Oman’s Al-Khonji Real Estate & Development Company (AQAR) has been granted the right to build a new billion dollar leisure district featuring hotels, homes and a theme park.

The Special Economic Zone Authority in the central town of Duqm have given the project the green light in a bid to encourage Omani investors to invest in the sultanate and diversify its tourism offerings.

The site will cover an area of approximately 661,000sq m (7 million sq ft) and will be developed across numerous phases. The project will cost an estimated OMR390m (US$1bn, €900m, £750m) and will create over 4,000 jobs for the local economy.

The first phase will include the construction of a 3-star hotel, which is expected to be finalised in the first quarter of 2019. A commercial complex with villas and residential units will also be developed early in the project.

According to the masterplan, the amusement park will be completed by 2020.

A number of big hotel brands are moving to Oman, including Anantara, while similarly mixed-use waterfront destinations across the country are also proving popular with investors. Oman is also investing in waterparks and hotels as it follows its National Strategy for Tourism 2040, which includes a 6 per cent rise in tourism contributions and a near doubling of visitor numbers to five million annually.