Oman’s construction industry is entering a new phase of expansion, strengthening its position as the second-largest contributor to the national economy after the oil sector.

The market is projected to reach $7.27 billion in 2026 before expanding to $8.46 billion by 2031. Between 2026 and 2029, the sector is expected to record average annual growth of 4.4%, supported by sustained investment in renewable energy, transport infrastructure and housing.

Major Development Pipeline Supports Growth

In February 2026, Oman’s Public Authority for Projects, Tenders and Local Content unveiled a $3.9 billion development pipeline comprising 10,000 prospective tenders across 57 government entities. The programme is intended to stimulate private-sector activity and create new opportunities for contractors, suppliers and investors.

Housing and tourism developments will also play an important role in the market’s expansion. The government plans to deliver more than 60,240 homes and nearly 6,000 hotel rooms by 2030, responding to continued urbanisation and the country’s ambitions to attract more international visitors.

Sustainability Gains Momentum

Environmental considerations are becoming increasingly prominent across Oman’s construction sector. New developments are incorporating measures such as rainwater-harvesting systems and solar-panel installations to improve resource efficiency and reduce their carbon footprint.

With a sizeable government project pipeline and continued investment in housing, tourism, transport and renewable energy, Oman’s construction market is positioned for sustained growth over the coming years.

Source: MEP Middle East