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Oman Unveils US$31 Billion Tourism Investment Plans Under ‘Vision 2040’

The tourism industry is a big contributor to Oman’s GDP, aligning with the state’s economic diversification strategy. In 2023, a record-breaking 4 million visitors flocked to the country, boosting non-oil revenues. Consequently, the Sultanate now plans to invest around US$31 billion by 2040 to further boost tourism industry growth.

By Lucia Brancaccio

Oman’s tourism industry is on the ascent. Accounting for 10 percent of its GDP , it has become a cornerstone of Oman’s economic landscape.

This became evident in 2023, when the Sultanate witnessed a record-breaking surge in visitors, reaching around four million tourists – an impressive increase of 38 percent compared to the previous year. Among these, Germany emerged as a key source market, with a staggering 182 percent rise in visitors.

The growth in tourist footfall is a result of Oman’s strategic investments in this sector, aligned with the country’s Vision 2040 project.

Bolstered by this momentum, Oman announced during a press conference in Germany its intention to invest US $31 billion by the year 2040 in the domestic tourism sector. This happened before the start of the ITB Berlin 2024 in early March, considered the world’s largest tourism congress.

Vision 2040

In line with several countries in the Middle East whose revenues have been largely hydrocarbon-dependent, Oman has been stepping up its efforts to pursue economic diversification, as embodied in its Vision 2040 blueprint. The vision aims to drive away the country from its reliance on oil while completing the shift towards a diversified and sustainable one.

Central to this transformation is the tourism industry, identified as a key pillar in feeding into a non-oil economy. As far as this industry is concerned, Vision 2040 sets clear objectives including bolstering infrastructure development through increased investments and enhancing the promotion of Oman’s unique cultural heritage and landscape, thereby amplifying the revenue stream from this sector.

In this context, Oman’s recent commitment to invest a substantial US $31 billion to benefit tourism stands as a clear demonstration of its dedication to realizing Vision 2040 objectives. The investment is directed at creating suitable structures and offering improved leisure activities to attract a more diverse array of tourists.

As part of this project, Oman also declared to have already channeled over US$5.9 billion into 360 projects aimed at the same goal. Previous initiatives implemented to create a conducive environment for tourism, include:

• Streamlining of visa procedures; and
• Easing restrictions for travelers from over 100 countries.

ITB Berlin 2024

Oman’s announcement of substantial investment coincided with the hosting of the ITB Berlin Convention 2024 , which took place on March 7.

The strategic timing was dictated by ITB’s reputation of being the world’s largest travel industry exhibition, providing an unparalleled platform for displaying Oman’s tourism progress and offerings on a global scale. With its expansive scope and diverse audience, the convention serves as an opportunity for Oman to gain the spotlight, thereby reinforcing its position as a hotspot for travelers.

Oman’s tourism performance

As showcased by the welcoming of four million visitors throughout 2023, Oman achieved record-breaking success in its tourism industry last year.

The momentum has continued also into the early months of 2024, with airport passenger traffic already showing a remarkable growth of 21.6 percent, as reported by the country’s National Center for Statistics and Information.

The hospitality sector, particularly within the 3- to 5-star hotels category, also registered a noteworthy 17.1 percent increase in revenues compared to 2023.

This positive performance bodes well with the target of welcoming around 11 million tourists annually by 2040. This upward trend not only reflects Oman’s proactive approach towards its future objectives but also serves as a testimony of the effectiveness of its ongoing tourism promotion efforts.

Looking ahead, it can be expected that the introduction of new policies and initiatives throughout 2024 aimed at further enhancing Oman’s appeal as a tourist destination will set the stage for sustained growth in tourists arrivals in the coming years.

Middle East Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates , a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Dubai (UAE), China, India, Vietnam, Singapore, Indonesia, Italy, Germany, and USA. We also have partner firms in Malaysia , Bangladesh , the Philippines , Thailand , and Australia .

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Oman reveals ambitious plan to boost tourism

Increasing visitor revenue to $22.5bn is part of country's economic strategy.

Delegates at the Omani tourism meeting. Photo: ONA

Oman expects to earn over 9 billion rials ($22.5 billion) a year from tourism by 2040 as it bids to diversify its economy away from oil income.

In an exclusive interview at the Oman-Saudi Arabia Tourism Investment Meeting on Sunday, the sultanate’s Tourism Undersecretary said plans were already under way to set up a cluster of tourism investments nationwide.

“Before the pandemic started, Oman earned about 1.2 billion rials from tourism in 2019. We are now well on the way to reach the target of earning about 9 billion rials a year by the year 2040 from tourism,” Maitha Al Mahrouqi, Undersecretary of Tourism in the Ministry of Heritage and Tourism, told The National .

Al Mahrouqi presided over a joint meeting between Oman and Saudi Arabia to boost tourism investment between the two countries.

One of the economic pillars of Oman 2040 Economic Vision is to increase revenue from tourism. In 2019, Oman welcomed about 3.2 million tourists, up 12 per cent from the previous year.

There are no tourist figures recorded after 2019 since Oman, like the rest of the world, closed its borders in an attempt to limit the spread of Covid-19.

“We are already implementing plans to set up theme parks, nature tourism, water parks and entertainment centres in different parts of the country. We are not only tapping on international tourists but regional tourism as well and Saudi Arabia is a major part of that within the GCC countries,” Ms Al Mahrouqi said.

The picturesque Oman village of Maqazzah is in Izki in Ad Dakhiliyah Governorate. Oman News Agency

She said Oman was also keen to attract investment from Saudi Arabia in tourism.

“The visit of His Majesty Sultan Haitham to Saudi Arabia and the visit of Prince Mohammed bin Salman to Oman will certainly boost tourism trade between us,” she added.

Prince Mohammed arrived in Muscat last Monday as part of his tour of GCC countries, during which Saudi Arabian and Omani officials signed 13 agreements.

Saudi Arabia will invest in oil and gas, tourism, green energy, the maritime sector – including ports – overland logistics, telecommunications and an industrial zone.

In July this year, Sultan Haitham visited Saudi Arabia and met King Salman in Riyadh, his first official foreign visit since he became the Sultan of Oman in January last year.

Oman has embarked on an ambitious economic development plan – Vision 2040 – to wean its economy off oil revenue and introduce medium-term measures to rein in its debt, which has grown in recent years.

Loay Sultan, one of the Saudi Arabian delegation members at the meeting at the Kempinski Hotel in Muscat, said the road between Oman and Saudi Arabia was a good start to boost tourism between the two countries.

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Tourism projects worth RO2.2 billion in Oman by 2025

Muscat: The Ministry of Heritage and Tourism (MHT), revealed that the investment position of the projects that are under implementation, which were agreed upon, with various segments of investors in the public and private sectors, during the period of 2021 to 2025, reached 363 projects across all the governorates of the Sultanate of Oman, with a total value of RO 2.290 billion.

