It has the best mix of scenery in the Gulf, an abundance of land, the lowest property prices in the region, and its own unique architectural style. And now, with a change in property ownership laws aimed at attracting more foreign investors, Oman is experiencing a real estate boom. Yet this is not a mini-Dubai of skyscrapers and mass tourism. Instead, Oman is building attractive developments that
reflect its own heritage – aimed mainly at the high-end market – and remaining true to environmental principles. In this way, its real estate sector is creating a sustainable, twenty-first century
model for development that is attracting global attention. Unusual for the Middle East, Oman combines a mix of deserts, fjords, mountains ascending up to 9,000 feet with occasional snow, and an unspoiled coastline of pristine beaches and coral reefs. Its capital city, Muscat, is a thriving metropolis that still manages to maintain a distinct charm. Its whitewashed low-rise buildings are located along white sand beaches, set against a mountain backdrop. And this is just one of several
prosperous cities in Oman. In fact Oman has many ingredients that make it a developer’s
dream. It has high oil and gas revenues, a 40 per cent expat population in Muscat, rising income levels and a fast-growing private sector. Yet until the 1960s, it had only six miles of paved roads. The current Sultan, in power since 1970, has worked to liberalise the economy and bring in foreign investors. The result of this legacy is that Oman has great tracts of undeveloped land.


Change in property law
Underlining its commitment to attracting investment, the government has changed the law to open up property purchases to foreigners. Gulf Cooperation Council (GCC) nationals have already been able to buy property anywhere in Oman since 2004. A major change came in 2006, when foreigners were allowed to buy property on a freehold basis in designated areas. The law now gives full rights of inheritance according to the laws of the investor’s country of origin, and residency status for property
owners and their immediate family. Commercial real estate is still the exception in Oman, and cannot be owned by non-GCC nationals. The consequence of the change in law is sustained interest in real estate investment from the UAE, Saudi Arabia, Qatar and Kuwait, as well as the UK, India, Pakistan, Egypt, Jordan and Lebanon.

Economic diversification
The Vision 2020 strategy is designed to help Oman diversify and develop its economy away from oil and gas. It sets out goals to make Oman a global tourism and business hub, and this will
be partly facilitated through real estate development. The current economic development plan, covering the years from 2006-2010, wants 46 per cent of investment in new projects to come from the private sector. And the government has established Omran, its wholly owned company, to facilitate real
estate and tourism investment. Another factor contributing to this boom is the availability of
new mortgage products. Central Bank regulations now enable commercial banks to make up to five per cent of their funds available for residential loans, and there are competitive mortgage products available in the market. Oman now has an estimated US$33 billion of public and private projects under construction, with more planned. A selection of these projects is outlined below.

The Wave, Muscat
At a cost of US$805 million, The Wave, Muscat is set along 12 miles of beaches in Muscat. It will feature a Greg Norman designed golf course, marina, luxury hotels (from Kempinski and Fairmont Hotels and Resorts), shops and restaurants, and around 4,000 residential units. The attraction is clear: where else in the world can investors buy beach villas in a capital city? There is already very strong demand for this development. When 70 new residences at The Wave, Muscat went on sale,
priced on average at US$650,000 for a 3,500 square-foot beach villa, they sold out in 90 minutes.

Blue City
A mega-project located 180 miles west of Muscat, Blue City – also known as the Al Madina Al Zarqa development – is a US$20 billion residential and tourism venture expected to attract up to two million visitors each year. It will feature an 18-hole championship golf course, three five-star hotels, a tourist village, heritage museum, waterfront amphitheatre, and a boutique hotel run by British hotelier Gordon Campbell-Gray. With more than 2,000 apartments and villas, Blue City will eventually be home to around 200,000 people. World-famous British architectural firm Foster + Partners is working with
Oman’s Ministry of Heritage and Culture to incorporate a local design aesthetic on the project, combined with modern touches.

The Malkai at Barka
Opening in 2010, the US$250 million Malkai at Barka residential and resort complex will be set in 216 acres. Its country club, boutique hotel and homes will be built on just 10 per cent of the total site, offering privacy and seclusion. Villas open to foreign buyers will include a private swimming pool and views onto the golf course.

Other projects
Muriya - The government’s Oman Tourism Development Company and Orascom of Egypt are creating a US$600 million joint venture, called Muriya, which will showcase a six-star hotel, office space and a retail area.
Muscat Golf and Country Club Located close to Seeb Airport – which itself is undergoing modernisation – the Muscat Golf and Country Club includes an 18-hole golf course and elegant residential units.
Salam Yiti is a US$1.7 billion development with everything from its own marina and beachfront houses, to mountain villas.
And the Barr Al Jissah resort was launched in 2006.

Looking to the future
The government has brought in environmental protection laws to guard Oman’s unique landscape. The major developments are all showcasing green initiatives, such as the golf course at The Wave being irrigated with recycled water.

Real estate sector investment is estimated to have grown fivefold
in the last few years alone. With around 40 integrated
tourism and residential projects already under construction,
Oman is putting itself firmly on the international map.

The Wave, Muscat: Leading the way in luxury real estate development
As the first integrated tourism development of its kind in Oman, The Wave, Muscat is groundbreaking in many ways. It also represents one of the first opportunities to own freehold real estate in the Sultanate. No wonder that buyers from 40 different nations have already snapped up property there.
As CEO Nick Smith points out, The Wave, Muscat is not just about building and selling, it’s also about educating and setting standards. “The Wave, Muscat has not only delivered on the expectations of the investors in the region,” he says, “but has also helped put Oman on a regional platform as a country where the real estate sector has boomed in the recent past.”

A lifestyle opportunity
The Wave enjoys a unique location on 4 miles of natural beachfront, close to both Muscat city centre and the airport. Once completed, the development will feature a Greg Norman Links 18-hole golf course, the only one of its kind in the region. A thriving marina village will offer guests and residents a 300-berth marina, as well as luxurious dining and retail experiences, and there will be three five-star hotels, including one from Fairmont Hotels. The project will create a unique lifestyle opportunity for
residents and visitors alike. The concept is to create a “real place for real people” where a multitude of cultures can live together in a vibrant and exciting community. Attention to detail is being paid to
every aspect, particularly the architecture. The fusion of European and Omani architectural designs is one of the most attractive elements of The Wave, Muscat giving it a unique look and feel where tourists from around the world can instantly feel at home.
Diverse cultures
Mr Smith believes that the diversity of cultures in the Middle
East plays a big role in attracting foreign investment. “Oman has a
deep-rooted culture and rich heritage, which made the idea of
having a mixed use community very unique and inspiring. The
fusion of Omani and European architectural design has drawn
huge interest among potential buyers, coupled with the freehold
ownership legislation.”
Currently just over 50 per cent of buyers are Omanis, and the
other three top nationalities are from Britain, India and the Gulf
Cooperation Council (GCC) countries. The value of the residential
units has increased significantly since launch, and the level of sales
interest suggests that the value of properties at The Wave will
remain on an upward trend.