The government's plans to develop the tourism sector are accelerating, with a host of investors signing up for new resort projects and awards close for several contracts on the sultanate's flagship development, The Wave.

Dubai International Properties (DIP), a subsidiary of Dubai Holding, has signed a memorandum of understanding with the government to invest in an estimated $820 million luxury tourist and residential complex covering 2.6 million square metres at Yiti, on the coast south of Muscat. Both the government and DIP will take stakes in the project, which will include three hotels, villas, a spa, a golf course and canals leading inland to the nearby mountains. Completion is due by 2007.

A private investor has also agreed to develop a resort in Sawadi, in the north. Bahrain-based ReeMoon, which is handling the Bahrain Financial Harbour project for Gulf Finance House, is playing a role. Called Blue City, the resort will cover an area of 35 square kilometres and include themed areas relating to education, health and sport, in addition to hotels and residential properties. First-phase investment will exceed $1,000 million.

Egypt's Orascom Projects & Touristic Developmenthas been granted approval from the government to develop three resorts, in Salalah, Al-Sawad island and the Muscat area. Again, the government and Orascom will take stakes in the project.

On The Wave, Waterfront Investments,a joint venture between Muscat and Dubai-based Majid al-Futtaim Investments, is close to appointing a project manager and has asked for final prices for the site preparation contract, on which work is due to start in May (MEED 14:1:05).