The Ministry of Heritage and Tourism targets to reach RO 3 billion worth investments in the tourism sector during the aforementioned period by attracting additional investments worth of RO 700 million by 2025.

The move comes within the framework of the ministry's efforts to promote tourism investments in all sectors, and keep pace with the growing tourism movement in the country.

Salim Mohammad al Mahrouqi, Minister of Heritage and Tourism, said that the ministry’s efforts in attracting investment come from the standpoint of the developmental role that relies on the tourism sector in accordance with the objectives of Oman Vision 2040 and the comprehensive plan for developing the tourism sector in Oman.

He pointed out that these investments combine the economic aspect represented by the fact that the sector is one of the potential sectors to achieve economic diversification and channel investments to maximize the utilization of the potentials enjoyed by the Sultanate of Oman while highlighting and preserving the country’s heritage as well.

The minister stressed that attracting investment in the tourism sector always takes into account maximizing the benefit of the tourism and heritage elements in the short and long terms while prioritizing projects required by the tourism market. The step aims to diversify the tourism product and attract multiple categories of visitors.

He also clarified that the investment in the tourism sector also seeks to empower its role in developing the economy of the governorates, through projects that keep pace with the comparative advantages of each governorate, in addition to the benefit of these projects to local communities and small and medium enterprises (SMEs) in the governorates.

The minister pointed out that, the integrated tourism complexes represent the largest bulk in the volume of investment in the tourism sector. He explained that a number of 12 integrated tourism complexes with an investment value of RO 3.9 billion, are currently being implemented, including RO 1.07 billion as investment value during the period of 2021 to 2025.

These complexes include Al Mouj project, Barr Al Jissah Resort (the port district development), Mandarin Oriental project and Residence, Diyar Ras Al Hadd Resort, Hawana Salalah (Salalah Beach Resort), Yiti Sustainable City, phase two of Mirbat Tourism Project, phase one A, b of Jebel Sifah, Blue City Project, Al Sharq project and Palm Resort project.

The preparation is also taking place for another package of integrated tourism complexes to be located in the Governorate of Muscat, the Governorate of Musandam and the Governorate of South Al Sharqiyah with an estimated total investment value of RO 2.5 billion.

The minister affirmed that the ministry always pays attention to diversifying tourism and recreational components in these complexes, in addition to enhancing aspects of their benefit to local communities and their in-country-value (ICV) by finding attractive opportunities for small and medium enterprises (SMEs) and generating employment opportunities in the labour market.

He also revealed that some qualitative and multi-use projects with a total investment value of RO 262 million, including Oman Botanic Garden, the Village Project and the Salalah Gardens (The Coconut Farm) project.

Further, a number of projects are currently being set to be developed at Halanaiyat and Dimaniyat Islands with an estimated investment cost of RO 137 million during the period of 2021 to 2025, while efforts are being exerted to attract prestigious hotel marks such as the Four Seasons Hotel.

As for the investment in the hotel's establishments projects, the minister added that a number of 124 hotel establishments have been developed during the period of 2021 to 2022, with a total investment value of RO 139 million, including 4 hotel projects, including Avani Hotel project In the Wilayat of Al Seeb, the Doset D2 Hotel in the Wilayat of Jabal Al Akhadhar, the Intercity Hotel Muscat, and Jumeirah Muscat Hotel in the Governorate of Muscat.

In addition to that, the minister said that there are a number of 120 hotel projects (with an investment cost of less than RO 5 million per project), which includes hotel apartments, guesthouses, heritage inns, green inns, with a total investment value of RO 48.075 million.

He elaborated that a number of 127 new hotel establishment projects with a total investment value of RO 340 million are under implementation, including 14 hotel projects (of an investment cost higher than RO 5 million per project) with ratings ranging from 3 to 5 stars and hotel apartments, with a total investment value of RO 238 million.

Additionally, the minister said that as many as 113 hotel establishments (with an investment cost of less than RO 5 million per facility) are being implemented at an investment cost of RO 102 million, of which 15 projects are under implementation on government lands and 98 projects are under implementation on private lands.

Hotel establishments vary to include resorts and hotels with a rating of one to three stars, luxury camps, tourist camps, green lodges, hotel apartments, guesthouses and rest houses.

The Minister of Heritage and Tourism further said that a number of domestic tourism development projects, which are being implemented through the executive programme of the recovery plan and by the governorates have reached 24 projects, with a value of RO 16.6 million, while work is underway on 14 projects to develop and invest heritage sites and historical monuments, with an investment value of RO 13.8 million.

The minister added that the number of projects to improve museums and private heritage houses reached 8 projects, with an investment value of RO 17,000. He also said that the number of projects for establishing museum exhibition halls in castles and forts reached to 6 projects, at an investment cost of RO 45,000.

There are a number of local tourism development projects being implemented directly by the governorates within the framework of their specializations and through the governorate development programme.

Further requirements for service and tourism facilities to meet the requirements of domestic tourism in the various governorates are expected during the next stage.

Preparations are also underway to invest in 34 historical landmarks, with an investment value of RO 1.884 million, which includes a number of castles, forts, towers, walls, lanes and other monuments in various governorates across Oman. These sites are allocated as investment opportunities for SMEs.

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Legal Framework for Investment in the Oman Tourism Sector

Ahmed Al Barwani - Partner, Head of Office - Oman - Corporate / Mergers and Acquisitions / Commercial

Introduction

Tourism has been identified by the Oman government as one of the sectors to diversify the economy away from oil, which is currently the main source of revenue for the country. Based on this initiative, the Oman government, represented mainly by the Ministry of Tourism and the Ministry of Housing, has issued a number of laws and regulations that regulate local and international investment in the tourism sector.

The key law is the Tourism Law (Sultani Decree Number 33/2002 (the ‘Tourism Law’)). The aim of the Tourism Law is the promotion and development of tourism in Oman in order to increase the industry’s participation in the national economy. The Law regulates the establishment and utilisation of geographical areas and locations for tourism within the Sultanate, as well as putting in place the administrative and regulatory framework to ensure availability of the necessary work force to encourage and develop tourism activities. The Tourism Law is also intended to support cultural communication between Omani nationals and other nations.

The Tourism Law defines a tourism project as any activity relating to tourism carried out by natural and juristic persons whether this is related to the utilisation and management of touristic areas and sites, or establishment of hotels, tourism villages and camps, or conducting touristic transportation or travel offices.

