The Sultanate of Oman is poised to deliver 62,800 new residential real estate units by 2030, with 5,500 set to come to market this year, in line with the country’s strategic vision, according to new insight from leading real estate and advisory consultancy, Cavendish Maxwell.

According to the firm’s Oman Real Estate Market Performance Report, released during Oman Design and Build Week, Oman will also add 5,800 hotel rooms over the next five years, with 35 new hotels and resorts scheduled to open by 2030. This will boost the current hotel inventory by around 25 per cent.

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Housing inventory and distribution

Oman’s residential real estate inventory grew by 3.6 per cent in 2024, with 38,400 new homes delivered, bringing the total supply to approximately 1.1 million units. Most of the residential supply is located in Muscat, followed by Al Batinah North and South, and Dhofar.

This expansion supports Oman Vision 2040, which targets 90 per cent of the national economy being driven by non-oil sectors by 2040. The population, currently at 5.3 million, is projected to reach 7.7 million by then, driven by both Omani nationals and expatriates. Over 80,000 new homes are expected to be delivered between now and 2040.

Demand to outpace supply?

Despite the pipeline of tens of thousands of new properties, Cavendish Maxwell warns of a possible shortfall in supply, citing rapid population growth. The consultancy estimates that 340,000 new homes will be required to maintain a sustainable 90 per cent occupancy rate in the long term.

“Oman is undergoing a meaningful economic transformation, with strong momentum in non-oil sectors and a growing population driving demand across real estate and infrastructure. Vision 2040 is not just a plan – it’s a commitment to a sustainable, knowledge-driven, globally competitive future,” Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, said.

“As the country advances with the 2040 agenda, stimulating investment in the real estate sector will be increasingly important. Government-led initiatives to attract foreign and local investment can play a key role in ensuring long-term housing market resilience. However, given the possibility of demand outpacing supply, proactive planning will be essential to avoid a potential shortfall,” Al Zadjali added.

Occupancy rates holding strong

Occupancy rates in Oman’s residential sector remain stable, averaging 85.2 per cent across all units. Villas and arabic houses maintain a slightly stronger occupancy rate at 87.5 per cent, compared to apartments at 80.8 per cent. Apartment occupancy levels rose by 3 per cent in 2024 compared to the previous year.

Integrated Tourism Complexes a key driver

Integrated Tourism Complexes (ITCs) are playing a key role in shaping Oman’s real estate future. These are the only areas where non-Omani nationals can own freehold property and are typically priced more affordably than comparable locations in the GCC, while offering similar rental yields.

Aligned with Vision 2040, ITCs aim to support economic diversification. Key ITCs are under development in Muscat, Dhofar, South Al Batinah, South Al Sharqiyah, and Musandam.

Apartment sales in ITCs generally range from OMR800 to OMR1,100 per square metre, compared to 1,600–2,100 in Dubai, 1,400–1,850 in Abu Dhabi, and 1,000–1,300 in Doha. Rental yields at Oman’s ITCs range from 5 to 8 per cent, comparable to GCC peers. Villa prices range from OMR750 to OMR1,000 per square meter, again lower than Dubai (1,400–1,850) and Abu Dhabi (1,350–1,750).

Branded residences gaining traction

Branded residences are increasingly popular, offering premium options for investors and residents. Notable developments include:

• La Vie by Tivoli Hotels and Residences: OMR1,300–1,500 per square meter
• St. Regis by Marriott: OMR2,100–2,400 per square metre
• Mandarin Oriental Residences: OMR2,400–2,600/sq metre

Tourism on the rise

Oman’s tourism sector continues to grow, with strong demand from both international and domestic travellers. In 2024, the country’s four airports handled 14.5 million passengers – a 2.5 per cent year-on-year increase. Muscat led with 12.9 million passengers, while Salalah managed 1.5 million, underscoring its status as a seasonal destination.

Hotel sector outperforms pre-pandemic levels

Oman’s hotels welcomed 2.15 million guests in 2024 – a 3.6 per cent increase from 2023. Hotel revenues rose by 6.1 per cent to OMR243. Cavendish Maxwell forecasts a positive but stable outlook for the tourism sector.

The country currently has around 270 hotels and resorts, offering 24,000 rooms, more than half of which fall into the Upscale, Upper-Upscale, or Luxury segments. An additional 5,800 rooms across 35 hotels are planned by 2030, with 54 per cent in the higher-end segments, indicating a pivot towards premium tourism.

Hotel performance metrics improving

Hotel occupancy rose by an average of 2.4 per cent in 2024. The Upper Midscale and Midscale segments saw the highest gains – 11.1 per cent and 8.9 per cent respectively. Average Daily Rates (ADRs) reached OMR53.4, with Upper Midscale and Midscale hotels seeing ADR increases of 3.8 and 5.7 per cent respectively.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance of the UAE, has issued Decision No (4) of 2025 in his capacity as Chairman of the Financial Audit Authority.

