A landmark day in Oman

The Oman property market received a big boost this week with two major announcements.

A new joint venture firm has been established in Oman -Majan Tameer Construction Company. The newly formed company will operate with RO40 million in licensed capital and RO25 million in paid up capital. In a statement by Basha’ar Naser Al Tuwaijri, the chairman of the board of directors announced that non-Omani Gulf investors would own 70% and Omani investors would own the balance.

There are seven companies that make up the major stake holders. Gulf Investment House has assumed the most with 50%. Sultanese Ministry of Defence Pension Fun, Sharjah Islamic Bank and the Real Estate Trading Company all have a ten percent stake. Public Authority for Social Insurance, Oman and Emirates Holding, Oman Cement and the Pension Fund of the Royal Guard of Oman make up the remaining stakeholders.

Majan Tameer’s primary business will include the purchase and development of land, leases, the sale of land and property, and the incorporation and management of real estate funds. Business will be conducted both in and outside the Sultanate.

The Sultanate has experienced a real estate boom in recent years that has attracted investors, and this economic growth is behind the construction boom that caused a need for joint ventures like Majan Tameer. The Omani real estate market is expected to continue rapid growth well beyond 2010. Analysts are targeting a value of demand totalling RO8 billion by the year 2010.

Overseas property investors have been keeping tabs on the Sultanate for several years. With economic growth in other markets in the Gulf, it was only a matter of time before Oman began to grow as well, and that growth is happening quickly. With the announcement of Majan Tameer, came another announcement of the development of a one billion dollar healthcare facility. Construction in Muscat is expected to begin within a year.

As the government continues to play a strong supportive role as of late, many more investors are expected to arrive soon.