New real estate regulations take effect at Duqm SEZ

RELAXED RULES: Guidelines designed to spur investments in real estate projects, as well as encourage citizens to live and work in the hub

Regulations governing real estate investments and activities in the Duqm Special Economic Zone will come into force today, September 6, 2017.

The new guidelines were approved by the Board of Directors of the SEZ Authority at Duqm (SEZAD) at their second meeting of the year chaired by Yahya bin Said al Jabri, Chairman of the Board.

The regulations, published in the latest issue of the Official Gazette, aims to strengthen SEZAD’s efforts to attract domestic and foreign investments and provide the legislative environment that encourages the private sector to invest in real estate projects, such as tourist complexes and developments for mixed-used residential, commercial and hospitality uses.

Ismail bin Ahmed al Balushi (pictured), SEZAD’s Deputy CEO, said real estate projects have garnered strong investor interest in recent years. Accordingly, SEZAD decided to draft guidelines to regulate the use of state owned land for real estate development, provide greater clarity on the rules governing the sale of usufruct rights over real estate units, and delineate the developer’s obligations and usufruct rights.

In an interview, Al Balushi added that the new regulations also aims to encourage citizens and foreigners to stay in Duqm by allowing them to purchase the usufruct rights offered by real estate developers for sale. The regulations allow Omanis and expatriates — whether natural or legal entities — to acquire usufruct rights over real estate units built in real estate projects.

This will contribute to meet the demand for residential units in Duqm in line with SEZAD’s vision to make the SEZ a suitable place to live and work.

According to the new regulations, real estate developers will receive a total land area of not less than 100,000 square metres per project, allowing them to provide many facilities for the residents. The term of the usufruct shall be 50 calendar years, renewable for a similar period. This shall provide the stability sought by workers and residents in Duqm.