ITC Experience and Challenges in Oman

Transcription

1 ITC Experience and Challenges in Oman 1

2 Oman Overview The facts Oman is a middle-income economy that is heavily dependent on dwindling oil resources. Because of declining reserves and a rapidly growing labor force, Oman has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP to 9% by 2020 and creating more jobs to employ the rising numbers of Omanis entering the workforce. By using enhanced oil recovery techniques, Oman succeeded in increasing oil production, giving the country more time to diversify, and the increase in global oil prices through 2011 provided the government greater financial resources to invest in non-oil sectors. Oman, compared to its neighbors, has modest oil reserves ranking at 25th globally, nonetheless in 2010 UNDP ranked Oman as the most improved nation during the preceding 40 years globally. Additionally, Oman is categorized as a high income economy and the 45th most peaceful country in the world. Sultanate of Oman Population ('000) 3,152 Non- National ('000) 577 Median Age 24.7 Gender Ratio (male/ female) 1.22 Population Growth Rate 2.06% % 3.2% 3.1% 3.0% 2.9% 2.8% Population (mn) 2

3 Oman Overview The Economy Attractive Environment Oman represents one of the most favorable investment destinations in the region denoted by its attractive legislations, open economy, and equal treatment of foreign investors that have largely contributed to economic growth. Economic Growth Oman achieved continuous growth over the past 9 years. Real GDP growth rate stood at 5% in The Sultanate is on course to maintain this steady growth, as the future outlook remains positive mainly supported by favorable oil prices and an attractive investment climate. Public Spending The government approved budget for 2013 which represents the 3rd year of the 8th Five-Year Development Plan ( ). Estimated total expenditures stood at OMR 12.9 billion. The budget allocated a large portion towards education, healthcare, infrastructure and housing. Government Initiatives The Sultanate is working on Vision 2040 in addition to the 9th Five Year Development Plan ( ) both of which focus on infrastructure and industrial development stimulating employment, finalizing airport expansion, urban planning and sustainable development. GCC Contributions The GCC pledged a 10-year USD 10 billion stimulus package for Oman. This financial aid will be used for the development of affordable housing and providing employment opportunities for Omani nationals through various infrastructure and tourism projects. Higher Wages The Government decided to increase the minimum salary for Omanis in the private sector by over 60% to OMR 325 per month from July This will increase purchasing power in the Sultanate and should help to drive the real estate sector forward. Strong Tourism According to the World Travel and Tourism Council, Oman's tourism sector is expected to contribute around 6% of the country's total investment by Based on the last 5-year plan, investment in tourism is targeted to reach OMR 2.2 governmental and private sector.

4 Integrated Tourism Complex 4

5 Integrated Tourism Complex - Oman Integrated Tourism Complex (ITC) zones are designed as mixed use communities comprising residential, leisure, entertainment and commercial components. ITC projects are supposed to contribute to growth in tourism in Oman. With the introduction of a new law through Royal Decree of 2006, freehold ownership of real estate for non-omanis was granted in ITC zones. Foreign nationals owning residential property in an ITC are eligible to apply for residency status for themselves and for their family members with several advantages such as being able to re-sell, inherit and benefit from income tax exemption. ITC projects have initially appealed to the market, being a new concept, but failed later to cater to the needs of the population which strives for entertainment amenities including shopping malls, parks, recreational areas and quality touristic facilities. Also, due to the global financial meltdown almost all ITC projects witnessed drop in the sales and development activities. This led many ITC projects to revisit their development strategy, in order to meet the new market requirements. 5

6 Main ITC Projects- Oman No. Project ITC Developer 1 The Wave The Wave- Muscat S.A.O.C 2 Barr Al- Jissah Resort Barr Al- Jissah Resort Co. S.A.O.C 3 Muscat Golf and Country Club Muscat Golf Course ProjectL.L.C 4 Salam Resort and Spa- Yiti Yiti Tourism Development Co. 5 Jabal Al- Sifah Resort Muriya Tourism Development Co S.A.O.C 6 Salalah Beach Resort Muriya Tourism Development Co S.A.O.C 7 The Blue City Al- Sawadi Investment and Tourism Company L.L.C 8 Yenkit Resort Yenkit Tourism Development L.L.C 9 Salam Resort - Shinas Shinas Tourism Development Co. 10 The Malkai Resort Al- Maeen Real Estate services L.L.C 11 Saraya Bander Al-Jissa Saraya Bander Al-Jissa Company 12 Ras Al-Hadd Project Qatari Diar Ras Al- Hadd Company 13 Al- Khayal Project Suhail Bahwan Group L.L.C 14 ITC Project between Barka & Al Seeb ALARGAN Towell Investment Company 6

7 Our ITC Project in Rumais (between Barka & Al Seeb) 7

8 ALARGAN TOWELL Investment Company Our upcoming ITC Project in Rumais area, a mixed-use development by ALARGAN TOWELL Investment Company (ATI) covering a land area of 500,000 m2. with 1 km waterfront overlooking the Gulf of Oman. The project is located less than 30 minutes from Muscat International Airport, in the growing costal area between Barka and Al Seeb, and enjoys direct access to the regional arterial road network. The ITC project features a variety of mixed use developments centered around a man-made Crystal Lagoon including: a lagoon promenade, 2 beach-front and 1 lagoon-front hotels, parks and water-front villas and townhouses, apartments, a traditional souk, a shopping center in addition to a school. The construction is expected to last for 5 years, which will be divided into phases. 8

