Construction on the city is due to begin in October 2019 © Khazaen Economic City
Construction on the city is due to begin in October 2019 © Khazaen Economic City

Khazaen awards first construction contract for new city

10 September 2019

Khazaen Economic City (KEC) has awarded its first construction contract, worth 9.2m Omani rials ($24m), for Oman’s new integrated city.

Building and engineering firm Galfar has been awarded the construction package for the project, which will create a northern logistics hub for the country.

Khazaen is strategically located in the Barka region of Oman, between Muscat and Suhar, and will cover an area of 52sq km in its first stage. 

Galfar will be responsible for developing 10km of asphalt roads, a streetlight network, 15km of storm water channels and a 22km potable water network including the main water transmission line and storage tanks. The project is due to be completed within 12 months. 

Construction on the city, which will serve as Oman’s northern logistics hub, is due to begin in October 2019.

Khalid Awadh al Balushi, CEO of KEC, said: “The development of a high-quality infrastructure network at Khazaen Economic City demonstrates our commitment to this project and will serve as an important catalyst for growth — attracting investors and tenants alike.

“The first phase of development will open up an area of three million square metres, representing a major investment opportunity in one of the sultanate’s key infrastructure initiatives. We encourage all interested parties, both foreign and domestic, to submit investment applications at the earliest available opportunity.”

Salim al Thuhli, general manager at KEC, added: “The awarding of this initial infrastructure contract will enable and support the development of all subsequent initiatives and projects at Khazaen, and establishes fully serviced platforms for local and international investors.”

In July 2019, KEC unveiled the first phase of its masterplan for the city, including the development of a dry port, logistics and industrial areas, a free-trade zone, and commercial and residential zones.

Speaking at the time, Al Balushi said foreign investment in the city would “create jobs, enable economic multipliers supporting logistics SMEs and encourage local raw material refining into value-added products”.

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