Khazaen

Presentation
 Project Overview

• Khazaen is an integrated economic city

being developed in Barka, Sultanate of
Oman.

• The Project is the first Economic Zone and

Free zone to be structured as Public-
What is Khazaen? Private-Partnership (PPP)

• The Government is represented by ASYAD

(fully government owned) has signed a
usufruct and development agreement with
Oman Investment Corporation SAOC (a
privately held company)

To develop a financially viable world-class

integrated economic city with a focus on
Khazaen Vision enhancing Oman’s economy and the well-
being

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Project - Strategic Location
Strategically Located in the Most Densely Populated Part of Oman:

Muscat Growth Corridor:

▪ Khazaen city is strategically well positioned within the main growth corridor of Muscat and
will be a prime location in the heart of Oman in the future.

Access to All Modes of Transportation:

▪ The city is located in the centre of a logistics network with access to Muscat Airport, Sohar
Port and with a direct connection to a planned future railway, making it ideal for a multi-
modal transportation hub and integrated economic city.

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Scale Analysis

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Development Overview - An Integrated Economic City

Industrial & Logistics &

Free Zones Warehousing
Free Zones, Light & Medium Industries, Dry Port, Retail Warehousing, Food Stores,
Repairs, Maintenance, Packaging, Assembly, Cold Storage, Building Materials, Distribution,
Manufacturing and Worker Villages Bulk Handling, Freight Forwarding

Businesses Residential
Local, Regional and International
Corporate Offices, Banks, Legal, Finance,
Khazaen Mass and Affordable Housing
projects, Villas, Townhouses,
IT Parks and Other Businesses Services Apartments, ITC, Mixed-use projects

Social Infrastructure Retail & Entertainment

Schools, Healthcare Clinics and Hospitals, Big Box Retail e.g. Superstores, Hypermarkets,
Hotels, Recreation Facilities Outlet Malls, Fruit & Vegetable Markets,
Out-of-Town Retail Outlets, Automotive Dealership
and Parts Showrooms, Furniture Showrooms, etc.

Khazaen will partner with best-in-class sub-developers and anchor tenants for each Khazaen cluster.

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Why Khazaen…?

Strategic High Captive

Location Demand
Strategic
National Project

Low-risk, and Excellent

Demand Driven Connectivity
Execution
Strategy

Success Factors

The First Ability to

Inland Dry Monetize
Port Assets
Huge
Potential for
Fully FDIs Massive Land
Integrated with Flexible
City Terms

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Khazaen – A Project of National Importance
1 Support to the Government initiatives
National Project
► Successful delivery of Khazaen,
as the first PPP and a project of
national importance, is critical
► Khazaen project will enhance
economic growth, contribution
to Oman’s GDP, logistics and
industrial development in Oman
6 Job creation
► Khazaen will create more
than 150,000 jobs over the
long term with focus on
maximum employment of
the Omani workforce
5 Building national capacity and capabilities
► KEC as Oman based Private Sector Developer
will develop skills by training Omani
employees and build national capability and
capacity to deliver large scale development
projects in Oman and internationally
KEC will achieve the Government of Oman’s national development objectives
through successful realization of the Khazaen Project with support of Asyad and Tanfeedh
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► Provide private sector funding for Khazaen – the first
major economic development zone directly
connected to Muscat
► Enables several Government supported projects like
central fruits & vegetable market and auto market
► Enables the Government relocation initiatives such as
Ghala and Wadi Kabir
In-country value (ICV)
3 ► Attract significant foreign
investments in Oman
► Create opportunities for SMEs and
local investors
► Maximize expenditure on Omani
goods and services
4 Maximize private sector participation
► Khazaen will maximize Oman’s private sector
participation in the nation’s development in line with
Tanfeedh’s objective of having conventional
Government’s capital expenditure financed and
executed by the private sector
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Investor Benefits
KEC will offer the following benefits to tenants / end users / investors in Khazaen:
Strategic location with an inland Attractive investment opportunities
dry port, direct access to Batinah to develop and set up warehousing,
Expressway and close to Muscat, logistics, light and medium
Dakhiliyah and Sharqia industries, fruit and vegetable
Governorates with high population market, automotive market,
residential and commercial projects
A world-class integrated Robust platform providing world-
economic city with robust class infrastructure and outstanding
logistics, warehousing, facilities (roads, terminals and
industrial, commercial and utilities) and logistical services
residential infrastructure (warehousing, distribution, bulk
and services handling and freight forwarding)
Flexible lease / ownership
arrangements (Freehold/
Mulkiya, ITC, Leasehold)
which meets the needs of all
types of customers
Government support
including an on-site one-
stop licensing shop to
facilitate ease of doing
business
Attractive land rates in
vantage location near Muscat
with availability of all sizes of
plots and blocks
Balance of economic, social and
environmental values
o Commercial (legal, finance, retail,
banking, industries, free zones)
o Social (residences, healthcare,
hospitality, education, religious
and recreational facilities)
Tailored solutions offering both free
zone and non-free zone land for
multi sectors like manufacturing,
light and medium industries,
assembly, packaging, logistics,
storage, warehousing, cold storage
Commercial and industrial free
zones providing attractive tax and
investment incentives
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Master Plan

