Oman Projects

[Adel]

Bahraini firm sued in Oman
By SOMAN BABY

A BAHRAINI company is facing court action in Oman after its partners accused it of illegally acquiring a majority stake in a multi-billion dollar project to build an entirely new city.

However, AAJ Holdings Company (AAJHC) claims it is an unlawful attempt to force it out of the $15 to $20 billion Blue City development and is now appealing to the Omani government to intervene.

The firm owns 70 per cent of the shares in Ocean Developments, the holding company behind the project.

But legal action is now being taken against it by its partner Cyclone LLC, AAJHC chairman and chief executive officer Ahmed Abubaker Janahi revealed yesterday.

He said a suit had been filed against his company in the Omani courts and claimed an injunction order had been granted, which stopped AAJHC from exercising its rights associated with shares it owns in Ocean Developments until a judgement is handed down by the court."

He said this meant Cyclone had been managing the project without any involvement by AAJHC, claiming the Omani partners had initially demanded 20pc of the Bahraini company's shares.

"An immediate intervention by the Omani government is now crucial, seeing as the minority shareholder is currently in full control of the project and has actively and independently started sales, disbursements and generating revenues - the whereabouts of which still remain unknown to AAJHC," Mr Janahi told a Press conference at the Mšvenpick Hotel yesterday.

"We have been wrongly and completely shut out with all references and our logo unduly removed from the project."

Prior to AAJHC entering into the project as a strategic partner, investment rights to the 32sqkm project were granted to Al Sawadi Investments and Tourism Company by the Omani government on an exclusive 75-year basis.

Mr Janahi said Al Sawadi failed to develop the land for almost five years, which is why AAJHC was brought in.

"It approached AAJHC, which developed the project concept by preparing the necessary business, feasibility and architectural plans with phased development implementation programmes and tapped into its international network of banking relationships to secure the $925 million required to fund phase one of the project," he claimed.

"Since then, AAJHC was the major stakeholder in the project - being the registered owner of 70pc of the shares of Al Sawadi Investments and Tourism Company, which it has acquired through documents legally registered at the Commerce and Industry Ministry in Oman.

"Cyclone was the Omani shareholder owning the remainder of the shares."

Mr Janahi claimed the dispute between AAJHC and its Omani partners began after phase one funding was secured.

"This funding resulted in the escalation of the project's land value from $83m to over $1bn for phase one alone and is further expected to increase to $20bn over the remainder of the life of the project, which in turn dramatically increases the value of the shares," he said.

Mr Janahi also claimed AAJHC would have negotiated with its Omani partners to sell 20pc of its shares, meaning it would become a 50-50 venture.

"Our investment, including the money generated from various sources for the project, will come to more than $100m," he added.

soman@gdn.com.bh

[Adel]

AAJ Holdings wins case

Bahrain-based AAJ Holdings Company (AAJHC), which conceived and launched Oman’s largest $20 billion realty project called Blue City, has won a court case establishing AAJHC’s claim of owning of 70 per cent of the project.
Last week, Ahmed Abubaker Janahi, company chairman and chief executive officer, owner of 70 per cent of the shares of Ocean Developments SAOC, the holding company of the Blue City project in the sultanate, alleged that his Omani partners (Cyclone LLC) had been unrightfully exercising their influence for the purpose of committing severe encroachments on the company’s rights in the project. The chairman-CEO, in a statement, said the Omani Courts had dismissed the case brought by Cyclone (30% holding in the Blue City project) against AAJHC which is the majority (70%) shareholder, ordering the Omani partners to pay all costs.
Observers have concluded that the decision of the Omani justices will boost confidence in the regional investment environment, marking a significant triumph for justice, both in Oman and the wider region. Janahi said: ““The victory cannot be construed as merely a victory for AAJHC as it is a triumph for all local, regional and foreign investors.” – Business Correspondent

[alsen]

Originally Posted by clone54

Oman plans $1bn healthcare city

Oman's Majan Development Company (MDC) is planning to develop a healthcare city near Muscat with an estimated investment of 300-400 million rials ($774 million to $1.03 billion), a senior official of the Kuwait-based Gulf Investment House (GIH) told reporters.

An international consultancy agency has conducted market research for the project in the GCC region. The result was positive... A feasibility study for the project is going on now," said Bashar Al Tuwaijri, senior manager for direct investment at GIH, which is initiating the project with a 20% stake in MDC.

