Bank Nizwa signs $650mn agreement with Palm Beach for Al Nakheel project

The Al Nakheel project is a mixed-use real estate development located near the Daymaniyat Islands Nature Reserve

Bank Nizwa has signed a US $650mn agreement with Palm Beach for the Al Nakheel Project, an integrated tourism complex that will be developed by Alargan Towell Investment Company in Oman.

The Al Nakheel project is being built under the auspices of the Ministry of Heritage and Tourism and is a mixed-use real estate development located on the seafront between Al Seeb and Barka. It is said to be in close proximity to the Daymaniyat Islands Nature Reserve.

The project will be constructed on a land area of 500,000sqm and will have a total built up area of 369,000sqm. It will be developed in three phases, with Bank Nizwa’s financing being extended for the development of Phase 1A of the project, the development of which will commence in 2022, the statement explained.

In August 2022, Oman’s Rakiza fund said it received a capital commitment of US $298mn from Saudi Arabia’s PIF.

Khaled Al Kayed, CEO of Bank Nizwa, said: “The real estate sector is a critical component of the national economy, and the upcoming Al Nakheel Project, which is set to be an iconic destination, will certainly attract significant investments. We are indeed delighted to join hands with a reputable company as Palm Beach and be a part of this prestigious development.”

“While this project will significantly boost the real estate sector in the country, it also reaffirms our commitment to support national initiatives that offer sustainable, long-term benefits while strengthening Oman’s position as a lucrative investment destination,” he remarked.

The development will be centred around a Crystal Lagoon of 51,000sqm, which will be the first in Oman and will act as a major anchor for the development, thus differentiating Al Nakheel from other ITC developments, the statement pointed out.

In early August, Johnson Arabia said it had completed the installation and erection work for a date processing complex in Oman.

Once completed, the project is expected to include three hotels, villas, apartments, serviced apartments, mixed-use souks, an aqua park, a mall, and a school, all of which are carefully spread over different phases.

Al Kayed added: “Targeting the middle-income strata of the local and expatriate population, the Al Nakheel Project has various offerings for the residential, tourism, and retail markets. Positioned as an attractive and affordable tourism destination, it also closely resonates with the bank’s values of promoting inclusivity while ensuring that an exciting lifestyle experience is more accessible to all.”

Later in August, Omani authorities said that the $175mn Botanic Garden was on track for completion in 2023.

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