Khazaen’s master plan provides flexibility of overall land use mix, plot sizing, phasing and ownership (Leasehold/Freehold/Integrated
Tourism Complex) to provide an attractive offering to developers, investors, and tenants in Khazaen
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Phase 1 Infrastructure Progress Work

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Phase 1 Infrastructure Progress Work

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Khazaen is “Ready for Business”
A successful year of 2020 with the signing of 427,500 sqm of leases to tenants and a potential pipeline of more than
1 million sqm

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Khazaen Anchor Projects
Private and Confidential

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The Food City

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The Food City – Concept Overview

Concept Summary

▪ The Food City is an integral part of the vision

envisioned by Khazaen economic city to develop a
state-of-the-art facilities that contributes to the
development of the food industry in Oman.
▪ In the aim to fulfill the need of the National food
security and enhance the value chain in the food
industry.
▪ Khazaen has located 500,000 sqm solely for
business and activities related to the food industry
▪ Khazaen initiated the project of central fruits and
vegetables, as corner stone and enabler for the
food city.
▪ The fruits and vegetable market will be the source
of fresh produce, which will feed the streams of
food production activities.

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The Food City – Concept Overview

Concept Summary

Warehousing,
Logistics, & Phase 1
Phase 1 Distributions Central Fruits and
• Establishing Fruits & Vegetables Market. Vegetables
Down Stream Market
• Investors will co-invest in the development of central Trader, (400,000sqm)
warehousing and logistics infrastructure. Wholesalers,
and Retailers

Phase 2
• Introduction of the economic zone operated by an authority
Food City
Food City Operator
• Local and foreign companies and individuals will be licensed
to operate within 4 general fields: Packaging
• Processing/ Packaging
• Manufacturing Phase 2
• Warehousing/distribution/logistics, Up Stream (500,000sqm)
• Trading across the entire value chain of the food
industry. Processing
Production

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Central Fruits &
Vegetables Market
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Khazaen Central Fruits & Vegetables Market

➢ Khazaen has announced plans for the establishment of a central fruits and vegetables market in Khazaen (“Project”), which will
Project
serve as a one-stop hub for the retail and wholesale of fruits, vegetables, fish and meat in Oman by consolidating importers,
Overview exporters, wholesalers, retailers and consumers in one central destination.

➢ Fruits and vegetables consumption volume in Oman has increased at a CAGR of 11% during the last six-year period to reach 1.98
Oman mn tons in 2018, as fruits and vegetable are necessities.
Fruits and ➢ Rapidly growing food consumption, increasing population, high disposable incomes, rising tourist arrivals, and evolving
Vegetables consumer preferences with year-round demand for fresh and quality produce are driving demand for fruits and vegetables in
Oman. A new central fruits and vegetables market with world-class infrastructure and facilities is required to support growing
Market market demand.

