National Gas Company has reached a significant milestone through the signing of a 44-year land lease agreement with Khazaen Economic City. The agreement marks the initiation of a prominent project aimed at developing a major truck rest area within the city, the company announced in a disclosure to the Muscat Stock Exchange.
Expressing enthusiasm about the development, National Gas highlighted the comprehensive plan for the construction and maintenance of the truck rest area project within Khazaen Economic City. The project is set to encompass commercial shops, a drivers’ dormitory, vehicle maintenance services, tire shops, and storage facilities, covering an expansive area of 50,000 square meters.
As part of its strategic initiative, National Gas has budgeted a capital expenditure of RO2.7mn for the project. The company is currently exploring diverse avenues to secure the necessary financing for this significant investment, as stated in the official disclosure.
Emphasizing its commitment to value creation for shareholders, National Gas underscored its strong belief in the potential returns and positive impact of the project on the company. The company reiterated its dedication to augmenting shareholder value through strategic investments, highlighting the alignment of this venture with its growth and diversification strategy.
Khazaen Economic City, spanning over 52mn square meters, holds a pivotal position on the Batinah Highway, strategically linking Greater Muscat with other governorates. The economic city has garnered attention for its efforts to attract investments across key sectors, including logistics, industrial, commercial, residential, and strategic projects geared towards fostering service and business integration.
The city boasts several notable projects, including the Khazaen Land Port, which serves as Oman’s inaugural land port connecting Khazaen with international markets, along with the Central Khazaen Market for Vegetables and Fruits.
According to recent statistics released by Khazaen Economic City, the total volume of investments drawn to the city in Barka has surpassed RO316mn by the conclusion of June 2023. Foreign investments constitute more than 58% of the overall investment, amounting to RO186mn, while local investments accounted for RO130mn. The data further revealed that the city has attracted investments from 16 different nationalities, with the number of signed agreements reaching 100.
