IFC Closes US$100 Million Islamic Green Facility With Sustainable Development Investment Company for Muscat Mixed-Use Plaza District
The International Finance Corporation has closed an OMR38.5 million (US$100 million) Islamic finance green facility with the Sustainable Development Investment Company to fund the Plaza District at The Sustainable City–Yiti, a large-scale mixed-use development located in the Yiti area approximately 40 kilometers east of Muscat. The transaction, announced September 30, 2026, represents IFC's first real estate investment in Oman.
The facility is dedicated exclusively to the Plaza District and is structured as a Sharia-compliant green loan aligned with Green Loan Principles. The financing is intended not only to support construction but also to demonstrate an Islamic green-finance model capable of mobilizing additional private capital into the Sultanate.
Plaza District: Scale and Composition
The Plaza District comprises 19 buildings — 17 residential and two office buildings — with a gross built-up area of approximately 191,457 square meters, or roughly 2.06 million square feet. The residential program includes 1,225 apartments across four unit types: 168 studios, 451 one-bedroom units, 527 two-bedroom units and 79 three-bedroom units.
Beyond housing, the district incorporates approximately 13,400 square meters of office space and 14,600 square meters of commercial space, along with schools, healthcare facilities and community amenities. The project website describes more than 70 retail, dining and lifestyle outlets integrated within the development.
All 19 buildings are expected to achieve EDGE Advanced certification. IFC projects the district will save more than 6,000 megawatt-hours of energy and more than 80,000 cubic meters of water annually once operational.
About SDIC and The Sustainable City–Yiti
The Sustainable Development Investment Company is a joint venture between OMRAN Group and SEE Holding. SDIC is the developer of The Sustainable City–Yiti, a master-planned community designed as a fully sustainable, low-carbon urban environment with a net-zero emissions target by 2040. The wider master plan incorporates renewable energy, water recycling, circular waste systems, local food production, clean mobility and climate-resilient infrastructure.
The broader Sustainable City–Yiti is expected to accommodate more than 10,000 residents and generate approximately 2,200 direct and indirect jobs. The full master plan includes 300 villas, 1,225 apartments and 132 luxury serviced apartments, in addition to the Plaza District's commercial and community uses.
Saif Sulaiman Al Yarubi, Chairman of SDIC, said the milestone marks "an important step in the continued evolution of The Sustainable City–Yiti," adding that the development remains committed to "delivering a vibrant and sustainable destination that seamlessly integrates residential, commercial, hospitality, and lifestyle experiences, creating long-term value for residents, visitors, investors, and the Sultanate of Oman."
Faris Saeed, Founder and Chairman of SEE Holding, said: "This milestone marks an important step in the continued evolution of The Sustainable City - Yiti. As the development progresses, we remain committed to delivering a vibrant and sustainable destination that seamlessly integrates residential, commercial, hospitality, and lifestyle experiences, creating long-term value for residents, visitors, investors, and the Sultanate of Oman."
IFC's Rationale and Gulf Strategy
Abdullah Jefri, IFC's Division Director for the Gulf Cooperation Council, framed the investment within the World Bank Group's broader urban development priorities. "This project demonstrates that cities can meet growing urban housing demands while advancing sustainability goals," Jefri said. "It reflects the World Bank Group's commitment to supporting scalable projects that create jobs, improve lives, and shape cities that are better prepared for the future."
The investment aligns with the World Bank Group's priorities in Oman, which focus on job creation, sustainability and economic diversification consistent with Oman's Vision 2040.
Market Context
The transaction comes as Oman's real estate market has shown measured growth. Total real estate transaction value in Oman reached approximately OMR1.434 billion in the first half of 2026, a 5.4% increase year over year. Real estate foreign direct investment reached OMR602.5 million by the end of the first quarter of 2026, a 1.2% annual increase.
Demand in Muscat has been concentrated in integrated tourism complexes and master-planned communities that combine housing, leisure, retail and hospitality — a profile that aligns closely with The Sustainable City–Yiti's positioning. Muscat's office market has reflected a broader flight-to-quality trend, with prime Grade A buildings in locations such as Al Mouj commanding rents of approximately OMR7.5 per square meter per month, while older secondary stock has faced pressure to upgrade to meet tenant and ESG expectations.
On the retail side, demand has been strongest for neighborhood-oriented uses including supermarkets, cafés, healthcare and fitness — categories that correspond to the community-service mix planned within the Plaza District.
Financing Structure
The facility is structured as an Islamic Finance Green Facility, providing Sharia-compliant financing for verified environmental projects in accordance with Green Loan Principles. IFC said the structure is intended to demonstrate the use of innovative green Islamic finance instruments to attract additional private capital to Oman's real estate sector. The US$100 million commitment equates to approximately US$81,633 per apartment across the 1,225 residential units, or roughly US$48.50 per gross built-up square foot based on the project's reported area.
The deal is IFC's first real estate transaction in Oman and is expected to support international financing flows into the country while advancing the Plaza District's delivery schedule.
Sources
IFC Press Release: IFC Partners with SDIC to Advance the First Sustainable Community in Oman