One-stop-shop for real estate development on anvil
A ‘single-window’ type system for real estate investment and development, akin to the Invest Easy portal for commercial and industrial investment, is expected to be operational before the end of this year.
The initiative, initially spearheaded by the Ministry of Housing, is currently being steered by the Implementation Support & Follow-up Unit (ISFU) — a task force operating under the auspices of the Diwan of Royal Court.
ISFU has succeeded in bringing together all of the ministries and government agencies whose approvals are necessary as part of an elaborate permitting system governing all major real estate developments in the Sultanate.
Explaining the objective behind the proposed Real Estate Development Centre, ISFU said: “The initiative seeks to gather all real estate project construction approvals under one service centre. It aims to create a clear process map for all real estaterelated projects from the first step of submitting the preliminary master plan to the last step of approving the construction permit. The objective of establishing the centre is also to simplify and streamline issues relating to construction permits.”
All nine government entities that have a stake in the smooth functioning of the real estate sector are now supporting ISFU in the establishment of a one-stop-shop in the shape of the Real Estate Development Centre.
They comprise the Royal Oman Police, Muscat Municipality, Ministry of Regional Municipalities and Water Resources, Ministry of Tourism, Ministry of Environment and Climate Affairs, Public Authority for Civil Defence and Ambulance, Public Authority for Electricity and Water, Telecommunications Regulatory Authority and Haya Water.
“The initiative seeks to get all entities to work on mapping the process for internal procedures,” ISFU said. “The entities will work on a unified template for every project including processes within the Service Level Agreement.
The centre will consist of secondees from relevant entities that will sign a Service Level Agreement to commit to a specific timeframe for approval. Once the centre receives the real estate developer template and its master plan, it will become a one-stop-shop for all construction permits.”
Importantly, the new facility will contribute to a dramatic easing of the approval processes linked to real estate development — improvements that could potentially boost Oman’s ranking in the ‘Ease of Doing Business Index’ under the ‘Dealing with Construction Permits’ indicator, says ISFU.
“As per the initiative, the real estate developers will obtain the initial approval within 27 working days after which construction can commence. Subsequently the final approval will be granted. Currently, the centre is working to automate the processes into a system which, when linked to the nine entities, will enable both the developer and the centre to track the transaction,” it noted.
Draft regulations governing the establishment of the Real Estate Development Centre, as well as an associated ‘Escrow Account Law’, have been finalised and are expected to be legislated into law before the end of this year. Plans for the introduction of a Real Estate Developer licence are also on the cards as well.
The initiative, alongside the approval earlier this year of a regulatory framework for Real Estate Investment Trusts (REIT) — also known as Real Estate Investment Funds — is expected to provide a strong new boost to investment in this hugely promising economic sector, experts stress.