Latest news with #Sorouh
Zawya
22-05-2025
- Business
- Zawya
Oman: Developers seek solutions to real estate challenges
MUSCAT: The real estate market in the Sultanate of Oman has witnessed notable activity in recent years, particularly with the launch of Smart City projects such as Sultan Haitham City, and integrated residential neighbourhoods under the 'Sorouh' initiative, all of which aim to provide a comprehensive urban environment aligned with the goals of Oman Vision 2040. However, this momentum faces several obstacles that threaten the pace of growth and investment in this vital sector chief among them being weak purchasing power among citizens, high construction costs, and land development challenges. In this context, the Observer spoke with several prominent real estate developers during the 20th Oman Real Estate Conference and Design and Build Week, where they outlined the major issues confronting the sector and proposed realistic solutions to enhance market efficiency. FINANCING: THE MAIN BOTTLENECK Nasser Al Badi, General Manager of Al Badi Investment Group, emphasized that the concept of integrated residential neighborhoods, introduced by the Ministry of Housing and Urban Planning about four years ago, marked a qualitative leap in the housing sector, with the pilot project 'Hayy Al Naseem' initially showing strong sales. However, he noted that it soon faced marketing difficulties due to citizens' limited access to financing. 'It's unrealistic to expect citizens to purchase homes costing between RO 25,000 and 50,000 when their monthly income barely covers basic needs. Banks lend to those earning RO 325 a month, then deduct OMR 150 in repayments—how can someone live on the remaining amount?' Al Badi lamented. He clarified that the problem isn't with the integrated neighborhood concept itself, but with the absence of financing mechanisms that align with citizens' incomes. He proposed long-term loans extending up to 50 years, with monthly deductions capped at 20–25% of income to ensure a dignified standard of living without overwhelming debt. Qais al Bahri, CEO of Dream Villa, described housing finance as the 'fundamental dilemma,' stating that the challenge isn't legal but financial—where loan ceilings are not in line with citizen incomes or current property prices. He suggested that collaboration with banks, as seen in Saudi Arabia, could create holistic financing solutions. RISING CONSTRUCTION COSTS The rising prices of construction materials, along with permitting and approval fees, have created additional pressure on both developers and buyers. Al Badi explained: 'To start a project, we have to pay thousands—RO 7,000 for mining approvals, RO 3,000 for environmental permits, and RO 18,000 for civil defense clearance. These fees ultimately inflate property prices.' Al Bahri attributed the increase to global factors beyond local control, stressing that reducing construction quality to cut costs is not an acceptable solution. MORE REGULATORY REFORMS NEEDED Both developers acknowledged notable progress in real estate laws over recent years. According to Al Bahri, the Ministry of Housing has become more flexible, offering easier eligibility for housing ownership. For instance, citizens can now purchase property even outside their native governorates, and support can reach up to RO 30,000 or even RO 50,000. Al Badi praised the Ministry's escrow account system, which he described as an important regulatory measure that helps prevent real estate fraud. ABUNDANT LAND BUT LIMITED INFRASTRUCTURE Commenting on claims of land scarcity in some governorates, Al Badi denied there is a shortage of land, stating: 'We have thousands of unused plots, but the real issue lies in the lack of infrastructure—areas without water, sewage, or electricity.' Al Bahri agreed, noting that 'owning land is not enough. The land must be livable with access to essential services, and this is what the Ministry has been focusing on recently.' Al Badi proposed a different approach to stimulate the real estate market, one that goes beyond direct subsidies. He suggested allowing expatriates and their families to reside and own property. 'The demand for housing is low because the population isn't large enough to drive the market. If we allowed expatriate families to settle and rent homes, thousands of apartments would be occupied, and local markets would flourish, similar to what we've seen in Dubai and Riyadh,' he explained. Oman's real estate sector currently struggles with a disconnect between strong government planning and the citizen's financial ability to keep up. While regulations have become more flexible, financial constraints remain the core issue—requiring joint intervention by the government and the banking sector to ensure the continuity of development projects and restore market balance between supply and demand. In light of these challenges, proposed solutions such as expanding banking options, reducing government fees, and increasing population density through inclusive residency policies may offer new opportunities for this vital sector in shaping Oman's urban and economic future. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
