Oman’s construction industry is projected to grow by 3.6% in real terms in 2025, according to Research and Markets, supported by rising foreign direct investment (FDI) — particularly in manufacturing — alongside ongoing investments in energy and transport infrastructure.
Data from the National Center for Statistical Information (NCSI) shows that Oman’s total FDI increased by 18.2% year-on-year in 2024, following a 25.2% rise in 2023. Meanwhile, the Ministry of Finance’s Financial Performance Bulletin (May 2025) reports a 4% annual increase in public expenditure in Q1 2025, reaching OMR 2.8 billion ($7.2 billion). Development spending by ministries and civil service units amounted to OMR 254 million ($660.6 million) in the same period, representing 28% of the total development budget for 2025.
From 2026 to 2029, the construction sector is expected to post an average annual growth of 4.4%, driven by investments in renewable energy, transport, and housing. Under the country’s 2040 economic vision, Oman targets 30% renewable energy in the power mix by 2030, 70% by 2040, and net zero emissions by 2050.
Adding further momentum, in May 2025, the Ministry of Transport, Communications, and Information Technology signed 18 agreements totaling over OMR 100 million ($260.1 million) with key domestic firms, including Arkan Sohar Logistics, Al-Sumari Trading, Oman SATS, Sohar Industrial Port, and Al Raad Logistics. These deals, focused on the development of ports, airports, and logistics zones, aim to modernize infrastructure and integrate advanced technologies, reinforcing Oman’s long-term construction outlook.
Source: Research and Markets
