Oman's Khazaen project, envisioned until recently as a multi-modal logistics hub, will be redesigned as an integrated economic city, said a report.

Spread over an area of 51-million-sq-m near Barka at the intersection between the Muscat Expressway and Batinah Highway, the new hub will feature industrial, commercial and residential zones as well as a one-of-a-kind ‘dry port’, added the Oman Daily Observer report.

Khazaen is a subsidiary of ASYAD Group, the holding company of the Omani government’s investments in seaports, free zones, cargo terminals, logistics parks and other transport and logistics infrastructure in the sultanate.

Earlier this year, a joint venture of Oman Investment Corporation (OIC) and Saudi engineering contractor Mohammed Ali Al Swailem Group (Masco) was named the master developer of the Khazaen Economic City, it said.

An agreement to this effect was signed by Dr Ahmed bin Mohammed al Futaisi, Minister of Transport and Communications, who is also chairman of ASYAD Group.

Investment in Khazaen’s infrastructure development during the first phase is in excess of RO 300 million ($793.2 million) over the next 20 years. This is anticipated to rise to around RO 700 million ($1.85 billion) over the 49-year-long tenure of the agreement with ASYAD Group.

A key feature of the economic city is a first-of-its-kind dry port, for which an operator will be named shortly, added the report.