21-05-2025
- Business
- Observer
Developers seek solutions to real estate challenges
MUSCAT, MAY 21 The real estate market in the Sultanate of Oman has witnessed notable activity in recent years, particularly with the launch of Smart City projects such as Sultan Haitham City, and integrated residential neighbourhoods under the 'Sorouh' initiative, all of which aim to provide a comprehensive urban environment aligned with the goals of Oman Vision 2040. However, this momentum faces several obstacles that threaten the pace of growth and investment in this vital sector chief among them being weak purchasing power among citizens, high construction costs, and land development challenges. In this context, the Observer spoke with several prominent real estate developers during the 20th Oman Real Estate Conference and Design and Build Week, where they outlined the major issues confronting the sector and proposed realistic solutions to enhance market efficiency. FINANCING: THE MAIN BOTTLENECK Nasser Al Badi, General Manager of Al Badi Investment Group, emphasized that the concept of integrated residential neighborhoods, introduced by the Ministry of Housing and Urban Planning about four years ago, marked a qualitative leap in the housing sector, with the pilot project 'Hayy Al Naseem' initially showing strong sales. However, he noted that it soon faced marketing difficulties due to citizens' limited access to financing. 'It's unrealistic to expect citizens to purchase homes costing between RO 25,000 and 50,000 when their monthly income barely covers basic needs. Banks lend to those earning RO 325 a month, then deduct OMR 150 in repayments—how can someone live on the remaining amount?' Al Badi lamented. He clarified that the problem isn't with the integrated neighborhood concept itself, but with the absence of financing mechanisms that align with citizens' incomes. He proposed long-term loans extending up to 50 years, with monthly deductions capped at 20–25% of income to ensure a dignified standard of living without overwhelming debt. Qais al Bahri, CEO of Dream Villa, described housing finance as the 'fundamental dilemma,' stating that the challenge isn't legal but financial—where loan ceilings are not in line with citizen incomes or current property prices. He suggested that collaboration with banks, as seen in Saudi Arabia, could create holistic financing solutions. RISING CONSTRUCTION COSTS The rising prices of construction materials, along with permitting and approval fees, have created additional pressure on both developers and buyers. Al Badi explained: 'To start a project, we have to pay thousands—RO 7,000 for mining approvals, RO 3,000 for environmental permits, and RO 18,000 for civil defense clearance. These fees ultimately inflate property prices.' Al Bahri attributed the increase to global factors beyond local control, stressing that reducing construction quality to cut costs is not an acceptable solution. MORE REGULATORY REFORMS NEEDED Both developers acknowledged notable progress in real estate laws over recent years. According to Al Bahri, the Ministry of Housing has become more flexible, offering easier eligibility for housing ownership. For instance, citizens can now purchase property even outside their native governorates, and support can reach up to RO 30,000 or even RO 50,000. Al Badi praised the Ministry's escrow account system, which he described as an important regulatory measure that helps prevent real estate fraud. ABUNDANT LAND BUT LIMITED INFRASTRUCTURE Commenting on claims of land scarcity in some governorates, Al Badi denied there is a shortage of land, stating: 'We have thousands of unused plots, but the real issue lies in the lack of infrastructure—areas without water, sewage, or electricity.' Al Bahri agreed, noting that 'owning land is not enough. The land must be livable with access to essential services, and this is what the Ministry has been focusing on recently.' Al Badi proposed a different approach to stimulate the real estate market, one that goes beyond direct subsidies. He suggested allowing expatriates and their families to reside and own property. 'The demand for housing is low because the population isn't large enough to drive the market. If we allowed expatriate families to settle and rent homes, thousands of apartments would be occupied, and local markets would flourish, similar to what we've seen in Dubai and Riyadh,' he explained. Oman's real estate sector currently struggles with a disconnect between strong government planning and the citizen's financial ability to keep up. While regulations have become more flexible, financial constraints remain the core issue—requiring joint intervention by the government and the banking sector to ensure the continuity of development projects and restore market balance between supply and demand. In light of these challenges, proposed solutions such as expanding banking options, reducing government fees, and increasing population density through inclusive residency policies may offer new opportunities for this vital sector in shaping Oman's urban and economic future.
