Promoting Health Tourism

Majan Development Company (MDC), the real estate development company formed in 2007, is planning to take up multiple projects in Oman in the coming years. Bashar N. Al Tuwaijri, senior manager-direct investment in Kuwait-based Gulf Investment House, which along with its subsidiaries and affiliates has a majority shareholding in MDC, talks about the company’s healthcare city project with Akshay Bhatnagar. Excerpts:
                   
Who are the main promoters of Majan Development Company?
The company has a capital base of RO25 million. The Kuwait-based Gulf Investment House and its related companies have 50 per cent stake while the other investors include Sharjah Islamic Bank (10 per cent), Kuwait-based Commercial Real Estate Company (10 per cent), and Omani investors, including MOD Pension Fund, Royal Guard Pension Fund, Oman Cement Company, etc, (30 per cent). Its board of directors has seven members, out of which at least three are nominated by GIH.

What major projects are you planning to execute in Oman?
To test the waters, MDC intends to initially invest in commercial and residential development projects, primarily in Muscat. We believe that real estate development is one of the fastest growing sectors in Oman and there is huge demand for residential, commercial and tourism related infrastructure in the Sultanate. To take our venture in Oman forward, we are going to appoint a CEO, who is an Omani national, with more than 15 years’ experience in the real estate and investment business. The announcement will be made in the month of April.

Can you tell us about your healthcare city project?
MDC’s first major project in Oman will be the development of an integrated healthcare and tourism city. The ministry of tourism has offered to allocate 1-million sq m land, adjacent to Al Madina Al Zarqa (The Blue City) for the proposed healthcare city. MDC has appointed a global consultant to advise the company on the project. The first phase of market research work is already over and the study report has been very encouraging. The second phase, which involves due diligence and on-site inspection, is currently going on. The consultant is expected to submit the feasibility report in the next two months.

The project will be undertaken on build-operate-transfer basis. The township will offer state-of-the-art healthcare tourism infrastructure, including big hospitals, specialty medical centres, medical college, medical training institute, hotels and resorts, malls, seminar and conference facilities, and residential units. It will be developed in stages and construction work in the first phase is expected to start in 2009. The new generation healthcare township will attract tourists from GCC and Europe, specially Eastern Europe, besides Omani residents. The project will be funded through equity and debt route.

What will be the total investment in this project?
It is too early to comment on the investment figure.

How much does it generally cost to develop a project of this scale?
Anywhere between RO300-400 million, excluding the land cost.

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