The Ministry of Tourism is the regulator of the tourism industry in Oman and it is in charge, with other relevant bodies, of regulating, developing and promoting tourism in Oman. Other elements of its remit include the assessment of tourism resources in Oman, preparation of programmes and national plans relating to tourism development in accordance with the five year plan of the Sultanate, studying new tourism projects, and attracting investors. Other responsibilities include consideration of applications relating to exemption of tourism projects from taxes and fees, organisation of conferences and seminars relating to different tourism aspects and proposing the execution of international agreements within the tourism sector. The Ministry of Tourism has the power to determine fees for tourism services and to monitor the price of goods and services offered by touristic and hotel establishments.

Reporting and Licensing Regime

In terms of reporting requirements, tourism companies and other establishments licensed to conduct touristic activities (including branches and offices operating in the Sultanate) are required to provide to the General Directorate at the Ministry of Tourism, a statement, every six months, setting out the tourism programmes that have been executed. Details of such programmes are confidential and it is not permitted for the concerned officials at the Ministry of Tourism to disclose any information to third parties. The companies, establishments and branches must submit to the Ministry of Media all publications and leaflets which will be distributed to tourists inside and outside of Oman for approval. Printing and distribution must be carried out in coordination with the Ministry of Commerce and Industry.

It is not permitted for a natural or juristic person to utilise or make use of any touristic site without a licence from the Ministry of Tourism. It is not permitted either, without a licence issued by the Ministry of Tourism, to establish or manage any touristic establishment or hotels.

The Implementing Regulations of the Tourism Law set out in more detail the conditions and procedures for the issuance of the licence. Any person, whether natural or juristic, intending to carry out a touristic project or activity must submit an application in order to obtain approval or a licence from the Ministry of Tourism on the standard application form prepared for this purpose. All supporting documents and information required for the project or the activity must be enclosed with the application. All documents and information submitted to the Ministry of Tourism will be considered confidential. The Ministry of Tourism will consider the application for the licence and issue its decision within 30 days. The lapse of 60 days without issuance of a decision shall be considered to be a rejection of the application.

The applicant must be an individual who is an Omani or a GCC national, companies wholly owned either by Omani or GCC nationals or by both of them, or a company owned by Omani and non-GCC, foreigners, subject to the Foreign Capital Investment Law. A bank guarantee will be required for some type of touristic activities or projects which must be unconditional and remain valid during the period of conducting the touristic activity. The Ministry of Tourism may encash the guarantee partly or fully in order to satisfy any dues owed to it, including fines, fees or financial liabilities.

The Ministry of Tourism may issue an initial approval to the applicant subject to satisfaction of stated conditions and obtaining all approvals required from other relevant bodies. Such an initial approval will not permit the applicant to commence the project or conduct any touristic activity. The initial approval is valid for one year from the date of its issuance and cannot be extended or renewed. In case of its expiry and where the applicant intends to complete the project, a new application must be lodged with payment of the required fees.

Integrated Tourism Complexes

Integrated Tourism Complexes which are commonly known as ITCs in Oman, are regulated by Sultani Decree Number 12/2006 (the ‘ITC Law’) which exempts non-Omani natural and juristic persons from the rules set out in the property laws and regulations in Oman. The ITC Law grants them the right of ownership in ITCs for residential and investment purposes.

Since the issuance of the ITC Law, a number of ITCs have been developed following the approval of the Ministry of Tourism including, by way of an example, the Wave, Muscat Hills and Barr Al Jissah. The owner of real estate within an ITC may dispose of the built property at any time. However, if it is a piece of land, it must be utilised or built within a period of four years from the date of its registration. The owner may not dispose of the land during this period but may mortgage the land for the purpose of developing it. If the land is not utilised or developed within four years, the Ministry of Housing may dispose of the land by way of a sale through a public auction, whilst compensating the owner for the value of the land (at a value set at the time of purchase or sale, whichever is lower). The owner has a right to appeal the decision before the judicial authorities.

The Ministry of Housing may extend the period mentioned in the preceding paragraph pursuant to a recommendation by the Ministry of Tourism if the owner has submitted a request for an extension, and the Ministry of Housing is satisfied with the reasons advanced in support of the extension application. An extension period cannot be for more than two years. The implementing regulations of the ITC Law set out the procedures and details required for such a request and the period during which it must be submitted. The public auction is undertaken by a government committee formed pursuant to a decision of the Minister of Housing through coordination with the Ministry of Tourism, provided that the committee must have legal, financial and technical members, and a member who represents the Ministry of Tourism.

The Tourism Law, its Implementing Regulation and the ITC Law have created a legal framework for investment in Oman’s tourism sector by local, regional and foreign investors. Since their issuance, investment in the Sultanate’s tourism sector has witnessed a sharp increase in the issuance of the number of licences by the Ministry of Tourism for various activities and projects. Local and international investment funds, as well as local and regional investors, have been active in the Oman market primarily through development of hotels and appointment of international operators to manage the hotels on their behalf. The fact that the Ministry of Tourism offers, and has made available land for development and investment on a usufruct basis, has also contributed to growth of the tourism sector.

In parallel with the existing legal framework, the Oman government has generally relaxed the requirements relating to investment in Oman and the issuance of visas to tourists and investors, which have led to more inward investment and tourist arrivals which is intended to contribute to the success of tourism projects in the Sultanate.

When planning new economic cities like Duqm in the Al Wusta region, the Oman government has designated certain areas for investment in tourism. Such areas can be utilised for the establishment of parks, restaurants, children’s playgrounds, travel offices, tourist guide offices or any other type of touristic project or activity. Investment in such areas will, (subject to any local regulations of the area to be developed), provide foreign investors with a number of incentives that include full ownership of the corporate vehicle used without the requirement for a local sponsor, exemption from tax for a certain period, exemption from the minimum share capital requirement, no restriction on transfer of funds and dividends, the grant of an usufruct agreement for a term of up to 50 years, and a one-stop station which provides all type of services required by investors.

Al Tamimi & Company’s Hotels & Leisure team regularly advises on hotel & leisure resort development and operation within the Sultanate of Oman. For further information please contact Tara Marlow ( [email protected] ) or Ahmed Al Barwani ( [email protected] ).

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Oman targets diversification through tourism expansion

Oman | Tourism

The tourism sector has long been the focus of Oman’s efforts to diversify the economy away from a reliance on hydrocarbons. After slow but steady growth throughout the 2010s, the tourism sector’s contribution to GDP reached a high of 2.9% in 2019. However, restrictions imposed due to the Covid-19 pandemic weighed on the sector’s performance for much of 2020. As part of its long-term economic diversification strategy, Oman Vision 2040, the Ministry of Heritage and Tourism (MoHT) and the Oman Tourism Development Company (Omran) are pursuing sector expansion with renewed vigour.