The move establishes operational procedures for the Central Violations Committee and the Grievances Committee under the authority, aiming to enhance accountability in public finances without compromising the impartiality or fairness of disciplinary proceedings.

The decision applies to all employees and senior officials — including CEOs and those in higher executive positions — within entities falling under the authority’s jurisdiction.

It lays out clear and structured procedures for addressing financial and administrative violations while ensuring that any disciplinary action is fair, proportionate, and legally justified.

Safeguarding rights and ensuring due process

A key component of the decision is the establishment of the right to appeal, with the aim of promoting workplace stability and job satisfaction.

It stipulates that employees can contest decisions affecting their legal status or working conditions, providing a 15-working-day window from the date of notification to file a grievance.

Appeals submitted beyond this timeframe will be deemed invalid.

The decision also clarifies the composition and responsibilities of the Central Violations Committee. It requires disciplinary procedures to be objective and impartial, prohibits multiple penalties for the same offence, and ensures employees are given an opportunity to submit written statements in their defence.

Penalties must align with the severity of the violation and be limited to those authorised by law.

Public finances guidelines: Confidentiality and oversight

To maintain integrity in the proceedings, all sessions, records, and deliberations of both the Central Violations Committee and the Grievances Committee must remain confidential.

Disclosure of information is only permitted with the approval of the Director General of the Financial Audit Authority and must serve the public interest.

The Grievances Committee, whose rulings are binding, is empowered to address complaints within the stipulated framework.

Once a ruling is issued, the concerned entity is obligated to implement it and notify the Financial Audit Authority of the action taken.

In support of these functions, the Financial Audit Authority will provide the necessary administrative and technical backing to both committees, in line with Law No (4) of 2018, which governs the authority’s operations.

Officials say the new procedures reinforce a culture of compliance and transparency, strengthening the UAE’s ongoing efforts to safeguard public resources while protecting employee rights.

A total of 961,903 pilgrims have arrived in Saudi Arabia for the annual Hajj pilgrimage, according to the General Directorate of Passports, the Saudi Press Agency (SPA) reported on May 25.

The directorate said 912,598 pilgrims entered the kingdom via airports, 45,028 through land crossings, and 4,277 by sea, as the kingdom prepares to host one of the world’s largest religious gatherings.

The authority reaffirmed its commitment to ensuring a smooth arrival experience by equipping all international entry points with advanced technology and deploying highly trained, multilingual staff.

Kingdom cracks down on Hajj regulation violaters

Meanwhile, the Ministry of Interior announced that Hajj Security Forces had apprehended five residents and nine citizens at the entrances to Makkah for violating Hajj regulations by transporting 44 individuals without Hajj permits, SPA reported.

Seasonal administrative committees have issued decisions against the transporters, their accomplices, and the unauthorised pilgrims. Penalties included imprisonment, fines of up to SAR100,000, deportation of resident offenders with a 10-year reentry ban after serving their sentences, and public naming of violators. The ministry also initiated judicial proceedings to confiscate the vehicles used and imposed fines of up to SAR20,000 on individuals who attempted to perform Hajj without permits.

The Ministry of Interior further warned that individuals who shelter or attempt to shelter holders of any type of visit visa in residential accommodations—including hotels, apartments, private homes, or pilgrim housing — within Makkah and the holy sites from Dhu Al-Qi’dah 1 to Dhu Al-Hijjah 14 will face penalties of up to SAR100,000. The fines will increase based on the number of individuals sheltered or assisted.

The ministry reiterated the importance of following Hajj regulations and encouraged the public to report violations by calling 911 in Makkah, Madinah, Riyadh, and the Eastern Province, or 999 in other regions.

Mattar Al Tayer, Director General and Chairman of the Board of Executive Directors of Dubai’s Roads and Transport Authority (RTA), has announced the completion of 70 per cent of the Umm Suqeim Street Improvement Project.

Read-Dubai traffic: How RTA aims to eliminate jams on Sheikh Zayed, Al Khail Roads

The project stretches from the intersection with Al Khail Road to the intersection with Sheikh Mohammed Bin Zayed Road. It forms part of a master development plan for the Umm Suqeim–Al Qudra corridor, which runs from Jumeirah Street to Emirates Road, spanning a total of 16kms. The corridor serves several residential and development areas with a combined population exceeding one million residents.

Al Tayer made these remarks during a site tour to inspect progress on the project, which is being implemented in line with leadership directives to enhance road infrastructure, support Dubai’s ongoing urban expansion and population growth, and ultimately improve traffic flow and mobility across the city.

