Abu Dhabi: Construction firm Ghantoot Group yesterday announced $500 million (Dh1.83 billion) worth of investments in a range of projects in Oman.
The firm said that it would build two power plants and three hotels and invest in water desalination, electricity transmission and distribution, and oil and gas projects.
Rashid Al Balooshi, managing director of Ghantoot Group, said that the company is in discussions with government organisations to finalise the proposals.
"Over the past few years, Oman has taken huge strides in driving its economy forward and generating jobs for its nationals," Al Balooshi said.
"We are keen to partner with the Omani government and play a constructive role in the country's development."
A company source told Gulf News that the power plants, once completed, will lower the cost of energy.
"For the power plants, Ghantoot Group plans to invest $180 million," he said, adding that the Omani government was expected to provide the company with more work in the country.
"This is an investment encouraged by the Omani government which will support us with viable opportunities and investment incentives," the source said.
Commenting on the deal, Waddah Taha, chief analyst and chief economist at Zarouni Group, said that the move made sense given the ongoing growth in Oman.
"The Omani government had recently adopted certain measures and regulations which help boost its economy and investment opportunities in various fields including power, hospitality, water and construction amongst others," said Taha.
He added that Oman had been targeted by many companies recently for investment projects, particularly in tourism.
"Oman has been picked due to its strategic location and for its competitive tourism and industrial environment after the reallocation of the tourism industry in the Middle East and North Africa region in the aftermath of the Arab Spring which contributed to the rise in the number of tourists to Oman," said Taha.
The first power plant of 140MW capacity will be set up in Ras Al Khaimah to supply electricity exclusively to Musandam in Oman and the adjacent areas, Rashid Al Balooshi, Managing Director of Ghantoot Group, said.
The second power plant with a 120MW capacity will be set up in central Oman at a site to be finalised soon.
Al Balooshi pointed out that the proposed power for Musandam will be transmitted from Ras Al Khaimah, which is only 15 km from the Oman border to help sustain the environment which has remained unpolluted.
The group will also invest in the hospitality industry by constructing a resort in Musandam with a 320-room capacity, and two others with 600 rooms in total.