ETA Star Properties has signed an agreement with Oman Holdings International Company (OHI) to launch a premium luxury township at Qurum, in the heart of Oman.

With this deal, one more player from Dubai has arrived in the Sultanate to fill in the 'vast gap' for apartment units against the demand as Muscat keeps expanding in every direction, said a Gulf News report.

"In the last couple of years nearly 5,000 housing units have come up in Muscat, but there's room for more," Abid Juneid, executive director of Dubai-based ETA Star Properties, said on the sidelines of a signing ceremony on Saturday at the OHI headquarters in Muscat.

"The new 5,000 apartment units are just the tip of the iceberg and there's immense potential to develop property in Oman, which is witnessing robust, all-round growth," said Maqbool Hamed Al Saleh, chairman of the OHI Group, after signing the agreement.

He also stressed that the location of a project is particularly important. "Qurum is the central district and an ideal residential location unlike some of the projects that are coming out on the outskirts of the city," he pointed out.

The ETA Start Properties and OHI will develop a multi-purpose project with residential apartments, offices and retail spaces, blending luxurious living with high levels of convenience.

"The project will be formally launched at the end of October," said Behram K. Divecha, chief executive officer of OHI.

Juneid also said that they would be looking at the GCC market for the proposed project. "The property market in the GCC is growing at breakneck speed and Oman is fast catching up with this upswing," he said.

"We believe it is an opportune time for us to enter Oman and this joint venture with the OHI group is part of our vision to build confidence, trust and credibility in all our projects in the real estate marketplace," he said in a written statement released after the signing ceremony.

"We are confident that this project will not only be a landmark in Oman but will also reinforce Oman's potential to become a significant international destination," he said.