Tuwaijri said the healthcare city would be constructed on a build, operate and transfer (BOT) basis.

Construction is expected to start by next year," he told reporters.

Oman's Ministry of Tourism has agreed to allot land of one million square metres near Blue City, which is 100 kilometres away from Muscat.

Al Tuwaijri said the healthcare city would include medical colleges, hospitals, conference halls, hotels and shopping malls.

"The project will be funded by way of equity and term loan from banks," he said.

MDC, which has a paid up capital of 25 million rials, was formed by a group of investors in the Gulf region to develop real estate projects in Oman.

It is 20% owned by GIH, 10% by Commercial Real Estate, 10% by Sharjah Islamic Bank, 30% by other non-Omani investors and 30% by pension funds and other institutional investors in Oman.

http://www.arabianbusiness.com/51382...are-city?ln=en

nice project but very dubai-ish looking though.

[saladin1970]

http://www.alargan.com/en/current_pro.htm

an exclusive spa resort on the only current road that reaches banda khairan






and this is what it looks like now

[saladin1970]

[The-King]

The Blue City Oman
image hosted on flickr

[gole_hayahou]

nice!

Anymore info?

[orlistat]

Another major project in Oman will be in Salalah which is the second largest city in Oman (probably will lose this status to Sohar in the future)
It is a big toursitc resort that will be simillar in size to the El Gouna in Egypt.
The Salalah beach resor will have (beside hotels and villas) a marina, a golf course, a town center and shopping facilities.
http://www.salalahbeach.com/

[Skyprince]

I think my Omani friends have shown me the site of Salalah Beach when I was there last year- it is located somewhere between downtown Salalah and Taqah. It must be a huge draw to Salalah once its completed. I hope that it won't be a retreat only for luxury tourists but also for backpackers ( like me ) by providing cheap hostel options.

[bizzybonita]

Sicily is Sultan dell'Oman's choice for an ultra luxurious hotel

Sultan dell'Oman has a new project in mind for Sicily. Somehow, everytime I think of Sicily, I automatically think of the Godfather. But that is besides the point and let's get back to the topic at hand. This rich politician has decided to develop an uber luxurious hotel on the island of Sicily. There are no concrete plans yet, it is probably just a floating idea. However, if the said project goes through, one of the big names in the hotel biz will be involved. The hotel is probably going to spring up between Agrigento and Sciacca. The attractions will include a gold course. An investment of of about 100 million euros is expected. Who knows if this ultra luxurious idea of Sultan dell'Oman materialises, but the hotel sounds extremely fancy. Can't expect any lesser from someone this rich.

[Dreamtofly]

There are a lot of Infra project going on in Oman.

1. The Wave Muscat
2. Yeti Spa
3. New Muscat Sur Toll Highway
4. South Highway
5. Barka Sohar Highway
6. Muraya

Can some post a development Pic of this.

[davy_boy]

I take it everyone has heard of this project that will be located next to the Shangra La resorts ... Salam Yiti.

[Adel]

Lawsuit 'is testing global confidence'

MANAMA: Global investor confidence in the GCC could be at stake in a protracted legal battle over the ownership of a massive development project, says a Bahraini entrepreneur.Bahrain-based AAJ Holdings is locked in a dispute with Omani company Cyclone over ownership of the $15 billion Blue City Project in Oman.

Cyclone took the dispute to the Omani Court of Appeal, after losing a case last March in which it accused AAJ Holdings of illegally acquiring a majority stake in the project.

AAJ Holdings holds a 70 per cent stake in the project, while the remaining 30pc of the shares are held by Cyclone.

But AAJ Holdings chairman and chief executive officer Ahmed Abubaker Janahi says his company has effectively been locked out by Cyclone since the ruling by the Primary Court.

Mr Janahi said the implications of the dispute were 'huge', with global investors watching to see how the appeal court rules.

"Lots of things are at stake here," he said.

"The investors injecting their money into the region during the past period are now awaiting the verdict in this dispute, in order to get the necessary comfort that their investments are safe in this region.

"From the moral point of view, justice in the GCC is under scrutiny and is now facing a major test. We hope that the ruling of the Omani judiciary will be fair as it has always been.

"There are international implications related to the financing of the project, which are overseen by international parties that have a right to protect their interests and intervene if they feel that matters are getting out of control."

