Oman’s hotel sector posted record revenues of OMR297.3m ($772m) in 2025, rising more than 22 per cent from a year earlier, according to property consultancy Cavendish Maxwell.

The firm said hotels in Oman welcomed 2.4 million guests last year, up nearly 11 per cent from 2024. Average occupancy climbed 13.6 per cent to almost 57 per cent, while average room rates rose 4.7 per cent to just under OMR49 ($127).

Supply also increased, with around 900 new hotel rooms added in 2025, taking total inventory to about 36,800 rooms. A further 2,400 rooms are expected to be delivered in 2026, followed by another 900 in 2027.

“After a robust, record-breaking performance in 2025, Oman’s hospitality sector has entered this year with strong momentum,” said Khalil Al Zadjali, head of Oman at Cavendish Maxwell. He added that growth is being supported by a broader mix of international visitors, stronger domestic demand and higher occupancy levels.

Oman welcomed 1.66 million travellers during Salalah’s Khareef season

Oman’s airports handled just under 15 million passengers in 2025, up 2.8 per cent year-on-year.

Traffic peaked in August, when 1.66 million travellers visited during Salalah’s Khareef season. Muscat International Airport accounted for 13.2 million passengers, or about 88 per cent of total traffic, while Salalah International Airport saw volumes rise nearly 10 per cent to 1.7 million.

The report, which covers three- to five-star hotels, also showed employment in the sector rising 7.3 per cent to around 11,200 workers, reflecting continued expansion.

Domestic tourism played a larger role, with Omani nationals making up more than 36 per cent of hotel guests, up from 33.8 per cent a year earlier.

European visitors grew by 22 per cent to account for nearly 28 per cent of guests, followed by Asian travellers at 14.5 per cent. Other visitors came from the Gulf, wider Arab region, the Americas, Oceania and Africa.

Read: Oman govt completes acquisition of SalamAir, maintains separate airline brands

Dubai Municipality has launched a new initiative allowing people to work from public parks, as the emirate looks to reshape urban spaces to support flexible working and economic activity.

The “Work from Park” programme will introduce dedicated work environments within parks, combining office-style infrastructure with outdoor settings. The move is part of a broader strategy to position public parks as multi-functional spaces that support both leisure and productivity.

As part of the initiative, Dubai Municipality has signed cooperation agreements with Group AMANA and Letswork to develop and operate the facilities.

The first site is scheduled to open in May at Al Barsha Pond Park. It will feature modular workspaces built to sustainability standards and integrated into the park’s natural environment.

Additional locations are expected to be rolled out across the emirate throughout the year.

Work from Park concept aligns with the Dubai 2040 Parks and Greenery Strategy, among others

The initiative aligns with long-term development frameworks, including the Dubai 2040 Parks and Greenery Strategy, the Dubai Urban Plan 2040 and the Dubai Economic Agenda D33, which aim to enhance quality of life and support economic diversification.

Dubai Municipality said the project targets entrepreneurs, freelancers and small and medium-sized enterprises, as well as the wider remote working community.

Facilities will include hot desks, event spaces, podcast studios and creative production areas, accessible through Letswork’s digital platform.

Under the agreement, Group AMANA, through its DuBox unit, will deliver the physical infrastructure using off-site modular construction, a method that allows units to be built elsewhere and assembled on-site more quickly while reducing waste and environmental impact.

Letswork will oversee the activation and operation of the spaces, alongside programmes designed to support content creators, including dedicated creative work areas, training sessions and collaborative events.

Officials said the initiative will be implemented through a public-private partnership model, aimed at attracting private investment and supporting the development of a more flexible, innovation-driven urban economy.

Dubai Municipality said the move forms part of its wider efforts to enhance public spaces and adapt to changing work patterns, while maintaining parks as key recreational destinations.

US President Donald Trump said on Sunday his envoys would return to Pakistan for new talks with Iran, while threatening new attacks on Iran‘s bridges and power plants unless it accepts his terms.

Trump said the US delegation would arrive on Monday evening, a timetable that leaves just a day for talks to make progress before a two-week ceasefire ends.

“We’re offering a very fair and reasonable DEAL, and I hope they take it because, if they don’t, the United States is going to knock out every single Power Plant, and every single Bridge, in Iran,” he posted on social media. “NO MORE MR. NICE GUY!”

