Oman's tourism development company, Omran, has ended its agreement with the international arm of Damac Properties for a $1 billion redevelopment of land around Port Sultan Qaboos in Muscat.
Omran said that under a restructuring of Muttrah Tourism Development, which was set up to carry out the redevelopment, Port Investment is transferring its 70 per cent shareholding in the project to Omran.
Port Investment Limited is owned by Damac International, which is a joint venture between Damac Properties and its chairman Hussain Sajwani's Dico Group.
"Omran will acquire the shares at a value as documented in the shareholders' agreement," the company said.
"After transfer of the shares, Omran will own MTDC and have 100 per cent ownership of the lands, plans and works completed to date, including the recently completed experience centre on Al Inshirah.
"Omran will continue to lead the redevelopment of Port Sultan Qaboos on behalf of the government."
The port was the main trading centre serving Oman's capital city, Muscat, for about two years.
The opportunity to redevelop it came after most commercial port traffic was moved to Sohar Port.
This opened Port Sultan Qaboos for use by cruise liners and paved the way for the redevelopment agreement signed with Damac International three years ago.
A statement at the time of the deal said Mina Sultan Qaboos Waterfront would become a "$1bn integrated tourist port and lifestyle destination that includes hotels, residences, dining, retail and leisure".
Omran said that although the restructuring ended Port Investments' involvement with the project, it and Omran would continue to explore mixed-use development opportunities in the sultanate.
It said they would "bring new investment to the tourism sector and create more job opportunities for Omanis".
