotel operator Shaza Hotels plans to debut its four-star Mysk brand in Muscat, Oman in March 2017, according to local press reports.

Although no details were provided about the facilities at the hotel itself, the company says it will be similar in quality to its five-star offerings, Muscat Daily reported.

“The development will be a very good example of what the brand is going to represent. We saw a lot of opportunities in markets like Saudi Arabia and Dubai, where we don’t feel like the four-star market is being properly serviced and we did not want to dilute the Shaza brand, so we created one underneath it from the ground up,” Simon Coombs, CEO of Shaza Hotels, is reported as saying.

Coombs said the company has secured three other deals for Mysk by Shaza in the region, although full details have not yet been announced.

The company recently launched Shaza Muscat, a five-star development with 250 hotel rooms and 150 hotel apartments.

The company plans to open a Shaza Hotel in Mecca in the third quarter of 2016 while negotiations are still underway for the new Shaza projects in Europe, it was reported. Shaza will also be operating The Wave Muscat Hotel and Shaza Salalah Hotel & Spa.

SSH to design villas and apartments at Al Mouj in Muscat

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Design firm SSH has won a contract to design villas and apartment blocks at the Al Mouj mixed-use waterfront community in Muscat, the company announced.

Formally known as The Wave, Al Mouj is a public-private owned venture between the Omani government and the UAE-based Majid Al Futtaim Properties.

According to the contract, SSH will design two villa prototypes for Zunairah, a collection of beachfront villas that will be the latest addition to the Al Mouj community masterplan.

The villas will be divided into two zones – Z1 will have a total built-up area of 900 sqm, while Z2 will have an 1800 sqm built up area.

The Juman One apartments will offer one-, two- and three-bedroom units. The development will also contain a gym, male and female spas and changing rooms, an owner’s lounge and outside lounging areas, games room and a concierge service.

It will also contain three adjacent pools – a lounging pool, a children’s pool and a lap pool.

There will also be six penthouses which will have open-plan features, spa bathrooms, terraces and five bedrooms.

New Muscat airport project ‘to complete this year’

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Construction work on the terminal for the New Muscat International Airport will be completed by the end of the year, the Omani Minister of Transport and Communications has said.

Speaking during a visit to the new airport site, Ahmed bin Mohammed bin Salim al Futaisi said that work on the MC3 package was 91% complete and that the ministry and relevant authorities expect to receive the project from the contractor by the end of 2016, the Omani Daily Observer reported.

The minister added that the operational readiness team would begin their work soon, with trial runs and other training processes likely to take up to six months.

Futaisi pointed out that in excess of 20,000 workers were currently employed on the site, saying he was “optimistic about the completion of all construction work for this important package at the airport project by the end of the year.”

Orpic ‘to invest $320m in Muscat – Sohar pipeline’

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The state-owned Oman Oil Refineries and Petroleum Industries Company (Orpic) is to invest $320 million in building a 290km pipeline that will help transfer refined products between Muscat and Sohar, according to local media.

The pipeline is expected to start operations by mid-2017, the Times of Oman reported.

The Muscat Sohar Product Pipeline (MSPP) and the Al Jifnain Terminal project will enable a connection between Orpic’s Mina Al Fahal (MAF) Refinery in Muscat and the Sohar Refinery with a new storage and distribution terminal located in Jifnain via a bi-directional pipeline network, the newspaper said.

Andres Suarez, general manager of Orpic Logistics told the Times of Oman that the Al Jifnain Terminal will have an investment of around $100 million of the total capital expenditure, while the pipelines and associated investment in both Sohar and Mina Al Fahal Refineries will be around $220 million.

The pipeline network will be divided into three sections with 45 kilometres of pipeline joining the Mina Al Fahal and Jifnain Terminal, 25 kilometres joining the Jifnain Terminal and Muscat International Airport, and 220 kilometres between the Sohar and Jifnain Terminal.

The pipeline network will act as a new logistics system and will eliminate the need for the use of vessels and tankers to transport oil products. This will bring down the overall cost of transport and distribution of oil products and will save $20 million per year for the oil logistics system in Oman, it was reported.

Suarez commented saying: “The project is fully a commercial one and its returns depend only on the revenues generated from the use of the logistics assets of Orpic customers, with no financial aid from the government. Additionally, the project has been financed by the Ahli Bank and Ahli United Bank.”

Intecsea ‘submits proposal for Iran-Oman pipeline’

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Dutch offshore engineering firm Intecsea has submitted a proposal to participate in the construction of the proposed $1.5 billion Iran-Oman gas pipeline project, according to a report in the Oman Observer.

The Muscat-based newspaper quoted the company’s project manager, Mohammad Akbarzadeh, as telling the Iranian news agency Mehr that Intecsea was interested in being part of the project and can cooperate with Iran by providing special engineering and technical services.

Intecsea had earlier undertaken construction of some offshore pipelines in Iran’s South Pars gas field, it was reported.

“The construction of the Iran-Oman pipeline will make Iran’s ambition to become a liquefied natural gas (LNG) exporter come true. With the realisation of this pipeline, Iran will be able to use the Qalhat LNG plant – which has the capacity to liquefy 10.4 million tonnes of LNG per annum – in Oman as the Islamic Republic does not have one,” Akbarzadeh told Mehr.