However, there was no immediate confirmation from Iran that it would attend any new talks. Iran‘s Tasnim news agency reported that there had been no decision taken to send a delegation while a US blockade of Iranian ports was in place.

A White House official said the US delegation would be headed by Vice President JD Vance, who led the war’s first peace talks a week ago. Trump’s envoy Steve Kushner and the president’s son-in-law Jared Kushner would also attend. Earlier, Trump had told ABC News and MS Now that Vance would not go.

Iran‘s chief negotiator, Mohammad Baqer Qalibaf, earlier said the two sides had made progress but were still far apart on nuclear issues and the Strait of Hormuz.

The vital shipping strait remained closed on Sunday, a day after Iran fired on two vessels that tried to cross.

Iran, which has blocked off the strait to ships apart from its own since the United States and Israel attacked on February 28, had announced on Friday it would reopen it. But it reversed that decision on Saturday after Trump declined to lift a US blockade of Iranian ports.

“Iran decided to fire bullets yesterday in the Strait of Hormuz — A Total Violation of our Ceasefire Agreement!” Trump wrote in Sunday morning’s post. “That wasn’t nice, was it?”

Strait of Hormuz still shut

Trump’s renewed threat to hit Iran‘s power plants and bridges fits a pattern of such warnings throughout the war, several of which preceded moves to de-escalate. He abruptly announced the ceasefire two weeks ago just hours after declaring that Iran‘s “whole civilisation will die tonight”.

Now in its eighth week, the war has created the most severe shock to global energy supplies in history, sending oil prices surging because of the de facto closure of the strait, which before the war carried one-fifth of the world’s oil shipments.

Two liquefied petroleum gas tankers were seen on ship-tracking websites moving eastbound towards the strait early on Sunday morning, but the semi-official Tasnim news agency reported that Iran‘s armed forces turned them back. Marine traffic data showed no other movements after midnight.

Friday’s announcement that the strait would reopen caused the sharpest one-day drop in oil prices in years, while stock markets hit fresh all-time highs on the expectation that the disruption would soon end. But with the strait yet to reopen, markets could face new volatility when they reopen on Monday.

Amrita Sen, founder of the Energy Aspects think tank, predicted oil prices would rise on Monday when traders returned to their desks having realised they might have been prematurely optimistic last week.

“Events over the weekend with Iran firing on merchant vessels and shutting the strait again highlight just how precarious the situation is,” she said.

Dubai’s Roads and Transport Authority (RTA) has completed a major upgrade of Hessa Street, significantly reducing travel times along one of the city’s busiest routes.

The authority on Sunday confirmed the opening of the full scope of works between Sheikh Zayed Road and Al Khail Road, covering a 4.5km stretch.

The project included widening Hessa Street to four lanes in each direction and upgrading key intersections with Sheikh Zayed Road, Al Asayel Street, First Al Khail Street, and Al Khail Road. All associated bridges have also been completed, improving traffic flow in both directions.

As a result, travel time along the corridor has been reduced from 15 minutes to just four minutes, according to the RTA.

His Excellency Mattar Al Tayer, director general and chairman of the Board of Executive Directors of the RTA, said the development supports Dubai’s ongoing infrastructure expansion to meet population growth and urban demand.

Hessa Street serves several major residential areas, including Al Sufouh 2, Al Barsha, and Jumeirah Village Circle, with the population in these districts expected to exceed 640,000 by 2030.

Capacity doubled

The upgrade has doubled the road’s capacity from 8,000 to 16,000 vehicles per hour in both directions.

Key works included a new two-lane ramp linking Sheikh Zayed Road to eastbound Hessa Street, widening of the First Al Khail Street bridge, and the construction of a parallel bridge at Al Asayel Street to increase lane capacity.

At Al Khail Road, new directional ramps and additional bridges have been added to improve traffic movement towards Sharjah and Deira.

Phase 2 under way

The RTA has also begun Phase 2 of the project, extending from Al Khail Road to Sheikh Mohammed bin Zayed Road over 3km.

This phase will include 8.8km of bridges and a 480-metre tunnel, along with upgrades to several entry and exit points.

