ASIT has set out the timetable for the launch of the project and sales of freehold property in its first phase. Unlike many similar projects found in the region, The Blue City project is the largest development in Oman, supported by integrated tourism legislation on freehold property ownership that recognises inheritance laws from the purchasers’ country of origin, supporting Oman’s drive to attract foreign direct investment to develop its tourism potential and economic growth.

“The dynamics of The Blue City project and its importance to Oman cannot be underestimated,” said Anees Issa Al Zadjali, Chairman of ASIT. “The success of the first phase of this project is crucial to succeeding phases so it has been imperative to ensure our plans are in line with projected market trends and forces.

“ASIT is very pleased to announce that the master-plan and initial artists’ impressions of the first phase will be revealed in October. The first tranche of retail sales will commence in November. Construction on site has already begun and vertical construction is scheduled to commence in December 2007.”

Chris Steel for Hamptons remarked:” We are expecting tremendous demand for the Blue City residential properties, from within the region and further afield, particularly the UK where interest levels are extremely strong´.

Visuals and details of the master-plan for the first phase of the city will be unveiled in the coming weeks and will show the unique architectural style and approach to urban planning which will characterise the Blue City project and set it apart from other Middle East property developments.

“Extensive research has been undertaken to find organisations and entities that share the vision of The Blue City in creating a harmonious community on one of the most beautiful natural coastlines in the region. Our master-planning and architectural designs have been focused on delivering a modern essence of Arabia which builds on our strong Omani heritage and history, but does not compromise on modernity and quality. Together these factors will distinguish the Blue City project and provide a unique set of highly appealing characteristics which we believe will be very attractive to buyers from across the world, as well as from Oman and the Middle East itself,” added Al Zadjali.

The Blue City’s first phase is one of the most vital components of the entire project due to its value and the unique key tourism related elements it encompasses. It will accommodate 25,000 residents and local, regional and international visitors and is primarily a residential and tourism development with leisure and retail components.

“The first phase represents a substantial standalone project in its own right but it is also intended to fit as a component of the overall development,” added Al Zadjali.

“The Blue City is being designed as a fully integrated live-in community and has a wider role as an important part of Oman’s aims to be the pre-eminent tourism destination for the Middle East.”

AECO, a partnership between AKTOR of Greece and ENKA of Turkey has been appointed as contractors for the first phase of The Blue City which will see an initial area totalling 5.5 square kilometres (2.12 square miles) or 17.2% of the projected final site land of 32 square kilometres (12.36 square miles) developed. Al Zadjali added that further announcements on third-party contracts and partners will also begin shortly.

“The Blue City is one of the most important developments in Oman. It is much more than just a real estate development. We are creating a city which will take Oman into the next century, providing not just homes, but new jobs, new industries and a legacy for the future,” he added.

“As the cornerstone of the new city, the first phase of the development will set the tone and style for what is to follow and will offer wider opportunities beyond freehold property.

About The Blue City

Located on a natural peninsula 30 minutes from Muscat Seeb Airport, The Blue City is a 32 square kilometre (12.36 square mile) waterfront city being built along 16 kilometres (9.95 miles) of shoreline adjacent to the Gulf of Oman.

One of the largest scale developments in the Middle East, the Blue City represents a total investment of between $15 - $20 billion. The first round of financing was secured through the issuing of a bond note by Bear Stearns on international markets raising $925 million US. The note was rated Baa3 by ratings agency Moody’s in March, 2007, following on from a BBB- rating by Fitch when the note was issued. Bear Stearns was subsequently awarded “Middle East Leisure Deal of the Year 2006” by Project Finance for the arranging of the Blue City note.

The organization behind the project is Al Sawadi Investment & Tourism Company (ASIT) which has the endorsement of the government of Oman to bring this massive urban development to life.

Blue City will serve as a growth engine for the Omani economy and will radically expand the tourism facilities in Oman. The city will generate large scale employment opportunities for Omani nationals, promote freehold property ownership for nationals and expatriates alike and serve as a hub for leisure activities in the sultanate.

For further information contact:

Kaja Weller – kaja.weller@hillandknowlton.com
Ismail Farid – ismail.farid@hillandknowlton.com
Ellie Thompson – ellie.thompson@hillandknowlton.com

Hill & Knowlton Dubai
+971 (0)4 3344930