Oman's Majan Development Company (MDC) is planning to develop a healthcare city near Muscat with an estimated investment of RO300-400 million  ($774 million to $1.03 billion), a senior official of Kuwait-based Gulf Investment House (GIH) said.

'An international consultancy agency has conducted market research for the project in the GCC region. The result was positive... A feasibility study for the project is going on now,' said Bashar Al Tuwaijri, senior manager for direct investment at Gulf Investment House, which is initiating the project with a 20 percent stake in MDC.

Al Tuwaijri said the healthcare city would be constructed on a build, operate and transfer (BOT) basis.

'Construction is expected to start by next year,' he told  reporters.

Oman's Ministry of Tourism has agreed to allot 1 million sq m of land near Blue City, which is 100 km away from Muscat.

Al Tuwaijri said the healthcare city would include medical colleges, hospitals, conference halls, hotels and shopping malls.

'The project will be funded by way of equity and term loan from banks,' he said.

MDC, which has a paid up capital of 25 million rials, was formed by a group of investors in the Gulf region to develop real estate projects in Oman.

It is 20 percent owned by GIH, 10 percent by Commercial Real Estate, 10 percent by Sharjah Islamic Bank, 30 percent by other non-Omani investors and 30 percent by pension funds and other institutional investors in Oman. - Reuters