Oman’s Vision 2040 aims to attract 11.7 million tourists by 2040, creating significant opportunities for investors in the construction sector. With growing demand for housing, commercial spaces, and tourism infrastructure, Oman is poised to offer high returns. Here’s a breakdown of the potential benefits, key locations, and investment opportunities in the construction market.
Oman’s high quality of life makes it an attractive place to live and invest. The construction and real estate sectors are projected to reach $298.60 billion by 2024, with a focus on residential development. The government’s Vision 2040 is driving growth in infrastructure, tourism, and industrial projects, boosting demand for both residential and commercial construction.
One of the main advantages of Oman’s construction market is affordability. Compared to other Gulf countries, property prices in Oman are relatively low. For example, in Muscat, construction costs average between 800-1000 Omani Rials per square meter (around $2,080-$2,600 USD), offering appealing opportunities for developers and investors.
Oman’s expanding tourism sector, with nearly 3 million visitors in 2022, adds to the growth potential. The government is investing $51 billion in tourism, which is expected to drive demand for hotels, resorts, and other infrastructure. Investors can benefit from renting out properties or developing new tourist accommodations.
Investors also enjoy tax benefits in Oman, such as no capital gains tax on personal property purchases and a property transfer tax of only 3%, making it a favorable market for construction and real estate development.
Investing in Oman’s construction market can also provide residency opportunities. A 5-year residency can be obtained with a minimum investment of 250,000 Omani Rials ($650,000), while a 10-year residency requires an investment of 500,000 Omani Rials ($1,300,000).
Oman’s Vision 2040 is creating diverse opportunities in residential, commercial, tourism, and industrial construction. Residential projects include apartments, villas, and townhouses, with demand rising in urban areas like Muscat. Commercial investments in office spaces and retail outlets are thriving, particularly in Muscat’s business districts. With increasing tourism, the demand for hotels and resorts is expected to surge, making hospitality projects highly lucrative. The industrial sector, driven by Oman’s strategic location, offers investment opportunities in warehouses, factories, and logistics centers.
Top locations for construction investment include Muscat, Salalah, Sohar, and Nizwa. Muscat, the capital, is ideal for both residential and commercial development, while Salalah’s booming tourism sector makes it a hotspot for hospitality projects. Sohar’s proximity to major ports positions it as a key player in industrial construction, and Nizwa offers opportunities in tourism and residential developments.
Oman’s construction market offers excellent potential for investors, with strong growth in both tourism and industrial sectors. With favorable market conditions, tax incentives, and growing demand for infrastructure, Oman is an ideal location for long-term construction investment.
(Compiled sources)
