Oman
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The Omani Property Market
Source: Oxford Business Group
Comparatively low prices and more relaxed laws are crucial advantages
Oman's economy is characterized by its declining oil production and the need for economic diversification. The country has 5.6bn barrels of oil reserves, which is just enough to last for another two decades. The economy remains heavily dependent on hydrocarbons, which currently account for some 50% of GDP and 80% of government revenue.
After liquid natural gas, construction is the Omani economy's second fastest growing sector, having grown at a compound average of 22% between 2001 and 2005. This sector's contribution to the country's GDP has risen to an estimated 4% as a result.
With the lowest GDP growth rate and GDP per capita among the Gulf Cooperation Council (GCC) countries, Oman's approach to economic development has differed from its neighbours: it opted out of OPEC and achieved WTO membership several years before its neighbours: its stock exchange registered an advance in the midst of the widespread losses affecting other markets; and it recently announced that it will not join the GCC currency upon in 2010.
High oil prices have also resulted in a budget surplus, which is being used to diversify the economy and to attract foreign investment. Water desalination, electricity generation, aluminum production, fertilizer manufacturing, petrochemicals, tourism and real estate are some of the areas targeted for diversification in the "Vision 2020" programme.
Key developers
The industrial zones in Sohar and Salalah have attracted many foreign investors to the country. New companies are now demanding offices, hotels and houses. The natural beauty of the country is also creating tourism demand. Sohal is particular has seen considerable tourism growth during the past five years.
Located on the coastline north of Muscat, the port is a joint venture between the government and the Port of Rotterdam. It has attracted some of the biggest names in international such as Alcanm, Bechtel, Hutchison Port Holding, Air Liquide and Shadeed Iran & Stell among others, for a total of $12bn.
New laws boosting the real estate sector have been introduced. A 2002 directive made it mandatory for public institutions to hold 10% of their reserves in real estate and a 2006 law allowed foreign nationals to own property in designated developments.
The total value of construction projects in the country is approximately $33bn. Land prices in Oman are estimated to be 50% less than those in Dubai and 35% less than in Bahrain.
However, recent speculative activity has caused an appreciable rise in land prices during the past year. This is especially the case for land that is located adjacent to real estate projects such as Blue City ($10bn); Omagine ($1.6bn); Salam Resort and Span ($1bn); Wave ($1bn): Journey of Light ($1.2bn): Muriya ($600m); Muscat Golf and Country Club; and the Al Khuwayr project.
Main | Residential | Commercial | Hospitality | Retail
The Omani Property Market
Source: Oxford Business Group
Comparatively low prices and more relaxed laws are crucial advantages
Oman's economy is characterized by its declining oil production and the need for economic diversification. The country has 5.6bn barrels of oil reserves, which is just enough to last for another two decades. The economy remains heavily dependent on hydrocarbons, which currently account for some 50% of GDP and 80% of government revenue.
After liquid natural gas, construction is the Omani economy's second fastest growing sector, having grown at a compound average of 22% between 2001 and 2005. This sector's contribution to the country's GDP has risen to an estimated 4% as a result.
With the lowest GDP growth rate and GDP per capita among the Gulf Cooperation Council (GCC) countries, Oman's approach to economic development has differed from its neighbours: it opted out of OPEC and achieved WTO membership several years before its neighbours: its stock exchange registered an advance in the midst of the widespread losses affecting other markets; and it recently announced that it will not join the GCC currency upon in 2010.
High oil prices have also resulted in a budget surplus, which is being used to diversify the economy and to attract foreign investment. Water desalination, electricity generation, aluminum production, fertilizer manufacturing, petrochemicals, tourism and real estate are some of the areas targeted for diversification in the "Vision 2020" programme.
Key developers
The industrial zones in Sohar and Salalah have attracted many foreign investors to the country. New companies are now demanding offices, hotels and houses. The natural beauty of the country is also creating tourism demand. Sohal is particular has seen considerable tourism growth during the past five years.
Located on the coastline north of Muscat, the port is a joint venture between the government and the Port of Rotterdam. It has attracted some of the biggest names in international such as Alcanm, Bechtel, Hutchison Port Holding, Air Liquide and Shadeed Iran & Stell among others, for a total of $12bn.
New laws boosting the real estate sector have been introduced. A 2002 directive made it mandatory for public institutions to hold 10% of their reserves in real estate and a 2006 law allowed foreign nationals to own property in designated developments.
The total value of construction projects in the country is approximately $33bn. Land prices in Oman are estimated to be 50% less than those in Dubai and 35% less than in Bahrain.
However, recent speculative activity has caused an appreciable rise in land prices during the past year. This is especially the case for land that is located adjacent to real estate projects such as Blue City ($10bn); Omagine ($1.6bn); Salam Resort and Span ($1bn); Wave ($1bn): Journey of Light ($1.2bn): Muriya ($600m); Muscat Golf and Country Club; and the Al Khuwayr project.
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