Blue City, Oman
Encyclopedia
Al Madina A'Zarqa is a $15 billion megacity
project in the Sultanate of Oman. Spread over 32 square square kilometers and 16 kilometers of coastline along the coastal region at Al Sawaadi, only 45 minutes from Muscat
. When completed, the city will include more than 20 hotels, hospitals, university. It will also have shopping centers, marina, schools, and other amenities and facilities that one would want and need in a thriving metropolis. Al Madina A'Zarqa supports the government Vision 2020 in diversifying the Sultanate's economy from fossil fuel. This new city will generate large scale employment upon completion and will be a destination not just for the GCC nationals but also for the international market.
One of the largest scale developments in the Middle East, the Al Madina A'Zarqa 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.
Al Madina A'Zarqa 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.
"This is why we came into creating this urban economy, to create jobs. We thought about things that the country needs, so we went into hotels, shopping, entertainment, amusement parks, theatres and bowling. Furthermore, we will have one of the top universities from the United States
, not an affiliation, but a real university," Mr. Issa was quoted in the December 15, 2005 edition of Our World, a USA Today
insert.
The Blue City chairman is also negotiating with two international hospitals for cancer and heart treatment. "Again this will attract people from the Middle East
or Africa
to come and be treated here and that will create jobs for nurses, hotels and many other opportunities. This is how we create the economy and this is why the government liked the idea. The Blue City is a tourist project that we converted into a macro-economy."
. This Oppenheimer company itself has become embroiled in controversy, as it has been forced to admit that it has no involvement with the Oppenheimer fortune of South Africa.(http://www.euromoney.com/Article/1331120/Title.html) "There is more money available here for investment but we did not want to bring in money from the Gulf region. We wanted to be different, so we looked at European and American collaboration and that is good for the country in general. It is good for rating when investors come in from the United States, Britain
, or Germany
. Our project has helped the rating of the government because of the way we dealt with this." says Mr. Issa.
Some doubts have been recently raised given the poor performance of Blue City bonds and the potential default. Such default will clearly put a black mark on Oman's ability to raise funds for Blue City for many years.
Megacity
A megacity is usually defined as a metropolitan area with a total population in excess of 10 million people. Some definitions also set a minimum level for population density . A megacity can be a single metropolitan area or two or more metropolitan areas that converge. The terms conurbation,...
project in the Sultanate of Oman. Spread over 32 square square kilometers and 16 kilometers of coastline along the coastal region at Al Sawaadi, only 45 minutes from Muscat
Muscat, Oman
Muscat is the capital of Oman. It is also the seat of government and largest city in the Governorate of Muscat. As of 2008, the population of the Muscat metropolitan area was 1,090,797. The metropolitan area spans approximately and includes six provinces called wilayats...
. When completed, the city will include more than 20 hotels, hospitals, university. It will also have shopping centers, marina, schools, and other amenities and facilities that one would want and need in a thriving metropolis. Al Madina A'Zarqa supports the government Vision 2020 in diversifying the Sultanate's economy from fossil fuel. This new city will generate large scale employment upon completion and will be a destination not just for the GCC nationals but also for the international market.
About the Blue City
Located on a natural peninsula 30 minutes from Muscat Seeb Airport, Al Madina A"Zarqa is a 32 square kilometres (12.4 sq mi) waterfront city being built along 16 kilometres (9.9 mi) of shoreline adjacent to the Gulf of Oman.One of the largest scale developments in the Middle East, the Al Madina A'Zarqa 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
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...
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.
Al Madina A'Zarqa 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.
Creating Jobs
Blue City will also be creating thousands of jobs. The first phase alone is expected to create 7,000 direct jobs and 25,000 indirect jobs."This is why we came into creating this urban economy, to create jobs. We thought about things that the country needs, so we went into hotels, shopping, entertainment, amusement parks, theatres and bowling. Furthermore, we will have one of the top universities from the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, not an affiliation, but a real university," Mr. Issa was quoted in the December 15, 2005 edition of Our World, a USA Today
USA Today
USA Today is a national American daily newspaper published by the Gannett Company. It was founded by Al Neuharth. The newspaper vies with The Wall Street Journal for the position of having the widest circulation of any newspaper in the United States, something it previously held since 2003...
insert.
The Blue City chairman is also negotiating with two international hospitals for cancer and heart treatment. "Again this will attract people from the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
or Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
to come and be treated here and that will create jobs for nurses, hotels and many other opportunities. This is how we create the economy and this is why the government liked the idea. The Blue City is a tourist project that we converted into a macro-economy."
International Involvement
The project will be financed by the U.S. financial group OppenheimerOppenheimer
Oppenheimer as a surname may refer to:* Alan Oppenheimer , film actor* Andrés Oppenheimer , Argentine author and journalist known for his analysis of Latin American politics...
. This Oppenheimer company itself has become embroiled in controversy, as it has been forced to admit that it has no involvement with the Oppenheimer fortune of South Africa.(http://www.euromoney.com/Article/1331120/Title.html) "There is more money available here for investment but we did not want to bring in money from the Gulf region. We wanted to be different, so we looked at European and American collaboration and that is good for the country in general. It is good for rating when investors come in from the United States, Britain
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, or Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
. Our project has helped the rating of the government because of the way we dealt with this." says Mr. Issa.
Expected Completion
The projects is expected to be fully completed by year 2020.Some doubts have been recently raised given the poor performance of Blue City bonds and the potential default. Such default will clearly put a black mark on Oman's ability to raise funds for Blue City for many years.
External links
- www.almadinaazarqa.com - The Blue City - Sultanate of Oman