Oman’s upcoming Omagine, $2.5-billion mixed-use tourism and real estate project, is expected to launch its commercial and residential sales in mid-2016, a report said.

The final construction contract for the project is expected to be signed in late September or early October this year, the reported Oman Observer quoting an Omagine source.

“The anticipated launch date for residential and commercial sales is presently planned for mid-2016. Management expects that the continuing recovery of local real estate markets as well as the government’s continuing - and uninterrupted - improvements to Oman’s infrastructure will contribute positively to Omagine LLC’s future sales prospects, albeit the impact of the recent fall in crude oil prices is unknown at this time,” Omagine Inc said in its quarterly report submitted to the US Securities and Exchange Commission.

The US-based Omagine Inc’s subsidiary Omagine LLC will develop the project on one million sq m of beachfront land in Seeb. The project is expected to take more than five years to complete.

Omagine said that a draft construction contract with CCC-Oman has been completed based on internationally accepted contracting standards.

“The draft construction contract was received by Omagine LLC in late July 2015 and is now being revised and updated based on Omagine LLC’s comments and will then be circulated to CCC-Oman and to Omagine LLC’s proposed bankers, insurer, engineering consultant and quantity surveyor (cost consultant) for final comments,” Omagine said in the report.

“The final contract will be presented to the Omagine LLC shareholders for their consideration and expected approval and, based on present estimates, management expects that the final CCC contract will be signed by Omagine LLC and CCC-Oman in late September or early October 2015,” it said.