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Khazaen Economic City

Barka, Oman

2019 - Ongoing
Free Economic ZoneInfrastructureLarge Urban ProjectMixed Use

Project Description

Approach Words: Integrated City, Sustainability, Urban Livability

Public Policy Instruments: Organization, Physical Intervention, Planning, Regulatory

Khazaen Economic City is a mega1 economic zone2 that is strategically located in Barka on the Muscat- Batinah Expressway3. Covering an area of 52 square kilometers4, it is an integrated logistics hub, and consists of mixed-use developments such as industrial, commercial, residential facilities5. This new city aims to achieve the key national development objectives of the country, including economic growth, industrial development, and private sector participation in the country’s progress6. It is located within 60km of the capital city Muscat and is the second economic city in the Sultanate following the Special Economic Zone in Duqm7.

The detailed master plan of the first phase of the project was announced in 20198. One of its prime advantages is its connectivity to Muscat Al-Batinah expressway and its proximity to key services in the area such as the Muscat international, Suwaiq port, and Sohar port9, giving it access to both regional markets such as those of the UAE, Saudi Arabia, Iran, India, and Pakistan, as well as to global markets10. The master plan features a diversity of zones which include: an industrial and logistics area, a dry port, a central fruits and vegetables market, an auto mall, a commercial area, a tech and business park, two free zones11, and a residential area12.

Title: Rendered aerial view of the planned Khazaen Economic City.

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Title: Land use map of the proposed Khazaen Economic City master plan.

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Title: The construction works in the site of the Khazaen Economic City.

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Title: 3D rendering of the planned Khazaen Economic City project.

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To facilitate the success of the city, and make Khazaen city an attractive hub for investment, Oman has developed strong infrastructure and regulatory frameworks13, particularly those for foreign capital investment, privatization, and public private partnerships14. Moreover, Khazaen city itself states that it offers flexible lease and ownership structures and a streamlined licensing process for businesses15.

At a cost of USD 5.17 million, the infrastructure works for phase 1 of the project were completed in 202016, including the installation of road networks, water supply, storage and drainage systems, as well as other amenities such as street lighting17. This opened up an area of 3.2 million square meters for lease18, planned to host strategic projects such as the dry port, central fruit and vegetable market, auto market, and warehouses19.

The project is structured as Public Private Partnership (PPP)20 initiated by the Oman Government owned Asyad Group21. It is to be developed in a joint venture between the Oman Investment Corporation22 and Saudi partner Mohammed Ali Al Swailem Group (MASCO)23. The complete master planning and design of the project is being led by international engineering and project management organization, Atkins Realis24. With a total consultancy contract of USD 6.7 million25, they are also responsible for the supervision of the first phase of the plan; Galfar Engineering & Contracting Company are the principal contractor of the same26.

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