From smart technology to tourism, Oman’s urban transformation is drawing global attention and investment.
Traditionally recognized for its shipbuilding and energy resources, Oman is diversifying its economy, focusing on sectors like urban development, tourism, and investment-friendly policies. This shift is guided by Oman Vision 2040, a strategic framework aimed at creating a sustainable, diversified economy through thoughtful urban planning and tourism growth.
The results are already evident. Oman’s foreign direct investment (FDI) grew by 17.6% over five years, reaching a cumulative value of $69.3 billion (OMR 26.7 billion) by Q3 2024. The government has supported this vision with initiatives like land allocation programs and property law reforms, encouraging both local and foreign investment. These efforts have boosted economic stability, with S&P Global upgrading Oman’s long-term rating to BBB- in September 2024.
Oman’s population of 5.3 million has grown significantly, with expatriates now making up 2.3 million. Real estate transactions have surged by 28% year-on-year to OMR 3.1 billion ($8.05 billion) in 2024, as the country becomes a more attractive investment destination compared to cooling markets in Europe and North America.
Tourism is a key driver of Oman’s transformation. The country is adopting a cluster approach to tourism, offering diverse experiences for both local and international visitors. With an $86 billion (OMR 33 billion) development pipeline, Oman aims to increase tourism’s contribution to GDP from 5% by 2030 to 10% by 2040, leveraging its rich culture, climate, and geography.
Sustainability is at the heart of Oman’s development plans. Projects like the redevelopment of Muscat’s Al Khuwair Downtown Waterfront focus on climate-resilient designs, including pedestrian-friendly walkways, biodiverse planting, and waterways. The country is also investing in smart technologies, such as AI for air quality and traffic management, to enhance urban living.
In Salalah, one of Oman’s largest cities, a major regeneration project is underway. The plan includes 12,000 homes, 3.5 million sqm of open space, and a 6km public beach, alongside 200,000 sqm of retail and hospitality space, 100,000 sqm of cultural amenities, and two new hospitals. The city will also feature pedestrian-friendly streets and car-free zones, aligning with Oman’s sustainability goals.
As Oman continues to build resilient, livable cities, it is positioning itself as a hub for investors and tourists alike. By blending modern infrastructure with its natural beauty and heritage, Oman is paving the way for a sustainable and prosperous future.
(Source: FDI Intelligence)
