Damac Properties has signed an agreement with Oman to develop a port in the country’s capital city Muscat as a tourism destination, Dubai’s second-largest listed developer said on Wednesday.

Damac signed a memorandum of understanding with Oman’s Tourism Development Company (Omran) to develop Port Sultan Qaboos.

Omran plans to transform the port into a $1bn tourism and lifestyle destination called Mina Sultan Qaboos Waterfront, including hotels and residential housing, as well as dining, retail and leisure outlets.

Mina Sultan Qaboos Waterfront is located in the Muttrah area of Muscat, site of a 200-year-old marketplace that is one of Oman’s most visited tourist destinations.