Observer
12-05-2025
- Business
- Observer
Real estate conference a key platform for developers, investors
Muscat: The Sultanate of Oman is all set to launch the 20th edition of the Oman Real Estate Conference and Exhibition next week, coinciding with Design and Build Week, scheduled to take place from May 19 to 24 at the Oman Convention and Exhibition Centre. The event is organised by the Ministry of Housing and Urban Planning in collaboration with the Oman Real Estate Association. The conference serves as a key strategic platform that attracts elite developers, investors, and both local and international experts, as Oman continues its efforts to strengthen its regional position as a leading hub for sustainable urban investment. Speaking at the media briefing on Monday, Jamal al Hadi, Media Adviser to the Minister of Housing and Urban Planning, confirmed that the conference aligns with national priorities aimed at achieving integrated urban development and enhancing Oman's global presence as an attractive investment destination. He highlighted that the "Invest in Oman" identity and global promotional initiatives are in line with these efforts to strengthen Oman's image in regional and international markets. Al Hadi explained that the real estate sector is now a fundamental pillar in supporting the Gross Domestic Product (GDP) and enhancing the national economy. He noted that the conference brings together all stakeholders in the real estate ecosystem under one roof including investors, developers, individual beneficiaries and financial institutions led by Oman Housing Bank, which provides integrated financing solutions. Real estate conference a key platform for developers, investors FUTURE CITIES The conference reflects the government's direction towards developing smart cities and sustainable urban communities, with the announcement of landmark projects that mark a qualitative leap in the urban investment landscape, including the Sultan Haitham City, the Future City of Salalah and Al Khuwair Downtown project. The conference will witness the signing of new agreements under the 'Sorouh' initiative, one of the leading programmes aimed at providing integrated residential options that meet the aspirations of citizens. The initiative includes 18 projects distributed across 10 governorates, with over 90 per cent of the first phase already sold. Al Hadi pointed out that the ministry aims to reach 60 residential projects by 2030, as part of an ambitious vision to cover various wilayats of the Sultanate of Oman. He explained that these projects have contributed to creating hundreds of jobs and supporting small and medium enterprises, while achieving more than a 45-per cent reduction in infrastructure costs through integrated planning and optimised urban density. Real estate conference a key platform for developers, investors OVER 40 SPEAKERS, 180 EXHIBITORS The conference will host more than 40 international speakers participating in 10 discussion panels addressing global trends in urban planning, real estate investment and smart cities. The event will also feature 180 exhibition booths covering an area of over 13,000 square metres. The accompanying exhibition offers a comprehensive platform to showcase the Ministry of Housing and Urban Planning's major projects, including the Sultan Haitham City, the Oman Mountain Destination and Al Khuwair Downtown project. The conference programme is rich with diverse activities and interactive sessions, including live presentations of future urban projects, specialised workshops on design and urban planning, as well as an investment forum, a youth forum, and a series of panel discussions that highlight challenges and showcase solutions, best practices, and international expertise in urban development and real estate investment. The conference will also address the adoption of smart and sustainable city models that focus on multi-resource development, improving quality of life, and enabling digital transformation and property technology (PropTech) by leveraging the latest technologies in planning, management and marketing.