Tourism has been earmarked for 21% of the OR11bn ($28.6bn) in investment opportunities promoted under the National Programme for Investment and Export Development (Nazdaher) for the 2021-25 period. Tourism rebounded strongly in terms of visitors and expenditure in 2022, and government investment in hotel capacity and niche markets such as integrated tourism is helping the country make progress towards its 2040 goals.

The tourism industry is overseen and regulated by the MoHT. As of February 2022 Salim bin Mohammed Al Mahrouq, appointed in March 2020, was serving as the minister of heritage and tourism. Omran was established in 2005 as the executive arm responsible for delivering the objectives contained in the National Tourism Strategy 2040 (NTS), and to separate the roles of regulation and executive management. The entity owns and is responsible for developing most of the country’s tourism infrastructure.

Government-owned Oman Airports administers and operates the airports in the sultanate and manages related infrastructure. The ports, meanwhile, are controlled by Marafi, which is the port management arm of the government-owned holding company Asyad Group. This includes the two main ports: Port Sultan Qaboos and the Port of Salalah.

Tourism policy is guided by several development initiatives and strategies that have been rolled out in recent years to encourage growth. Every five years, the government launches a new five-year plan (FYP). The ninth FYP, which focused on the concept of Tanfeedh, or execution, ran from 2016-20 and called for a doubling of government investment to support private sector development and boost growth in strategic segments of the economy. The same year Oman unveiled the NTS, which aims to increase the tourism sector’s GDP contribution from 6 to 10%, create 535,000 jobs, boost room nights to 14m and bring in 11m international tourists annually. It calls for $51.9bn in investment over the life of the plan, 85-90% of which should come from the private sector, and seeks to spread tourism more evenly across the sultanate, instead of being concentrated in the Muscat area.

In 2020 the new ruler of Oman, Sultan Haitham bin Tarik Al Said, approved Vision 2040, which went into force in January 2021. The plan will encompass four FYPs between 2021 and 2040. The Supreme Council of Planning is overseeing the implementation of the plan, which focuses on five key sectors: tourism, manufacturing, mining, fisheries and logistics. Since Vision 2040 includes a comprehensive development plan for heritage and tourism, previous initiatives like the NTS have been modified in line with Vision 2040.

The tourism development plan features 194 projects and centres around several primary axes, including governance, management, capacity-building, planning, development and investment, quality, sustainability, competitiveness, local added value, tourism products and experiences, the labour market, support for local products and tourism promotion. For the first phase of the plan, the ministry is focusing on developing tourist sites in Muscat, Al Dakhiliyah, Al Sharqiyah South, Dhofar and Musandam. In subsequent phases, it will expand its focus to the other governorates. The strategic plan aims to reach OR3bn ($7.8bn) in tourism investment by the end of 2023. As of August 2022 Oman had attracted $4.4bn, or just over half of this goal.

In line with both the NTS and Vision 2040’s goals for improved governance, the MoHT has taken steps to update the regulatory framework. In May 2022 the ministry streamlined several regulations, standardising licences for Omani and non-Omani tour guides and camping sites. Additionally, it has rolled out licences to establish timeshares at existing hotel facilities. It is also recruiting artists and art management experts through the Creatourism programme, which was launched in September 2022.

Digitalisation

Vision 2040 seeks to improve the process of planning, development and investment by creating a geographic database and an electronic planning system that includes platforms for tourism land management, monitoring and follow-ups, as well as investor support. Envisioned as a digital link between travel and tourism service providers and commercial trade partners in key target markets to stimulate business opportunities, VisitOman.com was launched in June 2021.

The MoHT has collaborated with Omran and the Ministry of Commerce, Industry and Investment Promotion (MCIIP) to ramp up investment in the sector, in line with Vision 2040. In July 2022 the three government bodies launched five investment opportunities worth OR960m ($2.5bn) for the private sector and foreign investors. These projects include the development of a national leisure and tourism centre at Barka in Al Batinah South; an urban development project, Yiti-Yenkit, in Muscat Governorate; the smart city Madinat Al Irfan; an integrated tourist complex called Rawasi in the wilaya (province) of Bausher; and the Musandam Adventure Centre in the wilaya of Khasab. These efforts are part of the MCIIP’s goal to promote new foreign direct investment in Oman (see Economy chapter).

Omran is the largest hotel investment company in the country, with a portfolio of 27 hotels and resorts, five master plans, and five nature and heritage attractions. Since the launch of Vision 2040 it has developed tourism infrastructure at a rapid pace, with many projects in the pipeline across multiple governorates, including several parks in Al Sharqiyah South, additions to the popular Mughsail Beach and Al Hafa Waterfront development in Salalah, the second phase of the Yiti Integrated Tourism Development and the Musandam Adventure Centre.

Size & Performance

Increasing the tourism sector’s contribution to GDP is a recurring goal in previous FYPs. The number of arrivals nearly doubled between 2012 and 2019 due to significant government support and concentrated strategic efforts to support the industry, although tourism’s contribution to GDP hovered between 2% and 3% during that period. Understandably, progress has been impacted due to the pandemic. In March 2020 Oman stopped issuing all visas, and a ban on all international flights was in place until October 2020. The pandemic had a detrimental impact on the country’s hydrocarbons-dominated economy, with oil prices briefly dropping below zero.

Tourism was one of the most severely impacted sectors. Its contribution to GDP fell from 2.9% in 2019 to 2.6% in 2020. Furthermore, inbound visitors declined from a high of 3.5m in 2019 to 869,000 in 2020. Total inbound expenditure dropped from OR620m ($1.6bn) to OR290m ($753.7m). However, average expenditure per person nearly doubled from OR180 ($460) to OR340 ($880).

Additionally, the tourism downturn had a negative impact on employment. According to World Tourism & Travel Council (WTTC), 146,700 people were employed in the tourism sector in 2019, representing 6.8% of all jobs in the economy. By 2020 the number of people employed in the sector had declined to 114,900, or 6.2% of the workforce.

Though pandemic-related restrictions were generally less strict worldwide in 2021, tourist arrivals to Oman continued to decline, as the sultanate suffered record Covid-19 cases following the emergence of the Omicron variant. In 2021 both the number of visitors and their spending in the country fell further to 652,000 and OR225m ($584.8m), respectively, resulting in a relatively lower contribution to GDP of 2.4%. Mirroring a pattern seen in many markets, however, domestic tourism increased substantially. Domestic spending grew to account for 58% of the industry’s total revenue in 2021, up from 35% in 2019.

