Blue City, Oman
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| Blue City | |
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| — Town — | |
 Blue City
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| Coordinates: 23°46′48″N 57°47′24″E / 23.78°N 57.79°E | |
| Country |  Oman |
| Region | Al Batinah Region |
| Time zone | +4 (UTC+4) |
Al Madina A'Zarqa (formerly known as Blue City) 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.
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[edit] About the Blue City
Located on a natural peninsula 30 minutes from Muscat Seeb Airport, Al Madina A"Zarqa is a 32-square-kilometer (12 sq mi) waterfront city being built along 16 kilometers (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 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.
[edit] 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, 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."
[edit] International Involvement
The project will be financed by the U.S. financial group Oppenheimer. 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.
[edit] 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.
[edit] External links
- www.almadinaazarqa.com - The Blue City - Sultanate of Oman
