The Ministry of Housing and Urban Planning (MHUP) has announced plans to develop three large-scale agricultural cities, each requiring an investment of $7.8bn, as part of efforts to strengthen food security and diversify the economy.
Developed in collaboration with the Ministry of Agriculture, Fisheries, and Water Resources, the project will establish agricultural hubs in Saham (North Batinah), Dhahirah, and the Najd region of Dhofar. Each city will span approximately 50 square kilometers, with construction already underway in Saham and Najd following the completion of designs in 2024.
The initiative is expected to benefit over 43,000 people annually, contribute 2% to Oman’s GDP, and generate more than 10,000 jobs.
As part of its broader economic diversification strategy, MHUP signed 1,592 usufruct contracts in 2024 through public auctions, attracting $145.5mn in investments and generating $24.7mn in revenue—marking a 2% increase from the previous year. These agreements cover key sectors such as agriculture, industry, commerce, tourism, and integrated residential developments. Additionally, the ministry allocated land to 19,800 beneficiaries and resolved 16,000 ownership disputes, achieving an approval rate of 82.3%.
Social housing remains a priority, with 1,242 families receiving housing assistance worth $80.4mn, while 200 modern housing units were secured for social purposes at a cost of $22.1mn.
Urban development is also progressing, with seven integrated residential neighborhoods under construction, including Al Naseem (Barka), Al Luban (Nakhal), Hisn al Zain (Bidbid), Al Ahd (Amerat), Al Shurooq (Salalah), Nakheel Hills (Khasab), and Majd (Suhar). The ministry is also advancing plans for three additional neighborhoods—Al Azm (Rustaq), Al Samou (Mudhaibi), and Al Noor (Nizwa). Valued at $1.3bn, these projects have seen 70% of Phase 1 units sold, with 25% allocated to non-Omanis to encourage foreign investment.
Meanwhile, progress continues on Sultan Haitham City, with site preparation completed, five key bridges at 10% completion, and the control center at 30%. A central park and 2,569 housing units in Al Wafaa District have also been launched.
Looking ahead, Oman is planning future urban developments in Muscat and Salalah, with structural plans underway for Muscat, Nizwa, North Batinah, and Salalah to ensure sustainable urban expansion.
(Muscat Daily)