Once complete, travel time is expected to drop from 24 minutes to five minutes, while capacity will double from 4,000 to 8,000 vehicles per hour in each direction.

The wider project will benefit around 650,000 residents across communities including Jumeirah Village Circle, Arjan, Dubai Science Park, Al Barsha South, Jumeirah Lakes Towers, and Emirates Hills.

Traffic volumes across the corridor are estimated at around 500,000 trips per day.

Saudi Arabia’s retail sector is entering a more complex phase of growth, where opportunity is significant but execution is becoming more demanding.

In this interview with Gulf Business, Andy Veitch, MD and partner at Boston Consulting Group, shares insights from a recent BCG report on the kingdom’s retail landscape and what it will take for developers and investors to stay competitive.

A recent BCG report highlights significant headroom for retail development in Saudi Arabia, with retail space per capita still below global benchmarks. However, with major flagship openings and signs of oversupply in segments like luxury retail, how should developers and investors approach this opportunity while building winning propositions?

While Saudi Arabia offers clear headroom for retail expansion, the landscape is becoming increasingly competitive. Major flagship developments such as The Avenues, Westfield, and destinations like Diriyah and Qiddiya will compete for the same pool of consumer spending.

There are already signs of oversupply in certain segments, particularly luxury retail, where space is roughly double relative to spending compared to markets like Dubai and Kuwait. This suggests consumers are redistributing spend rather than increasing it, putting pressure on footfall per square metre and overall mall economics.

To remain competitive, developers need to move beyond traditional retail formats and focus on differentiated experiences. This includes integrating retail into mixed-use communities, strengthening food and beverage and entertainment offerings, and building community-driven engagement through events.

Future growth will also depend on expanding revenue streams beyond rent, including retail media, tenant services, loyalty ecosystems and omnichannel integration. At the same time, retailers are increasingly pushing for performance-linked rents tied to turnover and footfall, along with more flexible lease structures.

Ultimately, success will depend on creating propositions that expand overall consumer spending rather than simply redistributing it across an increasingly crowded market.

Experience-led retail is emerging as a key differentiator. Which innovations are proving most effective in driving footfall and dwell time in the region?

The most effective strategies focus on transforming retail into a broader lifestyle experience. Mixed-use integration, enhanced food and beverage offerings, and family entertainment are proving particularly effective in increasing dwell time and repeat visits.

Community-focused events are also playing a growing role, helping destinations build local relevance rather than relying solely on destination appeal, especially as newer developments intensify competition.

Retail media monetisation is now a major revenue stream. How are developers leveraging this, and what barriers exist?

Developers are increasingly generating revenue beyond rent through digital signage, dynamic parking, targeted marketing and tenant services that help drive store performance. Additional streams include non-endemic advertising, integrated marketplaces and product-searchable platforms.

However, scaling this model depends heavily on data. While loyalty apps and location-based data provide a foundation, limitations in data quality and depth remain a challenge. There are also barriers such as tenant reluctance to share data, privacy concerns and regulatory constraints.

A key issue is organisational readiness. Many operators underestimate that most of the effort lies in building capabilities, governance and operating models, rather than just deploying technology.

AI and data integration are cited as foundational for future retail competitiveness, yet readiness remains low. What steps should operators take now?

Operators should begin by identifying where AI can deliver tangible value, focusing on practical use cases such as property management and media revenue. Updating economic models to capture non-rent income streams is also essential.

A clear data strategy is critical, covering data acquisition, usage and monetisation, alongside governance and capability building. Partnerships will play an important role in accessing advanced AI expertise and scaling capabilities.

Equally important is talent, as attracting the right digital and prop-tech expertise will be central to executing these transformations.

Your latest retail report identifies three emerging retail archetypes. How should developers decide which to prioritise, and what trade-offs are involved?

Retail in the region is evolving around three models: community and convenience retail, experience-led destinations, and ecosystem platforms that extend into data, logistics and digital services.

While many developments will blend elements of these, success depends on having a clear primary focus. Assets that attempt to pursue multiple models without prioritisation often face diluted positioning and increased complexity.

The key decision is defining the role each asset plays within its market. Each approach involves trade-offs, and strong performance depends on aligning design, tenant mix and investment strategy with a clearly defined proposition.