A few months ago, Korea Gas Corp and National Iranian Gas Company signed a memorandum of understanding on constructing three major gas pipelines in the Islamic Republic, including the Iran-Oman gas pipeline, Oman Observer said. Studies on the project were first done 10 years ago and in 2013 Iran and Oman agreed to push for its completion. It then stalled due to the US-backed sanctions on Iran but was later revived with the lifting of the restrictions.

The pipeline will stretch 400km and comprise an onshore and an offshore section. The onshore section will extend 200km from Rudan to Mobarak Mount in Iran’s southern Hormozgan province, while the seabed section will be between Iran and Oman’s Sohar port. According to the Oman Observer, the groundwork for laying the subsea pipeline began in April this year.

Muscat property prices hit by economic slowdown

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The chairman of the Oman Real Estate Association has said that the current economic situation in the sultanate has led to a decline in property prices in some parts of Muscat.

In a report by the Oman Daily Observer, Mohammed al Busaidy said that the areas of Al Amerat, Seeb and Al Maabellah had seen decline in property values due to speculation and oversupply of land.

“The real estate sector is interconnected with other economic sectors; it slows down or booms depending on the status of the overall economy,” he said. “The economic situation has had a negative impact on employment and job generation both in the government and the private sectors, reducing demand for property in the capital area as fewer people are now willing to rent or buy properties.”

“Increasing municipal fee for tenancy agreements from 3% to 5% has also negatively affected the real estate sector,” he added.

However, the chairman also said that rentals for residential accommodation in full service areas remained unchanged, while the low-service areas registered a fall in rents.

Ahmed bin Haydar al Lawatti, owner of a real estate company, was quoted as saying that the increased supply of land and flats was the main reason for the fall of rents in residential areas, the report said. Furthermore, he pointed out that government and private establishments had laid off a number of expatriate employees, leading to an increase in supply in the market.

Despite this, al Lawatti said that he expected the real estate market to make a partial recovery due to the population growth and increase in investments in Muscat.

Oman cement sector not facing oversupply – report

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Oman’s cement sector is not facing an oversupply problem due to the country’s pipeline of high-profile developments and infrastructure projects, an industry report has said.

Since 2009, it has been observed that there is a gap between the consumption and demand of cement in Oman. That gap has historically been met by imports, the United Securities report said, explaining that the data indicated that the demand for cement in the local market is higher than the production capacity of local producers.

At present, the total demand for cement is around eight million metric tonnes, with around 43% of demand met by import substitution. The demand for cement in the local market is likely to remain intact due to announced infrastructure and construction projects, the report explained.

Two companies dominate Oman’s cement industry – Oman Cement, which was incorporated in 1977, and Raysut Cement, which started operations in 1981. Together, these two companies have 57% of the local market share.

The majority of Oman’s cement consumption comes from the north of the country, where construction activities are highest in the country. Demand in that part of the country is met by Oman Cement, which is strategically located in northern Oman. Raysut Cement covers the southern region, United Securities added.

However, the research report added that being in southern Oman, Raysut has a distinct logistical advantage in terms of exporting cement to neighbouring regions, such as Yemen and East Africa. In order to match Oman Cement, the company acquired the UAE’s Pioneer Cement in 2010 to directly compete in Northern Oman.

Meanwhile, Oman Cement has added a new cement grinding capacity that is operational as of May 2016. It is also ramping up the modernisation of its kiln 2, which is expected to be completed by the end of Q4 2016.

Raysut Cement is also expanding its domestic facilities through the construction of a terminal at Duqm Port, so as to cater to demand from outside the region.

Following these developments, United Securities said that it expected the historical supply and demand gap to ‘contract post the operational and capacity expansion’.


Carillion looks for Middle East PPP deals

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The British building support services company Carillion says it is looking for new public private partnerships in the Middle East after signing initial PPP agreement in Oman.

The company is turning its focus this year to winning new business in the Middle East, especially the UAE ahead of the Expo 2020, as it played down the impact of the UK vote to leave the European Union.

Carillion said in its half–year trading update that its Middle East construction services business “continues to perform in line with our full-year expectations” despite a likely dip in the first six months of the year. This was due to a one-off £14 million profit boost in the first half of 2015 due to a reorganisation of staff accommodation in Oman.

“To mitigate the impact of this and of the prolonged low oil price on the pace of customer investment programmes in the full year, we continue to pursue our disciplined strategy of strict contract selectivity with a strong focus on winning contracts with the support of UK Export Finance,” the firm said.

“Over the medium term, we are also pursuing PPP opportunities, notably in Oman, where we have signed a Memorandum of Understanding with the Oman Investment Fund to develop a PPP programme in the health sector.”

The company said its new business has “remained strong”, with first-half orders and probable orders worth approximately £2.5 billion, including a £240 million, 4.5-year support services contract for Petroleum Development Oman.

“Overall, we continue to believe that the outlook for our support services activities remains positive, driven by the demand for infrastructure services and the continued outsourcing of facilities management in the UK, supported by a good pipeline of opportunities in Canada and the Middle East,” it said.

