$1.9B Blue City Project Takes Shape as Oman Revives the Project Construction

Home » News » $1.9B Blue City Project Takes Shape as Oman Revives the Project Construction

Oman has initiated its plans to build the long stalled Blue City project also known as Al-Madina al Zarqa. The project will now be developed by the Grand Blue City Development Company. The company is backed up by Oman Investment Authority. Egyptian-based company, Engineering Consultants Group is the project for the development’s first phase. The project has already taken shape and design works are already underway. The project is also expected to reach completion by mid 2024. The first phase of the Blue City project construction includes the setting up of 100 luxury villas and 202 lagoon villas. It also includes the construction of a five-star hotel and one to three bedroom apartments that are serviced. It will also include the construction of 270 apartments.

The Blue City project is located 100 kilometers Northwest of Muscat along the Al-Sawadi sea front. When initially conceived, the scope of the project was to cover 32 kilometers and was to become Oman’s third-largest city. This would have included schools, apartment buildings, luxury villas, and even recreational facilities. The project has stalled for a long period of time since its launch of the proposal in 2005. The project was led by local-based Al Sawadi Investment and Tourist Company (ASIT). The joint consortium of Greece’s Aktor and Turkiye’s Enka was awarded $1.9 billion for the designing and building. The joint venture companies were to build and complete the first phase of the Blue City project.

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Blue City Project has Stalled for the Past 18 Years as Oman Hopes To Finally Complete the Project

The construction of the first phase of Blue City project started shortly after the contracts were awarded but never gained the needed momentum. The project construction was barred with issues such as financial constrains. The 2008-2009 financial crisis caused more stall in the project as investments in the project quickly dried up. The scheme was further burdened with unsustainable debt levels. The project has been unable to move forward ever since till its revival now. The project was viewed as a crucial and integral part of the sultanate’s economic diversification. The Oman government hopes to achieve this bid and more once construction is complete.