Oman is seeking to attract foreign investors to a pipeline of new cities and urban regeneration projects valued at more than $16 billion, as the Sultanate accelerates efforts to diversify its economy, expand private-sector participation and advance the objectives of Oman Vision 2040.
According to investment opportunities published on the Invest Oman platform, the proposed developments span residential, commercial, tourism and mixed-use projects designed to support long-term economic growth and urban expansion.
The largest project is Salalah Future City, with an estimated investment value of $5 billion. Planned along a 6km stretch of the Arabian Sea coastline, the development will feature approximately 13,300 residential units and 1,200 hotel keys, creating a major mixed-use waterfront destination in southern Oman.
Sohar Future City, valued at around $3 billion, is planned as a new downtown district for Oman’s northern industrial and logistics hub. Designed to accommodate 70,000 residents, the project will leverage its proximity to Sohar Port and the planned Oman-UAE railway to support commercial and residential growth.
In the interior, New City Nizwa represents a smaller-scale investment of approximately $1.2 billion. Covering 2.4 sq km around the University of Nizwa, the project is intended to develop a knowledge-based economy centred on education, innovation and research.
Within Muscat, the Al Khuwair Downtown waterfront regeneration project carries an estimated investment value of $6.5 billion, making it one of the flagship initiatives under Oman’s Future Cities Programme. Construction is scheduled to take place between 2026 and 2040, transforming the district into a major mixed-use urban destination.
Another key development is Muscat Airport City, where the former airport site is being redeveloped into specialised investment zones. The first phase, known as the Aviation Gate, is valued at approximately $495 million and will include hotels, a planetarium, an aviation museum and other commercial facilities.
In the tourism sector, Omran Group is also offering investment opportunities in a 300-key Club Med resort in Musandam, with an estimated value of around $108 million.
Combined, the disclosed projects exceed $16 billion in planned investment, excluding additional phases of Muscat Airport City that have yet to be valued publicly.
The investment drive comes amid growing activity in Oman’s real estate market. Earlier this year, Tanmia and FIM Partners Muscat launched a $250 million real estate investment fund, while residential land prices in Muscat rose 44% year-on-year during the first quarter of 2026, according to official statistics.
Foreign direct investment (FDI) into Oman exceeded $81 billion by the end of 2025, representing annual growth of around 8%, driven largely by continued investment in the oil and gas sector, according to the National Centre for Statistics and Information (NCSI).
However, analysts expect regional geopolitical tensions to weigh on investment flows across the Gulf during 2026. According to Savills Research, FDI into Oman’s real estate sector declined 2.4% year-on-year to approximately $1.5 billion by the end of 2025, despite an 18.4% increase in property transactions. At the same time, economists have revised Oman’s 2026 GDP growth forecast to 1.9%, reflecting the impact of regional instability.
The government views greater private and foreign investment as essential to reducing reliance on hydrocarbon revenues and financing the large-scale developments envisioned under Vision 2040.
While the pipeline highlights Oman’s long-term urban development ambitions, several projects remain in their early planning stages. For example, New City Nizwa is currently undergoing baseline studies and master planning, with land allocation and financing yet to be finalised. Likewise, the extended construction timeline for Al Khuwair Downtown underscores the long-term nature of these developments, as large-scale urban projects across the region continue to face challenges related to financing, implementation and delivery.
Source: AGBI
