Oman-based developer Omagine has signed a strategic deal to kickstart its RO1 billion ($2.5 billion) mixed use tourism, cultural and residential project coming up along a beachfront stretch near the Muscat airport, said a report.

Omagine, the company behind the lavish venture, last month sealed a shareholder agreement with three strategic investors: Office of Royal Court Affairs (25 per cent), Consolidated Contractors Company (10 per cent) and Consolidated Contractors Company Oman (5 per cent), said a report in the Oman Observer.

The deal effectively reduces Omagine's equity holding in the project from the original 100 per cent to 60 per cent, the report added.

With the signing of the agreement, the project is set to enter a new and energetic phase of development, the report said citing a top official.

Frank J Drohan, president of Omagine, said the parties concerned are now focused on concluding a development agreement with the Government of Oman.

'This agreement will govern the design, development, construction, management and ownership of the Omagine Project. Importantly, it will also clear the decks for construction work to begin in earnest on the ambitious project,' he added.

Set on an area covering around 1 million sq m, Omagine will incorporate heritage, educational, entertainment and residential components anchored by a ‘high culture’ theme park featuring seven pearl-shaped buildings, associated exhibition buildings, a boardwalk, an open air amphitheatre and stage.

In addition to an enclosed harbour and marina, the complex will also include a selection of five, four and three-star hotel resorts, restaurants, retain shops, entertainment avenues, and other leisure facilities. A residential component comprising around 2,000 residential units is envisaged as well.

The Omagine project, once ready, is expected to be designated an Integrated Tourism Complex (ITC), allowing for the promoters to sell the freehold title to residential properties to Omanis and non-Omanis, the report added.