Oman Construction Market Size (2024 - 2029)

The construction market size in Oman is projected to experience growth driven by significant investments and government initiatives. The real estate sector is showing positive trends, attracting investor interest due to new ownership plans that allow foreign property purchases outside integrated tourism complexes. The Omani government's focus on affordable housing has spurred demand and liquidity, with successful public-private partnership projects paving the way for further developments. Opportunities for real estate companies to engage in the market are expected to enhance investment, contributing to the expansion of the construction market.

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Market Size of Oman Construction Industry

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Oman Construction Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 6.82 Billion
Market Size (2029) USD 8.02 Billion
CAGR (2024 - 2029) 3.30 %
Market Concentration Low

Major Players

Oman Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Oman Construction Market Analysis

The Oman Construction Market size is estimated at USD 6.82 billion in 2024, and is expected to reach USD 8.02 billion by 2029, growing at a CAGR of 3.30% during the forecast period (2024-2029).

Pouring investment in the country is one of the major factors driving the growth of the construction market. Government initiatives and projects demanding construction megaprojects are also boosting the market.

  • The Omani real estate market is anticipated to continue moving forward strongly and favorably due to the shifting trends, which indicate that investors are paying attention to the market again. The real estate market has witnessed growth since the third quarter of last year, supported by a strong structural base and increased demand.
  • The Omani government's new ownership plan, which permits foreigners to buy properties outside of integrated tourism complexes (ITC), along with many choices and actions, is anticipated to draw capital investments in the real estate market. At the end of July 2022, the overall traded value of real estate activity exceeded OMR 1.3 billion (USD 3.38 billion), while the total traded value of the property increased only by 27.4% from June 2022 to July 2022, reaching OMR 213.1 million (USD 553.45 million).
  • The affordability and accessibility of housing are more important priorities for the Omani government. The campaign for "Homes for All Citizens" increased the demand for inexpensive housing, creating much-needed liquidity in the industry. Following the success of its first integrated housing development project in Barka based on the public-private partnership (PPP) model, Oman's Ministry of Housing and Urban Planning has announced plans for five new buildings totaling 4,800 housing units, catering to an estimated 24,000 people.
  • The government announced new opportunities for domestic and international real estate companies and institutions specializing in real estate development to submit "Expressions of Interest" to compete, which is expected to increase investment in the country's construction market.

Oman Construction Industry Segmentation

A structure's erection, cladding, external finish, formwork, fixture, fitting of a service installation, and unloading equipment, machinery, materials, or similar tasks are all considered part of building construction.

A complete background analysis of the Omani construction market, including the assessment of the economy and contribution of sectors in it, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, geographical trends, and the impact of COVID-19 impact are included in the report.

The Omani construction market is segmented by sector (commercial, residential, industrial, infrastructure (transportation), and energy and utilities). The report offers market size and forecasts in value (USD) for all the above segments.

By Sector
Commercial Construction
Residential Construction
Industrial Construction
Infrastructure (Transportation) Construction
Energy and Utility Construction
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Oman Construction Market Size Summary

The construction industry in Oman is poised for growth, driven by significant investments and government initiatives aimed at developing megaprojects. The market is experiencing a resurgence, particularly in the real estate sector, where new policies allowing foreign property ownership outside integrated tourism complexes are attracting capital investments. The government's focus on affordable housing, exemplified by the "Homes for All Citizens" campaign, is generating demand and liquidity in the market. Public-private partnerships have proven successful, with plans for new housing projects underway to accommodate the growing population. The government's efforts to diversify the economy away from oil dependency are evident in its strategic focus on sectors like logistics, manufacturing, tourism, fisheries, and mining, as outlined in the Ninth Five-Year Plan.

Oman's economic diversification strategy is further supported by initiatives like the National Program for Investment and Export Development, which aligns with the Oman Vision 2040. The development of the Duqm Special Economic Zone is a key component of this strategy, aiming to position Oman as a regional industrial and business hub. The tourism sector, bolstered by favorable weather and international events like the FIFA World Cup, is expected to play a significant role in economic growth. The construction market is competitive, with major international players such as Bechtel and Hyundai Engineering & Construction Co. Ltd. actively participating. Recent acquisitions, like Sika's purchase of MBCC Group and Huaxin Cement's stake in Oman Cement, highlight ongoing consolidation and expansion efforts within the industry.

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Oman Construction Market Size - Table of Contents

  1. 1. MARKET INSIGHTS DYNAMICS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Overview

    3. 1.3 Market Dynamics

      1. 1.3.1 Market Drivers

        1. 1.3.1.1 Governments Investments in Construction Projects

        2. 1.3.1.2 Urban Development Intiatives

      2. 1.3.2 Market Restraints

        1. 1.3.2.1 Increasing Cost of Raw Materials Affecting the Construction Industry

        2. 1.3.2.2 Decrease in Foreign Investment Affecting the Market

      3. 1.3.3 Market Opportunities

        1. 1.3.3.1 Demand for Renewable Energy Projects

        2. 1.3.3.2 The Adoption of New Technologies in the Construction Market

    4. 1.4 Value Chain/Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Current Economic and Construction Market Scenario

    7. 1.7 Technological Innovations in the Construction Sector

    8. 1.8 Impact of Government Regulations and Initiatives on the Industry

    9. 1.9 Mapping of Industrial Clusters and SEZs and a Brief Analysis of Investment Opportunities

    10. 1.10 Review and Commentary on the Extent of Oman's Economy Diversification

    11. 1.11 Comparison of Key Industry Metrics of Oman with Other GCC Member Countries (Analyst View)

    12. 1.12 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Sector

      1. 2.1.1 Commercial Construction

      2. 2.1.2 Residential Construction

      3. 2.1.3 Industrial Construction

      4. 2.1.4 Infrastructure (Transportation) Construction

      5. 2.1.5 Energy and Utility Construction

Oman Construction Market Size FAQs

The Oman Construction Market size is expected to reach USD 6.82 billion in 2024 and grow at a CAGR of 3.30% to reach USD 8.02 billion by 2029.

In 2024, the Oman Construction Market size is expected to reach USD 6.82 billion.

Oman Construction Market Report Snapshots

Construction in Oman Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)