Oman’s real estate market is quietly transforming into one of the Gulf region’s most promising investment opportunities.

Driven by its ambitious Vision 2040 diversification strategy, Oman has positioned real estate and tourism as key pillars for economic growth, creating strong incentives for GCC investors looking for stability, affordability, and sustained returns.

Current market dynamics: Stability and growth

The sultanate’s real estate sector contributed OMR 1.08bn to its GDP by the end of 2024, reflecting steady growth underpinned by government initiatives and investor confidence.

With the population projected to grow from 5.3 million today to 7.7 million by 2040, demand for residential housing is set to remain robust, particularly in urban hubs like Muscat and Salalah.

The residential real estate market alone is expected to reach $226.25bn by 2025, with a projected CAGR of 5.04% between 2025 and 2029.

Who’s investing and why?

Investor interest from the UAE, Saudi Arabia, Europe, the US, India, and Pakistan is growing notably, drawn by Oman’s lower property values, approximately three to five times lower than Dubai’s, and comparable quality of infrastructure.

Investors find Oman attractive due to its safe and politically stable environment, transparent market conditions, and competitive returns, with rental yields ranging between 5 to 8 per cent.

Integrated Tourism Complexes (ITCs) have become particularly appealing to foreign buyers, offering rare gateways for freehold ownership in designated zones, coupled with lifestyle amenities and potential residency visas for buyers and their families.

Areas of high investor interest

Muscat and Salalah currently lead the market, offering distinct advantages. Muscat provides an established urban infrastructure and critical economic importance, hosting key government institutions and major financial flows. Salalah, conversely, offers a unique natural appeal with its summer monsoon season that transforms the region into a green oasis, unparalleled within the GCC. Both cities host formally designated ITC zones, enabling foreign investors unrestricted freehold property ownership.

Beyond these cities, upcoming developments in Musandam, Duqm, and various industrial hubs indicate broader regional expansion, suggesting significant future investment opportunities.

Upcoming developments

Several significant projects are underway, transforming Oman’s coastal, mountainous and urban landscapes. AIDA by DarGlobal is situated on a picturesque plateau 130 meters above sea level, offering villas, townhouses, apartments, branded hospitality, retail spaces, and the Trump Golf Club, all set within luxurious surroundings.

The Sustainable City Yiti by SDIC is pioneering sustainable development with advanced green technologies, significantly reducing maintenance costs and operational expenses, and featuring residential, educational, commercial, and recreational amenities.

A new ultra-luxury beachfront project is set to launch soon on Yiti Beach, one of Muscat’s most desirable shorelines. Highly anticipated by both European and GCC investors, the project will feature apartments, villas, and townhouses nestled in lush landscaped gardens, as well as cafés, restaurants, and a beachfront club. Additionally, Muscat’s Luxury ITC Project in Muttrah is set to offer ultra-luxury waterfront residential units and retail spaces, strategically positioned in Muscat’s historic centre.

Branded residences from prestigious international names such as St. Regis, Mandarin Oriental, and La Vie by Tivoli are also emerging, attracting high-end buyers seeking prestige alongside potential capital gains.

Strategic initiatives supporting growth

The Omani government continues to facilitate market expansion by allocating additional land for ITC zones and supporting significant hotel and hospitality growth—35 new hotels are planned within five years, increasing hotel room supply by 25 per cent. This growth is focused on coastal and cultural hubs aligned with Vision 2040’s tourism strategy.

To sustain market momentum, developers are advised to align their projects closely with investor expectations, emphasizing quality, sustainability, and unique lifestyle propositions. These strategic moves ensure both market attractiveness and long-term investment appeal.

The outlook

Analysis indicates robust and continued growth in Oman’s property values, with notable off-plan projects demonstrating annual price increases between 15 to 18 per cent. However, the country faces a substantial housing deficit, estimated at 340,000 units by 2040, signifying significant opportunities for early movers who identify and invest in high-demand sectors and locations.

Oman’s real estate market stands at a pivotal moment, offering GCC investors a compelling mix of affordability, stability, lifestyle benefits, and sustained returns. Complemented by its diverse and breathtaking landscapes, from pristine beaches to lush mountains and verdant oases, Oman represents an increasingly attractive investment destination poised for significant regional impact.

The writer is the COO of Whitewill Real Estate in Oman and Abu Dhabi.

Dubai Police have arrested a cybercrime gang accused of running fraudulent online trading and investment schemes through social media platforms, the force said on Sunday.

