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‘Government ratifies Omagine development agreement’

An artist’s rendition of the $2.5bn Omagine Project, planned to be developed in Seeb (Courtesy: omagine.com)

Muscat - 

Oman’s government has ratified the development agreement for the planned US$2.5bn mixed-use tourism and real estate project known as Omagine Project, according to Omagine Inc.

Omagine LLC, a subsidiary of US-based Omagine Inc, will develop Omagine Project on 1mn sq m of beach-front land in Seeb.

The company had signed the development agreement with the Oman government on October 2, 2014. Omagine LLC, which is 60 per cent owned by Omagine Inc, will design, develop, own and operate the Omagine Project.

“On March 15, 2015, our legal counsel received a telephone call from a senior official at the Ministry of Tourism (MoT) in Oman wherein such MoT official advised us that the ratification process of the development agreement was now completed,” Omagine Inc said in a filing to the US Securities and Exchange Commission (SEC).

It added, “The MoT official confirmed to our counsel that the development agreement was duly signed and authorised by the Ministry of Finance of Oman in accordance with Royal Decree 48/76. The MoT official stated that the ratified development agreement was in his possession and that he would advise us further in the next few days regarding the process to be followed for the signing and registration of the associated document – the usufruct agreement.”

The project land was provided to Omagine LLC by the Office of Royal Court Affairs (RCA) as part of RCA’s agreement to become a shareholder of Omagine LLC.

Omagine Inc added that it has recently had the project land valued by internationally recognised land valuation experts in accordance with the requirements for such land valuations as promulgated by the Royal Institute of Chartered Surveyors (RICS) of London, UK.

“The company has had such RICS valuation in its possession since February 2015 and management has determined that disclosure of such RICS valuation should not occur until after the usufruct agreement has been signed and registered with the Ministry of Housing of Oman,” it added. 

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