➢ Colliers International has performed a detailed market and financial feasibility for the establishment of the Project.
Market ➢ Existing Mawelah fruits and vegetables market is unable to adequately meet the growing demand and infrastructure needs of
and consumers, producers, importers, wholesalers, retailers, and traders in Oman.
Financial ➢ The Project will replace the Mawaleh central fruits and vegetables market as the Government has decided to have one central
fruits and vegetables market to be in Khazaen only and convert the existing Mawaleh Fruits and Vegetable market into a retail
Feasibility only souq.

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 Khazaen Central Fruits & Vegetables Market
The project shall include the following facilities
▪ Warehousing storage facilities, including cold storage and bonded
facilities
▪ Shaded areas and air-conditioned areas for wholesale outlets and
retail shops and stalls
▪ Auction / trading zone
▪ Supporting administration and commercial offices
▪ Truck parking areas, loading and unloading bays
▪ Shaded and non-shaded car parking, walkways, green areas &
sitting shaded area
▪ Commercial building
▪ Restaurants, coffee shops, banking facilities, ATM
▪ Motel/ accommodation for transporters, traders and labors
▪ Internal roads and utility infrastructure
▪ Toilets facilities/ praying areas for both genders
▪ All required connection to public roads and utilities services
▪ Government offices such as Municipality, MOCI, Ministry of
Health, Civil Defense, Customs, etc.
▪ Smart City Concept

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Pre-Built Warehouses

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Pre-Built Warehouses
• Development of Warehousing complex, that offer flexible
spaces with competitive rates.
• The project will be the in direct link with Khazaen Dry Port
and will facilitate the storage of imports and exports.
• The Pre-Built Warehouses will also cater for the internal
demand created within the city premises, providing storage
solutions for tenants residing within the city, creating a value
across the chain.

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Oman Auto Market
Overview
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 Overview – Auto Market in Oman
Khazaen will develop the first centralized Auto Market in Oman. The Project aims to address the issue of unorganized used auto markets in Oman, by
Khazaen developing a pre structured zone that can accommodate for the growing market opportunity. The Central Auto Market aims to support the business
Central Auto and trading activity of new and used cars in the local market and potentially exporting to the regional markets, it offers the used car industry the
Market benefit of a significantly improved location in terms of facilities, accessibility, management, security and attractiveness. It’s aimed at creating a
competitive environment for the benefit of both, the buying and selling community.

Dealerships Used Showrooms Auto Parts Auto Lease Auto Service Centers Auctions & Fleets

New Car dealerships can
be considered as the
corner stone of the Auto
Market, were the City
can be an ideal place for
Centralizing
Showrooms and Storage
with accessibility to Dry
Port and Supporting
Services at Khazaen.
Purpose built
showrooms that can
host several displayed
Cars with open spaces
for storage and display,
and competitive rent
fees
New and Used Auto
parts stores that have
allocated warehousing
and storage. Offering
service parts sources
from premium
distributors and used
scrap yards.
Car Rental offices that
provide lease options for
individual and corporate
use, Lease Companies can
benefit from the open
yards to accommodate the
huge number of fleets and
the proximity of service
providers and dealerships
for schedule maintenance
and inspection
Auto service Center that
are integral to the
purchasing process of
used cars, providing
inspection and
maintenance for the
cars that are displayed in
the market. It will also
cater for the other
buyers such as the
showrooms and rental
companies.
Dedicated area for Fleet
sale at discounted rates
for older models by
dealerships &
showrooms,
depreciated vehicles of
the government and
private companies.
It can also host special
auctions such as classics
and salvaged autos .

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Khazaen Master Plan - Aerial View

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Thank you