• Home
• /
• Business

Al Mazaya, Oman firm sign Dh30m real estate deal

DUBAI — Noting the business potential in Oman's construction sector, Al Mazaya Holding has signed a contract with Oman Construction to share in a real estate investment portfolio in that country with a capital of almost Dh30 million (3.1 Omani rials).

"The Omani market is considered as one of the most potential markets to enter into with regard to real estate investments," said Rashid Al Nafisi, chairman of Al Mazaya.

He cited the Omani government's policy on economic diversification and its creation of various laws ensuring free business ownership as having a "positive impact" on foreign investment, particularly in property development.

Al Mazaya, a leading Kuwaiti property firm in the region, put in a share of 40 per cent while the oil field maintenance services company, Oman Construction, gave a 12 per cent share. Al Mina Real Estate Company put in the other 12 per cent share, and the remaining 36 per cent was submitted to a group of investors and real estate companies for an initial public offering (IPO).

"Al Mazaya's steps towards regional expansion have begun to bear fruit after its success in Dubai and its entry into the Bahraini, Qatari and, now, Omani, markets," Al Nafisi said.

He noted that plot prices in Oman are lower compared to those in other GCC (Gulf Cooperation Council) countries, making the country a good investment hub. He also cited some ongoing major construction projects in Oman such as the Al Waif and those in the Sohar industrial area.

Fouad Al Omar, chairman of Al Mina, said the portfolio would assume a vital role in the further development of Oman's real estate sector for the next three years. The portfolio has plots in many areas including Sahar, Al Mawaleh in Muscat, and the commercial district of Oukd in Salalah.

"This portfolio...was born from its (Oman) property boom and a response to the increase in demand for residential and commercial units available in the market today," Al Omar said. "This has in turn urged many companies to enter this market with diverse investments in which they are expected to succeed."

Al Mazaya will also act as the developing manager for all the Omani portfolio projects at an annual fee. "This is due to Al Mazaya's wide experience in the real estate sector and its technical team that is qualified to develop this kind of projects," Al Nafisi said.