9 ALARGAN TOWELL Investment Company The ITC Project The project is broken down into three phases. Phase 1 comprises the souk & serviced apartments, apartment sites 1& 3, villas, hotel 2 and serviced apartment site 1 and is scheduled to be completed in 40 months. Phase 2 consists of townhouses, apartment site 2, serviced apartment site 2, hotel 1, shopping mall, aqua park and villas scheduled to be completed in 26 months. Phase 3 consists of hotel 3, villas and shopping mall scheduled to be completed in 30 months. Project Location Total Area Project Duration Components ITC Project - Under Planning Rumais (between Barka & Al Seeb) 500,000 m2 Construction period is expected to be 5 years Phase Villas Non Beach 47,987 m2 22Villas Beach 11,727 m2 Hotel 2 (125 keys) 25,000 m2 118 Serv. Aprt. Site 1 4,748 m2 144 Apartment Site 1 3,000 m2 406 Apartment Site 3 39,200 m2 Souk & Aprt. (67 units) 11,488 m2 Phase 2 28 Villas Non Beach 12,334 m2 75 Townhouses 13,880 m2 Hotel 3 (180 keys) 35,685 m2 Serv. Aprt. Site 2 (Mixed Use) 14,816 m2 162 Apartment Site 2 9,130 m2 Aqua Park 8,000 m2 Phase 3 21 Villas Non Beach 9,556 m2 24 Villas Beach 11,347 m2 Hotel 1 (200 keys) 49,822 m2 Shopping Mall 18,364 m2 9

10 ALARGAN TOWELL Investment Company The Components The project components are the Crystal Lagoon, villas, apartments, townhouses, 3 hotels, a commercial mixed use souk, a shopping mall, an aqua park, parks and open space. Crystal Lagoon The main appeal of the development is the man made, swimmable, Crystal Lagoon. The lagoon, covering an area of 57,350 sqm, is an international concept that provides a crystal clear swimmable lagoon fit also for water sports. Hotels Shopping Mall Souk Serviced Apts. Villas Apartments Townhouses Parks The development has one 5 star hotel and two 4 star hotels. Two of the three hotels are resort style along the shore line whilst the third is located on the edge of the Crystal Lagoon. The development strategy consists of developing a 4 star hotel (Hotel 2) located next to the lagoon to attract visitors, tourists, tenants and investors whilst the other two hotels will be sold as developed land. The retail shopping mall will consist of specialty shops as part of the integral resort amenities and services to cater to the surrounding urban areas and the ITC residents. The traditional mixed use souk is designed with a special appeal to service both the residential inhabitants and the tourist visitors. The Souk is located along the promenade of the Crystal Lagoon and will house major shops and cafes. Serviced apartments are developed to cater for affordable tourism to complement the hotel resorts. Approximately 185 units will be provided for Omani nationals and expatriates as well as temporary housing for both tourists and local residents. A total of 201 villas will be developed, serviced by a landscaped road network system and will target permanent residents. The villas will consist of gardens that are designed to provide charming views of the Crystal Lagoon, the Gulf of Oman and the surrounding natural mountains. Around 712 apartments are to be developed located at the rear of the resort providing a robust linkage to the touristic aspects of the project to cater to the middle income family market. The ITC Project will consist of 75 townhouses ideally located near amenities such as the shopping mall, souk and the promenade. The attractive views of the Crystal Lagoon can be appreciated by the residents since the townhouses are located adjacent to the iconic landmark of the ITC Beautifully designed parks and open views and comprehensive landscaping with pedestrian paths will be established throughout the resort. 10

11 ALARGAN TOWELL Investment Company The Development Plan Components Phase 1 GLA (sqm) No. of units Average Unit Size (sqm) Souk & Serviced Apartments 11, Apartment Sites 1 3, Apartment Sites 3 39, Villas 59, Hotel 2 (4 star) 25, keys 48 Serviced Apartment Sites 1 4, Components Phase 2 GLA (sqm) No. of units Average Unit Size (sqm) Townhouses 13, Apartment Site 2 9, Hotel 3 35, keys 71 Serviced Apartment Sites 2 14,816 Villas 12, Aquapark 8,000 Components Phase 3 GLA (sqm) No. of units Average Unit Size (sqm) Hotel 1 49, keys 60 Villas 20, Shopping Mall 18,364 11

12 ALARGAN TOWELL Investment Company The Project s Master Plan 12

13 ALARGAN TOWELL Investment Company The Project s Advantages and Benefits Advantages Strategic location with close proximity to the coastal strip and landmarks Idyllic area for water sports including snorkeling, scuba diving and sailing Swimmable Crystal Lagoon that fits also for water sports Ease of access with multiple entries End users financing availability Young and growing population Established mortgage market ensuring the reach to the middle income class Active support of government for tourism Foreign ownership legislation Continuously growing population & inflow of expatriates Focused demand on good quality developments with entertainment amenities Benefits Procure additional employment in the Omani market Contribute to increase in tourism Attract Foreign Direct Investment by creating a positive business environment Cater to the urban migration of the Omani population Contribute to the development of parks and preserve the environment 13

14 Thank you 14