Oman Endowment Foundation unveils maiden real estate initiative

Zawya

3 hours ago

MUSCAT - In its first major action since being established by Royal Decree last November, the Oman Endowment Foundation (OEF) has invited local and international real estate developers to submit their prequalification credentials for potential partnerships in the development of awqaf properties in the Sultanate of Oman.
OEF was created under Royal Decree No. 28/2024 with the objective of maximizing returns on endowment and Bayt Al-Mal assets through sustainable and innovative investments.
Announcing its first real estate initiative, the Muscat-based Foundation said: 'In line with its strategic objectives, OEF invites qualified local and international real estate developers, alliances, and specialized investors to submit their prequalification documents for potential partnerships. This initiative includes select investment lands designated for real estate development.'
According to the Foundation, future partnerships and investment models will be structured to suit different project needs. One approach is the Usufruct or Long-Term Lease Model, in which the developer is granted the right to use the endowment land for a defined period without any transfer of ownership. The developer assumes full responsibility for financing, developing, and operating the project, as well as bearing all associated commercial and financial risks. In return, OEF secures a fixed or escalating income stream, such as annual rent, while retaining complete ownership of the land both during and after the usufruct period.
Another is the Sweat Equity Model, where the developer receives an equity stake in exchange for providing full project funding, technical management, and development expertise, and for assuming all operational and financial risks. In this model, the land remains under the Foundation's ownership or may be contributed as an equity stake if mutually agreed.
OEF also offers an Equity Partnership, or Musharakah Model, based on a joint partnership between the Foundation and the investor. Here, OEF contributes the land as an in-kind share valued at fair market price at the start of the venture, while the investor contributes cash capital of equal or complementary value. The project is implemented jointly, with profits and losses shared in proportion to each party's capital contribution. Both partners retain rights in strategic decision-making, and any exit or termination is governed by the partnership agreement.
'OEF's initiative focuses on real estate projects that can be developed efficiently to generate significant returns and societal benefits,' the Foundation explained. 'This initiative is a core component of OEF's long-term vision and its strategy for endowment growth. OEF expects selected partners to conduct comprehensive highest-and-best-use analyses and detailed financial assessments for each land parcel during the subsequent Request for Proposal (RFP) stage.'
The deadline for submission of qualifications is August 24, 2025, with the shortlist of qualified firms expected to be announced on September 7, 2025.
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