Oman is set to launch a $350 million urban development project in the southern city of Salalah as part of its strategy to expand tourism and diversify its economy beyond oil. The ambitious plan includes the construction of 12,000 villas and apartments across 7.3 square kilometers, designed to accommodate 60,000 residents.
Salalah New City will feature residential areas, parks, a marina, retail zones, and hospitality facilities. The waterfront development was masterplanned by Sasaki, a design firm based in Boston, USA, and construction is expected to begin as early as July.
Known for its lush landscapes and cooler climate during the khareef (monsoon) season, Salalah is positioned as “the tropical city of Arabia,” attracting domestic and regional travelers. However, industry experts urge Oman to expand its outreach to European and Asian markets through international campaigns.
“Resorts alone won’t drive tourism growth,” said Khamis Al-Saifi, owner of Oman Adventure Tourism. “We need better marketing and global visibility.”
In December, Oman Air and SalamAir doubled their daily flights between Muscat and Salalah to meet growing demand. Yet challenges remain. Domestic tourist arrivals declined nearly 3% to 3.9 million in 2024, according to the National Centre for Statistics and Information. Meanwhile, neighboring countries such as Dubai, Saudi Arabia, and Qatar recorded significant increases in visitor numbers.
Naifeen Al Bahrani, director of Jumaana Travels, emphasized the need for improved domestic connectivity: “It’s not enough to build resorts. Tourists need access to Salalah’s natural and cultural landmarks—from waterfalls and streams to historical sites.”
The Salalah project reflects Oman’s broader ambition to strengthen its tourism sector as a key pillar of long-term economic growth and job creation.
Source: AGBI