During the tour, Al Tayer was briefed on completed phases of the Umm Suqeim Street Improvement Project, covering 4.6 km from Al Khail Road to Sheikh Mohammed Bin Zayed Road. Works include the development of the Umm Suqeim–Al Barsha South intersection near Kings’ School, featuring an 800-metre tunnel with four lanes in each direction along Umm Suqeim Street, and a signalised surface-level intersection.

Al Tayer added: “The Umm Suqeim–Al Qudra Corridor Improvement Project is one of RTA’s key strategic east-west traffic corridors, designed to enhance integration with the vertical north-south road network. The project complements RTA’s efforts to improve connectivity between four major arterial roads in Dubai: Sheikh Zayed Road, Al Khail Road, Sheikh Mohammed Bin Zayed Road, and Emirates Road.”

Increase in vehicle Capacity

The corridor is designed to accommodate 16,000 vehicles per hour in both directions, enhance traffic flow, and reduce travel time between Sheikh Mohammed Bin Zayed Road and Al Khail Road by 61%—from 9.7 minutes to just 3.8 minutes. It serves several major residential and development areas, including Al Barsha South 1, 2, and 3, Dubai Hills, Arjan, and Dubai Science Park.

Al Tayer was also briefed on the use of smart technologies to monitor road projects across the emirate. Drones are being deployed to capture and analyse project progress data, while artificial intelligence is used to track construction milestones and performance metrics. This integrated approach has improved operational efficiency, accelerated decision-making, and enabled real-time, high-precision data collection.

The adoption of these technologies has led to a 100% increase in field presence and a 60% reduction in time required for site surveys. Time-lapse imaging systems are also being used to continuously monitor construction activity, contributing to a 40% improvement in overall project monitoring efficiency.

Phase I of the Umm Suqeim Street Improvement Project

Phase I of the project was completed in 2013, covering the section between Sheikh Zayed Road and Al Khail Road. It included the construction of two bridges—each with three lanes in both directions—the first crossing the eastern street parallel to Al Asayel Street, and the second over the western street parallel to First Al Khail Street. It also included two signalised intersections at Umm Suqeim Street’s junctions with Al Asayel and First Al Khail Streets, along with three pedestrian bridges to ensure safe crossings between Al Quoz and Al Barsha.

In 2020, as part of the Dubai Hills Mall bridges and roads development, RTA opened a main bridge along Umm Suqeim Street at the intersection with the entrance to Dubai Hills and Al Barsha South. This 500-metre bridge features four lanes in each direction and supports a capacity of 16,000 vehicles per hour.

Dubai Land Department (DLD) has launched the Middle East and North Africa region’s first tokenised real estate investment project through the ‘Prypco Mint’ platform.

The initiative, part of Dubai’s Real Estate Sandbox programme, is being carried out in collaboration with Prypco, and supported by the Virtual Assets Regulatory Authority (VARA), the Central Bank of the UAE, and the Dubai Future Foundation.

Zand Digital Bank has been appointed as the banking partner for the pilot phase.

The project enables users to invest in tokenised shares of ready-to-own properties in Dubai, with a minimum entry point of Dhs2,000.

Currently, investments are accepted only in UAE dirhams, and the use of cryptocurrencies is not permitted at this stage.

Available exclusively to UAE ID holders during the pilot, the platform is expected to expand globally in future phases.

DLD, VARA, and the Central Bank of the UAE will oversee investor funds, ensuring a tightly regulated investment environment.

“This initiative is designed to open the market to small-scale investors by providing access through a regulated and transparent investment framework,” DLD said in a statement.

Tokenised shares offer investors access to property ownership without the need for full capital outlay.

The platform provides detailed information including pricing, risk assessments, and technical property specifications, allowing users to make informed decisions.

Partnerships between DLD, Prypco, and Ctrl Alt Solutions

The move stems from a partnership between DLD, Prypco, and Ctrl Alt Solutions to create a regulatory and operational framework that fosters innovation while protecting investor rights. By 2033, tokenised real estate is projected to make up 7 per cent of Dubai’s property market, equivalent to Dhs60bn ($16bn).

Investor protection is further enhanced by a dedicated Client Money Account (CMA) system overseen by the Central Bank, which holds funds until purchases are completed.

The initiative supports the objectives of the Dubai Real Estate Sector Strategy 2033 and the Dubai Economic Agenda D33, which aim to position Dubai as the world’s leading smart city for real estate investment.

All tokenised offerings during the pilot phase must come from companies licensed by VARA. Currently, two firms — Prypco and Ctrl Alt — are authorised.

Investors will benefit from both rental income and capital gains, with legal documentation of ownership issued by DLD. The project is part of DLD’s broader Real Estate Evolution Space Initiative (REES), which promotes the integration of proptech and artificial intelligence into the sector.