Though Oman had yet to release comprehensive tourism statistics for 2022 as of March 2023, tourism continued to show signs of a strong and steady recovery. In late 2021 arrivals to Oman started to pick up for the first time since the beginning of the pandemic, increasing by 209% in the fourth quarter from 129,269 to 399,529. In 2022 the sultanate received 2.9m visitors, representing an increase of 345% over the previous year. This tally corresponds to 83% of pre-pandemic arrivals, as recorded in 2019. In December 2022 inbound tourism increased to 382,000 visitors, as the 2022 FIFA World Cup taking place in nearby Qatar helped increase international arrivals.

Official data for tourism’s contribution to GDP in 2022 had not been released as of March 2023; however, the substantial increase in arrivals and hotel occupancy is indicative of a sustained recovery. This trend aligns with the optimistic projections made for Middle East tourism. The WTTC expects tourism growth in the region to significantly outpace GDP between 2022 and 2032, rising by 7.7% each year compared to 2.5% for the regional economy. At the current pace, by 2032 tourism is likely to contribute 10.1% to the total regional economic output.

Visitor Numbers

In January 2021 the government announced visa-free entry for eligible citizens of 103 countries for a stay of up to 10 days. This was likely a factor in the sharp rise in arrivals during the fourth quarter of 2021. Oman’s major airports experienced a surge in arrivals in 2022 due to the easing of Covid-19 restrictions as well as newly inaugurated flight routes to various countries.

Muscat International Airport (MCT), which was renovated in 2018, has a 580,000-sq-metre passenger terminal and two 4-km runways suitable for wide-body aircraft. It can handle 20m passengers per year. In 2020 the Oman Aviation Group revealed plans to build a 3.3m-sq-metre Muscat Airport City, which will include a free zone, logistics hub and retail zone, in line with the National Aviation Strategy 2030 unveiled in February 2020. In the first 10 months of 2022 MCT handled 6.7m passengers, corresponding to an increase of 142% over the same period of the previous year. International and domestic flights grew by 117% year-on-year (y-o-y) to reach 54,165.

Salalah, in particular, benefitted from new khareef (monsoon) season flights in 2022. The khareef season covers Salalah in mist and feeds waterfalls and fast-flowing rapids in the region’s valleys, providing welcome respite from the hot, dry summers elsewhere in the Middle East.

Several international airlines rolled out special flights to Salalah during the khareef season, including Hungarian budget airline Wizz Air, with two weekly flights from Abu Dhabi, and Gulf Air, with two weekly flights from Bahrain. Qatar Airways, Sharjah-based Air Arabia and flydubai already operated year-round flights to Salalah but increased their frequency for the 2022 khareef season. Likewise, Oman Air and Oman’s budget airline SalamAir increased their frequencies to 12 and nine domestic flights per day, respectively. The total number of flights to Salalah International Airport in the first nine months of 2022 increased by 82.8% y-o-y to 6674.

Other airports in Oman are Khasab Airport in the Musandam exclave, Duqm Airport – 14 km from the Duqm Special Economic Zone – and three additional airports used by Petroleum Development Oman. The total number of passengers handled by all airports rose to 7.8m in the first 10 months of 2022, an increase of 153% y-o-y.

The last three years have been challenging for Oman Air. In 2021 it announced it was scrapping plans to increase its fleet to around 70 aircraft and expand long-haul routes due to the pandemic. As travel resumed, however, the airline announced renewed expansion in May 2022. It will operate an additional 18 flights per week across nine Indian destinations, making a total of 122 trips per week from Muscat. The airline also increased the frequency of its flights to South-east Asia and opened a new route to Trabzon, Turkey.

Lastly, in June 2022 Oman Air signed an agreement at the annual general meeting of the International Air Transport Association to join the oneworld Alliance in 2024. This will incentivise frequent flyers of some of the world’s largest airlines, including American Airlines, Cathay Pacific and Qatar Airways, to fly on Oman Air. It will provide oneworld benefits to passengers, and members of Oman Air’s frequent flyer programme, Sindbad, will be able to earn and redeem miles on oneworld member airlines. Due to these initiatives the airline had managed to restore 65% of its pre-pandemic network by November 2022.

Source Markets

In 2022 the top-five markets for arrivals to Oman were the GCC (1.5m), India (355,000), Yemen (107,000), Germany (82,000) and Pakistan (75,000). By contrast, in 2021 the key source markets were the GCC (293,000), India (106,000), Yemen (42,000), Pakistan (19,000) and Egypt (18,000). GCC visitors accounted for 52% of total arrivals in 2022, up from 45% in 2021.

Oman also benefitted from Qatar hosting the 2022 FIFA World Cup in December. European visitors increased by 93% y-o-y that month, the most of any GCC country other than Qatar, according to Spain-based travel analytics company Forward Keys.

Before the pandemic, Oman was working to attract Chinese tourists. Overseas spending by Chinese tourists stood at over $255bn globally, which is nearly twice the amount spent by US citizens. In 2016 Oman Air added four weekly flights to Guangzhou and in 2018 China was added to the list of countries that do not need a visa to enter the country. The number of Chinese visitors rose by nearly 130% to 44,580 over the same year. During the pandemic, Chinese tourism halted almost entirely due to the country’s strict zero-Covid policy.

In 2022 at the annual Arabian Travel Market, an international travel trade event, national travel and tourism operator Visit Oman signed a memorandum of understanding overseen by Omran, with Beijing Spring Travel Services, China-based travel and tourism operator, to promote Oman as a tourist destination for Chinese travellers. The easing of pandemic travel restrictions in China in December 2022 presents a promising opportunity for Oman to increase arrivals from China and diversify source markets further in 2023.

Hotel Infrastructure

The sultanate had 30,203 hotel rooms across 658 hotels in 2022, up from 29,056 rooms across 612 hotels in 2021. According to the National Centre for Statistics and Information, 1.1m guests stayed in Oman’s hotels in the first eight months of 2022, down slightly from 1.3m in 2021. Hotels earned OR185.8m ($482.9m) in 2022, up from OR122.8m ($319.2m) the previous year. In the first eight months of 2022 domestic guests comprised 42% of total stays, compared to 53% during the same period of the previous year. In 2021 Muscat had about one-third, or 205, of the total hotels in Oman. The second-highest number of hotels are situated in Al Sharqiyah (127), home to the popular Wadi Bani Khalid, followed by Al Batinah (87).

Hotel revenue in the three- to-five-star category rose by 82% in 2022 to reach OR186m ($483.4m), up from OR102m ($265.1m) the previous year. In 2021 average revenue per available room (RevPAR) was $37, down from $83 in 2019. Even before the pandemic, hotel owners operated in a competitive market that was oversupplied with rooms. The pandemic lowered demand without a corresponding decrease in supply, placing further pressure on RevPAR. In 2022 the figure was expected to increase by 83.7% to reach $68, nearly on a par with pre-pandemic levels. According to Dubai-based investment bank Alpen Capital’s “GCC Hospitality Industry Report” published in August 2022, Oman’s hospitality industry is expected to grow at a compound annual growth rate of 6.3% from 2022 to 2026 to reach $900m.