AAJ Holdings had acquired its 70pc shareholding in the project company in two stages; 58pc on May 22 2005 and 12pc on October 17, 2005.

The legal dispute started when Cyclone instituted proceedings at the Omani courts claiming that AAJ Holdings and the two companies from whom AAJ Holdings bought the shares had violated the Commercial Companies Law in Oman, which states that partners in a company shall have the pre-emptive right to acquire shares that any partner in that company intends to dispose of to third parties.

Cyclone claimed that the terms of the sale offered to it to exercise its right of first refusal were not the same as the terms under which the sale of the project company shares was actually concluded.

The Primary Court in Muscat, however, rejected the case, confirming AAJ Holdings' shareholding in the project company and the validity of the share sale and purchase process.

Mr Janahi alleged that Cyclone had since rejected all overtures to start afresh and push ahead with the project, denying him and his representatives access to the company and the project.

"Following the issuance of the verdict in our favour, we reached out to Cyclone in an attempt to start a new page and preserve the livelihood of this huge project, particularly seeing as there are international parties which contributed to the financing of this project, in addition to the fact that the project companies and partners have made international and local financial commitments," said Mr Janahi.

"Unfortunately, Cyclone rejected all our attempts. Therefore, we are now awaiting the ruling of the Court of Appeal, hoping that the Omani judiciary will once more restore justice to its rightful owners.

"We do have rights; we own 70pc of the project's shares, and no one will take this away from us.

"Cylcone is continuing to prevent us from exercising our management rights as partners and board members and have even prevented us and our representatives from physical access to the company's premises in order for us to carry out our administrative tasks."

He said he and his representatives had been kept away from the project since the beginning of the dispute.

"Consequently, we are not responsible in any manner whatsoever for the commitments made and actions taken by Cyclone during the period in which we were shut out from the project," said Mr Janahi.

"After the issuance of the Primary Court verdict, I dispatched our professional representatives to gain access to the company's premises, carry out certain tasks and review the company's records.

"Sadly, they were thrown out of the company and prevented from entering. Until this date, we are still not granted access to the company nor its records, by Cyclone, without them actually having any legal backing for such actions."

He said his legal team had lodged an objection to the appointment of a new expert by the appeal court to examine the case, but this had been rejected by the court.

"We objected to the appointment of this expert right from the beginning, based on the fact that he is not one of the experts registered in the list of accredited and approved experts often utilised by the Ministry of Justice and does not have any experience in commercial adjudication," said Mr Janahi.

"He is an academic at Sultan Qaboos University and has no previous experience as an expert to the court, as this is the first task assigned to him.

"However, the court rejected our objections, which we found surprising, as a case of such magnitude and level should definitely be handled by a prominent experienced firm or an expert who has the necessary expertise, impartiality and professionalism."

He said his company had done everything it could to solve the dispute amicably.

"We did not leave any stone unturned in our attempts to reach an amicable resolution between the two parties," said Mr Janahi.

"Our position was clear right from the beginning; to preserve the interests of the project and the reputation of the region from the investors' point of view.

"The reason behind this is simple: we own a majority interest, and any amicable resolution will ultimately be to the benefit of all parties.

"We exerted all possible efforts, approached all officials and ministers, and conveyed messages to those of interest.

"Despite the fact that we were confident that we are in a position of strength in the case filed against us by Cyclone, we knocked on all doors out of our desire to preserve the Blue City Project, a desire that some interpreted as weakness and lack of confidence in our legal position.

"Unfortunately, such efforts to communicate were in vain."

Mr Janahi said the dispute had not daunted his commitment to engaging in further development projects in the region.

"This is an experience, and experiences only make you stronger," he said.

"Despite the tough economic conditions experienced all over the world, including this region, I believe the effects of the economic meltdown are less substantial in the GCC, as governments are actively involved in the regulation of investment activities and many of the regions' central banks adopt a conservative approach."

Mr Janahi said he remained confident that justice would prevail.

"I'm fully confident that the Omani judiciary will restore justice and restore my rights," he said.

"The case is quite clear and does not even require the appointment of experts, and I am confident that our legal position is sound."

[hr@penguineng.ae]

Penguin Engineering Ltd L.L.C

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We have a specialist design & build section covering all aspects of the MEP range & scope, all of our MEP disciplines are carried out in house. We also specialise in fast track projects.