Observer
07-05-2025
- Business
- Observer
A model for building modern urban housing
MUSCAT: The Ministry of Housing and Urban Planning continues to implement the Sorouh initiative, aimed at developing integrated residential neighbourhoods with comprehensive services. Several projects under the initiative have already achieved high sales rates in their early phases, exceeding 80 per cent, reflecting strong public and investor confidence in this holistic housing model. The Sorouh initiative includes 18 integrated residential projects across Oman's governorates, covering over 6 million square metres and comprising more than 9,950 housing units, with an estimated investment value exceeding RO 500 million. The ministry highlighted that the initiative has engaged over 360 Omani employees in its execution while benefiting 145 small and medium enterprises (SMEs) in construction works — reinforcing local economic empowerment. Additionally, integrated planning and service coordination have reduced infrastructure costs by more than 45 per cent. Key ongoing projects include Al Naseem Neighbourhood (Barka, Al Batinah South) spanning 355,000 sqm, it offers 1,051 diverse housing units, with 60 per cent sales recorded and investments worth RO 80 million. Al Laban Neighbourhood (Nakhal) features 1,442 units across 646,000 sqm, with RO 111 million investment and 26 per cent sales to date. Hisn Al Zain (Bidbid, Al Dakhiliyah) a standout project with 75 per cent sales, comprising 639 units on 286,000 sqm and RO 30 million investment. Majd Neighbourhood (Suhar) attracting significant interest, with 77 per cent of its 1,057 units sold across 370,000 sqm (RO 50 million investment). Al Shurooq (Salalah, Dhofar) a modern model with 558 units on 324,000 sqm (RO 35 million investment) and a 79 per cent sales rate. The ministry highlighted that in Musandam Governorate, the Talal Al Nakheel (Palm Hills) project in Khasab stands out, comprising 650 residential units including detached and semi-detached villas, townhouses and apartments across a 635,000 square metre area, complete with public facilities and commercial zones. Meanwhile, in Muscat Governorate, Al Ahd Neighbourhood in Al Amerat features 965 residential units with modern architectural specifications and integrated amenities spanning 445,000 square metres. The private sector plays a pivotal role, with several projects developed in collaboration with local firms, including Nusmat Zain (Sur) with 407 units on 268,000 sqm; Al Mazun (Samayil) with 194 units; Al Nama (Izki) with 182 units; and Al Salam (Al Buraimi) with 521 units on 78,000 sqm. In a strategic move, the ministry recently signed 24 agreements to expedite infrastructure development — including water, sewage, electricity and telecom networks — for eight Sorouh projects. These partnerships with Nama Water Services, Nama Electricity Distribution and Oman Broadband Company enhance the readiness of these communities for residents, ensuring carefully planned, service-integrated environments. The Sorouh initiative embodies Oman's vision for modern urban communities that prioritise citizen well-being, stable living conditions and flexible planning models. By fostering public-private partnerships, it advances housing ownership opportunities, elevates quality of life and aligns with the goals of Oman Vision 2040. — ONA
Mid East Info
24-04-2025
- Business
- Mid East Info
NBO Muzn Islamic Banking orouh Initiative with Three Strategic MOUs
24rd April 2025, Muscat – NBO Muzn Islamic Banking has announced signing Memorandums of Understanding (MOUs) with three leading real estate developers to facilitate Shari'a-compliant housing finance solutions for Omanis under Oman's national housing scheme. The agreements were signed by Abdullah Zahran Al Hinai, Chief Executive Officer of NBO, Faisal Al Wahaibi, General Manager & Chief Retail and Digital Banking Officer at NBO, Mundhir Abdullah Al Hammadi, Chief Executive Officer of Al Daham Real Estate, Ahmed Hamed Al Sabhi, Chairman of Al Masa Real Estate, and Dr. Thomas Alexander- Chief Executive Officer of Adrak Developers, at NBO Head Office in Azaiba. The signings reflect Muzn Islamic Banking's commitment to enable affordable home ownership through strategic partnerships and Shari'a compliant financial solutions. The MOUs were signed with Al Masa Real Estate for the development of the Hayy Al Azm Project, with Al Daham Real Estate for the Hay Al Sumu Project, and with Adrak Developers LLC for two projects the Yenaier and Hai Al Naseem. These projects are part of integrated mixed-use developments under the Ministry of Housing and Urban Planning's Sorouh initiative. The initiative aims to support national housing policies by reducing land demand and offering eligible citizens high-quality, affordable residential alternatives. Salima Al Marzooqi, Assistant General Manager & Chief Islamic Banking Officer at NBO Muzn Islamic Banking commented, 'Our support for the Sorouh initiative reflects Muzn Islamic Banking's continued commitment to advancing national development goals. These partnerships aim to empowering citizens with housing solutions while adhering to our core values of trust, transparency and Shari'a compliance.' Through these partnerships, Muzn Islamic Banking will provide eligible Omani citizens with streamlined access to housing finance that is fully compliant with Shari'a principles. The agreements ensure the rights of all stakeholders, including the bank, developer and customer, are protected and offer a transparent structure to support end-to-end financing.