The MoHT has signed several land lease contracts to develop hotel capacity in the sultanate. In June 2022 it signed seven usufruct contracts, including a four-star hotel in the wilaya of Mirbat in Dhofar Governorate. In August of the same year the ministry signed a further nine usufruct contacts, which include three-star hotels in Dhofar and Wadi Bani Khalid, a three-star resort in Wilaya of Jabal Akhdar in Al Dakhiliyah, and tourism camps in Al Sharqiyah South and Al Dhahirah.

In a significant development for the luxury hospitality segment, Dubai’s Jumeirah Group opened its first luxury resort, the five-star Jumeirah Muscat Bay, in Oman in December 2022. The 32,000-sq-metre resort, built at an estimated cost of OR60m ($155.9m), has 206 rooms. The expansion of hotel capacity resulting from the land lease agreements signed in 2022 could open Oman to a broader range of tourists, paying dividends for the wider economy. “Tourism can become a catalyst for growth in other sectors, such as retail, construction, and food and beverage,” Rishi Khimji, managing director at airport food and beverage company Ajit Khimji Group, told OBG. “Oman is looking into developing more hospitality infrastructure, especially three-star and four-star hotels, to cater to a wider range of markets. The country is still seen as an expensive destination, which may lead some travellers to choose more affordable options for their next trip.”

Niche Markets

While the country has a relatively established hospitality segment, it is still a smaller player in the region’s cruise tourism landscape. Oman attempted to gain a larger foothold in the market before the pandemic, targeting 360 cruise ship visits for the 2019/20 season. The number of visitors increased by 45% in the 2018/19 season compared to the 2017/18 season. While cruise tourism was suspended during the pandemic it resumed in November 2021. After receiving 278 ships in 2019 and 101 in 2020, Oman welcomed 99 during the 2021/22 winter season.

Oman’s busiest cruise ports are Port Sultan Qaboos, the Port of Khasab and the Port of Salalah. In 2018 construction began on the Mina Sultan Qaboos Waterfront Regeneration port project, which is being developed by Omran. Slated for completion in 2027, the project is being built on a total area of 451,000 sq metres, including 3300 sq metres of retail space, residential zones and six hotels.

Efforts in the meetings, incentives, conferences and exhibitions (MICE) segment are centred on the Oman Convention and Exhibition Centre (OCEC) in the Madinat Al Irfan near Muscat. The OCEC held more than 50 events in the last quarter of 2022. These included a special event for football fans during the 2022 FIFA World Cup, the Oman Tourism Forum, the Regeneron International Science and Engineering Fair Middle East awards, the Oman Maritime Confex and the 89th UFI Global Congress.

Oman markets itself as an attractive MICE destination due to its reputation for neutrality and hospitality and the fact that it is within seven hours of air travel time for half of the world’s population.

Integrated tourism is a niche market singled out in Vision 2040 as an area for development. As of March 2023 there were 21 integrated tourism complexes (ITCs) in Oman, 11 of which are situated on land owned by the MoHT. Hawana Salalah, the largest ITC in the country, welcomed 30,532 visitors in the first six months of 2022. In April 2022 Omran launched the first phase of Yiti Integrated Tourism Development, a $1bn sustainable project on the Sea of Oman being developed in partnership with Dubaibased Diamond Developers. This phase will include 1657 energy-efficient residential units. It will also feature shops, sport facilities, schools, an equestrian centre and a laboratory to showcase sustainability solutions like renewable energy technologies, indoor vertical farming and humidity harvesting. The project, expected to be completed in 2025, will grow its own vegetables, recycle water and waste, and have car-free zones within the facility where only autonomous shuttles are allowed (See analysis).

In August 2022 the MoHT stated that it is seeking to open more tourism representative offices in target countries and give diplomatic missions a more significant role in promoting Oman as a tourist destination. During the khareef season, the Directorate General of Heritage and Tourism in Dhofar, which is part of the MoHT, coordinated with airlines and hotels to create a joint promotional campaign for the three-month season. The ministry launched special television programmes and engaged Gulf and Arab influencers to promote khareef in Dhofar on social media.

Tourism officials attended several important international tourism events in 2022. For the first time, Oman hosted the Global Travel Week Middle East, showcasing tourism offerings to 70 international buyers, predominantly from India, Europe and the Middle East, as well as 38 domestic buyers. In May Obaid Al Mahrouqi, CEO of Omran, participated in the Oman Tourism Forum 2022 held at the Arabian Travel Market in Dubai. Several hotels also attended to showcase their products and packages.

With rising energy prices propelling Oman towards its highest trade surplus in over a decade, tourism was expected to take a backseat on the agenda. However, this appears not to be the case so far, as the government continued to prioritise developing tourism infrastructure throughout 2022.

Tourism industry’s revenue is still below its pre-pandemic levels, yet its recovery should be helped in 2023 by a friendlier global climate for tourism. Indeed, the UN World Tourism Organisation projected that tourism arrivals will reach 80% to 95% of pre-pandemic levels in 2023. A large part of this recovery is likely to stem from the resumption of Chinese tourism. Oman is working to cultivate this market further, as it did before the pandemic, by adding new flight routes that were postponed by the crisis. Ambitious projects such as the Yiti Integrated Tourism Development have the potential to attract tourists from all over the world. With the tourism sector well on the way to recovery, 2023 will be a crucial year to see if Oman’s tourism can continue to build on its previous achievements.

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Diamond developers signs partnership with the oman tourism development company (omran group).