Please visit our web site : http://www.penguindubai.com for more information

Originally Posted by Krazy

Zubair Corp unveils seafront resort project

Muscat: The Zubair Corporation yesterday received a 40 million riyal (Dh380 million) loan intended for the 680-room Barr Al Jissah Resort project, officials said.

"We are expecting an over 50 per cent occupancy rate. We hope to break even in the second year of operations at the resort," said Ziyad Al Zubair of Barr Al Jissah Resort Company.

He spoke following the project finance agreement signing ceremony, held at the resort site yesterday.

The 70 million riyal (Dh665 million) seafront resort is expected to receive its first guests by the end of this year.

Rashad Al Zubair, vice-chairman and group president of the Zubair Corporation, thanked the lending banks Gulf International Bank, BankMuscat, HSBC, Arab Bank and Bank of Dhofar for approving the loan for the resort project.

Maqbool Ali Sultan, Oman's Minister of Commerce and Industry, presided over the signing ceremony. Sultan lauded Zubair Group's effort to give Oman a resort that meets international standards.

"The assistance we have provided to this project, with its impressive magnitude and size, represents clear evidence of the government's commitment to the tourism sector. We are dedicated to making tourism a vibrant and vital sector of the economy," Sultan said.

The Omani minister pointed out the Bar Al Jissah Resort was planned and being built to meet the highest international standards.

The Bar Al Jissah resort will set a fine example, one to be emulated by other domestic tourist destinations, Sultan said.

Hong Kong-based Shangri La Hotels and Resorts Group will operate the Bar Al Jissah Resort. It is being built on a 450,000 square metre beachfront site. A spa, health club, swimming pools, and leisure facilities will be housed nearby.

Out of the 70 million riyals (Dh665 million) needed for the project, the Zubair Group has provided 15 million riyals (Dh142.5 million).

The Government of Oman's share is 10 million riyals (Dh95 million). The Government has also extended a soft loan of five million riyals (Dh47.5 million).

[Dimas Mardjono]

Wow,

I try to read them. There are so many things that I need to know about Oman and all about the real estates, palaces, hotels and buildings.

So much for Oman. I'll be very happy that I can contribute my knowledge. Especially in Brand Identity development-- logo off course.

I don't know visit this site, www.whitespace-dsign.com , so one can get the picture for what I do professionally.

Nice

[daneal_hetcher]

Hi Friends . Any one know about the project called " Tousit Village " I can't seems to get much information about the project in Oman.. Where is a good plance for me to get this.

[Halawala]

The New Muscat International Airport

[yazm1991]

Originally Posted by Halawala

The New Muscat International Airport

Well done Oman, looks great!

Cheers for the pics Halawala

[Adel]

Qatari firm vows to revive Oman project
Posted on » Wednesday, April 21, 2010


MANAMA: Qatari investment company Bin Muhanna Holding Group yesterday announced its participation as a main partner in the major Blue City project being set up in Oman by the UDM Group and Bahrain-based A A J Holding.

Bin Muhanna Holding chairman Dr Najeeb bin Mohammed Al Noaimi said the firm were happy at becoming part of the major project.

"We will now approach international banks, investors and insurance companies in order to restore confidence in this project, which has been facing obstacles and hindrances, and realise its objectives.

"We will also co-operate with all the partners, particularly A A J Holding, which started the project in 2004."

He said the company will work closely with all investment and financial centres to revive the project and realise its development objectives.

He said the project has faced major setbacks and obstacles, which were created by some investors, and this has reflected adversely on its reputation.

"We will now rise to the occasion of this partnership, and we will provide financial and legal assistance through our long experience in this field to develop the project and reach positive results."

A A J Holding president Ahmed Abu Baker Janahi said the company is proud of this partnership which comes at a time when the project needs investors who have financial and legal leverage. "This initiative will be a qualitative step and a much needed addition to the project that will enable it to overcome the obstacles and hindrances which have obstructed its development and affected its reputation on a global level," he said.

"We will also invite every sincere person or party wishing to develop the project and we hope that all other investors will serve the project's high interests and the interests of all local, regional and global partners who are keen for the success of the project, particularly when its failure will affect the investment climate in the entire region," he added.

[Mimihitam]

Shaza at Tilal Al Kuwair Hotel








Land Area : 12.566 sqm
Location :Muscat, Oman
Owner : Al Madina Real Estate Company