MUSCAT, 5 June 2005 — Oman’s fast growing private sector today launched a $15 billion “The Blue City” — the first of its kind in the Middle East — to be built over 35 square kilometers in one of Oman’s most breathtaking beaches, some 100 kms north of Muscat, to boost not only tourism but other sectors also.
The first phase of the 15-year mega project called AL-Madina Al-Zarqa in Arabic, which is in tune with Oman’s economic surge based on diversification, will be completed by 2009 at a cost of $1.8 billion at Swadi Beach.
“We are today witnessing the birth of an entire new city in the Sultanate — a master-planned and economically driven development which will propel Oman into a prominent multi-disciplinary living destination worldwide,” Anees Essa, chairman and managing director of Al-Sawadi Investment and Tourism Company (ASIT) told a crowded press conference. Also present were about 90 foreign journalists who flew in specially to cover the event.
Hours later, The Blue City was unveiled by Minister of National Economy Ahmed ibn Abdulnabi Macki at a colorful ceremony at Al-Bustan Palace Hotel in the presence of the Royal Family members, ministers and other top-notch personalities to make it a memorable affair.
The project is financed by Oppenheimer, a Switzerland -based North American investment company, heading an international consortium. It was represented by Prof. Jerald Alan Belofsky, making his first visit to Oman.
“Al-Madina Al-Zarqa is backed by a Royal Decree that designated it as a strategic touristic zone,” Essa, said, adding: “Complimenting the labor-intensive tourism, the project will integrate other strategic economic development sectors like education, health and environment to boost the service sector’s contribution to the gross domestic product (GDP).”
He said the first phase of the project alone will create 7,000 direct job opportunities in addition to 25,000 indirect jobs.
“Preference will be given to qualified Omanis as part of the campaign to develop the country’s all-important human resources.”
He also disclosed that the move is afoot to enlist the project on Oman’s stock exchange in order to increase public participation.
Ahmed Janahi, chairman and CEO of Bahrain’s AAJ Holding, which remain major shareholders in ASIT along with Oman’s Cyclone LLC, said: “A vision is being translated into a reality not to be seen elsewhere, thanks to the homework done by about 200 people these past six months or so.” He said once completed, The Blue City will house about 200,000 people.
Tourism Undersecretary Mohsin ibn Khamis Al-Balushi said the project was part of the 2020 Economic Vision launched in 1995 to modernize and liberalize Oman in the next quarter century based on the experience of the past 25 years of great renaissance. “The project is bound to promote tourism and other economic sectors, given its viability.”
To a question, he said some 1.1 million tourists savored the joy of Oman’s unspoilt beauty last year and the figure was set to increase this year, judging b the growing foreign traffic.
He said non-GCC citizens will also be allowed to buy and own property at The Blue City, a part of the designated tourism zone.” Our doors are open to all investors and sightseers without distinction.”
He said the project is comparable to other energy-based mega ventures being built in Sohar and elsewhere as part of economic diversification to reduce dependence on oil income.
Belofsky said Oppenheimer was fully geared to finance what he called “a dream project” in the Middle East. “We could not have chosen a better site. Oman is irresistable in terms of natural beauty,” he added.