As part of its ongoing efforts to expand sustainable projects in the region

- omran group, the sultanate of oman’s executive arm for tourism development signed an agreement with diamond developers, the dubai–based company specialized in developing sustainable environmental projects, - the new agreement will underline the company’s commitment towards building carbon-neutral and resilient communities, dubai – 13th january 2022: diamond developers, the mastermind behind the sustainable city brand, the first fully operational sustainable community in the middle east has entered into a development partnership agreement with the oman tourism development company (omran group), the executive arm of the sultanate for tourism development. the agreement entails the development of first phase of the yiti tourism masterplan with an investment value of approximately aed 3.7 billion (approximately usd 1 billion). in conjunction with this partnership, a joint venture called sustainable development and investment company (sdic) s.a.o.c has been established to carry out the execution of this phase., omran group’s partnership with diamond developers marks a major milestone in yiti development as we together begin the first phase of this integrated urban destination in muscat. the signing further attests to omran group’s strategic vision in expanding the nation’s tourism sector and continuing to play a pivotal role as a catalyst and enabler of multi-fold, lucrative investment opportunities in the country in line with oman investment authority’s directions in realising the ambitious goals of oman vision 2040 and supporting the delivery of the national tourism strategy,” said hashil bin obaid al mahrouqi, ceo of omran group., “we are delighted to collaborate with diamond developers as they are one of the leading and reputable companies in building sustainable cities in the region. their approach is in line with our vision of adopting the foundations of placemaking and harnessing sustainability in all aspects of the development.” al mahrouqi added., the first phase of the yiti project, which covers 900,000 square meters, will focus on constructing a fully sustainable mixed-use project, the sultanate's first of its kind community that promotes sustainable living. the first phase will include green public spaces, residences, tourism, commercial, and educational facilities, all with well-balanced and integrated components. visitors and residents alike will enjoy a variety of unique lifestyle experiences, including restaurants, cafés, shops, and an equestrian center, a farm along with other distinctive components that create a meaningful green-living environment. the two sides announced that full details of the project will be revealed at the official launch ceremony later this year., commenting on the occasion, engineer faris saeed, chairman of diamond developers said, “we are very excited to join hands with omran to execute our first project in oman, and to work together on preserving the sultanate’s rich natural environmental resources in accordance with the best global green practices. over the past decade, we have gained and harnessed invaluable knowledge from our working proof-of-concept, which we are leveraging to set new standards for building sustainable and resilient cities with the highest sustainable standards to achieve a carbon-neutral future that also suits the local culture, environment, and economy.”, founded in 2003, diamond developers embodies a fundamental change in the concept of future cities; building, and maintaining sustainable, evidence-driven and intelligent, live-work-and-thrive cities. their replicable & scalable cities bring forward the 2050 paris agreement targets, enhance quality of life, and bring significant in-country value. the company is committed to enabling, empowering, and supporting partners around the world to realise the cities of tomorrow, today., source : https://www.thesustainablecity-yiti.com/news/, press and news, the sustainable city - yiti wins two accolades at the prestigious dossier construction awards and summit.

• Organized under the auspices of the Ministry of Housing & Urban Planning, the high-profile annual event, celebrates the highest-level achievements across the construction, infrastructure and real estate sectors. • The award ceremony was attended by H.E. Dr. Khalfan Al Shueili, Minister of Housing & Urban Planning, as the chief guest for the event • The Sustainable City – Yiti, a joint venture between Diamond Developers and Oman Tourism Development Company (OMRAN Group), was recognized with ‘Best Sustainable Project’ and ‘Best Sustainable Development’ awards. • The project was rewarded for its innovative sustainable solutions and effective environmental, social and economic management, setting global benchmarks in sustainable development. The Sustainable City - Yiti (TSC - Yiti), Oman's first fully sustainable city and the largest sustainable community in the Middle East, bagged two prestigious awards at the 10th edition of the Dossier Construction Awards & Summit (DCIAS). The project won both the 'Best Sustainable Project' and 'Best Sustainable Development' accolades for providing the highest standards of environmental, social, and economic sustainability. This includes clean energy production, recycling, vertical farming, and the adoption of clean and sustainable transportation, as well as other solutions that improve residents' quality of life and reduce their carbon footprint. The project was launched earlier this year, as a joint venture between Diamond Developers, the leading company in developing sustainable communities, and Oman Tourism Development Company (OMRAN Group), as phase 1 of the Yiti Integrated Tourism Development Masterplan. Bringing together the leading names and recognizing the top performers across construction, infrastructure, real estate, manufacturing and design & engineering consultancy, the Dossier Construction Awards & Summit is renowned and established as a mark of international excellence. The award ceremony was held in Sheraton Oman hotel in the presence of H.E. Dr. Khalfan Al Shueili, Minister of Housing & Urban Planning and leaders across various industry. Hashil bin Obaid al Mahrouqi, CEO of Omran Group received the awards on behalf of The Sustainable City - Yiti. In response to the win, Hashil bin Obaid al Mahrouqi, CEO of Omran Group said: “We are honored to have The Sustainable City - Yiti recognized at this year's Dossier Construction Awards & Summit. This stands as a testament to our unwavering commitment to reaching our sustainable development goals and creating an eco-conscious community that is harmoniously aligned with the distinct geography of the region. It also underlines our strategy to bringing significant in-country value, by generating employment opportunities, and giving local talents the necessary exposure to international markets, and the opportunity to learn from experts in the field.” “TSC - Yiti is a pioneering project that can transform the entire global sustainable development paradigm, built on an inclusive and integrated philosophy, bringing the highest sustainability standards and the best quality of life, in alignment with the Oman 2040 vision.”- he added. Located on the picturesque coastline, overlooking the Gulf of Oman, TSC - Yiti brings together a pioneering vision of sustainability and an unparalleled quality of community living to Oman. Spread across 86 hectares, the project overlooks the beautiful Gulf of Oman and is strategically located 30km from central Muscat. The community encompasses villa clusters, apartments, hotels urban farming, a central plaza with a mall, school, nursery, an institute, medical clinics, a rehabilitation center, a museum, a green mosque, sports complex, equestrian centre, and will be able to accommodate up to 10,000 visitors and residents. The Sustainable City - Yiti is expected to be completed in 2025, driving the industry towards a net zero journey in alignment with the 2050 climate targets.

The Road to Net-Zero Emissions Living in Oman Has Begun: With the Sustainable City – Yiti Well Underway, the Launch of the Property Sales Sheds Light on Its Remarkable Progress

The Sustainable City Yiti outlines commitment to Oman

Embarking on a significant path towards achieving net zero emissions, The Sustainable City – Yiti announced the much-anticipated launch of property sales for phase one of the largest sustainable community in the region, with 422 residential units designed in line with the highest social, environmental, and economic sustainability standards. A diverse selection of 136 eco-friendly residential villas will be available for purchase, each showcasing an elegant and energy-efficient design with spacious three and four-bedroom units. Additionally, a wide variety of 286 modern apartments will be offered, ranging from cosy studios to expansive three-bedroom units. All are designed to enhance the quality of life for residents while reducing their carbon emissions. The city will be powered by clean, renewable energy sources, prominently featuring solar panels that are tactically mounted on rooftops and parking facilities. This approach enables residents to achieve up to 100% energy bill savings. Expected to be completed by 2025, the development will feature a green spine running the length of the community, complete with biodomes and community gardens. Commenting on the monumental occasion, Hashil Obaid Al Mahrouqi, Chairman of Sustainable Development and Investment Company (SDIC), and OMRAN Group’s Chief Executive Officer said, “We are delighted about our partnership with Diamond Developers on The Sustainable City – Yiti, with joint efforts and determination in establishing the first development of this scale in Oman as one of the largest sustainable and urban developments in the region, that meets global green practices and is in adherence to the highest sustainability standards. Salah Habib, CEO of Diamond Developers said, 'The resounding success of The Sustainable City concept and the high demand for our brand are testaments to the growing appetite for eco-friendly living.'

