Market Trends of Oman Commercial Real Estate Industry
Hospitality sector witnessing lucrative growth
The hospitality sector was the worst hit by the pandemic due to the implementation of COVID-19 protocols such as travel restrictions and social distancing. Now, the sector is in the recovery phase but has not reached the pre-pandemic levels.
Moreover, to attract new investments into the sector, the Oman Investment Authority (OIA) announced the restructuring of its tourism and real estate investments in the Sultanate by transferring them to the Oman Tourism Development Company (OMRAN Group), now a subsidy of OIA. This program aims at developing the tourism sector, enhancing management in tourism and hospitality real estate investments, aligning with the vision 2040 plan, and achieving economic diversification as well as integration with the private sector.
Vision 2040 seeks to boost tourism's share of 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 into infrastructure development takes precedence
- In recent months, there has been a surge in government investment projects. The government's authority for industrial estates announced the development of 5 new industrial cities, in addition to the 9 existing industrial estates, with a long-term objective of establishing 40 industrial estates by 2040 in Oman.
- The Ministry of Transport, communications & Information Technology has 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.
