MUSCAT: The Ministry of Housing and Urban Planning commemorated the first anniversary of His Majesty Sultan Haitham bin Tarik's inauguration of Sultan Haitham City at Al Barakah Palace on May 31, 2023.
The occasion was marked by the signing of five development and partnership agreements for the city's first phase (2024-2030) with participating development partners. These agreements were signed at the Oman Convention and Exhibition Centre on the sidelines of COMEX 2024.
The agreements encompassed the following: (a) Design and Management: Contracts were signed with Ibn Khaldun Company for the detailed engineering of three school complexes, as well as a rehabilitation centre. A contract was also signed with Rezayn Company for the detailed engineering of a cultural centre; and (b) Construction: Strabag-Oman has been contracted to construct five bridges, while Oman International Holding (OHI) Company has been awarded a contract for the design and construction of the city's central testing and control centre.
Additionally, a tripartite agreement was signed between the Ministry of Housing and Urban Planning, Al Abrar Real Estate Company, and the Oman Housing Bank to facilitate financing programmes for eligible individuals seeking to purchase residential units in Sultan Haitham City.
The ministry's celebration acknowledged the completion of several critical construction and design milestones, including: Construction works for the first phase and development partnership agreements; agreement for water supply project implementation; road settlement works and pre-qualification for infrastructure projects; preliminary architectural designs for three school complexes; and project promotion through participation in local and international exhibitions.
A total of 29 development and partnership agreements were also inked with eight global and local developers. Residential unit sales commenced in the Al Wafa neighbourhood for Al Abrar Real Estate Company's first and second phases, achieving a 78-per cent sales completion rate for the first phase. Additionally, residential unit sales for Dream Villa Company's Al Ahlam neighbourhood were launched.
Throughout the past year, the ministry has fostered dialogue with youth, engaged with various community institutions and individuals, and involved real estate companies in evaluating the general plan. They organised meetings, workshops and programmes to introduce the project's implementation stages, marketing strategies, which garnered positive interactions from participating groups. These initiatives solidify the significance of Sultan Haitham City in economic, social and tourism development.
Over the past twelve months, the ministry, in collaboration with key partners from government institutions, real estate developers, consultants and financial institutions, has diligently implemented a series of projects within the city's development stages. They have signed numerous agreements and executed extensive marketing and awareness campaigns to achieve national objectives and create a city embodying the characteristics of a modern, sustainable metropolis. This includes offering an integrated residential environment with diverse housing and investment options for all.
The ministry signed real estate development agreements with Al Abrar Company, Raman International Company, Dream Villa, Adrak, ASAS, Al Ahli Subur, and Al Sarooj for developing first-phase neighbourhoods, entailing investments in excess of RO 1 billion.
Additionally, partnership agreements were formalised with government entities for first-phase development, alongside eight financial institutions from both public and private sectors. These include: The construction of a national reference hospital for women and children's health with a capacity of 500 beds, at a cost of RO 90 million for the Ministry of Health; Establishment of a rehabilitation centre in District 8 on a 13,000 m2 plot at a cost of RO 6 million for the Ministry of Social Development; Development and implementation of smart city technologies at a cost of RO 10 million for the Ministry of Transport, Communications and Information Technology; Funding for an annual housing programme for Zakat beneficiaries and construction of a mosque and public council in District 12 at a cost of RO 2 million (for the Ministry of Awqaf and Religious Affairs); Land allocations for two fuel stations; and Construction of five mosques and public councils in Districts 6, 9, and 10.
Muscat Municipality facilitated the issuance of building permits by opening a dedicated licensing office within the project and provided technical cooperation for implementing basic infrastructure like roads and parks. The Oman Investment Authority partnered with the Telecommunications Regulatory Authority, Oman Broadband Company, and Oman Towers Company to finance and implement basic infrastructure for broadband and communication networks (worth RO 10 million). Nama Group financed and implemented basic infrastructure for electricity.
Commenting on the agreement signing, Ahmed Hussain Sabbour, Chairman of Al Ahli Group of Companies, said: "We at Al Ahli Group are delighted to announce the signing of this cooperation agreement today. We are particularly grateful for the unwavering support and collaboration extended by the minister and his esteemed colleagues within the ministry. This collective spirit of fostering success is truly inspiring. Anticipated sales are slated to begin in October, with project implementation commencing in early 2025. We are committed to a swift and diligent execution, with a total project value of approximately RO 450 million and a construction timeframe of six years.” According to Nasir bin Khamis al Siyabi, Director-General of Administrative and Financial Affairs, Ministry of Housing and Urban Planning, a tripartite agreement signed on the occasion will ensure collaboration between the Ministry of Housing and Urban Planning, Oman Housing Bank, and Al Abrar Company. The agreement commits the developer to timely construction, the Housing Bank to providing financing based on completion milestones, and the Ministry to streamline ownership and mortgage registration."
"Furthermore, the Oman Housing Bank has significantly increased its support for Sultan Haitham City. The loan amount has been raised to RO 240 million, and the individual loan ceiling has been lifted from RO 60,000 to RO 80,000. This programme is expected to benefit approximately 3,000 eligible homebuyers," he added.
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