• In-country value of billion-dollar-project contributing significantly to Sultanate’s economy • 78.65% of Omani-sourced material used in the one million-square meter project construction during the last two quarters alone. • More than 58 SMEs in Oman have benefited from the works being undertaken at TSCY The Sustainable City-Yiti (TSCY), a development by Sustainable Development Investment Company (SDIC) - a partnership between Diamond Developers and Oman Tourism Development Company (OMRAN Group), has reaffirmed its commitment to the Sultanate. The billion-dollar development aims to support the goals of the Oman Vision 2040, as well as the National Tourism Strategy, by creating a live-work-thrive city, that is green, energy efficient, and people-centric. It is also playing an integral role in contributing to in-country value for the Sultanate, with 78.65% of Omani-sourced goods & materials being sourced in the past six months alone. More than 58 SMEs in Oman have also benefited from the works undertaken at TSCY in the last two quarters. Scheduled to complete in 2025, the development has supported more than 1,800 jobs during construction, both direct and indirect, generating over 961,000-man hours to date. Eng. Ammar Sulaiman Al Kharusi, Head of development at OMRAN Group said: “We are delighted to play our part in strengthening the economy of Oman, from the tourism sector to SMEs and the huge number of employment opportunities through this exciting project. Ours is a truly sustainable development in every sense of the word and by driving in-country value across the board, we are further contributing to the growth and prosperity of the Sultanate.” TSCY will consist of 300 villas, 1,225 apartments and 132 luxury serviced apartments. The community also includes indoor and vertical farms, a central plaza with a mall, a school, a nursery, two hotels, a sports complex, medical clinics, an autism center, and an institute. Home to 10,000 residents and visitors once complete, The Sustainable City - Yiti will be the largest operational sustainable community in the world, with ambitions to be the first Net Zero Carbon community in Oman by 2040. The city is designed to deliver measurable outcomes across all three pillars of sustainability: social, environmental, and economic, bringing forward the UN emission reduction targets for 2050. The city follows the blueprint for low-carbon living that was pioneered by the first ‘The Sustainable City’, which opened in Dubai in 2016. The model ensures a reduction in carbon footprint, from design to operation, using disruptive innovation to achieve transformational societal change.

Bank Nizwa Offers Shari’ah-Compliant Home Finance Solutions for the Sustainability City – Yiti; Signs MoU with Sustainable Development and Investment Company

As the leading Islamic bank in Oman, Bank Nizwa has consistently endeavoured to contribute to the nation’s revenue diversification agenda. In line with the same, the bank recently signed a Memorandum of Understanding (MoU) with Sustainable Development and Investment Company (SDIC) to offer Shari’ah-compliant home finance solutions to customers aspiring to buy properties at The Sustainability City – Yiti. With a competitive profit rate of 4.85 per cent, Bank Nizwa seeks to make owning a home at this iconic location even more convenient, quick and secure. The Sustainable City – Yiti is set to be the first fully sustainable community in Oman, and will meet the highest standards of social, environmental and economic sustainability, with mixed housing typologies to suit different categories. Commenting on the signing of the MoU, Khaled Al Kayed, Chief Executive Officer at Bank Nizwa said, “We are indeed delighted to have signed this MoU with SDIC, the company responsible for developing the Sustainable City - Yiti, one of the region’s most prominent urban development projects to embrace the principles of sustainability. Hashil bin Obaid al Mahrouqi, Chairman of the Board of Directors of the SDIC said, “We are pleased to sign this agreement with Bank Nizwa. This signing comes as part of our continued commitment to work with our partners to provide superior services and reliable financing solutions to investors and customers of The Sustainable City - Yiti.” The Sustainable City - Yiti project is being developed by Sustainable Development and Investment Company (SDIC), a joint venture between OMRAN Group, the executive arm of the Sultanate for developing the tourism sector, and Diamond Developers, the leading company in developing sustainable communities. The Islamic home financing solutions from Bank Nizwa will hugely benefit buyers as the project provides a lucrative investment opportunity with immense growth potential. Bank Nizwa, through its continued local and international alliances, has been proactive in creating partnerships that aid in the sustainable progress of the country and the welfare of its people.

3rd of November, 2022

15th of May 2023

16 November 2022

26th of November 2022

Oman launches $5.2bn ‘future fund’ to drive economic development

By focusing on critical areas, the ‘Future Fund Oman’ aims to revitalise the country’s economic pillars and propel sustainable growth

The Oman Investment Authority (OIA) has unveiled the ‘Future Fund Oman,’ with a substantial capital of $5.2bn.

Over the next five years, the fund will allocate approximately $1bn annually to support national investment projects, attract foreign direct investment (FDI), and bolster small and medium-sized enterprises (SMEs).

With a focus on key sectors like tourism, manufacturing, and green energy, the fund aims to diversify Oman’s economy.

Governed by OIA ‘s high-quality standards, the fund will contribute to Oman’s economic development and global investor confidence.

Significantly, it earmarks 90 per cent of its capital for investing directly in economically viable large-scale projects within Oman.

Governed by an Investment Committee and an Advisory Committee, the fund ensures strategic alignment with broader economic objectives while overseeing investment decisions.

Building Oman’s business ecosystem

Moreover, the ‘Future Fund Oman’ will focus on fostering entrepreneurship and innovation. Approximately 7 per cent of its capital will be dedicated to nurturing SMEs, while 3 per cent will be channeled towards backing startups, as per a statement issued by the OIA.

This strategic allocation underscores Oman’s vision to cultivate a vibrant entrepreneurial ecosystem and bolster the nation’s economic resilience.

By focusing on these critical areas, the ‘Future Fund Oman’ aims to revitalise Oman’s economic pillars and propel sustainable growth.

Abdulsalam Al Murshidi, president of OIA, emphasised the fund’s pivotal role as a catalyst for economic diversification and a trusted partner for global investors.

He underscored its strategic focus on empowering the private sector, attracting FDI, supporting SMEs, and fostering venture capital initiatives. He said, “adhering to OIA’s stringent quality standards, the fund aims to maintain its position as a global leader in governance and sustainability development.”

The launch of the ‘Future Fund Oman’ marks a significant milestone in Oman’s journey towards economic diversification and sustainable development.

As the nation continues to forge ahead with its ambitious vision, this initiative holds the promise of unlocking new opportunities, driving innovation, and fostering inclusive growth across various sectors of the economy.

Read: Oman to invest $31bn in tourism sector by 2040

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