Sunday, January 08, 2006

ENKA wins $1.9bn Oman resort deal

Posted: Sunday, January 08, 2006


Omani developers have signed a $1.9 billion construction agreement with a consortium of Turkish and Greek firms for part of the state's biggest tourism project, the developers said.

Private developers Al Sawadi Investment and Tourism signed the pact last week with Enka Insaat, Turkey's biggest construction company, and Aktor Ate, the construction arm of Greek firm Hellenic Technodomiki.

"The Blue City Resort" is one of several giant construction projects planned around the world's biggest energy exporting region, where governments are using record oil revenues to develop tourism, infrastructure and financial services.

The entire project will take 15 years to complete and is estimated to cost $20 billion -- about 80 percent of Oman's gross domestic product in 2004.

Blue City will cover 34 sq kms of coastline near the capital Muscat and will eventually host 2 million tourists a year.

The first phase of the project, to be built by Enka Insaat and Aktor, includes four hotels, two golf courses, and a shopping complex.

Oman is trying to diversify its economy to cushion the shock in the event of a decline in oil prices, which repeatedly surged to new highs last year.

Other Gulf states have similar plans and are handing out multi-billion dollar construction contracts.

Last month Saudi Arabia, the world's biggest oil exporter, announced a $26.7 billion development that includes resorts, a port and a financial services hub.



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