Market Trends of Oman Commercial Real Estate Industry
Hospitality Segment Witnessing Lucrative Market Growth
In recent years, Oman has invested heavily in its hospitality sector, focusing on luxury resorts along with sustainable and cultural tourism. The country has faced competition from neighboring countries, such as the United Arab Emirates and Saudi Arabia, which offer well-established hospitality services. However, the Sultanate is now looking to establish itself as a destination on its own, building on its many advantages, such as beautiful natural scenery, a strong commitment to sustainable tourism, and an ideal location for multi-stays.
Moreover, to attract new investments into the segment, the Oman Investment Authority (OIA) announced the restructuring of tourism and real estate investments by transferring them to the Oman Tourism Development Company (OMRAN Group), now a subsidy of OIA. This program aims to develop the tourism sector by enhancing management in tourism and hospitality real estate investments in order to align with the Vision 2040 plan to achieve economic diversification and integrate with the private sector.
Vision 2040 seeks to boost the tourism industry’s share of the country’s GDP to 10% by 2040, generate 535,000 new jobs in the tourism industry, attract 11 million international and domestic tourists, and reach 14 million room nights by 2040. The planned system of clusters is an essential component of the overall Oman Tourism Strategy. Each cluster consists of well-served groups of attractions, with plenty of accommodation, a transport network, tourist amenities, and services.
Government Investments in Infrastructure Development Driving Market Growth
- In recent months, there has been a surge in government investment projects across Oman. The government's Public Establishment for Industrial Estates (Madayn) recently announced the development of five new industrial cities, in addition to the nine existing industrial estates, with a long-term objective of establishing 40 industrial estates by 2040 in Oman.
- Furthermore, the Ministry of Transport, Communications & Information Technology revived plans to improve road infrastructure, including a causeway to Masirah Island and a new road between Al Batinah and Jabal Akhdar.
- The government plans to develop a national railway network and create a metro system in Muscat. The Ministry of Housing & Urban Planning has launched tenders for smart city developments in Seeb, Salalah, Nizwa & Sohar, and a mixed-use project in Jabal Akhdar.
- Muscat International Airport has a capacity of over 20 million passengers per year. The airport expansion project aims to make Oman an aviation hub in the region and to increase tourism in the country.
- Oman is investing in its railway infrastructure, including the building of the 2,244 km long Oman National Railway. This railway network will link the major cities of Oman and the ports of the country, improving connectivity, increasing trade, and reducing road traffic.