Carillion derives less than 5% of its revenue from the UK housing market, limiting its exposure to the country’s vote to leave the European Union, Reuters reported its CEO Richard Howson as saying.

Carillion’s focus this year would be to win new business in the Middle East, especially the UAE ahead of the Expo 2020, Howson is reported as saying.

Kubo to supply greenhouses for Oman solar park

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The Dutch greenhouse and solar specialist Kubo Group has been selected to supply and install high-tech greenhouses at the Miraah solar project in the south of Oman, according to a report in the sultanate’s press.

The project’s joint developers – US-based GlassPoint Solar and Petroleum Development Oman (PDO) – have selected Kubo greenhouses for the Miraah project, which is one of the world’s largest solar plants under development, according to the Oman Observer.

Kubo will install custom-designed greenhouses covering a 190-hectare desert expanse, equivalent to 160 football pitches, near the Amal oilfield within PDO’s Block 6 concession.

Equipped with deck-wash robots, as well as overpressure and filtration systems to keep moisture and dust out of the greenhouses, the structures represent an integral part of GlassPoint Solar’s technology to harness the sun’s energy to generate steam necessary to produce heavy oil from the Amal oilfield, the report said.

Construction work on the Miraah Solar Plant is well underway at a site adjoining the Amal oilfield, the Oman Observer added.

PDO is investing around $600 million in the project, with GlassPoint Solar providing the technology, as well as engineering, procurement and construction (EPC) support, the report added.

The project will use large curved mirrors designed by GlassPoint Solar to concentrate sunlight and generate steam from water. The mirrors will be enclosed within the greenhouses provided by Kubo, which will help protect the solar collectors from high winds, sand and dust.

Work on Omagine project in Oman ‘to begin next year’

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Work on the multi-billion dollar Omagine project in Oman’s Seeb region is scheduled to begin next year, with its completion slated for 2024, according to reports in the sultanate’s press.

Oman’s Ministry of Tourism (MoT) told the Times of Oman daily that the project features seven pearl-shaped buildings which will host hotels, offices, residences and entertainment venues on one million square metres of land. It is expected to create more than 1,000 jobs for Omani nationals when it is completed in seven years’ time.

The project’s main developer, Omagine LLC, signed the agreement with the Omani government to develop its eponymous $2.5 billion real-estate and tourism project in October 2014. The agreement was ratified by the sultanate’s Ministry of Finance in March last year while development rights to the 245-acre beachfront land were registered with the government in July 2015.

Quoting Omagine chairman Frank J. Drohan, the report added that managers of the project have been seeking further funding globally.

Oman initiates study for water desalination project

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Oman Power and Water Procurement Company (OPWP) has initiated a study for the procurement of a new seawater desalination capacity that will be the fourth new Independent Water Project (IWP) in Dhofar.

According to a report by the Oman Daily Observer, the study was initiated on the back of an anticipated 8% increase in demand for potable water in Dhofar. Strong investment inflows into the commercial, hospitality, tourism and residential sectors have also played a role in influencing this decision.

The proposed scheme, referred to as Salalah IV IWP, will have a capacity of 100,000 cubic metres per day according to OPWP’s 7-Year Outlook Statement covering 2016 – 2022.

OPWP commented on the plans for the procurement of the water project saying: “OPWP and DGW have begun investigation of sites for the prospective Salalah IV IWP. The project is nominally specified with a capacity of 100,000 m3/d, subject to government approval. This capacity would meet DGW total demand requirements for several years beyond the forecast period, although the requirement will be studied further to assure that the timing aligns with commitments for network expansion.

“The commercial operation date is nominally specified as 2021; an earlier or later date may be accommodated subject to site selection and requirements for the DGW connection infrastructure.”

Anantara set to enter Oman with two resorts

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Anantara Hotels, Resorts and Spas is ready to enter Oman this year with two new resorts – Anantara Al Jabal Al Akhdar Resort in the north east and Al Baleed Resort Salalah by Anantara in the Dhofar Governorate.

According to the hotel operator’s website, Al Baleed Resort Salalah by Anantara, will comprise of 30 premier sea view rooms and 10 deluxe rooms with either sea or garden views.

It will also feature 96 villas, including 88 private pool villas with outdoor temperature-controlled infinity swimming pools.

Its facilities include a private 250-metre beach, a gym and a library, and guests will also have access to dining facilities that include three restaurants.

Other facilities include flexible meeting and event spaces, a tennis court, a volleyball court, a basketball court, a table tennis court and a badminton court among other things.

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Meanwhile the other property, the five-star Anantara Al Jabal Al Akhdar Resort, is expected to open in October this year. It will consist of 82 canyon view rooms and 33 private pool villas.

The resort will feature an infinity pool, two Jacuzzis, a shaded children’s pool, a recreational centre, a tennis court and a fitness centre. It will also include meeting and event facilities, a library, retail shops and a prayer room.

Additionally, its guests will also have access to the Anantara Spa, three restaurants, one lounge, one deli café, a shisha lounge, a fort stargazing platform and a canyon view platform.

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