The arrests were carried out by the Anti-Fraud Centre at the General Department of Criminal Investigation, following extensive monitoring and investigation efforts, according to a report published by the Dubai Media Office.

The suspects had contacted victims through phone calls, falsely presenting themselves as representatives of legitimate electronic trading and investment platforms.

They used these claims to gain victims’ trust and convince them to transfer funds with the promise of fast and high returns, police said.

The funds were then funneled into bank accounts located outside the UAE, authorities added.

Dubai Police made the arrest as part of larger efforts to raise awareness about cyber threats

The operation was part of the ongoing national awareness campaign, launched to educate the public about rising cyber threats.

Dubai Police said they acted swiftly after receiving several reports from victims and were able to identify the gang’s identities and locations before making the arrests.

Legal procedures have been initiated to refer the suspects to the appropriate judicial authorities.

Mubadala Investment Company, the Abu Dhabi-based sovereign investor, said on Monday it has entered into an agreement to make a significant reinvestment in PCI Pharma Services, a global contract development and manufacturing organisation (CDMO) focused on biotherapies.

The deal is part of a strategic transaction co-led by Bain Capital and existing lead investor Kohlberg. Partners Group will also remain involved with a minority investment, Mubadala said in a statement.

Mubadala first invested in PCI alongside Kohlberg in 2020.

PCI has been expanding its presence in pharma

Over the past five years, PCI has delivered more than 450 product launches and continues to build on its 50-year history in pharmaceutical services.

“PCI Pharma Services has been one of our top-performing healthcare investments and is a testament to what can be achieved when long-term active investors partner with strong management teams,” said Camilla Languille, co-CEO of Private Equity at Mubadala.

“Our team will continue to focus on similar opportunities in the healthcare space as the sustained outsourcing of mission-critical but non-core activities by pharma companies aligns with our commitment to address global unmet clinical needs, reduce the cost of care to the system, and enable greater access,” she added.

Mubadala investment reflects PCI’s potential

Mina Hamoodi, head of Healthcare at Mubadala, said: “Our reinvestment in PCI reflects our deep conviction in the company’s mission, leadership, and long-term potential. At this important juncture, we are delighted to welcome Bain Capital, an industry-leading healthcare investor with deep expertise in growing pharma services businesses, as a partner.”

She added that Mubadala looks forward to partnering with Bain and Kohlberg and working closely with PCI’s management as the company enters its “next chapter of accelerated growth”.

The new investment will support both organic and inorganic expansion, including growth in sterile fill-finish injectables, high-potency drug manufacturing, and specialised therapies.

The company also plans continued investment in the United States to strengthen domestic pharmaceutical manufacturing and supply chain resilience.

A consortium comprising Air Arabia, Nesma Group, and KUN Holding has won a bid from Saudi Arabia’s General Authority of Civil Aviation (GACA) to establish and operate a new national low-cost airline headquartered in Dammam.

The carrier will be based at King Fahd International Airport and is intended to boost both domestic and international connectivity for the Eastern Province.

The win marks the result of a strategic partnership among the three firms, aimed at supporting the kingdom’s aviation goals and economic development objectives.

“We are proud to have been selected by GACA to launch a new national low-cost airline headquartered in Dammam,” said Adel Al Ali, group CEO of Air Arabia. “This achievement represents a key milestone that reaffirms our commitment to supporting the growth and development of the kingdom’s aviation sector.”

New airline inspired by Air Arabia’s model

The airline, which draws on Air Arabia’s regional low-cost operating model, aims to deliver reliable and value-driven travel for passengers while creating economic opportunities in the region. According to Al Ali, the project will contribute to job creation and the broader economic development of the Eastern Province.

Faisal Bin Saleh Al-Turki, president of Nesma Group, and Mohamed Bin Nabil Hefni, CEO of KUN Holding, called the initiative a direct contribution to strengthening Saudi Arabia’s tourism infrastructure and local economy.

“Launching a new low-cost carrier from Dammam is not merely an air transport project,” they said in a joint statement, “but a contribution to creating high-quality jobs, empowering national talent, and supporting aviation-related commercial activity. We believe this project reflects the private sector’s role in supporting the goals of Saudi Vision 2030.”

By 2030, the airline plans to operate 45 aircraft, covering 24 domestic and 57 international destinations, and serve around 10 million passengers annually.

The project is expected to generate over 2,400 direct jobs in the aviation sector and contribute significantly to tourism and economic growth in the Eastern Province.

Read: Air Arabia Abu Dhabi to increase operational capacity by 40% in 2025